Gold Daily and Silver Weekly Charts: Judge Orders Fed to Release Gold Records to Court

The New York traders are trying hard to keep a lid on silver and gold here.

Gold is struggling to break through the 1375 pivot and hold its gain, and silver is toying with the 29 handle.

Unless there is another liquidity market panic I expect these metals to follow their charts higher.

District Court Judge Orders Federal Reserve to Hand Over Gold Records

"If the U.S. gold reserves are just sitting somewhere, inert, unencumbered, and unused for surreptitious market intervention, what's the problem with full disclosure?"

Both Bernanke and Greenspan have testified that there have been no transactions in gold. Yet the Fed refuses to disclose documents that suggest circumstantially that there have been.

Even moreso, since the US bullion reserves belong to the people and not to a private banking cartel, there should be no records of any transactions by the Fed. Any transactions should have been handled by Treasury.

How Much Gold Does the US Have In Its Reserves?

How can the Fed be a trusted government regulator, given its position as a quasi-private banking cartel and an obsessive predilection for secrecy in its own dealings with what are clearly public assets?

If the Fed comes back and argues that it is not able to disclose its records of any gold transactions including sales, loans, and swaps because it was acting as agent for another party, whether it be the Treasury, BOJ, ECB, or the Bundesbank, then its time to audit the reserves by a third party answerable to the people.

Personally I am tired of their obfuscation, cronyism, and ad hominem attacks on even honest critics. If there is nothing to hide then disclose what are essentially public documents about public assets. If there is something to hide, it is time to come clean and stop the coverup.

As an aside, ex-Congressional powerbroker Tom DeLay was sentenced to three years in prison today for conspiracy and money laundering. 

Fiat justitia ruat caelum.

SP 500 and NDX March Futures Daily Charts

Market is struggling to hold its level, but is fighting off the overnight selloffs in light volumes.

Alcoa kicked off earnings season after the bell with a lackluster 'beat.'

Markets are looking forward to Intel and JP Morgan earnings this week, with PPI and CPI on the macroeconomic front.

Massive Silver Withdrawals From The Comex

It will be interesting to see how the CFTC, the Obama Administration, and the Comex deal with this situation with silver, including the disposition of the massive paper short positions that appear to be undeliverable.

It could prove to be a watershed event, or at least an interesting scandal to observe as it unfolds.

Harvery Organ's commentary:

"And now for the big silver report.

We witnessed a massive withdrawal of silver unprecedented in the history of the comex. First there was a smallish 6507 oz of silver deposited to two customers, one being 497 oz and the other 6010 oz). But just look at the huge withdrawals:

Four customers (not dealers) withdrew a total of 1,019,310 oz from the comex vaults. This is real silver leaving from 4 registered vaults. The individual withdrawals are: 579,081, 30,380, 399,994 and 9855 oz.

The dealer (our bankers) also were involved in the withdrawal of silver to the tune of 769,941 oz (there were 2 dealers involved removing 102,866 and 667,875 ozs). When you see this massive drain of silver, the fire is raging. The total silver withdrawal by both dealer and customer totalled an astronomical 1,789,251. The Brink's trucks must have been very busy yesterday.

The comex folk notified us that an amazing 85 notices were sent down for servicing for a total of 425,000 oz of silver. The total number of silver notices sent down so far total 323 or 1,615,000 oz. To obtain what is left to be served, I take the open interest for January at 153 and subtract 85 deliveries leaving a total of 68 notices or 340,000 oz left to be serviced.

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

1,615,000 oz + 340,000 = 1,955,000 oz (Thursday total = 1,625,000). As promised to you, this number is rising and will continue to rise until the end of the month as our banker cartel scrambles to get any morsel of silver to satisfy the massive demand for this metal. Our bankers are stunned to see such a huge amount of silver options in a traditionally slow month.

I hope everyone caught the Eric Sprott story on Kingworld news that he is having trouble locating silver."