Harvey Organ's - The Daily Gold and Silver Report - Saturday, January 14, 2012

Saturday, January 14, 2012
Greece
Good morning Ladies and Gentlemen:

The bankers in their great wisdom, decided to delay by one day their raid on gold and silver. On Thursday, the cartel saw the precious metals rise on a "great" auction in Europe. The rise provided extra juice for the bankers on Friday and they did not disappoint. Gold fell by $17.30 down to $1630.40. Silver was hit for a loss of 36 cents to $29.75. Bourses were hit first in Europe with news of a possible S and P downgrade on France. That brought the Dow down initially quite hard to triple digit losses, but it rallied on the close down only 48 points. Gold rose with the Dow advancing but not silver. France was finally downgraded at 4:30 pm Friday night. Here are the final closing prices:

Gold: $1639.70
silver: $29.77

The bankers have complete control of the paper price of gold and silver. I would like to report that again we had no USA bank failures Friday night.
Let us go to the comex and assess trading, amounts standing for delivery, inventory movements and the COT report for positions of the various players.

The total gold comex open interest rose by 4,383 contracts which provided the fodder for our bankers to whack on Friday. Always remember that all OI figures are 24 hours back. Thus the "real" OI Friday is officially the close of trading at the comex on Thursday. The front options expiry month of January saw the OI rise by 5 contracts from 30 to 35 despite 8 deliveries on Thursday. We thus gained another 1300 oz of additional gold standing and lost nothing to cash settlements. The next big delivery month is February and we are a little over 2 weeks to first day notice. The February month saw a contraction from 182,125 to 174,222 as many are rolling to other future months namely April. The estimated volume was quite high yesterday coming in at 230,480 and this was due to:

1. the high rollovers
2. the extra shorting by the bankers.

The total silver comex OI hardly budged in total contrast to gold. Here the OI fell by only 5 contracts to 103,877. There is no question that silver is trading in a different pattern to gold. Judging from the comex movements it seems that the CME is getting ready for some serious deliveries in March. The front options expiry month of January saw its OI fall from 185 to 122 for a loss of 63 contracts. We had 125 delivery notices filed on Friday for delivery on Tuesday so we again gained 62 contracts or 310,000 additional oz of silver standing for delivery and lost nothing to cash settlements. The next front month which appears to be of considerable interest to investors is the March contract and here the OI lost only about 600 contracts to roll overs. The OI rests this weekend at 55,029. The estimated volume on Friday came in at a weak 38,682. The confirmed volume on Thursday was also weak at 38,807 The entire silver comex longs appear to be in very strong hands as these guys do not seem to be bullied by the banker's antics.

US acts to hold Israel back from striking Iran. Their intel agencies at odds

DEBKAfile Exclusive Report January 14, 2012, 10:36 AM (GMT+02:00)

The bombing attack in Tehran which killed Iranian nuclear scientist Mostafa Ahmadi-Roshan last Wednesday, Jan. 11, generated an angry phone call from US President Barack Obama to Israeli Prime Minister Benjamin Netanyahu the next day, debkafile's Washington and intelligence sources report.  Washington is increasingly concerned, the Wall Street Journal reported Saturday, that Israel is preparing to strike Iran's nuclear sites over US objections and has bolstered the defenses of US facilities in the region in case of a conflict.
Obama, Defense and Secretary Leon Panetta and Secretary of State Hillary Clinton have been sending private messages to their Israel contacts warning them about the dire consequences of a strike, the paper reports. Top US armed forces chief Gen. Martin Dempsey will visit Israel next week.

Mohamed El-Erian tells us that he believes QE3 is coming and that the Age of Credit is at Risk

Peter Schiff on Why US is in Worse Shape than Europe

SilverDoctors: Silver COT Update 1/13/12

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Iran Could Make Silver Bugs Filthy Rich

Posted by Dominique de Kevelioc de Bailleul on Jan 13, 2012 |

If the first year of the Iraq War of 2003 offers up some clues to the potential move in the silver price following an invasion of its neighbor Iran, then grab as much of the white metal as you can and enjoy the ride.  This ride could be for the record books.  Sign-up for my 100% FREE Alerts
On the officially day of the U.S. invasion of Iraq on Mar. 20, 2003, silver traded at the lowly price of approximately $4.35.  On the first anniversary of the invasion, the silver price reached nearly $8.00, for an 83 percent return (see graph, below).
But an attack on Iran could make an 83 percent return seem miniscule.

Backing up for a moment, however, an obviously important question, first, should be: how likely is an imminent attack on Iran?
With reports of American troop movements into Israel, along with Reuters reports of two U.S. aircraft carriers headed to the Persian Gulf and a lot of chatter from Washington command appearing on television as salesmen for an attack, a military strike on Iran is likely, according to Jim Rickards, adviser to government personnel on U.S. national security issues and frequent guest of King World News.

'Six reasons why still to buy gold bullion or gold'

By Mike Neon
When you see across the world, you will notice bad times giving you reasons to put your money in Gold bullion . Having gold at any point of time is a secure choice to try since it works when everything fails.

Six reasons why to buy gold bullion or gold:

--Fights with a troubled economy: We see the US and the world economy fluctuating where we see effects shaky about the dollar and euro and even other currencies of the world sinking to a great extent. At such juncture when currencies are losing value, buying gold bullion or gold somewhere in the past will help him survive the bad economy.

Iran Foreign Ministry Claims Nuclear Scientist Was Executed By CIA, As Nigeria Strike Talks Collapse

Submitted by Tyler Durden on 01/14/2012 22:15 -0500

Gold relinquishes relationship with dollar, may regain 'safe haven' status, says Dubai-based expert

Source: Precious Metals, Emirates NBD , Author: Gerhard Schubert
Posted: Sat January 14, 2012 6:42 pm

UAE. Emirates NBD, the United Arab Emirates biggest lender by assets, today released its weekly Precious Metals Report.

Gold: US$1,639.00 – up US$33 since the 25th December 2011.
Gold has done very well in the light of the re-balancing of the commodity indexes and the significant pressures resulting out of this. It shows again that the Market participants did build up significant short positions in front of the index sales and that the market was forced to cover when the prices rallied.

Gold received also some support from the changed sentiment in Platinum, and the whole complex was under a lot less pressure than expected. I think it is time to start concentrating on the outlook for 2012 again.

We do expect Silver to move closely orientated to Gold but Silver would be the winner if Gold is capable of moving further forward from here on. The investment community had abandoned Silver during 2011, but a resurgence of interest could be seen if Gold can carry on the uptrend and tow Silver in its wake.