Sponsor Advertisement The silver price action was a bit choppier, but the general chart pattern was the same. The silver price made it back above the $21 spot price mark, but wasn’t allowed to close there. The low and high were recorded as $20.805 and $21.17 in the September contract, which is the new front month. Silver finished the Monday trading day at $20.96 spot, up a whole 9 cents from Friday’s close. Net volume was very chunky at 44,500 contracts. The CME Daily Delivery Report for Day 2 of the July delivery month in silver showed that 7 gold and 565 silver contracts were posted for delivery within the Comex-approved depositories on Wednesday. The two largest short/issuers were BNP Prime Brokerage, a name I don’t see too often, with 195 contracts—and Canada’s Scotiabank with 143 contracts. The two largest long/stoppers were JPMorgan with 274 in its client account for a change—and Barclays with 255 in its client account as well. There was quite an assortment of short/issuers on the list, so yesterday’s Issuers and Stoppers Report is worth a quick peek. Well, there was finally a deposit into GLD—and it was a pretty decent amount as well—182,882 troy ounces. And as of 6:52 p.m. EDT yesterday evening, there were no reported changes in SLV. But when I was editing this column at 2:32 a.m. this morning, I saw that another huge chunk of silver had been withdrawn from SLV. This time it was 2,064,313 troy ounces. Since the rally began in silver in early June—10.2 million ounces has been withdrawn from SLV—and it’s still owed north of 8 million ounces. That’s about nine days of world silver production. And since they haven’t been depositing any metal since these rallies began, it’s obvious that the authorized participants are shorting the shares in lieu of depositing the metal. The U.S. Mint had a sales report to end the month. They sold 3,500 troy ounces of gold eagles—1,000 one-ounce 24K gold buffaloes—and another 320,000 silver eagles. Unless they add some more sales today, which is highly doubtful, the June month ended with 48,500 troy ounces of gold eagles sold—16,000 one-ounce 24K gold buffaloes—700 platinum eagles—and 2,692,000 silver eagles. June was the lowest sales month for silver eagles this year by far—and that’s because Ted Butler’s big buyer backed away from the table at the end of May. That was the same time as the mint’s silver eagle allocation program ended as well. Over at the Comex-approved depositories on Friday, there was 31,992 troy ounces of gold reported received—and it all went into HSBC USA. No gold was reported shipped out. The link to that activity is here. There wasn’t much in/out activity in silver, either, as only 58,313 troy ounces were received—and 20,153 troy ounces were shipped out the door. The link to that activity is here. Since it’s my Tuesday column, I have the usual boat load of stories, as I have three days worth of news for you—and I hope you like some of them. The curious case of silver not being deposited into the big silver ETF, SLV, on the recent high volume price rally and, instead, being withdrawn has continued this [past] week. Where my back of the envelope calculations suggested close to 7 million oz of metal should be coming into the trust, instead a like quantity has departed. This is in the same league as the continuous COMEX silver warehouse turnover, namely, as an indication of physical tightness in the wholesale silver market and just as ignored by most metals commentators. – Silver analyst Ted Butler: 28 June 2014 I must admit that I wasn’t sure what to expect on the last trading day of the month—and the quarter. I was expecting the worst as the month drew to a close, but that scenario never materialized. As a matter of fact the HUI gained over 3 percent during the last three trading days of June. But that still doesn’t change my short-term view of the gold and silver markets—and as you examine their respective 6-month charts below, you’ll note that the RSI indicators are still at nosebleed levels—and yesterday’s price action didn’t do anything to improve that. Platinum and palladium both chopped around above unchanged for most of the day. Both made rally attempts in New York trading that got capped—and they both finished off their respective highs, with platinum up 9 bucks—and palladium up 2 bucks. Here are the charts. The dollar index close late on Friday afternoon at 80.03—and barely moved until the London open, which was the high tick at 80.07. From there it developed a slight negative bias until it hit 79.95 around 10 a.m. in New