SLV Adds Another 1,661,992 Troy Ounces of Silver
YESTERDAY IN GOLD AND SILVER
Tuesday was an unusual day in the gold market to say the least. Gold slowly got sold off starting right at the beginning of trading in the Far East on Tuesday morning… with an interim low coming shortly after 1:00 p.m. Hong Kong time. Then, like Monday, the price ran up to its high point in Far East trading around 3:20 p.m. in Hong Kong… before getting chopped off at the knees.
From that high, gold got sold off to its low of the day, which was 1:00 p.m. in London [8:00 a.m. in New York], a little less than six hours later. A nice rally began at exactly that point that lasted until precisely 10:30 a.m. Eastern time. Gold basically traded sideways from there… although the high price tick of they day [$1,383.50 spot] came about twenty minutes before Comex trading ended and electronic trading began.
Silver's general price path was similar to gold's… but certainly not the same. Silver's high occurred at 3:20 p.m. Hong Kong time during their Tuesday, with silver's low [around $27.05 spot] coming at half past lunchtime in London [7:30 a.m. in New York]. From that low, silver made some serious rally attempts, but every attempt to get even close to positive territory on the day, got sold hard… and silver finished down 36 cents from its Monday close.
From the Far East open, until the New York close at 5:15 p.m. Eastern time on Tuesday, the dollar was up about 110 points… with about 85 points of these gains coming between 6:15 a.m. and 11:20 a.m. Eastern time yesterday morning. The moves in gold and silver yesterday were about 100% opposite to what one should have expected… as the dollar and gold moved upwards together yesterday. As a matter of fact, the gold chart looks almost identical to the dollar chart!
The dollar has been rising steadily since the Far East open on Monday morning… and gold has been rising with it.
Here's the 3-month dollar chart to put it all in some sort of perspective. I suppose that the dollar could make it back to its 200-day moving average… but this is counter-trend rally in a dollar bear market. So, if gold is rising [or at least holding its own] as the dollar rally continues, one can only image what will happen when the dollar turns down once again.
With the general equity markets in the toilet yesterday, I wasn't entirely surprised that the gold shares couldn't pull a win out of the fire, despite the fact that gold price was up nicely on the day. In the end, the precious metal stocks were mixed… with the HUI down 0.92% on the day.
There wasn't much activity in the CME's Delivery Report… but JPMorgan did issue 20 silver contracts for delivery on Friday… all of which were from its proprietary [house] account! So much for them turning over a new leaf… as they are back to their old tricks for the moment. If you want to check it out, the link is here.
The GLD ETF had no report… but that wasn't the case over at the SLV ETF. As my headline states, another 1,661,992 troy ounces of silver was added on Tuesday. The SLV ETF now sits with 350.2 million ounces of silver. I just hope it's all there as stated. As you know, dear reader, I don't own [and would never own] either of these ETFs. The only reason I see red flags flying is that the custodians of these two ETFs, JPM and HSBC, are the two biggest silver and gold shorts on the Comex… and both have 25 law suits filed against them for manipulating the silver price. I want nothing to do with them. There are lots of other ways to own the physical metal without having these two organizations involved.
The U.S. Mint had a report yesterday… another 10,500 ounces of gold eagles, along with another 100,000 silver eagles. Month-to-date… 83,000 ounces of gold eagles have been sold, along with 3,875,000 silver eagles.
There was also action over at the Comex-approved depositories… and when the smoke cleared, a rather chunky 891,793 ounces of silver was withdrawn on Monday. There was a lot of activity, both in and out…and the link to that action is here.