Harvey Organ’s Daily Gold and Silver Report – 22 Mar

Wednesday, March 23, 2011

Silver advances past $37.00/Premium interday on Sprott silver surpasses 23%

Good evening Ladies and Gentlemen:

I promise that I will spend a little more time with you today than yesterday. There are a lot of developments that occurred in the market place that I wish to talk about.

Gold closed at comex closing time at $1437.90 up a cool $10.40.  Silver rose to $37.20 up a huge 93 cents.
Gold and silver were hit on the comex opening.  However for the umpteenth time, both of these metals rebounded and as of now, gold is trading at its all time high and silver is also at a 31 yr high.  Very soon, silver will reach its all time high.

Before heading over to the comex, many have emailed this important story whereby JPMorgan has obtained a vault license in a matter of a couple of days.  To me it certainly does not pass the smell test.In the article, the author Goodman describes how JPMorgan obtained a warehouse license in 2 days when the normal process for a vault takes around 45 days. He also describes in detail how the delivery process works. There is also a good discussion on the secretive London market

Will JP Morgan Now Make and Take ‘Delivery’ of Its Own Silver Shorts?
| by: Avery Goodman March 22, 2011
There is nothing inherently wrong and certainly nothing “illegal” about J.P. Morgan Chase (JPM) gaining a vault license for storing and taking delivery of gold/silver/platinum/palladium from the futures markets known as NYMEX/COMEX. However, the speed, timing and manner in which the exchanges just granted it troubles us.
The process of being approved as a licensed vault or weigh-master/assayer for the NYMEX/COMEX futures exchange usually involves a careful security inspection of the vaults, a full report of that inspection, and a completely transparent package submitted to the U.S. Commodity Futures Exchange Commission (CFTC) for approval. This process will ordinarily consume considerably more than 45 days. Apparently, such correct and careful practices apply only to banks and independent storage facilities that are not J.P. Morgan Chase.
Some vault operators are more equal than others. JPM appears immune from processes that everyone else must suffer through. On March 15, 2011, the Commodity Exchange (COMEX) and the New York Mercantile Exchange (NYMEX) advised the CFTC that they had approved J.P. Morgan’s application to become a licensed vault facility, using a “self-certification” process. The newly licensed vault, located at 1 Chase Manhattan Plaza, NY, NY, is ready to roll as both “weighmaster” and depository, for delivery of gold, silver, platinum and palladium contracts, as of March 17, 2011,two days later.
As a smaller player, the NYSE-Liffe exchange uses COMEX licensed depositories for delivery and storage of its metals. The new JPM vault, therefore, will also qualify to accept delivery of metal coming from the maturity of NYSE-Liffe gold and silver futures contracts, including the smaller 1,000 ounce silver contract.
Departures from usual practices, and special treatment in favor of some over others are events that lawyers describe as having “the appearance of impropriety”, if nothing more. J.P. Morgan is a huge player in the London precious metals market, especially in derivatives. It has always been a very important player at NYMEX/COMEX, especially if you include its Bear Stearns division. The bank is heavily involved in infamous “unallocated storage” schemes in London. A more complete description of London-style storage can be found in my previous article.
JPM is one of six big bank owners of the London Precious Metals Clearing Limited (LPMCL) which clears, “delivers” and sets standards for “storing” precious metals allegedly “sold” at the London Bullion Market Association (LBMA) and the London Platinum and Palladium Market (LPPM). Unallocated storage is the norm at LPMCL member banks, including J.P. Morgan Chase.
Allocated storage, however, is the norm for precious metals vaults licensed by NYMEX and COMEX. The two futures exchanges have approved a small group of vault operators, who provide allocated storage to clearing members and their customers. This has given greater legitimacy to the NY exchange traded precious metals venue than the LBMA now has. It is true that NYMEX/COMEX warehouse supplies are wholly insufficient to cover the number of short contracts the exchange allows its clearing members to write. However, at least the numbers are transparent and published. That is more than can be said for the storage facilities that participate in the secretive LPMCL in London.
Allocated storage, under the common law, is known as a “bailment.” When precious metal is allocated, the vault is the “bailee” and the owner is the “bailor”. The bailee is keeping the property safe for the bailor and, in return, it charges a fee for its services, but the property belongs to the bailor at all times. The property cannot be legally leased, loaned, borrowed or used in any way without overt consent by the bailor. Whereas unallocated metal is an asset that is seized by a vault’s creditors in bankruptcy, allocated metal is immune from this.