York. At that point the index slid down to 79.78 by shorty after 11 a.m. EDT—and traded flat from there. The index closed on Monday at 79.78—down 26 basis points. The silver equities followed an almost identical path—and Nick Laird’s Intraday Silver Sentiment Index closed up 1.89%. The RSI indicators are still at nosebleed levels The gold price traded as flat as the proverbial pancake until 2 p.m. Hong Kong time—and then it got sold down five bucks to its low of the day about five minutes before the Comex open. From there it rallied right past the Comex close—and just before 2 p.m. EDT, it popped another six bucks or so before trading more or less sideways until the 5:15 p.m. EDT close of electronic trading. The low and high tick were recorded by the CME Group as $1,311.00 and $1,330.40 in the August contract. Gold finished the Monday trading session at $1,326.90 spot, up $11.80 from Friday’s close. Volume, net of July, was 134,000 contracts, with about 5,000 contracts of that amount trading in the September and December delivery months, so they could have been roll-overs out of August. The gold stocks gapped down a percent at the open of trading on Monday, but began to rally after the London p.m. gold fix was in—and then traded flat from 3 p.m. EDT until the close. The HUI finished the day up 1.65%. I was more than happy to see the stocks close the day, the month—and the quarter—in decidedly positive territory. Of course things can remain overbought for serious lengths of time, just like they can be oversold for the same amount of time. But I’m still convinced, based on the past 15 years of price history, that an engineered price decline will put an end to this situation at some point. But there’s always that black swan out there someplace. So we wait. And as I write this paragraph at 2:24 a.m. EDT, the London open is still 35 minutes away. The gold price is comatose, except for the vertical price spike at 9 a.m. Hong Kong time—and that got dealt with in the usual manner within 30 minutes or so. Gold volume is way up there already, so it took a fair amount of Comex paper to hammer that price spike flat. Silver is back above $21—but only by the skin of its teeth—and volume is already very decent there as well. Platinum and palladium are doing precisely nothing—and the dollar index is up 6 basis points. Today at the close of Comex trading, is the cut-off for this week’s Commitment of Traders Report—and since Friday is Independence Day in the U.S.A., the report won’t be issued until the following Monday. But I can tell you right now that it won’t make for fun reading. And as I send this out the door at 4:35 a.m. EDT, I note that gold has gone from being flat, to down a couple of bucks and, in actual fact, none of the other three precious metals are doing much, either, now that London has been open a bit over 90 minutes. Volumes are still a lot heavier than I’d like to see, but have quieted down quite a bit in the last 30 minutes or so. Gold volume is north of 30,000 contracts—and silver’ volume is just over 10,000 contracts. These are big numbers for this time of day. The dollar index is up a small handful of basis points. That’s more than enough for today—and I’ll see you here tomorrow. Drilling Intersects 102 Meters of 1.97 gpt Gold at Columbus Gold’s Paul Isnard Gold Project; Drilling Confirms Depth Extension of Gold Mineralization Columbus Gold Corporation (CGT: TSX-V) (“Columbus Gold”) is pleased to announce results of the initial five (5) core drill holes at its Paul Isnard gold project in French Guiana. The holes confirm depth extension of gold mineralization below shallow holes drilled on the 43-101 compliant 1.9 million ounce Montagne d’Or inferred gold deposit at Paul Isnard in the 1990’s and support the current program of resource expansion through offsetting open-ended gold mineralization indicated by the earlier holes. Robert Giustra, CEO of Columbus Gold, commented: “These drill results validate Columbus Gold’s approach to adding ounces with a lower-risk drilling program designed to infill and to extend the mineralized zones to 200 m vertical depth from surface; a depth amenable to open pit mining.” Fourteen (14) holes have been completed (assays pending) by Columbus Gold in the current program and drilling is progressing at the rate of about 3,000 meters per month with one drill-rig on a 24 hour basis. Columbus Gold plans to accelerate the current program by engaging a second drill-rig as soon as one can be obtained. Please visit our website for more information about the project.