Monday, February 13, 2012
Good evening Ladies and Gentlemen:
Gold rose by $1.00 to $1723.00 at comex closing time. Silver rose 10 cents to $33.70. Initially
gold and silver rose, however the bankers do not want our precious metals rising in these precarious times so they provided a brick wall with more non backed paper gold and silver selling. It seems that 34.00 dollar per oz is the barrier for silver. Anything over $1750 for gold will bring on much bank selling.
Let us head over to the comex and assess trading today. The total gold comex OI (open interest) fell by
2517 contracts to 428,559 from 431,076 contracts. The huge raid on Friday, caused minor liquidation of some longs in the gold complex. The front delivery month of February saw its OI fall by 248 contracts to 538. We had 229 delivery notices filed on Friday so we lost 19 contracts to cash settlements as Blythe Masters offered copious fiat money to some of our longs instead of letting them stand for actual metal. The next big delivery month is April and here the OI fell by 3104 contracts from 235,628 to 232,524. The estimated volume today at the comex must surely bother our CME folk. It registered a measly 102,890 contracts. The confirmed volume on Friday, the day of the big raid saw its volume come in at 191,182 contracts. To me it looks like many have abandoned the comex to seek their physical elsewhere. They know the game is crooked and the risk of another MFGlobal must weigh on investors. This is the reason for the lowering of the margin requirements in all commodities to entice players to return, but it is a little too late.
The activity in the silver complex is something to be beholden. The total silver complex open interest, after 3 raids, shook our bankers up again today. The OI rests tonight at 105,969 rising by 603 contracts from Friday's level of 105,366. Please remember that all OI numbers are one day back, i.e. we are looking at official OI as of Friday night with Monday's figures. No wonder the bankers threw a tantrum and they decided that another mini raid was necessary today, to scare some of the new silver longs to pitch their long contracts. The front options expiry month of February mysteriously saw its OI rise from 64 to 135 contracts for a gain of 71 contracts despite zero deliveries on Friday. What is even more puzzling is the fact that we got zero delivery notices again today. Generally when we get a rise in OI during an options expiry month, the bankers raid the comex for some physical and send the metal to needy destinations. Something is happening with silver as the world tries to obtain this worthwhile but fast depleting metal. The next delivery month is March and we are a little over 2 weeks to go before first day notice. The OI fell by only 1472 contracts from 39,867 to 38,395. The OI has been staying at these lofty levels and we have not witnessed much roll- over contracts into the May delivery month. The estimated volume at the silver comex today came in at a slightly lower pace of 40,200 contracts. The confirmed volume on Friday was a very healthy 58,209 contracts. Yet we saw nobody leave as the OI remains relatively constant!
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