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JPMorgan Reopens New York Gold Vault, Concurrently Launches Vaulting Facility In Asia (In Desperate Bid For Physical?)

Tyler Durden's picture





 

The key actor in the LBMA precious metal price-suppression scheme, JPMorgan, is now getting directly involved in physical gold sequestering: the FT reports that JPM has reopened its underground gold vault in New York that was mothballed in the 1990s. The timing is just a little peculiar: not ten days earlier, Jamie Dimon's bank, which has long been alleged to be the biggest shorter of the precious metal in the world via synthetic positions to the tune of 100x leverage, JPM opened a precious metals vaulting facility in Asia: "The facility, located in the Freeport area of Singapore, will provide
gold and precious metal storage capabilities for corporate,
institutional and retail clients in Asia-Pacific." Is JPM just seeing a terrific business opportunity in warehousing gold... or is the firm, which also happens to be gold custodian for Blackrock's IAU ETF with its 4+ tons of the metal, merely looking to find a way to transfer metal from the US to Asia, or vice versa. Or is JPM suddenly in dire need of actual physical now that gold is at all time highs, and clients are demanding delivery. What better way to unwind the ponzi than to transfer from one physical storage client who is depositing gold to one who is demanding it? Alternatively, the firm could be merely preparing the biggest mouse trap ever for when Executive Order number 6102.5 comes into play. Of course, all conspiracy theory conjecture aside, the most likely reason is simply that there is all that physical out there, which people have bought up and now are more than happy to give it to the one LBMA bank which is notorious for having a solitary purpose in life which is merely to decimate the price of gold... After all, Gordian's Knot and all that.

More from the FT:

Investors are piling money into gold in record quantities, pushing the price on Friday to a record nominal high of more than $1,320 a troy ounce. That has made the vaulting business highly lucrative, since banks often charge a small percentage of the value of the gold stored.

Many commercial banks dismantled their vaults in the 1980s and 1990s. But now they are rushing to build: JPMorgan recently built a vault in Singapore, while Deutsche Bank and Barclays Capital are considering opening new vaults in London.

The demand for storage comes as investors are buying physical gold rather than investing in precious metals futures or mining equities. Private investors hold about 30,000 tonnes of gold, according to the consultancy GFMS – more than a sixth of the world’s gold and, for the first time in modern history, more than central banks.

The vault reopened by JPMorgan last month joins a handful of others in Manhattan, including those owned by HSBC and the Bank of Nova Scotia, and the largest gold depository, the Federal Reserve Bank of New York’s facility, which holds reserves from 36 countries

For those hoping to see an exponential rise in the number of gold-repositories (LBMA backed no less, so you know they are safe), holding one's breath may not be the best idea:

Many historic vaults cannot be reopened as they have been converted into
restaurants: one New York vault built in 1902 for John Pierpont Morgan
is now home to a steakhouse.

After all, bankers are human too: where else will they buy their $80 porterhouses, expensed exclusively to their one real end-client: the US taxpayer...

 


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Sun, 10/03/2010 - 22:18 | Link to Comment Jason T
Jason T's picture

Cash settlement no?  .. We all know paper gold is 100x physical and that "they" can always use a cash settlement...unlike Madoff.. these folks are the ultimate den of thieves.

Sun, 10/03/2010 - 22:19 | Link to Comment TraderTimm
TraderTimm's picture

This is getting surreal. What's next, infomercials touting personal gold-vaults you bury in the backyard?

 

Sun, 10/03/2010 - 22:24 | Link to Comment TraderTimm
TraderTimm's picture

I'd also like to add Tyler, that user http://www.zerohedge.com/users/lv1 is the newest bilge-pump account spamming your site.

Like freakin' cockroaches...

Sun, 10/03/2010 - 22:43 | Link to Comment truont
truont's picture

TD is pretty busy and may miss your post on this article about lv1.

Recommend you report spammers at abuse[at]zerohedge[dot]com.  I just did.

