Harvey Organ's Daily Gold & Silver Report

Good evening Ladies and Gentlemen:

I was able to write this report at work so I could release this commentary at my normal time slot.


The price of gold rose by $12.20 to finish the trading session at $1770  (comex closing time l:30).  Silver finished the day down by 17 cents to $34.24 as the boys were trying their utmost trying to contain gold's poor cousin from skyrocketing.  The price of gold surpassed another of Jim Sinclair's angels at $1764.00 which generally will be a signal to gold's parabolic rise. 

Gold and silver were held in check for most of the day until the last half hour when the bankers realized that they were in trouble and started to cover their huge amounts of non backed paper supplied in the last two days.  Wait until you see the data.

The total gold comex open interest rose by a staggering 16,885 contracts as brave souls entered the market with the hope of securing some metal. The front delivery month of February saw its OI fall by 46 contracts, from 346 to 300.  We only had one delivery notice yesterday so again we lost 45 contracts to cash settlements and Blythe's famous bonus fiat.  The estimated volume at the comex today was mediocre at 148,210.  The volume yesterday was excellent at 216,846 but in reality that was two days worth of contracts.

The total silver comex OI broke out of its narrow channel rising by 3621 contracts from 106,962 to 110,583. This surely caused some bankers to have frayed nerves. The OI is basis yesterday.  You can imagine what it will show tomorrow. The front February month in silver has its OI reduced from 130 to 94 for a loss of 36 contracts.  We had 57 delivery notices yesterday so again we gained 21 contracts or 105,000 oz of additional silver standing. All of February Oi results from options exercised by Jan 31.2012 or by put contracts were the option holder put a silver contract to a long who then decided to take delivery.  All March options will go off the board this Friday.  They will receive a futures March contract and then the decision is to whether to take delivery.
The front delivery month of March saw its OI remain remarkably stable at 29,215 for a loss of 100 contracts.  The March contracts goes off the board this Friday but will trade until all longs are satisfied.  The estimated volume today was huge at 75,512 with some rollovers.  The confirmed volume yesterday was 84,528.

The price of gold rose by 2% on Tuesday and 1% today.  The open interest rose by a monstrous 16,885 contracts basis Tuesday in gold.  The bankers will try their best to raid as OI became very juicy for them in both gold and silver.  The fact that silver languished behind gold is another indicator to expect a raid tomorrow. 






Now let us begin with February inventory movements  in Gold


  February 22.2012                               :

Gold	Ounces
Withdrawals from Dealers Inventory in oz	nil
Withdrawals from Customer Inventory in oz	6540(HSBC,Manfra)
Deposits to the Dealer Inventory in oz	nil
Deposits to the Customer Inventory, in oz	64(Brinks)
No of oz served (contracts) today	24 (2400)
No of oz to be served (notices)	276(27,600)
Total monthly oz gold served (contracts) so far this month	2824 (282,400)
Total accumulative withdrawal of gold from the Dealers inventory this month	4381
Total accumulative withdrawal of gold from the Customer inventory this month	286,630

Very little activity into the gold vaults today.
We again had no gold deposited into the dealer and no gold was withdrawn.
We only had a tiny 64 oz of gold deposit into the customer at Brinks.

We had the following gold withdrawal:

1. Out of HSBC :  6508 oz
2. Out of Manfra:  32 oz

total withdrawal:  6540 oz.
The total registered gold remains at 2.448 million oz or 76.14 tonnes of gold.





The CME notified us that we had 24 notices filed for a total of 2400 oz of gold.  The total number of notices filed so far this month total 2824 contracts or 282400 oz.  To obtain what is left to be served, I take the OI standing for February (300) and subtract out today's delivery notices  (24) which leaves us with 276 notices or 27600 oz.

Thus the total number of gold ounces standing in this delivery month is as follows:

282,400 oz (served)  +  27,600 (oz to be served upon)  =  310,276 oz
we lost another  4500 oz of gold to cash settlements which seems the norm this month.

end

Silver	Ounces
Withdrawals from Dealers Inventory	5257(Brinks)
Withdrawals from Customer Inventory	36,047 (Scotia)
Deposits to the Dealer Inventory	999(Delaware)
Deposits to the Customer Inventory	6616(Brinks)
No of oz served (contracts)	0  (zero)
No of oz to be served (notices)	94 (470,000 oz)
Total monthly oz silver served (contracts)	766 (3,830,000 oz)
Total accumulative withdrawal of silver from the Dealersinventory this month	2,727,692
Total accumulative withdrawal of silver from the Customer inventory this month	6,879,993

 Not much activity in the silver vaults today.

We had the following dealer activity:

1. Dealer deposit of silver at Delaware:  999 oz

Dealer withdrawal of silver:

1.  5257 oz out of Brinks.

We had the following customer deposit:

1. Into Brinks;  6616 oz

We had the following customer withdrawal:

1.  out of Scotia:  36,047 oz.

We had no adjustments with both silver and gold.

The total registered silver rests tonight at 34.93 million oz
The total of all silver rests at 129.23 million oz.





The CME notified us that we had zero notices filed so the number of notices filed so far this month
remain at 766 for 3,830,000 oz.  To obtain what is left to be served upon, I take the OI for February (94) and subtract out today's deliveries (0) which leaves us with 94 contracts or 470,000 oz left to be served upon.

Thus the total number of silver oz standing in this non delivery month of February is as follows:

3,830,000 (oz already served upon) +  470,000 ( oz to be served upon)  =  4,300,000 oz,

The total number of silver ounces continues to rise and judging from the high volume on the comex today,
we should see an increase tomorrow.


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