Saturday, April 2, 2016

Harvey Organ: North West Territorial Mint Refusing to Ship Gold & Silver to Customers!


North West Territorial Mint not refunding 100 to 200 customers of its orders for silver and gold: 

(courtesy Chanel 5 News/Seattle)
FEDERAL WAY, WASH. – The owner of a large gold and silver mint based in Federal Way admits he owes money to 100 to 200 customers all over the country.
Ross Hansen, owner of Northwest Territorial Mint, says he has not delivered products or refunded money to those customers even when they demanded it.
Northwest Territorial Mint is one of the largest private gold and silver mints in the country.
One of those unhappy customers is Kelly Clifton, who runs a small ministry in Sultan.
Clifton ordered $6,000 worth of gold bullion in February from a small inheritance. A few weeks later, while still waiting for the gold, she says she asked for a refund. The company gave her half, she says.
“The rest of it, we were told, we may get or we may not get,” said Clifton.
Other customers have similar complaints.
Hansen told KING 5 he is not selling products or refunding money because he lost a $38 million defamation lawsuit in Nevada.

Gold:  $1,234.20 up $7.30    (comex closing time)
Silver 15.46  up 25 cents
In the access market 5:15 pm
Gold $1232.60
silver:  15.43
Tomorrow is the FOMC report and we always see huge volatility on this report.  The April report for March generally sees a lower plug for seasonal adjustments so we might see a better atmosphere for gold and silver.  Also options expiry is over so we may have a good day in our precious metals.
Let us have a look at the data for today.

At the gold comex today, we had a poor delivery day, registering 58 notices for 5800 ounces on first notice day for gold,and for silver we had 2 notices for 10,000 oz for the active March delivery month.
Several months ago the comex had 303 tonnes of total gold. Today, the total inventory rests at 213.10 tonnes for a loss of 90 tonnes over that period.
In silver, the open interest ROSE by 1556  contracts UP to 176,801 despite the fact that the silver price was down 9 cents with respect to yesterday’s trading . In ounces, the OI is still represented by .884 billion oz or 126% of annual global silver production (ex Russia ex China).
In silver we had 2 notices served upon for 10,000 oz.
In gold, the total comex gold OI was obliterated as the complex fell by 10,057  contracts down to 470,384 contracts as the price of gold was DOWN $8.90 with yesterday’s trading.(at comex closing).
We had a small change in the GLD, a withdrawal of 1.19 tonnes from the GLD/ thus the inventory rests tonight at 819.28 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,we had no changes in inventory tonight  and thus the Inventory rests at 330.389 million oz.
First, here is an outline of what will be discussed tonight:
1. Today, we had the open interest in silver rose by 1556 contracts up to 176,801 despite the fact that the price of silver was DOWN  9 cents with yesterday’s trading.Investors flocked into silver on the dovish Yellen speech where she indicated that she is reticent to raise rates. The total OI for gold fell by a whopping 10057 contracts, which is the custom lately, to 470,384 contracts as gold was down $8.90 in price from yesterday’s level and we are now entering a new active delivery month.
(report Harvey)
2 a) Gold trading overnight, Goldcore
(Mark OByrne)
off today
2b COT report/


.i)Late  WEDNESDAY night/ THURSDAY morning: Shanghai closed UP BY 3.27 POINTS OR 0.11% , /  Hang Sang closed DOWN 26.69 POINTS OR 0.13% / The Nikkei closed DOWN 120.29 POINTS OR 0.71% . Australia’s all ordinaires was CLOSED UP 1.46%. Chinese yuan (ONSHORE) closed UP at 6.4570.  Oil FELL  to 38.22 dollars per barrel for WTI and 40.77 for Brent. Stocks in Europe ALL IN THE RED . Offshore yuan trades  6.4611 yuan to the dollar vs 6.4570 for onshore yuan. Japanese INDUSTRIAL PRODUCTION plunges the most in almost 5 years as negative interest rates ARE KILLING BUSINESS. China continues to send it’s positive response to Janet Yellen’s dovish message of keeping USA interest rates on hold. China, after March 20 had caused its yuan to fall badly in value after 3 USA Fed governors were trying to jawbone Yellen into raising rates. She won out against them.  Now the shorts are crushed  (see below/report on China)


none today


ii)POBC responds to Yellen by raising yuan value and slams shorters
(Harvey/zero hedge)
iii)S and P revises China’s credit outlook to negative on growth as they have considerable concerns of its huge 35 trillion USA debt loans:
(zero hedge)
iv)Guosen Securities, China’s eighth largest investment bank has defaulted on a loan payment in Hong Kong.  This is the first offshore default by a state owned firm.  It now seems that China has changed her mind and will now allow firms to default.  They have been paying off defaulting entities with new loans up to now.
( zero hedge)
v)The POBC created a subsidiary called Buttonwood and this entity is buying directly Chinese stocks and supporting their price
( zero hedge)


