Saturday, October 19: Today in Gold and Silver

NEW YORK ( TheStreet) -- Except for the rally going into the London open, which was dealt with in the usual manner by the not-for-profit sellers, it was a very quiet trading day everywhere on Planet Earth on Friday.

According to the CME's website, the high and lows ticks for gold in the December contract were $1,328.90 and $1,311.20.  The high tick was at the London open, and the low came at 12:45 p.m. EDT in New York.

Gold closed at $1,317.40 spot, which was down $2.70 from Thursday's close.  Volume, net of October and November, was only 112,000 contracts.

Silver also rallied going into the London open, but the moment it broke above the $22 spot price mark, down it went.  This happened several times during the Friday session, twice in London trading and a couple of times in New York.  All attempts ran into a willing seller.

According to the CME, the high and low for the December contract were $22.05 and $21.74.

Silver closed at $21.955 spot, up 6.5 cents on the day.  Volume, net of October and November, was a very light 25,500 contracts.

The trading pattern for both platinum and palladium were also similar, and price action in these two metals was even more subdued.  Here are the charts.

The dollar index closed on Thursday in New York at 79.69 and then sagged about 15 basis points by around 11:30 a.m. BST in London.  After that it recovered a handful of basis points and closed in New York on Friday at 79.62, down seven whole basis points.

The gold stocks rallied into positive territory within 15 minutes of the opening of the equity markets in New York yesterday morning.  But by 11 a.m. EDT, they were back in negative territory, and that's where they stayed for the remainder of the day.  The HUI closed down 0.66%.

The chart for the silver stocks looks about the same as the gold chart, but once the low was in just minutes after 1 p.m. EDT, they struggled back into positive territory, and Nick Laird's Intraday Silver Sentiment Index closed up a tiny 0.20%.

The CME's Daily Delivery Report showed that 47 gold and zero silver contracts were posted for delivery within the Comex-approved depositories on Tuesday.  Canada's Bank of Nova Scotia was the  only short/issuer, and JPMorgan Chase was on the receiving end of all of them.  The link to yesterday's Issuers and Stoppers Report is here.

For a change, there were no withdrawals from GLD yesterday, and as of 9:37 p.m. EDT yesterday evening, there were no reported changes in SLV, either.

The U.S. Mint had another tiny sales report.  They sold 1,000 troy ounces of gold eagles and 500 one-ounce 24K gold buffaloes.  Month to date the mint has sold 25,000 troy ounces of gold eagles; 12,500 one-ounce 24K gold buffaloes; along with 1,687,000 silver eagles.  Based on these sales, the silver/gold ratio checks in at 45 to 1.

It was huge day in gold over at the Comex-approved depositories on Thursday.  They reported receiving 203,114 troy ounces, and shipped 88,831 troy ounces out the door.  The link to that activity is here, and it's worth a peek.

It was another big day for silver as well, as these same depositories reported that although they didn't receive any silver, they did ship out a chunky 1,063,218 troy ounces to parts unknown.  The link to that action is here.

I know that Ted Butler will certainly have something to say about these warehouse movements in his weekly commentary later today.

True to form since the 20th of the month fell on a weekend, the Central Bank of the Russian Federation updated their website with their September data.  I was somewhat surprised, and mildly disappointed, that they didn't add any gold to their reserves during the latest reporting month.  Their reserves still sit at 32.6 million ounces.  Here's Nick Laird's chart updated with that information, or lack thereof.

As I mentioned in yesterday's column, despite the fact that government was now back to "work," there would be no Commitment of Traders Report or Bank Participation Report on Friday, and they were true to their word.

Here's a chart that Nick Laird sent my way early this morning.  It shows that equity markets have risen to a new high, eclipsing the previous top in 2008.  As Doug Noland mentioned in today's lead story, this giant equity/credit bubble is now in its terminal phase and will, sooner or later, run into a pin of some sort.

I don't have an overly large number of stories for a Saturday column, and I hope you can find the time over what's left of your weekend to read the ones that interest you the most.

¤ The Wrap

It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood, who strives valiantly; who errs and comes short again and again; because there is not effort without error and shortcomings; but who does actually strive to do the deed; who knows the great enthusiasm, the great devotion, who spends himself in a worthy cause, who at the best knows in the end the triumph of high achievement and who at the worst, if he fails, at least he fails while daring greatly. So that his place shall never be with those cold and timid souls who know neither victory nor defeat. - Theodore Roosevelt

Today's pop "blast from the past" dates from 1964.   You'll know the group and the song right from the get go, as it was one of their biggest hits.  I was 16 years young when this topped the charts, and the link is here.  And the "B" side of that 45 rpm record was turned into a giant hit by the English band, The Tremeloes in 1967.  The link to that one is here.

Today's classical "blast from the past" dates back to 1893 when Czech composer Antonín Dvořák was director of the National Conservatory of Music of America.  It's his most famous work, the Symphony No. 9 in E minor, Op. 95, B. 178; and popularly known as the New World Symphony.  Neil Armstrong took a recording of it to the moon during the Apollo 11 mission, the first moon landing, in 1969.

This performance from 1992 is by the world famous Vienna Philharmonic under the direction of the equally world famous Herbert von Karajan.  The link is here.

Despite how quiet it was in the precious metal market yesterday, it was more than obvious that JPMorgan et al were out and about at the London open.  As I've commented on many times when these short sellers of last resort put in an appearance; one has to wonder how high their respective prices would rise if allowed to trade freely.  Some day we'll find out.  But the question remaining, is when?

In the meantime, China is gobbling up gold from a number of sources that we can see, and it's a good bet that they're getting more gold from sources that aren't visible to the general public.  Many writers have commented on that, including a couple in today's column.  One has to wonder just how much gold will be enough for them, along with other countries that are grazing the golden grass at JPMorgan-sponsored sale prices.

And even though the psychology of the market is the gloomiest I can remember, one should not lose sight of the fact that all four precious metals are selling for many multiples less than their free-market prices.  For that reason alone, it's still worth your while to sock away as much physical metal as you can afford, as the day will come when all of them, except for silver, will be out of reach of all but the super rich which, hopefully when the day comes, will include a few of us.

Until that time arrives, all we can do is wait it out, and as for me, I'm still "all in".

Here's Nick Laird's famous Total PMs Pool chart updated to include Friday's data.  As you can see at a glance, despite the fact that prices have one in the toilet recently, the total number of ounces held by all visible depositories is basically unchanged, and the chart pattern continues [rather unsteadily at times, to be sure] from "lower left to upper right" as the now thoroughly discredited Dennis Gartman is wont to say from time to time.

Before heading out the door, I thought I thought I'd remind you that the CD/MP3 recordings of the Casey Research 2013 Summit are now available.  Up until yesterday they were $295 for the complete audio set, but as of today, they're $395, despite what the advertisement says.  It costs absolutely nothing to check it out, which I certainly encourage you to do, .and the link to all the pertinent details are here.

That's all I have for today, and for the week.  If you're looking for some clue as to how the precious metal market will perform next week, you're talking to the wrong guy.  I don't know, and neither does anyone else, as we're all making this up as we go along.  And as I said before, the only people that know for sure are Jamie Dimon and Blythe Masters, along with a handful of others, and they aren't about to tell us.

See you on Tuesday.

This is an abbreviated version of Ed Steer's Gold & Silver DailySign-up to have to the complete market review delivered to your email inbox each morning for free.


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