China Buying the Dip - 28.652 Tonnes Delivered on the Shanghai Gold Exchange In One Day

The top of the chart is cumulative, the bottom portion is the daily volume.

Yesterday was easily the biggest day of this year for physical gold deliveries in Shanghai.

They may show themselves only in the longer term, but pricing action does develop profound physical market consequences for supply and demand.   History has proven that.


Related: Major Gold Price Divergence Between Shanghai and London

Gold Daily and Silver Weekly Charts - Non-Farm Payrolls Tomorrow

I have included the Comex delivery reports from yesterday for both gold and silver, because I thought that the volume and what the players were doing with it was interesting.

There will still much heavier deliveries for this new contract month as compared to the last, which is to be expected.

And it seems from looking at the details that the customers were disgorging their long positions and the bullion banks were snuffling them up for their house accounts.

In other words, we are in the rinse cycle of a wash and rinse.

For any number of reasons, the wiseguys like to really take something down before they let lose the dogs of the market forces and let it go up.  Let's see if it works out that way this time, which should start showing up next week some time.

Non-Farm Payrolls tomorrow, and the Italy vote over the weekend.

The Donald is out saving jobs in Indiana, and I will give him some credit for that, even though it maybe a bit overdone.  At least he is doing something about the real world economy, which the Dems would rarely do unless it involved the desires of a big donor.  The Dems would just feel their pain, and try to comfort those losing their jobs with the thought that it is for the inevitable cause of progress, or some other tawdry slogan like that.

I am wondering if all those donors to the Clinton Foundation can get their money back, now that the principals have been sidelined from the favor dispensing business.   And I wonder how Barry plans to cash in, now that his terms of service are over.  University president?  UN chieftain?  Hitting the book and speech circuits in the manner of the Clinton clan?   I doubt he will sully his hands with running an actual business, in which he has little experience, or apparent interest.

Have a pleasant evening.

SP 500 and NDX Futures Daily Charts - A Tale of Two Economies

The Dow Jones 'Industrials' were heading to new all time highs, even as the techs continued to lead the declines to the downside, with the SP 500 going along for the ride.

The Dow is being supported by financials, since its days as an industrial indicator in any kind of Dow Theory are long over. As I have remarked before, the DJIA is the index for tourists, and local news programs.

The economic news was mixed, with unemployment higher than expected but some other industry indicators doing better.

This is going to keep becoming a tale of two economies.

Have a pleasant evening.

Charts at the Market Close on 'Hump Day' - Don't Worry Baby

"Sanders laid out the dilemma facing the Democratic Party. The Democrats must find their way back to a connection with ordinary people, and this will require a complete change in the way they do business. He's convinced that the huge expenditure of time and mental effort the Democrats put in to raise more than $1 billion for the Clinton campaign in the past year ended up having enormous invisible costs...

'I've seen it for years. I've seen a media, which has basically ignored the declining middle class, that doesn't talk about poverty at all, and has no sense of what is going on in the minds of millions of ordinary Americans. They live in a bubble, talk about their world, worry about who's going to be running 18 years from now for office. Meanwhile, people can't feed their kids. That's something I knew.

Talking about those issues, seeing that they resonated, that did not surprise me. How quickly they resonated did surprise me. How weak the Democratic establishment was, and how removed they were from the needs of ordinary people, that also surprised me.'"

Matt Taibbi, Bernie Sanders On Where We Go From Here


"There are two kinds of truth: the truth that lights the way and the truth that warms the heart. The first of these is science, and the second is art. Neither is independent of the other or more important than the other. Without art science would be as useless as a pair of high forceps in the hands of a plumber. Without science art would become a crude mess of folklore and emotional quackery. The truth of art keeps science from becoming inhuman, and the truth of science keeps art from becoming ridiculous."

Raymond Chandler

The economic news came in 'better than expected' this morning with Chicago PMI and the ADP Employment change beating estimates in particular.

The Dollar was stronger, and thereby we had some down moves in the precious metals priced in dollars.  This does not always happen, but depends upon the reason for which the dollar is stronger.