A bailment cannot be legally seized or encumbered by the bailee’s creditors. Some of the NYMEX/COMEX vaults require a written bailment contract, setting out all rights and responsibilities of the customer and vault. Others operate in the old fashioned way (though the handshake is now often electronic) and, in such cases, the agreement between bailor and bailee is governed by traditional common law standards with no need to sign anything.
There are two storage categories in the NYMEX/COMEX scheme, known as “registered” and “eligible”. Regardless of the category, all bars are allocated by title, and are always of a size, weight and composition that would satisfy “good delivery” if the owner decided to deliver it. An exception to the idea of “global” allocation may occur if “registered” metal is kept in the name of a clearing member, but the bars actually belong to a customer.
This might happen when and if the clearing broker uses the bars as a form of “collateral” to back up performance bonds in a customer account. In such a case, the “bailment” (and allocated storage) would exist between the vault and the clearing member. I use the word “collateral” loosely because true collateral would remain titled to the debtor. In the NYMEX/COMEX scheme, registered bars are always titled in the name of a clearing member of the exchange, whereas eligible bars can be titled in the name of a customer or a clearing member.
In order to be delivered, eligible bars must be transferred into the registered category. This involves nothing more than an electronic entry, “wrapping” the correct number of units into what is called a warehouse “warrant.” Each warrant constitutes a “good delivery” unit of metal sufficient to satisfy one short contract obligation. “Good delivery” means that each bar must be of a standard weight sufficient to meet the rules of the exchange and must be numbered and weighed. Each storage facility must always keep a “chain of title” history record for each bar.
Delivery at NYMEX/COMEX is first made to any licensed vault facility. Once the unit of metal arrives, title is transferred to the new owner. The new owner can do whatever he wants with his property. He can remove it from the bailment and take it into his own personal possession. He can transfer to a different vault. Or, he can keep the metal at the initial point of delivery. In many cases, the last option is chosen, so, often the bar never leaves the delivery vault until it is eventually resold and, usually, not even then. Bars can be delivered, and title transferred, without ever having left the vault.
Until now, JP Morgan did not have a NYMEX/COMEX vault license. They had to send silver, for example, to HSBC, Brinks, Scotia Mocatta and/or the Delaware Depository in order to “deliver” it on COMEX. Those vaults have been NYMEX/COMEX licensed for a very long time. But now J.P. Morgan has its own vault license, and the manner in which it seems to have obtained it, is troubling. The bank can now, potentially, deliver short obligations to itself. Yes, you read that correctly. The bank itself, if it still holds short silver positions, and/or the hedge funds/related financial institutions who may have taken over the positions, can now deliver the alleged metal to J.P. Morgan’s own vault.
The American legal standard requires us to maintain a presumption of innocence until guilt is proven. That doesn’t mean Americans are stupid. Only a fool would ignore the testimony given at the CFTC hearing held on March 25, 2010, or the fact that J.P. Morgan Chase is being sued, in two different class actions, accused of being a racketeering and corrupt influenced organization (RICO). Both lawsuits claim that the bank is using allegedly immense silver short positions in various venues, including COMEX, to manipulate prices.
If a short seller must deliver a commodity, and the commodity is not readily available, there is no better way to buy extra time than to be able to deliver into its own vault. Most of the metal will never leave the vault, and most delivered metal that will leave the vault won’t leave right away. Indeed, paperwork tasks of transferring title can consume a few days. Thus, a late delivery may not be noticed if it is to the short seller’s own vault if the vault operation staff chooses to remain silent.
Why was JPM awarded a vault license almost overnight, avoiding the lengthy vetting process others must undergo? Why did it happen in the middle of a major COMEX silver delivery month, during a massive worldwide silver short squeeze, at a time when physical silver is in severe shortage? We do not know the answers to these questions. The exchange rules should prohibit proprietary trading divisions, hedge funds and other closely associated or controlled financial institutions, from delivering to vaults owned or controlled by their own family of companies. Yet, no such rules exist.