Too bad the "this is junk (0)" flag has been so absurdly abused that spammers now have free range on ZH.  TD ignores anything flagged as junk, since it is usually just Johnny Bravo or whichever incarnation of Troll happens to be snarking happily at his keyboard in his mother's basement...

Sun, 10/03/2010 - 22:51 | Link to Comment TraderTimm
TraderTimm's picture

Ah, thanks. Duly noted. I'll keep that in mind when the next spam-factory launches a salvo.

Mon, 10/04/2010 - 00:06 | Link to Comment tyler
tyler's picture

Your comment about people living in their parents basement is tired.  Thats the neocons favorite insult to people they disagree with.  I do live in my moms basement, pay rent and get along just fine.  Times are tough dude that put down don't fly these days.

Mon, 10/04/2010 - 00:29 | Link to Comment Careless Whisper
Careless Whisper's picture

back in the day a bank would NEVER file a false foreclosure affidavit; now its seems that the mafia banks do it all the time. i wouldn't trust j p morgan to watch my gold or my kids.

Mon, 10/04/2010 - 03:51 | Link to Comment Rahm
Rahm's picture

I wouldn't trust them to watch my neighbor's dog, or what he leaves behind after a walk

Mon, 10/04/2010 - 05:51 | Link to Comment mogul rider
mogul rider's picture

Hey I could use one. The cans I use are gettign rusty. Go buy google stock or maybe even better buy more Apple. There's a safe bet those two!When the matrix swallows your your toilet paper then maybe you'll gain perspective.

Mon, 10/04/2010 - 10:28 | Link to Comment TraderTimm
TraderTimm's picture

I've no problem with gold, just curious as to how the mainstream assimilates the rising value. No doubt, we'll have full-service companies spring up just to take care of our gold-storage needs. Already have the infomercials that want all the gold jewelry they can get their hands on.

My 'surreal' comment was touching upon this, how business sometimes gets in this feedback-loop, without asking themselves "Why is this happening". Much like the dot-com bubble mania, where people wanted to believe in startups that had no business plan. Just push your money into their eager hands and press a button, instant profit!

So, in summary - I believe in gold as a store of value, fiat is ultimately doomed. I just have an active imagination and could see an infomercial with lawn-vaults to store your gold stash making the rounds at 3am on cable tv.

Mon, 10/04/2010 - 13:43 | Link to Comment Bartanist
Bartanist's picture

"value"? ... I think you may mean "price". The value of gold in terms of its utility is nowhere near its price.

Even gold is a currency and it is valued at a currency. It has very little value in terms of uses and replacement cost for almost all functions.

I gold vault is just a bank by another name ... and a "retro" one at that.

Sun, 10/03/2010 - 22:21 | Link to Comment snowball777
snowball777's picture

I once knew a jeweler who kept his gold on the workbench and his stash in the safe, but this was the 60s and had more to do with what he could declare on an insurance form as stolen without getting hassled.

Perhaps JPM hopes to pretend the gold is in two places at once for audit purposes.

Sun, 10/03/2010 - 23:14 | Link to Comment covered
covered's picture

They got that pretending thing down pretty good. Extend------>pretend. Forge. Tick. Tock.

Sun, 10/03/2010 - 22:21 | Link to Comment traderjoe
traderjoe's picture

If you took physical delivery, why would you have it stored in a TBTF bank in a known gold vault? I'm going to get junked, but I'd rather store it in my basement or bury it than have it in a bank vault I have no control over (especially a TBTF bank, and even worse JPM). Of course, there are other private security deposit box companies for those that don't want the security risk. 

Mon, 10/04/2010 - 01:15 | Link to Comment geminiRX
geminiRX's picture

No rational person would store it with a bank (California gov. even raided safety deposit boxes). Best to bury it and sell it when there is a lineup around the block to buy the shiny stuff.

