COT Silver Report - February 5, 2016
Game Changer: China Set To Start Yuan-Based Gold Price Fix In April 2016
It has emerged that the People’s Republic of China is set to launch a historic Yuan-based gold price fix this April to boost the country’s status as the new emerging leader in the international financial market.
I’m not going to bore you with the entire, sordid litany of today’s “horrible headlines” – other than to focus on the epic, historic collapse of crude oil prices. Which, 15 months ago, when I penned “crashing oil prices portend unspeakable horrors, have plunged from $81/bbl to today’s $30/bbl – potentially, enroute to the $10-$25/bbl range they traded at over the entirety of my career as a Wall Street oilfield services, equipment, and drilling analyst, from 1996-2005.
First off, I’m proud to say that the debut stop of my nationwide “Q&A rap session tour” with Andy Schectman, here in the Denver/Boulder area, was a rousing success. Consequently, we are immediately planning our next stops. Which, if you believe you can facilitate – by either bringing together a group of interested individuals; or helping us secure a suitable, cost-effective venue – would greatly influence our choice of the next city to visit. Separately, Andy Schectman’s nationwide speaking tour with Jim Sinclair and Bill Holter is set to hit Tampa, Florida on February 21st.
The central banks of the world have made a mess of global economic systems, although they have successfully enriched the financial and political elite. But systems are collapsing, the deflation monster has arrived, and more QE, negative interest rates, bailouts, devaluations, and bail-ins are coming.
The price of the dollar was down 50mg gold, to 27.8mg, or if you prefer 0.04g silver to 2.18g. Why do we measure the volatile dollar in terms of gold and silver? There’s nothing else to measure it, certainly not the dollar-derivatives called euro, pound, franc, yen, and yuan. In the common tongue, gold was up $20 and silver rose 25 cents.
The low price of silver has finally claimed is first victim. Endeavour Silver announced that it will cut silver production by 25% in 2016. The company has three mines working in Mexico and will produce 7.2 million oz (Moz) of silver in 2015. However, Endeavour plans to shut down production of one of their mines by the end of 2016 and put it on care and maintenance.
COT Silver Report - January 29, 2016
The turnover or physical movement of metal brought into or taken out of the COMEX silver warehouses literally exploded over the last three weeks, as nearly 22 million ounces were moved and total inventories fell 4.5 million ounces, to 156.9 million ounces. I can recall only a few weeks over the past five years where more silver was physically moved. Please remember that I am speaking of physical movement and not paper work changes of metal being reclassified between the registered and eligible COMEX categories, on which so much is written. Physical turnover is just that – metal taken from warehouses and put on trucks and metal taken off trucks and put into the COMEX warehouses.
London 28/01/2016 – The silver market was thrown into disarray on Thursday after the LBMA Silver Price was set 84 cents below the spot and futures price this morning. The LBMA Silver Price – the crucial daily benchmark used by producers and traders around the world to settle silver products and derivatives contracts – was set at $13.58 per ounce.