i)Tomorrow is the first day that the ECB will begin its purchases of corporate bonds.  This will cause corporate bond yields to fall in similar fashion to sovereign yields as traders front run the ECB.  Eventually, this will lead to a scarcity of corporate bonds and this will force the ECB to monetize junk bonds or just about anything it can get its hands on:
( zero hedge/ a must read.)
ii)For two months in a row, the EU experienced deflation of a drop of .1% in March after a drop of -.2% in February.  If they removed food and energy, inflation was more modest.  However it is still well below its 2% target and these bozos will continue with negative rates trying to drive up inflation:
( zero hedge)
iii)Huge protests in France today protesting the governments new labour reforms”
( zero hedge)


i)This should be interesting:  Turkey arrests the shooter of that Russian parachuting out of his downed plane.
What is Erdogan up to?  Is he trying to cozy up to Putin?
(courtesy zero hedge)

ii)The tourism industry brings in 32 billion USA annually into Sweden, and this does not include food, entertainment and transportation.  This is now gone as there is now no more hotel beds to house the tourists as the refugee centers have taken them all.
(courtesy zero hedge)


Brazil now has a fiscal deficit of 10.7% of GDP.  It has a primary deficit of 2.1% (primary deficit excludes interest payments).  The country’s interest bill is a whopping 8.6% of GDP.NBC has sold 1 billion dollars worth of ads for the summer games.  Good luck trying to get refunds from this bankrupt country:
( zero hedge)


i)Gold has best start in Q one in 42 years:
(courtesy zero hedge)

ii)North West Territorial Mint not refunding 100 to 200 customers of its orders for silver and gold:
(courtesy Chanel K5 News/Seattle)

iii)Copper continues to fall amid huge Chinese inventories of the metal:
This will put tremendous pressure of Glencore and friends.
( zero hedge)


The Canadian banks are totally under reserved for losses in oil and gas.  This will be the next shoe to fall:
( zero hedge)


i)Huge increase in initial and continual jobless claims
(courtesy BLS/zero hedge)
ii)Chicago’s national mfg PMI bounces back to 53.6  but remains lower than January’s 55.5
( Chicago PMI mfg index)
iii)The market is now more confused than ever as dovish Chicago Fed Evans goes from hawkish to dovish and then back to hawkish in just two weeks.
Pay no attention to these bozos, China is all that matters.
( zero hedge)
iv)Bloomberg’s consumer comfort index falls again as the consumer is just not as exuberant as the Fed would like it to be
( zero hedge)
v)Now it is JPM to shave 1/2% off first half GDP
( JPM/zero hedge)
Nobody yet knows what this means, but the GC repo rate just skyrocketed from
.40% all the way up to 1.75%.  Does it mean lack of liquidity?
We will find out shortly but it is worth bringing this to your attention!
( zero hedge)

Let us head over to the comex:

The total gold comex open interest was obliterated down to 470,384 for a loss of 10,057 contracts as the price of gold was down $8.90 in price with respect to yesterday’s trading.  We are now entering the active delivery month of April. For the past two years, we have strangely witnessed two interesting developments with respect to the gold open interest:  1) total gold comex collapse in OI as we enter an active delivery month or for that matter an inactive month, and 2) a continual drop in the amount of gold standing in an active month. We certainly witnessed the first part and thus we will see how the month progresses on part 2.  In the active delivery month of April, we witnessed  it’s OI fall by a humongous 22,721 contracts down to 6,850 contracts, much higher than usual . The next non active contract month of May saw its OI rise by 24 contracts up to 2609.  The estimated volume today (which is just comex sales during regular business hours of 8:20 until 1:30 pm est) was poor at 138,077. . The confirmed volume yesterday (which includes the volume during regular business hours + access market sales the previous day was fair at 239,258 contracts. The comex is not in backwardation.  .  The options for the comex was over on Tuesday. However we still have LBMA options and OTC options which expired today.
Today we had 58 notices filed for 5800 oz in gold.

