NAV Premiums of Certain Precious Metal Trusts and Funds

The gold/silver price relationship is back to a rather high level by historical standards at a ratio of 60.

Fives Tonnes of Customer Gold Leave the HSBC Vault

On Monday 173,582 ounces, or roughly five tonnes, of customer gold was withdrawn the HSBC warehouse.

This takes the total gold in all of the COMEX warehouses to a new low of 6,860,160 ounces in 100 oz. bars.

The portion of this that is deliverable or 'dealer gold' remains at 672,000 ounces.

While this is adequate for the non-active delivery month of September, these are slim numbers for the upcoming active delivery month of October, and hardly appropriate for the contracts that are held through December, at least at these prices.

I will include additional charts as appropriate later on this evening.

These inventory figures indicate that option expiration shenanigans aside, higher prices will be required to move more gold into the dealer category and clear the markets at the COMEX.  The blatant price manipulation in paper has led to a tough situation for the banking cartel which seems to be at the apogee of their power, despite a prominent role in the financial crisis of only five years ago.

"When I despair, I remember that all through history the ways of truth and love have always won. There have been tyrants, and murderers, and for a time they can seem invincible, but in the end they always fall. Think of it--always."

Mohandas K. Gandhi

Weighed, and found wanting.

Stand and deliver.

Gold Daily and Silver Weekly Charts - A Quiet Option Expiration with a Few Hijinks

Markets are a bit shaky ahead of the US budget ceiling showdown. Senator Ted Cruz' filibuster will be called by procedure tomorrow, the Senate will strip out the Obamacare defunding language, and will toss it back to Boehner in the House who will have 24 hours to take whatever action he may.

They took gold and silver down overnight, and played their reindeer games in the day trade, with the metals snapping back up for slight gains in the after hours Globex session.

I will take a look at COMEX inventories this evening as we toddle on to the close of September this week.

This will not end well. It never does.