Harvey Organ's Daily Gold & Silver Report

Gold and Silver rally/Huge Problems in Egypt/Oil rises
Good morning Ladies and Gentlemen:

Before commencing, I would like to introduce to you, the latest entrants to our famous banking morgue:

We lost 3 banks last night (courtesy of Jim Sinclair)

Bank Closing Information – January 28, 2011
These links contain useful information for the customers and vendors of these closed banks.

FirstTier Bank, Louisville, CO
Evergreen State Bank, Stoughton, WI
The First State Bank, Camargo, OK

http://www.fdic.gov/

end.

Gold closed at comex closing time at $1340.70 up a huge $22.30. In the access market it finished the day a little lower at $1338.50. Silver had a banner day closing up .90 to close at $27.94. Silver and gold were hit in the access market but silve rebounded after being hit hard to close higher at 28.01 up $1.07 for the day.

I would like to go straight to comex trading and see how things of over fared and how those developments will assist you when Monday arrives.

The total gold comex open interest fell by 2226 contracts to 488,926 which is basis Thursday. As Thursday was a huge raid against silver and gold the contraction in open interest was minor. The January options expiry month has now been officially put to bed as it is now off the board. The all important front delivery month of February saw its open interest fall from 99,036 to 42,809 for a loss of 56,227 contracts. These guys switched to the next delivery month of April. This represents 4.28 million oz.

However we must wait to see the final open interest for February and that will occur at 1;30 pm Monday. (remember in OI we are always 1 day back) The estimated volume today was good at 303,300 considering that 56K switched. The confirmed volume on Thursday as promised to you did exceed 400,000 contracts to register a reading of 411,190.

In the silver comex open interest hardly budged down 720 contracts to 124,501. The January options expiry month is now off the board in silver as well. The front month of March saw its open interest fall marginally from 66,113 contracts to 64,946.

It will be exciting to watch this open interest throughout February as we will witness how many will stand in silver for this big delivery month. The volume on the silver comex estimated for yesterday was a very high 73,895. The confirmed volume on the day of the raid on Thursday was 65,602. The bankers did not like what they saw in silver and whacked and whacked but silver pricing remained resolute.

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