Silver Up $1.34… With Much More to Come… Unless 'da Boyz' Show Up
YESTERDAY IN GOLD AND SILVER
Gold rose strongly in Far East and early London trading on Thursday… but shortly after 9:00 a.m. in London [4:00 a.m. in New York], gold pretty much topped out for the day… and traded sideways or down for the rest of the trading day in both London… and then in New York. However, it managed to tack on about $18 on top of Wednesday's closing price.
Silver was the absolute star of the day yesterday… finishing up $1.34 from Wednesday's close… 5.22%. That's the first time in 30 years that silver has gained more than a dollar in one 24-hour trading period. Expect more of this kind of action as we move forward in this ongoing bull market in silver.
Just eye-balling the 3-day dollar chart, I'd guess that the 'value' of the world's reserve currency fell about 45 basis points during the Thursday trading session… with a 40 point intraday bounce between its 8:30 a.m. low and 11:00 a.m. Eastern time… which there was no hint of on the gold chart. I'd say that there was a general relationship between the dollar and the gold price yesterday… but that's all.
The gold stocks gapped up… and stayed up all day long, but did give back about one percent of their gains, as the gold price softened as the day wore on in New York. And, as one would suspect, the silver stocks were on fire all day long on Thursday… and most were up several [to many] orders of magnitude more than their golden cousins. That's why my investment portfolio is 60/40 silver/gold… and that ratio is heading to 70/30… as the silver stocks prices continue to outperform. But I'm not an investment advisor.
The CME Delivery Report was quiet once again, with exactly one  gold and 49 silver contracts posted for delivery on Monday. The action is linked here. I mention these numbers for two reasons today; firstly, I haven't seen JPMorgan trading for its proprietary [house] account in more than a week now… and it appears that Prudential and the Bank of Nova Scotia are the only firms left trading in their proprietary accounts. The second thing I want to mention is the 841 silver contracts that have already been posted for delivery this month. That's 4.2 million ounces, and that's only for deliveries up until Monday, November 22nd. That's a lot, considering the fact that November is not a traditional delivery month for silver.
I also want to point out one more time, that all this silver [and gold] that's posted for delivery on the CME's website every day, never leaves the Comex warehouses. All that happens is that the bars change ownership on the racks at each of the four remaining Comex-approved depositories. The Comex delivery report [below] shows the actual physical metal that's coming in, or leaving, the exchange.
The GLD reported a withdrawal yesterday… 146,482 ounces. There were no changes at SLV… and the U.S. Mint had no sales report either.
Over at the Comex-approved depositories, a net 409,240 ounces of silver were withdrawn from their collective inventories on Wednesday. There was activity in all four warehouses… and the link to that action is here.
A couple of days ago, I ran the chart below that was provided by Nick Laird over atsharelnyx.com. Here it is again… updated as of the close of trading yesterday. As I mentioned when I posted it on Wednesday, I wasn't sure whether it was going to break to the upside… or downside. Now we know.