Does the licensing of a NYMEX/COMEX JPM vault reflect short-seller panic? Paper money can be printed, of course, ad infinitum and endless reams of it can be borrowed from the Fed. The issue is how much paper money is needed to pry sufficient physical silver loose from the hands of its owners. We believe that an equilibrium level of about $52 per troy ounce would be sufficient. Assuming that the holdings of the various ETFs are not the scam that some have claimed, there is a huge potential supply right there.
Large delivery requirements can be met by cashing in on “baskets” of ETF shares for silver. There is also a huge supply of hoarded bars outside of ETFs, waiting for the right price to set them free. If supply problems continue, the price must rise further until sufficient selling occurs. Most owners of ETF shares, as well as holders of real physical silver, are not momentum chasers. They buy low and sell high in a traditional manner. Momentum chasers are irrelevant because they generally have only paper, and no real metal to deliver.
Remember, your bars can be transferred from one licensed facility to another very quickly. If any storage facility imposes a significant delay, that should be publicized, and met with resolute opposition. Neither silver nor other metals must be stored at licensed vault. They certainly need not be left at the first point of delivery. If you intend to use silver, for example, in commerce (such as a jeweler or industrial user might) or if you expect to keep it off the market for 20 years or so as a retirement fund, it is economically more efficient to physically remove the metal.
If anyone has any positive or negative experiences with the newly licensed J.P. Morgan vault, we would be very interested in learning about them.
Avery B. Goodman has been a licensed attorney for 26 years, and has concentrated in securities law related cases. He holds a B.A. in history from Emory University, and a Juris Doctorate from the University of California at Los Angeles Law School. He is a member of the roster of neutral… More
Others have commented that JPMorgan could now settle in SLV paper with its own vault as “storage”. I have been always worried about this and I have stated this to the regulators many times throughout these past few years.
I can assure you that Ted Butler will address this issue for us and to the commission.
Let us head over to the comex trading and see what transpired over there today.
First gold:
The total gold comex OI, on both official sites, rose by 3198 contracts to rest tonight at 509,131 contracts from yesterday’s level of 505,933.  Gold had a pretty good day yesterday.  Thus we had  super demand coupled with the bankers obliging by supplying the needed paper.  The front options expiry month of March saw its OI mysteriously rise from 42 to 82 as it seems that someone was in great need of physical gold. We had zero deliveries yesterday so the entire rise in OI increased the gold oz standing.  All eyes will now begin to be focused on the next delivery month in gold and that is April.  The April OI contracted by 12,432 contracts to 208,067 as we are within a week of first day notice.  The OI in April yesterday registered 220,499.  The contraction in OI is quite normal.The OI standing in April is a touch to the high side with a week to go.  The estimated volume at the comex today was rather low at 152,370 with some switches  (roll-overs to June) and the huge run-up in gold price.  The confirmed volume yesterday with smaller switches came in at 158,919. I think our bankers are starting to worry about gold as well as silver!!
Let us now head over to silver.
I first want to report that we have a very very slight contango in silver for the first year out and then we go into severe backwardation. Silver lease rates have fallen off quite a bit but investment yields are still next to nothing as well.  If lease rates exceed investment yield then we should have backwardation.
The total silver comex OI rose by 2239 contracts to rest tonight at 135,988 from yesterday’s level of 133,949.  The bankers throw a temper tantrum whenever total OI exceeds 135,000 in silver.  The front delivery month of March saw its OI fall from 875 to 843 for a loss of 32 contracts with zero deliveries yesterday.  We therefore got some cash settlements today as Blythe opened up her pocket book.  The next front delivery month of May saw the OI rise from 75,855 to 77,100.  Probably after receiving the cash settlement plus a bonus, investors bought the May contracts hoping to try their skill again.  The estimated volume today was on the slowish side at 57,189. The confirmed volume yesterday was better at 64,170.
Here is a chart for March 23. 2011 on deliveries and inventory changes at the comex:
Withdrawals from Dealers Inventory
Withdrawals from customer Inventory
43,998 oz
Deposits to the dealer Inventory
33,823 oz
Deposits to the customer Inventory
zero oz
No of oz served (contracts ) 87
435,000 oz
No of notices to be served  756
3,780,000 oz
Withdrawals from Dealers Inventory
Withdrawals from customer Inventory
Deposits to the dealer Inventory
3,000 oz
Deposits to the customer Inventory
No of oz served (contracts)  75
7500 oz
No of oz to be served  notices 7 or 700 oz
700 oz.