The warehouses were boring as usual.  I posted the first December delivery report last night which shows that we will likely see a 'livelier' month than we have had in November.

Non-Farm Payrolls looms on Friday, but do not forget about the Italian referendum on the weekend.

Trump is filling out his initial cabinet appointments.   It so far looks like he is not draining the swamp, but rather changing out one set of alligators for another.

And then there is the upcoming FOMC meeting in which one might be stunned if the Fed does nothing again.  Not necessarily anything useful or significant, but they will likely do something.

Have a pleasant evening.

And the December Gold and Silver Contract 'Deliveries' Begin

For the first day of December, 493,800 ounces of gold have been taken for delivery at 1187.50.  This represents a nominal first day delivery value of $586,387,500.

The 'big customer' at Goldman and the house account at Macquarie continue to disgorge their gold positions, in size, through the delivery process.

The buyers of these positions are the house accounts at HSBC, Nova Scotia, and JP Morgan, in addition to the big 'customer' at Morgan.

As for silver, the big deliverers of the December contract positions were customers at Goldman and Intl FCStone, and a smaller amount from the house account at Nova Scotia.

The big takers of December silver were the house accounts at Macquarie and JP Morgan.

As you may recall, JP Morgan is holding the biggest hoard of silver on the Comex in its warehouses, with over 81 million of the almost 179 million ounces of silver on deposit.

Still, if history is any indicator, these gold deliveries are merely the pushing of paper claims for a smaller percentage of physical silver around the plate, with little physical metal actually going anywhere.

Not so for silver, which continues to see large inflows and outflows of physical metal, especially in the warehouses of wholesaler CNT.

Charts at the Market Close On a Rainy Tuesday

"Human kindness has never weakened the stamina or softened the fiber of a free people. A nation does not have to be cruel to be tough."

Franklin D. Roosevelt

3Q came in 'better than expected' this morning, but that was not enough to keep the fire lit under equities after this post-election euphoria.

Gold was under a little pressure and silver less so, as November winds down and we enter the more important trading contract of December.

As you may recall, my operating theory has been that the 'free float' of physical gold available to fulfill physical delivery in the markets of Asia has been diminishing, to the point now that the card sharps of the West are concerned a bit about the calling in of their monumental paper leverage.

I had thought the denouement would have occurred during this Summer, but some stores of physical gold were found in the hands of some unfortunate nations, and that has served to keep the game going.

But as the last calculation of the free float showed, the winding down continues, slowly but surely.  All pools and schemes and frauds, if you will, that run against reason and free choices of the markets run down and fall apart eventually, worn out by the artificiality and the energy required to sustain them.

As the old saying goes, 'the bigger they come, the harder they fall.'

Non-Farm Payrolls later this week.

It was very rainy here day, pouring quite steadily for the most part.  I had to take the queen to the hospital for some check ups and blood work.  I could not help but wonder how a little adverse weather, like rain or snow, seems to bring out a kind of mindless aggression in some drivers and a carefulness almost to a fault in others.

We can be like that with words as well.  I see people saying things some times that are almost incredible, and you cannot imagine them saying that sort of thing if they were there in person, or at least for most of them.

As adversity or some obstacles or disappointments frustrate us, we can become mindlessly aggressive and reckless with our words, and our actions, especially when we have the cover of anonymity, of an electronic vehicle, as people do with automobiles or ideologies or a devotion to some pet theory.

They use them as rationales to behave- inhumanly.   Certain in ways that they would not ordinarily even consider, and would be embarrassed if it were pointed out to them.  They forget themselves.

We all have this tendency, to get caught up in the moment.  Let us remember who we are at all times, and whom we serve.  And when such injustice is done to us, that we should forgive it, and understand from whence it comes.  And regret our own culpability in such bad examples, and try to do them no more.

Yes, there is violence and injustice in the world. There always has been. We may have been on the receiving end of it. Cruelty and aggressive anger is most often a sign of fear or weakness or a harsh upbringing with an abusive parent. And it breeds nothing good, only more of the same.

So let it end with us.

One does not have to be cruel or rude to be tough, to be a pillar of support to those whom he loves.

Have a pleasant evening.