Sun, 10/03/2010 - 22:24 | Link to Comment Ignatius
Ignatius's picture

"The road will seem so straight and fair to travel, that you will kick yourself for stumbling through the brambles for so long, and wonder at your neighbors who still can't see the path, though it is truly a freeway"  FOFOA

Sun, 10/03/2010 - 22:26 | Link to Comment monopoly
monopoly's picture

Do you all notice how the pieces of the puzzle are slowly fitting nicely. Gonna take some time, but I do believe we are on the right track here. Ya know, we have not had a severe dump in gold in a while, maybe due one. That would be the 73 dump and 96 top call since this all began.

Will just add to physical again if that happens. As long as the sheeples keep watching Desperate Housewives and Dancing with the stars, all must be well.

Beyond words all. Gonna make a lot of people unhappy, again.

Sun, 10/03/2010 - 22:58 | Link to Comment BGO
BGO's picture

I know it sounds like a hackneyed thing to say, but things are truly different now compared to even 15 years ago. Does JPM or a bank like JPM in modern times have the ability to affect gold prices in a significant way? Through fraudulent paper trading, sure. Physical seems less and less likely, but it would be interesting to watch them try. There are more gold buyers today than in any point in human history. Gold being a finite resource, seems unlikely a bank would risk dumping with the goal of driving price down. Maybe, but it seems unlikely.

 

 

Mon, 10/04/2010 - 08:46 | Link to Comment jesusonline
jesusonline's picture

google JP and Barrick Gold. Also this topic is covered here frequently, eg:

http://www.zerohedge.com/article/whistleblower-exposes-jp-morgans-silver-manipulation-scheme

etc

Sun, 10/03/2010 - 22:29 | Link to Comment monopoly
monopoly's picture

traderjoe, I agree. You can have a very secure vault in your home or business. May cost some but well worth it.

Yeah, lets leave our gold stored at C, BAC or GS. Then when the shit hits the fan, they tell us we can't access it.

Trust noone and act on that.

 

Mon, 10/04/2010 - 01:00 | Link to Comment anonnn
anonnn's picture

Mary and the FDIC will guarantee it 100%  Full faith and credit with a very fancy, highest quality linen receipt.

What's to worry.

Sun, 10/03/2010 - 22:30 | Link to Comment laosuwan
laosuwan's picture

no point in speculating what jp is doing. the only point in buying gold is the ability to take physical possession. for sure that does not mean giving it to wall treet. You really only have two choices; keep your gold in your house or in the bank down the street. neither option is all perfect and this is the paradox in buying gold. But, being alive is risky so what the heck. I go for half in the bank down the street and half in the house next to the doberman's bed

Sun, 10/03/2010 - 22:35 | Link to Comment truont
truont's picture

JPM has reopened its underground gold vault in New York

Maybe people really are as dumb as the ruling class think...if people will deposit their gold with JPM.

I think Jamie Dimon once said:  "If God did not want them fleeced, he would have not made them sheep!"  Or maybe he was just thinking that...

Sun, 10/03/2010 - 22:58 | Link to Comment bigdumbnugly
bigdumbnugly's picture

 

Jamie and the Morganauts on quest of the golden fleece.

Sun, 10/03/2010 - 22:33 | Link to Comment Apostate
Apostate's picture

This is one of the most fascinating pieces of news I've seen on ZH in a while. Perhaps my enthusiasm is unwarranted, but I feel like the psychology on money is changing rapidly before our eyes.

The market demands a better class of money. There is no way around this immutable fact. The most interesting sentence is

"The facility, located in the Freeport area of Singapore, will provide gold and precious metal storage capabilities for corporate, institutional and retail clients in Asia-Pacific."

The FX markets have become too choppy and central bank-driven to be played by ordinary corporations. The domestic inflation/deflation dynamic has also become too unpredictable for any kind of reasonable predictive economic calculation. 

Does anyone else feel a sense of giddy anticipation of being paid in gold coins in the near future instead of paper checks?