And now for the wild silver comex results. Silver OI rose by 1556 contracts from 175,245 up to 176,801 despite the fact that the price of silver was down 9 cents with yesterday’s trading. The  big active contract month of March is now off the board. The next contract month after March is April and here the OI  fell by 30 contracts down to 236.  The next active contract month is May and here the OI fell by 584 contracts down to 114,643. This level is exceedingly high. The volume on the comex today (just comex) came in at 45,572 , which is very good. The confirmed volume yesterday (comex + globex) was excellent at 52,968. Silver is not in backwardation.    In London it is in backwardation for several months.
We had 2 notices filed for 10,000 oz.
April contract month:
INITIAL standings for APRIL
March 31/2016
Silver Rounds SD Bullion
Withdrawals from Dealers Inventory in oz   nil
Withdrawals from Customer Inventory in oz  nil 39,993.635 ozHSBC
Deposits to the Dealer Inventory in oz 1699.93 OZBRINKS
Deposits to the Customer Inventory, in oz  39,993.635 ozSCOTIA
No of oz served (contracts) today 58 contracts
(5800 oz)
No of oz to be served (notices) 6792 contracts 679,200 oz/
Total monthly oz gold served (contracts) so far this month 58 contracts (5800 oz)
Total accumulative withdrawals  of gold from the Dealers inventory this month   nil
Total accumulative withdrawal of gold from the Customer inventory this month 39,993.635 oz
Today we had 1 dealer deposit
Into Brinks:  1699.930 oz
Total dealer deposits; 1699.93 oz
Today we had 0 dealer withdrawals:
total dealer withdrawals:  nil oz
Today we had 1 customer deposit:

Into Scotia:  39,993.635 oz
total customer deposits:  39,993.635 oz
Today we had 1 customer withdrawals:
i) Out of HSBC:  39,993.635 oz  (most likely a settlement of a delivery)
total customer withdrawals; 39,993.635  oz
Today we had 1 adjustment:
Out of Brinks:  100.00 oz of gold removed from the dealer and this landed into the customer of brinks  This would be a delivery  (.
Today, 0 notices was issued from JPMorgan dealer account and 0 notices were issued from their client or customer account. The total of all issuance by all participants equates to 58 contracts of which 16 notices was stopped (received) by JPMorgan dealer and 11 notices were stopped (received)  by JPMorgan customer account. 
To calculate the initial total number of gold ounces standing for the Mar contract month, we take the total number of notices filed so far for the month (58) x 100 oz  or 72,300 oz , to which we  add the difference between the open interest for the front month of March (6850 contracts) minus the number of notices served upon today (58) x 100 oz   x 100 oz per contract equals the number of ounces standing.
Thus the initial standings for gold for the April. contract month:
No of notices served so far (58) x 100 oz  or ounces + {OI for the front month (6850) minus the number of  notices served upon today (58) x 100 oz which equals 685,000 oz standing in this non  active delivery month of April (21.306 tonnes).
Since the comex allows GLD shares to be used for settling, it may take quite a while for the physical gold to enter the comex vaults.  So far I have seen little evidence of any settling of contracts but I will continue to monitor it for you. 

We thus have 21.306 tonnes of gold standing for April and 10.38 tonnes of registered gold for sale, waiting to serve upon those standing.  The bankers are still doing their best in cash settling as there is not enough registered gold to satisfy those that are standing.
We now have partial evidence of gold settling for last months deliveries We now have 21.306 tonnes (April) +2.2311 tonnes (March) + 7.99 (total Feb)- .940 (probable delivery on March 1) tonnes -.0434 tonnes (March 11,12,17,18) + today’s 1.2470 = 27.29 tonnes still standing against 10.38 tonnes available.  .
Total dealer inventor 340,058.141 oz or 10.577 tonnes
Total gold inventory (dealer and customer) =6,851,169.567 or 213.10 tonnes 
Several months ago the comex had 303 tonnes of total gold. Today the total inventory rests at 213.10 tonnes for a loss of 90 tonnes over that period. 
JPMorgan has only 21.15 tonnes of gold total (both dealer and customer)
And now for silver
/March 31/2016:
Withdrawals from Dealers Inventory nil
Withdrawals from Customer Inventory 600,157.300 OZ. SCOTIA
Deposits to the Dealer Inventory nil
Deposits to the Customer Inventory 6962.58 ozDELAWARE
No of oz served today (contracts) 2 contracts 10,000 oz
No of oz to be served (notices) 234 contracts)(1,170,000 oz)
Total monthly oz silver served (contracts) 2 contracts (10,000 oz)
Total accumulative withdrawal of silver from the Dealers inventory this month nil oz
Total accumulative withdrawal  of silver from the Customer inventory this month 600,157.300 oz
today we had 0 deposits into the dealer account
total dealer deposit: nil oz
we had 0 dealer withdrawals:
total dealer withdrawals:  nil
we had 1 customer deposits
i) Into Delaware:  6962.580 oz
total customer deposits: 6962.580 oz
We had 1 customer withdrawals:
i) Out of Scotia:
600,157.300 oz

