Raid on silver and gold fails/Poor Italian 10 yr auction/rumours of global QE to infinity.

Raid on silver and gold fails/Poor Italian 10 yr auction/rumours of global QE to infinity.

Good evening Ladies and Gentlemen:

I hope that all of you were not blinded by the antics of the banks as they threw a tantrum this week as they are trying desperately for you to sell to them all of physical metals that you wish to depart with.  The paper shorting accomplished nothing as you will see below.  The bankers have nobody to play with so they are playing with themselves selling all the way down and up as well.  You will see the OI either remained the same or rose.

The price of gold finished the comex session at $1539.90 down $23.00 dollars.  The price of silver fared better finishing the session at $27.27 up 8 cents on the day. I have written to Bart Chilton and he is going to obtain for me the Dec 23.2011 data which somehow was released at 10 am the 27th of December.  If any of you saw this release, please let me know and email to me the inventory movements so I can complete my data entries.

The price of gold trading right now at the comex:  1545.50 and silver:  $27.77 as rumours started to surface that credit markets are in trouble and that a global QE infinity will be released on all markets.  I will be detailing this to you in the body of the commentary.  But first let's see how trading fared at the comex, inventory movements and delivery notices.  Since tomorrow is first day notice, we will receive late tonight
those first deliveries for January.  January is an extremely weak delivery month for both gold and silver so do not expect much.  If I am up late tonight, I will give you that data on the comments section on my blog.

The total gold comex OI hardly budged falling only by 38 contracts from 418,945 to 418,907 as the bankers were basically trading with themselves as most of gold/silver investors have left the comex and seek their metal elsewhere.  The front delivery month of December is now off the board.  You will recall that we had 88 OI  notices left to be served upon and that was exactly what we got late last night. The new front month for gold is February and here the OI dropped by only 800 contracts to 239,266 contracts.  The estimated volume on the gold comex was very light at 136,112 with many rollovers.  The confirmed volume yesterday was also very light at 123,088.  The front January options exercised looks like we have 1,038 contracts standing but that may change by tomorrow which will really tell us how many contracts are standing.

The total silver comex OI surprisingly rose by 1300 contracts to 105,245.  As you can see the raids now are having minimal damage in OI. The bankers have clear control on the price of paper gold (and silver).  The front delivery month of December is now off the board.  You will recall that we had 15 delivery notices yesterday and that is exactly what you got yesterday.  That should have completed the month but lo and behold we got another 4 contracts served by the bankers as they must have needed some silver.  Thus the number of silver oz standing will increase by 20,000 oz.  The next front month is March and here the OI rose by over 1000 contracts to 58,999 contracts from 57,891.  The estimated volume was very light at 35,962. The confirmed volume yesterday was also light at 33,887.