Thursday, January 13, 2011

Harvey Organ's Daily Gold & Silver Report - gold and silver withstand another raid/gold and silver open interest continues to rise
Good evening Ladies and Gentlemen:

Gold rose today despite repeated attacks by the bankers. It rose by $1.70 to 1385.70. Silver rose by 4 cents to close the comex session at $29.53.

All day today commodity prices were on fire. We saw platinum hit a yearly high of $1,801.00. Copper hit an all time high of $4.46 per pound. Palladium hit an all time high today of$ 809.00 per oz.

I would like to point out that West Texas Intermediate is trading at a six dollar discount to brent crude oil. Brent is a sour oil with more impurities and the light sweet crude of West Texas Intermediate. When you see this huge disparity, generally the entire oil sector rises in price. Brent OIl is trading at around 98.00 per barrel and WTI at 92.00 per barrel. All base metals were higher today joining copper. Even the foodstuffs were higher as soybeans and corn rose big time with a bullish report (less available product)

The only two commodities not to set the world on fire was gold and silver. Today , our buffoon Dennis Gartman indicated that he was now out of his gold holdings denominated in pounds. This gentlemen is a well informed and I guess the bankers told him that there is going to be a serious raid today or tomorrow. Actually, I am quite happy that he is out as this gentleman literally has made zero dollars on his gold and silver holdings for the past 12 years. And he gets invited back on CNBC to tell his version on the action of the precious metals. The bankers tell him that there is going to be a raid as his selling accentuates the raid. That is why he is usually right on the sell side. They never tell him when they are going to buy back their shorts. The bankers do not need Gartman competing with them on the buy side. Gartman generally stays on the sidelines and thus has never participated on the huge rise in gold and silver.

Let us go straight to the comex trading:

First gold:

The total gold comex open interest rose by a very healthy 3190 basis yesterday as gold withstood a huge raid. The front options delivery month of January saw its open interest fall slightly from 54 to 50. Yesterday saw 9 deliveries so most of the loss was due to options holders taking possession of a gold contract. The front delivery month of February saw its open interest fall ever so slightly from 306,173 to 297,587. The bankers would have preferred to see a greater fall in the front month as this is the month that they must be watchful over. The estimated volume on the comex today was a very healthy 176,378 and the confirmed volume yesterday was also extremely good at 189,064.

Now for silver;

The total silver comex open interest rose again by 648 contracts sending our bankers into a tizzy. The front options delivery month of January saw its OI drop from 56 to 54 for a drop of 2 contracts. We had 3 delivery notices yesterday so the bulk of the fall in OI was due to deliveries. The front delivery month of March was its OI surprisingly remain resolute at 73,563 (yesterday 73,330). The estimated volume today on the silver comex was 46,182 whereas the confirmed volume yesterday turned out to be 56,135..quite a robust number.

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