Let us begin with the easy stuff, gold.  I first want to draw your attention to the deposits on gold.  For the past month we have been seeing a deposit like today:  3,000.00 oz
When gold enters the dealer, the gold is usually odd ball like 3002 oz etc.  It looks like we are witnessing some paper gold  (GLD) being deposited.
So today, we got a deposit of 3000 oz and a withdrawal of 1595 oz from the dealer (from two vaults, 1396 oz from one vault and 199 from the other)…note the odd sizes.
If you are keeping score, the net deposit on gold today to the dealer was 1405 oz.
There were no deposits nor withdrawals from the customer.  There were no adjustments.
The comex folk notified us today that a rather large 75 contracts were served upon our longs today.
This is from options exercised on March 1.  The total number of gold oz notices equates to 7500 oz.
The total number of notices served so far this month total 1217 for a total 0f 121700 oz.
To obtain what is left to be served, I take the OI of March at 82 and subtract out 75 deliveries which leaves me with 7 notices or 700 oz left to be served.
Thus the total number of gold oz standing in this non delivery month is as follows:
121,700 oz  +  700 oz =  122,400 oz.  For those keeping score, in tonnage this equates to 3.807 tonnes.
(Yesterday’s level: 3.68 tonnes).  This is very high for a non delivery month.
Now for our wild silver:  There was zero oz of deposits to the dealer.
The customer (eligible) received two lots of silver:
1. 2979 oz which arrived to the Brinks warehouse
2. 30,844 oz which has arrived to our newly created official warehouse,  JPMorgan.
Thus total deposit by a dealer:  33,823 oz  (registered silver).
There was a little withdrawal activity by the customer today.
We had two lots of silver removed from registered warehouses today: 43,998 oz
1.41,917 oz
2. 2081 oz
JPMorgan’s vault did not register a withdrawal today.There was no withdrawals from any dealer today.
There were two adjustments:
1. A dealer repaid the customer 4,745 oz of silver from a prior committment (lease repayment??)
2. The next entry is a dandy:
We received notice that 314,043 oz leaves the customer.
Of that total 310,864 oz is given to the dealer in an obvious lease arrangement. However, 3,179 oz of silver leaves the customer and out of all vaults.  Strange transaction!!
There is another 21 oz of silver credited to the customer.
The comex folk notified us that 87 notices were sent down for servicing for a total of  435,000 oz of silver.
The total number of silver notices sent down so far total 1067 for a total of 5,335,000 oz.
To obtain what is left to be served, I take the OI of March at 843 and subtract out deliveries of 87 which leaves me with 756 notices or 3,780,000 oz left to be served.
Thus the total number of silver oz standing in this delivery month is as follows:
5,335,000 oz (already served)  +  3780,000 oz (to be served)  =  9,115,000 oz.
Yesterday we had 9,275,000 oz so we lost 160,000 oz to cash settlements.
There are 6 trading days left to serve upon 3,780,000 oz of silver.  Thus the bankers need:
630,000 oz in each and every day to serve upon our patient longs.
Let us head to our ETF’s and see how they behaved today.

