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Gold/Mining/Energy : Blue Chip Gold Stocks HM, NEM, ASA, ABX, PDG

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From: Wade	6/27/2010 1:02:08 PM
	3 Recommendations of 48092

Big Wow!! gata.org Adrian Douglas: Manipulative derivatives in gold and silver keep growing Submitted by cpowell on Sun, 2010-06-27 16:01. Section: Daily Dispatches By Adrian Douglas Saturday, June 27, 2010 The U.S. Treasury's Office of the Comptroller of the Currency (OCC) has just released the first-quarter 2010 bank derivatives report, which can be found here: occ.gov This report contains more evidence that a flood of paper gold and silver instruments are being used to divert investor capital away from the purchase of the actual physical metals in order to suppress prices. Before looking at gold and silver specifically, there are some other very important points to be noted in the report: -- The notional value of derivatives held by U.S. commercial banks increased $3.6 trillion in the first quarter, or 1.7 percent, to $216.5 trillion compared, to Q4 2009. The notional value increased 7.1 percent from Q1 2009. -- U.S. commercial banks reported trading revenues of $8.3 billion in the first quarter, 15 percent lower than $9.8 billion of revenue in the first quarter of 2009. -- Derivative contracts remain concentrated in interest rate products, which comprise 84 percent of total derivative notional values. The notional value of credit derivative contracts, at $14.4 trillion, represents 7 percent of total notionals. Credit derivatives increased by 2.3% during the quarter. -- Five large commercial banks represent 97 percent of the total banking industry notional amounts and 86 percent of industry net current credit exposure. So there has been an increase of $3.6 trillion in notional value of derivatives in just three months! ..more "The gold derivatives of all maturities increased by $7.8 billion (7.8 percent) to $107.7 billion. Some $6.8 billion of the increase was in gold derivatives of less than one year maturity. JPMorgan Chase increased its gold derivative holdings by $2.1 billion (2.5 percent) while HSBC increased its gold derivative holdings by a mind-boggling $6.1 billion (37.9 percent). (The HSBC holding is inferred, as its holding is listed under "other commercial banks," but as JPM and HSBC have traditionally held more than 95 percent of the precious metals derivatives it is reasonable to conclude that the other commercial bank category is almost entirely made up of the HSBC holding.) The increase in gold derivative notional value in Q1 is equivalent to 40 percent of all gold mined in the world during the quarter. The precious metals (silver) derivatives of all maturities increased by $0.9 billion (6.9 percent) to $13.7 billion. The silver derivatives of less than one year maturity increased by $1 billion (8.7 percent). The holdings of JPM in silver derivatives of all maturities increased $1.7 billion (22 percent) while those of HSBC decreased by $0.8 billion to $4.25 billion (-15 percent). The increase in notional value of silver derivatives held by JPM represents approximately 100 million ounces, which is 57 percent of the global production of silver during the quarter."

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