Sun, 10/03/2010 - 22:45 | Link to Comment silvertrain
silvertrain's picture

  This is very , well, I dont know what to think..I feel kinda like you do..I am thinking that maybe this is a vault for a one world currency backed by Gold...They will keep the gold that backs there paper in the vault and the paper for you at all of there branches..Except I wouldnt trust them to have the amount they say..But then again for us regular people they wont be letting us trade ours in anyway...That will just be for larger peeps..Welcome to ponzi scheme 2.0

Honestly though, you guys are alot smarter than me, I have no freakin clue what there up to..But make no mistake about it, there up to no good...

Sun, 10/03/2010 - 23:06 | Link to Comment Apostate
Apostate's picture

Gold itself could be a one-world currency. Personally, I regard theories that posit that a Bancor-like system could be instituted as infeasible.

I would prefer a hodgepodge of competing currencies. Whatever people want to use, would rule. As long as there is no monopoly, it's all well and good.

We all start from somewhere. Don't be intimidated by the erudition and experience of the community. Learn from people, read source texts, and comfort yourself in the fact that you actually pay attention to these issues.

Sun, 10/03/2010 - 23:36 | Link to Comment Lionhead
Lionhead's picture

silvertrain, TD answered your statement "I have no freakin clue what there [sic] up to.." Just read the article & re-read if you need to.

"Or is JPM suddenly in dire need of actual physical now that gold is at all time highs, and clients are demanding delivery. What better way to unwind the ponzi than to transfer from one physical storage client who is depositing gold to one who is demanding it?"

It's as clear as it could be. Go to Harvey Organ's blog & read his daily inventory reports at the Comex:  http://harveyorgan.blogspot.com/

Never, under any circumstance store large quanities of gold/silver at any US bank, safe deposit vault or other facility. Store your inventory in Canada or other country & keep a sufficient amount in your home safe. This minimizes your "regime risk" of confiscation & putting all your "eggs" into one basket.

As for doing any business of any kind with J.P. Morgan, I wouldn't give them the sweat off my balls.

Mon, 10/04/2010 - 13:47 | Link to Comment Bartanist
Bartanist's picture

All preparation for the new global fiat currency, perhaps.

Sun, 10/03/2010 - 23:06 | Link to Comment Fahrenheit451
Fahrenheit451's picture

I've finally reached the point in my gold ownership that home storage becomes too risky. I have approximately 20% of my net worth in physical bullion sitting in a safe in my basement.  I'm sure as shit not going to trust my bank with it.  I also live just outside NYC, so stashing the metal at a bugout location isnt feasible.  I've decided to take the steps to arrange offshore storage for my gold.  After hours of combing the net, the two best options seem to be either Swiss storage in Zurich with Via Mat or storage with malca-almit in the Singapore Freeport.  It was a tough call but next week I'm shipping my aqu to Singapore.  I assume should the shtf, the good ol US will have more sway confiscating from the Swiss than from Singapore, which should be comfortably under the protection of the red chinese. 

 

 


 

Sun, 10/03/2010 - 23:17 | Link to Comment Sokhmate
Sokhmate's picture

(very seriously), how can one ship gold out of the country? rules governing such? How would you get it out? (plane, via sea, etc?)

Sun, 10/03/2010 - 23:25 | Link to Comment Fahrenheit451
Fahrenheit451's picture

Just file a customs form, it's completely legal for now.

Sun, 10/03/2010 - 23:37 | Link to Comment Illya Kuryakin
Illya Kuryakin's picture

Are you sure a customs form is even required for gold bullion?

Mon, 10/04/2010 - 12:33 | Link to Comment Mariposa de Oro
Mariposa de Oro's picture

I'm overseas and when I buy my teensy 1/10-1/4 oz au there is an electronic customs registration.  It is filed with customs/USPS but isn't plastered all over the box.  The mail clerks have no idea what's in that little box.

Mon, 10/04/2010 - 00:43 | Link to Comment gwar5
gwar5's picture

Sounds like a good plan. But don't use the sticky fingered JP Morgan vault in Singapore!