First, let’s see what happened to our “non-physical” inventories. 

First the GLD: March 23.2011:

Total Gold in Trust

Tonnes: 1,214.87
Value US$:

Total Gold in Trust:

March 22.2011
Tonnes: 1,214.87
Value US$:
The inventory remained constant today so we neither gained nor lost any “inventory”

How about SLV?  March 23.2011: 

Ounces of Silver in Trust 352,384,734.600
Tonnes of Silver in Trust 10,960.39
and March 22.2011:  identical.
There were no additions or withdrawals of silver from the SLV” inventory”

And now for our physical ETF’s:

The Sprott silver fund:  PSLV:

the premium to NAV fell to a premium of 19.08% after reaching a high of 23% premium early in the session.  (see zero hedge commentary on this below)
This is unbelievable.
The premium is telling us something big is happening to silver. 

The Sprott gold fund PHYS:
the premium to NAV fell a bit to 4.86%.

The Central Fund of Canada which is equal parts gold and silver:

saw its premium to NAV rise to 10.2% in cdn funds and 10.3% in usa funds.


Let us now see some of the big stories of the day.
Today interday we received notice that the Sprott’s silver fund exceeded 23% premium to NAV.
Here is zero hedge on this story:

Sprott Physical Silver Premium To NAV Hits Fresh All Time High

Submitted by Tyler Durden on 03/23/2011 10:33 -0400

Several days ago there were a few rather amusing anecdotes in the blogosphere that just because Sprott filed a selling shareholder shelf in PSLV, the ETF was about to crash and burn. What was not disclosed is that in 2011 there have been about 200 comparable shelves filed for public companies, yet nobody called for the imminent anihilation of 40% of the S&P. Stunningly, just because someone requests the right to sell an asset they own when said asset is trading at all time highs, apparently does not mean they intent to exercise said right. To wit: the premium to NAV for the Eric Sprott physical silver ETF just hit an all time record of 23%. We are confident that this is due to JPMorgan being massively long the metal, and also because anywhere one walks these days, physical silver lying on the ground is more prevalent than dog excrement. Also, those who decided to play the premium-NAV compression trade, are advised to promptly close it unless, of course, they are a TBTF bank.
Let us see how things are shaping up around the globe:
There are two stories from Israel.  There was a bombing in Jerusalem but thankfully no one was killed:

Bomb Explodes In Central Jerusalem, 25 Wounded, “Apparently Not A Suicide Attack”

Submitted by Tyler Durden on 03/23/2011 09:56 -0400

From Haaretz: “A bomb tied to a telephone pole exploded Wednesday at a crowded bus stop outside the International Convention Center in Jerusalem, just opposite the central station. At least 25 people were wounded in the incident, four of them seriously. All of the casualties have been evacuated to the Hadassah Hospital in Ein Karem. The Magen David Adom emergency services said that there were no fatalities. The blast could be heard throughout Jerusalem and blew out the windows of two crowded buses, No. 74 and No. 14. An eyewitness in the area at the time of the explosion told Haaretz that she heard a loud blast close to the central bus station and second later sirens began to wail and security forces rushed to the scene. Meir Hagid, one of the bus drivers, said he heard a loud explosion as he drove by the site, located near the main entrance to Jerusalem and its central bus station. “I heard the explosion in the bus stop,” he said. He halted his vehicle and people got off. He said nobody in his bus was hurt.” Reuters adds: “Israeli embassy spokesman in Washington issues correction, says Jerusalem blast not on bus and “apparently not a suicide attack.” At last check Israel CDS were rather well bid.
and then this update from zero hedge;s Tyler Durden:

Israel Update: War Next?

