Monday, January 10, 2011

Harvey Organ's Daily Gold & Silver Report - Massive Drainage of silver at the comex/another failed raid/jobs report less than expected
Dear Ladies and Gentlemen:

Good morning. Before commencing our regular commentary Sheila Bair announced last night that there were two new entrants into the banking morgue:

1. .First Community Bank of Florida headquartered in Orlando Florida.

2. Legacy Bank, Headquarted in Scottsdale Arizona.

may they rest in "pieces".

Gold closed Friday night at $1368.50 down $2.90 on the day (comex closing time 1:30 pm). In the access market it basically regained the loss and closed at $1369.80. Silver fell by 37 cents to $28.74. In the access market in dropped a few pennies to $28.69.

Yesterday saw the release of the jobs report and as always, the bankers whack gold and silver in an attempt to show the world that the economy is improving. The actual number disappointed the street even with the massive seasonal adjustments and the famous plug addition of the B/D number. (B/D means birth/death...for every death of a job there is a new job born). I will go over the number with you after I report on the comex trading.

The total gold comex open interest surprised investors greatly once they were released at 1:30 yesterday afternoon. The total open interest in gold rose by 640 contracts to 583,920 (basis Thursday). The raid was huge and thus no gold leaves fell from the comex tree much to the chagrin of the bankers. The front options delivery month of January saw the open interest decline from 71 contracts to 28 for a drop of 43 contracts. All of the drop was due to Thursday delivery notice of 60 contracts. The next key number is the front delivery month of February. The month of February is a big delivery month and is generally third as to the mostly played months in the gold calendar following December and June. The February open interest declined by a very tiny margin:5939 contracts (335,228 to 329,289). You will see a slow decline in this month until the first day notice. The estimated volume on the gold comex yesterday was a monstrous 252,190 as the bankers threw massive un- backed paper trying to quell gold's demand. Judging from the eventual rise in price of the gold ( as the shorts tried to cover) and the open interest announcement at 1;30, the raid was a massive failure. The confirmed volume on Thursday was also a massive 208,593. Wait until you see what happened in silver.....

The total silver comex open interest rose again for the 3rd consecutive day by 731 contracts to 139,291. (Thursday's reading was 138560 which is basis Wednesday). The reading at 1:30 Friday is basis Thursday night. Can you imagine the shock on all the bankers faces when they discovered Thursday night that their relentless supply of un backed paper has no effect on our longs. On a net summation, instead of losing some silver leaves we gained some as many have caught on to the bankers scheme. The bankers , by their raiding tactics provided silver at lower prices and many were waiting in the wings to take on cheaper silver metal. The front options delivery month of January saw its OI mysteriously climb from 95 to 153 for a gain of 58 contracts. In another surprising statistic, the front delivery month of March saw its OI rise by 267 contracts to 77,747 from 77,480. The front delivery month boys were not scared off. The estimated volume Friday was a very large 89009. The confirmed volume for Thursday turned out to be a healthy 68,429.

to continue reading Harvey's report

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