Harvey Organ: VENEZUELA CLOSE TO BANKRUPTCY – Gold Heading to the Cartel

Venezuela is on the ropes…

We had a slight addition in gold inventory at the GLD to the tune of 0.32 tonnes / thus the inventory rests tonight at 666.43 tonnes. The appetite for gold coming from China is depleting not only gold from the LBMA and GLD but also the comex is bleeding gold. Our 670 tonnes of rock bottom inventory in GLD gold has been broken. It looks to me that China has taken the last amounts of physical gold from the GLD. I guess the only place left for China to receive physical gold, after they deplete the GLD will be the FRBNY and the comex.   In silver,no change in silver inventory   / Inventory rests at 313.681 million oz.
We have a few important stories to bring to your attention today…
1. Today, we had the open interest in silver fall by only 1,462 contracts down to 165,278  despite the fact that silver was down 27 cents with respect to yesterday’s trading.   The total OI for gold fell by a rather large 1,581 contracts to 436,804 contracts despite the fact that  gold was down only 30 cents yesterday.
The fact that OI continues to remain high in silver necessitates the bankers to continue raiding hoping to shake the leaves from both the gold and silver trees.  Remember that December is generally a big delivery month for both gold and silver

(report Harvey)

2.Gold trading overnight, Goldcore

(/Mark OByrne)

3. ASIAN AFFAIRS

 i) Last night, 9:30 pm MONDAY night, TUESDAY morning Shanghai time.  Japan Nikkei rises, Shanghai falls as does most of Asia.

Base metals fall badly putting more pressure on Glencore et al.

(zero hedge)

 ii) China sends in more jets on an island close to the Spratly Islands from which it is guessed that the Chinese will use as a naval base.

Tensions running a little higher

(zero hedge)

4.  EUROPEAN AFFAIRS

 i) Euro crashes into the 1.06 column as the dollar strengthens initially in the morning

(zero hedge)

 ii) One expert believes that the secretive TPP will cause the agricultural sector in Canada to go bankruptcy

(zero hedge)

iii) Portuguese government falls

(zero hedge)

iv) Devastation in the steel industry in the UK

(zero hedge)

5. GLOBAL AFFAIRS

 All global banks must raise 1.1 trillion USA to shore up their reserves

(London’s Financial Times)

 

6. RUSSIAN AND MIDDLE EASTERN AFFAIRS

 non today

7.  OIL RELATED STORIES

Oil tumbles into the 43 dollar column after market closed due to huge API inventory build:

(courtesy zero hedge)

8.  EMERGING MARKETS

 

i)  Venezuela raids its capital account at the IMF of 427 million dollars. It will not be long before they default on everything.

 

(zero hedge)

ii)  Emerging countries have seen over 1/2 trillion  uSA dollars leave their respective countries from the capital accounts

(zero hedge)

9 USA stories/Trading of equities:
i) Apple cuts component orders by 10% as global aggregate demand softens
http://www.silverdoctors.com/harvey-organ-venezuela-close-to-bankruptcy-gold-heading-to-the-cartel/
Venezuela is running out of cash and selling its gold

Venezuela is running out of money fast and has started selling its gold.

The cash-strapped country could default by next year when lots of debt payments are due. Venezuela’s reserves, which are mostly made up of gold, have fallen sharply this year as the country needs cash to pay off debt and tries to maintain its social welfare programs.
Venezuela owes about $15.8 billion in debt payments between now and the end of 2016.
But it doesn’t have enough to make good on its payments. Venezuela only has $15.2 billion in foreign reserves — the lowest amount since 2003. A lot of those reserves are in gold.
Less than $1 billion of Venezuela’s reserves are in cash, and it has a couple billion in reserves at the IMF.
http://money.cnn.com/2015/10/29/news/economy/venezuela-selling-gold/index.html