Submitted by Tyler Durden on 03/23/2011 10:35 -0400 

Priced in?
Your rating: None Average: 5 (8 votes).
Over in Portugal, it looks like the government will fall:
(courtesy zero hedge)

Portuguese President Prepares To Accept Jose Socrates’ Resignation; Government Collapse Imminent

Submitted by Tyler Durden on 03/23/2011 14:37 -0400 

From Market News: “Portugal’s President Anibal Cavaco Silva is prepared to accept the resignation of Prime Minister Jose Socrates and is getting ready to call an election to choose a new government, Portuguese daily Jornal Publico reported on its website Wednesday evening….The political instability that would ensue from a collapse of the government, combined with market tensions that have pushed Portuguese ten-year bond yields to a euro-era high above 8%, seem likely to increase the pressure on Lisbon to seek a financial aid package from the European Financial Stability Facility and the International Monetary fund.” Look for Portuguese, Irish and all out toxic fallout (pardon the pun) to be bought with impunity by JC Trichet as the entire market goes bidless.
More from MNI:
The news comes as the Parliament nears the end of a debate on the minority Socialist government’s proposed package of new austerity measures amid strong signs that the bill will be defeated. Rejection of the measures, which are strongly endorsed by Portugal’s European Union partners, would amount to a vote of no confidence in Socrates’ government. 

Socrates is planning to meet with Silva at 19h00 GMT/1500 EDT, and it is widely anticipated that he will tender his resignation in that meeting if the parliamentary vote goes as is widely expected. Socrates is scheduled to address the nation at 20h00 GMT/1600 EDT this evening.

Never too late to load up on those Irish CDS. Just for heaven’s sake do not use Citi, Bank of America, JPM, Goldman, Deutsche, RBS, Barclays or BNP as counterparties.
Your rating: None Average:

Just in:  the government collapsed a few minutes ago:

Portuguese Government Rejects Austerity Plan, Government Collapses

Submitted by Tyler Durden on 03/23/2011 16:00 -0400

Just out:
Next up: government resignation, crisis, bail out, etc. You know the drill.

Here are the latest stories from Japan from the nuclear fallout:
It looks like the radiation leak is getting pretty close to Chernobyl:  (courtesy zero hedge)

Run-Rated Fukushima Radiation Release On Par With, And In Some Cases Greater Than, Chernobyl

Submitted by Tyler Durden on 03/23/2011 14:14 -0400 

Even as the spin continues by both the media and nuclear energy advocates that the dangers from Fukushima are overblown, calculations done behind the scenes indicate that Fukushima and Chernobyl are actually very comparable in terms of radioactive particulate release, and in some cases, such as Cesium 137, Fukushima is already runrating as a worse catastrophe than Chernobyl. From Reuters: “The release of two types of radioactive particles in the first 3-4 days of Japan’s nuclear crisis is estimated to have reached 20-50 percent of the amounts from Chernobyl in 10 days, an Austrian expert said on Wednesday. Based on measurements made at monitoring stations in Japan and the United States, Wotawa said the iodine released from Fukushima in the first three-four days was about 20 percent of that released from Chernobyl during a ten-day period. For Caesium-137, the figure could amount to some 50 percent.” In other words, run rating the release of Cesium for a 10 day period, leaked radioactive Cesium is now about 120-150% of what it was during the full blow reactor explosion experiencing during Chernobyl. But yes, aside from the facts, watering the reactor that are certainly melting down (if haven’t done so already) should surely have great benefits.
More from Reuters:
The calculations published by Austria’s Central Institute for Meteorology and Geodynamics may add to growing concern in Japan and elsewhere over the contamination of food products such as milk and vegetables in areas near the Japanese reactor site. 

The Austrian institute’s Dr Gerhard Wotawa stressed the two isotopes from Fukushima he had sought to estimate — iodine-131 and caesium-137 — normally make up only one tenth of total radiation.

Based on measurements made at monitoring stations in Japan and the United States, Wotawa said the iodine released from Fukushima in the first three-four days was about 20 percent of that released from Chernobyl during a ten-day period.

For Caesium-137, the figure could amount to some 50 percent.

