Harvey Organ's - The Daily Gold and Silver Report - Saturday, December 17, 2011

Huge gold deliveries/More sovereign downgrades/ Saturday, December 17, 2011

Good morning Ladies and Gentlemen:

After a 3 week hiatus, the FDIC decided to best to place two banks into the morgue:

Bank Name	City	State	CERT #
Western National Bank	Phoenix	AZ	57917
Premier Community Bank of the Emerald Coast	Crestview	FL	58343

end.

Friday saw the stock market initially rally into triple digit gains by the Dow but as the day wore on, selling commenced and finally the Dow ended in negative territory.  Gold started strong but fell during the early comex hours but gained strength as the day wore on, finishing the session at $1595.60 up $21.20.  Silver also had a good day finishing the comex session at $29.62

In the access market here are the final closing prices for these two metals;

Gold; $1599.20
Silver: $29.74

Let us head over to the comex and see how trading fared with respect to open interests, delivery notices and finally inventory movements.

The total gold comex open interest fell by 5144 contracts to 430,854.  We had very minor spec liquidation. The fun begins with the front delivery month of December.   Here the OI fell from 2327 contracts to 981 contracts for a loss of 1346 contracts.  We had a huge 1823 delivery notices on Thursday so we gained more gold ounces standing for delivery and lost nothing to cash settlements.  The next big delivery month is February and here the OI fell from 261,629 contracts to 257,634 as it was here that had the major contraction in open interest.  The estimated volume on Friday was very tame at 139,217.  The confirmed volume on Thursday was much higher at 199,508 due to the raid and mega high frequency trading.

The total silver comex OI rose by 884 contracts despite the raid on Thursday.  As I pointed out to you on numerous occasions it is becoming more difficult for the bankers to get the silver leaves to fall from the silver tree.  They just are not biting. The next delivery month is March and here the OI rose from 57,037 to 58,059
as our longs remain resolute in their conviction and refuse to play along with the bankers.  The estimated volume was extremely low at 30,084 as the bankers refused to supply the needed paper having been exhausted during the week with heavy activity and nothing to show for their "hard" work.  The confirmed volume on Thursday was a little better on Thursday at 47,798.