-ZERO-I sound like a broken record-deposits to the dealer
-ZERO deposits to customer, check.
-ZERO deposits to dealer, check.
-2 deliveries in a delivery month? Priceless.
The metals markets are starting to look like shit again (bullish) like they did in November.
As for the ETF's, I'll let Harvy take this one away with a great point:
"London has seen a flurry of activity where some physical players refuse to forward any of their gold contracts at the LBMA and instead take the physical totally out of London vaults. This causes the Bank of England to muster up supplies so it calls upon our illustrious hoodlums, JPMorgan, Goldman Sachs, to deliver gold to our buyers. They raid the GLD by taking shares and cashing them for gold and deliver upon the anxious investor. The problem is thus two fold:
the shareholders of GLD are losing "their gold"
the bank of England is also losing their gold.
Immediately after GLD was formed, we could not balance demand vs supply of gold. However
Catherine Fitts determined that the GLD got their original gold through a swap arrangement with the Bank of England. The Bank moved its gold over to the cubby hole of the GLD. The GLD deposited money into the Bank's account. The Bank of England can reswap at any time they wish. If you remove the GLD inventory then all BIS data balances perfectly. There is a further problem here in that the gold on deposit to the Bank of England is not really the Banks but depositors like the Arabs or other sovereign folk who desire to deposit gold for safekeeping. The Bank of England is a foreign depository for gold just like the Federal Bank of New York with one distinction. The gold at the Bank of New York is ear-marked gold and cannot be used by the Bank in lending activities etc. The gold at the Bank of England is not ear marked and they can use the gold for lending purposes just like you depositing cash into your bank. The bank can loan out your money and that is what they are doing with the gold. This is why a default here will be a much bigger bang and a default over at the comex."
Gold: the JPM's added 16,484 contracts long and only covered 2, 037.
Silver: the JPM's added 2523 contracts long, and fuck me sideways added 1,399 MORE SHORT. HOLY FUCK. They didnt cover anything from $49-32? Not too sure what to make of this.
To QE3 or not to QE3, that is the question...
Either way we will see $75 in 2011. Most likely fall, when Benny turns up the presses again and floats JPM another 500 bill in electronic transfer if worthless digits (why spend money printing when you can click a button?)
More to come later, relax, have a beer, enjoy the weather (and if you have winds coming in off Japan, stay inside, it might get a little acidic out there soon.) Thank me lots!