The International Atomic Energy Agency said on Wednesday Japanese authorities had told the Vienna-based agency that radiation dose rates at the plant were decreasing, although the overall situation remained serious.

One U.N. study has estimated Chernobyl, in Ukraine, may over time cause 4,000 to 9,000 extra deaths from cancer.

And there are big differences in the handling of the crises.

“At Chernobyl, the population was not generally aware that the accident had happened,” said Malcolm Crick, Secretary of the U.N. Scientific Committee on the Effects of Atomic Radiation.

“People in the nearby town of Pripyat were watching the fire from just a kilometre or so away. They were evacuated a day or so later,” he said, adding that children kept drinking milk despite risks of contamination.

“In Japan, there was a precautionary evacuation early on,” he said, adding “it’s too early to make a real assessment of the overall impact.”

Japanese authorities also distributed units of stable iodine which can help protect against radioactive iodine.

Unfortunately following today’s news that radiation was once again surging to record highs, any temporary lull factored into models should be propmtly discarded. It also begs the question: how soon until the first indications of radiation poisoning start appearing. Somehow we are confident we will not find out until years from now when all the truth surrounding this incident is finally declassified.
And this from reactor no 2:  (courtesy zero hedge)

Radiation Level At Fukushima Reactor No. 2 At Its Highest Level Recorded So Far, Neutron Beam Observed 13 Times

Submitted by Tyler Durden on 03/23/2011 08:52 -0400

Per the Japan Nuclear Agency: the Radiation level at Fukushima reactor No. 2 at its highest level recorded so far. Only headlines for now. And just as the market was starting to buy the endless lies that things are getting better. And some more truthy news from Kyodo: Electric Power Co. said Wednesday it has observed a neutron beam, a kind of radioactive ray, 13 times on the premises of the Fukushima Daiichi nuclear plant after it was crippled by the massive March 11 quake-tsunami disaster.
Over in Ireland, its bonds have risen to all time highs where the 10 yr yield surpasses 10%:
courtesy zero hedge

Irish 10 Year Bonds Take Out Stops, Yield Surges Past 10% For First Time In History

Submitted by Tyler Durden on 03/23/2011 09:21 -0400

Now that Europe is expected to keel over any minute, starting with the collapse of the Portuguese government, and proceeding right through the bankruptcy of Ireland, the market is starting to once again wake up. The first snooze button: Irish 10 Year bonds just passed above 10%, with numerous stops hit (see chart) for the first time in history. For all those who missed Citi’s recommendation to buy Ireland CDS in advance of an event of default, the report can be found here. Said CDS are still a bargain offered at 630, considering they hit 680 in January.

Finally, another bank gets a class action law suit in silver, this time for collecting storage fees for non existent silver:

Class-action suit accuses UBS of charging storage for imaginary silver

Submitted by cpowell on Wed, 2011-03-23 18:25. Section:  

2:26p ET Wednesday, March 23, 2011
Dear Friend of GATA and Gold (and Silver):
A class-action lawsuit filed in federal court in New York accuses UBS Financial Services of misleading investors in silver and charging them storage fees for metal that was never actually purchased, segregated, and stored for them.
The lawsuit resembles one against Morgan Stanley that the investment house settled for $4.4 million three years ago:
The lead plaintiff in the suit against UBS is Ramsey Personal Trust, which is represented by the law firm of Schoengold & Sporn, P.C., 19 Fulton St., New York, N.Y., 10038. Handling the case is lawyer Samuel P. Sporn. Precious metals investors who are concerned about storage fees they have paid to UBS and seek more information about the lawsuit can telephone Sporn at 212-964-0046.
The lawsuit can be found here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
I think that about wraps up today’s commentary.
I cannot wait to see what the banking cartel do with silver.
all the best
I think that about wraps up today’s commentary.
I cannot wait to see what the banking cartel do with silver tomorrow.  They must be desperate.
Usually a raid occurs whenever OI exceeds 135,000.
all the best
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