total customer withdrawals:  600,157.300 oz

 we had 0 adjustments

The total number of notices filed today for the March contract month is represented by 2 contracts for 10,000 oz. To calculate the number of silver ounces that will stand for delivery in March., we take the total number of notices filed for the month so far at (2) x 5,000 oz  = 10,000 oz to which we add the difference between the open interest for the front month of March (236) and the number of notices served upon today (2) x 5000 oz equals the number of ounces standing 
Thus the initial standings for silver for the March. contract month:  2 (notices served so far)x 5000 oz +(236{ OI for front month of March ) -number of notices served upon today (2)x 5000 oz  equals 1,180,000 oz of silver standing for the March contract month.
Total dealer silver:  32.323 million
Total number of dealer and customer silver:   154.998 million oz
The open interest on silver continues to rise despite the low price of silver. It looks like we are heading for a commercial failure.
And now the Gold inventory at the GLD

MARCH 31/a small withdrawal of 1.19 tonnes/inventory rests tonight at 819.28 tonnes
MARCH 30/no changes in inventory/inventory rests tonight at 820,47 tonnes
March 29/a withdrawal of 3.27 tonnes of gold from the GLD/Inventory rests at 820.47 tonnes.  (No doubt we will see a rise in gold inventory with tomorrow’s reading)
March 28/no change in inventory at the GLD/Inventory rests at 823.74 tonnes
March 24.2016: a deposit of 2.08 tonnes of gold into its inventory/and this after a big drubbing these past two days??/Inventory rests at 823.74 tones
March 23/no changes at the GLD today despite the gold drubbing. Inventory rests at 821.66 tonnes
March 22./no changes in inventory at the GLD/Inventory rests at 821.66 tonnes
MARCH 21/another big deposit of 2.68 tonnes/inventory rests tonight at 821.66 tonnes
(and this was done with gold down $10.00 today!!)
March 17/we had a whopper of a deposit tonight: 11.89 tonnes/with London in backwardation this is nothing but a paper addition/inventory rests tonight at 807.09 tonnes
March 16.2016:/we had a deposit of 2.09 + 2.97(last in the evening)  tonnes of gold into the GLD/Inventory rests at 795.20 tonnes
March 15/ no changes in gold inventory at the GLD/Inventory rests at 790.14 tonnes
March 31.2016:  inventory rests at 819.28 tonnes

Now the SLV Inventory
MARCH 31/ no change in silver inventory at the SLV tonight/inventory rests at 330.389 million oz
MARCH 30/no change in inventory/inventory rests at 330.389 million oz
March 29.2016: a huge deposit of 1.475 million oz of silver into the SLV/Inventory rests at 330.389 million oz
March 28/no change in silver inventory at the SLV/Inventory rests at 328.914 million oz
March 24.2016/no change in inventory/rests tonight at 328.914 million oz/
March 23/we lost 1.428 million oz as a withdrawal today/SLV inventory rests at 328.914 million oz
March 22./ a huge deposit of 1.809 million oz of a silver deposit into the SLV/inventory rests at 330.342 million oz.
MARCH 21/no change in silver inventory/inventory rests tonight at 328.533 million oz
March 17/no changes in silver inventory at the SLV/Inventory rests at 325.868 million oz
March 16./no changes in silver inventory at the SLV/Inventory rests at 325.868 million oz
March 15/ no changes in silver inventory at the SLV/Inventory rests at 325.868 million oz/
March 31.2016: Inventory 330.389 million oz
1. Central Fund of Canada: traded at Negative 6.9 percent to NAV usa funds and Negative 6.8% to NAV for Cdn funds!!!!
Percentage of fund in gold 63.9%
Percentage of fund in silver:36.1%
cash .0%( Mar 31.2016).
2. Sprott silver fund (PSLV): Premium to NAV rises to  4.73%!!!! NAV (Mar 31.2016) 
3. Sprott gold fund (PHYS): premium to NAV falls  to -0.46% to NAV Mar 31.2016)
Note: Sprott silver trust back  into positive territory at +4.73%/Sprott physical gold trust is back into negative territory at -0.46%/Central fund of Canada’s is still in jail.
Federal Reserve Bank of New York report on gold leaving NY shores:
Today, the FRBNY reports no change in gold inventory and thus no gold is leaving for Germany’s Bundesbank .
FRBNY gold in Feb 2016:  7995 million dollars worth of gold at $42.22
FRBNY gold for March 2016: 7995 million dollars worth of gold at $42.22
total gold departing:  zer0
Silver Rounds SD Bullion

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