If the SHTF are you concerned the customs paperwork will leave a trail for the IRS to you for such things as future gold taxes, applied to holders of gold? They can see you own it, even if it's far away.

That's my concern about storage. Also, avoiding probate issues, access and estate taxes if something happens to me.

Estate taxes could go to 50-100%, depending on whether socialists or marxists are in charge.

.

Mon, 10/04/2010 - 05:13 | Link to Comment Sokhmate
Sokhmate's picture

not a bad idea, except that too many trips would be required.

Mon, 10/04/2010 - 00:13 | Link to Comment Cyrano de Bivouac
Cyrano de Bivouac's picture

F451-Is it possible to ship gold to individuals in other countries? If so-who does it?

Mon, 10/04/2010 - 01:20 | Link to Comment anonnn
anonnn's picture

Singapore is adjacent to Malaysia and bioth are  members of British Commonwealth.

Hong Kong is governed by China under special laws that were agreed with England when the latter's "lease" ended.

Mon, 10/04/2010 - 06:23 | Link to Comment doggings
doggings's picture

..After hours of combing the net, the two best options seem to be either Swiss storage in Zurich with Via Mat

That's where mine is via Bullionvault

http://bullionvault.com/help/?FAQs/FAQs_vaulting.html

Mon, 10/04/2010 - 08:53 | Link to Comment Hunch Trader
Hunch Trader's picture

Singapore is a little red dot amidst somewhat hostile neighbors...and very low ground too.

 

Sun, 10/03/2010 - 23:05 | Link to Comment Lux Fiat
Lux Fiat's picture

Reminds me of the CME deciding to accept gold as collateral back in Oct. 2009. (http://www.zerohedge.com/article/cme-allow-gold-margin-requirement-collateral).

I loved this line from the CME notice: 

*In order to effect a gold deposit or withdrawal transaction, the asset type used in the C21 Asset Management and Banking application will be CASH and the currency will be GLD.

http://www.cmegroup.com/tools-information/lookups/advisories/clearing/files/Chadv09-452.pdf

If TSHTF, it might not be just the US who attempts to nationalize/seize gold.  Better mousetrap indeed.

Sun, 10/03/2010 - 23:37 | Link to Comment quasimodo
quasimodo's picture

"Attempts" being the key word here.

Sun, 10/03/2010 - 23:15 | Link to Comment Jasper M
Jasper M's picture

If the price of an item goes in a different direction than I expect, does that autometically mean it Must be manipulation? Might I just be wrong? 

or is that unthinkable?

Sun, 10/03/2010 - 23:34 | Link to Comment snowball777
snowball777's picture

Depends. How many times are you generally wrong in a row?

Sun, 10/03/2010 - 23:21 | Link to Comment Hephasteus
Hephasteus's picture

I have a bad feeling AIG is going to have insure one of those vaults and it's going to burn.

Mon, 10/04/2010 - 11:55 | Link to Comment Strider52
Strider52's picture

More likely a planned robbery by JPM itself. "Wow, it's almost like we have no gold at all now!" (never did).

Sun, 10/03/2010 - 23:20 | Link to Comment Mercury
Mercury's picture

I think Jamie thinks fractional reserve gold banking could be the new black.

Mon, 10/04/2010 - 00:04 | Link to Comment gwar5
gwar5's picture

Yes, I'd heard about the Singapore vault two months ago. Same time heard about the JP Morgan NYC vault plans, and how they'd kicked out the small account holders to make way for large buillon holders in new refurbuished vault.

Also, China has opened a buillon vault facility in Hong Kong for Asian countries and moved their buillon from the LBMS to place there. They also recently opened a buillon market to rival the LBMA of the West.

China seems pretty serious about the gold thing. Seems to be pushing others.

Mon, 10/04/2010 - 00:17 | Link to Comment Ecoman11
Ecoman11's picture

Looks like they've gone all the way to plan G.

Mon, 10/04/2010 - 00:26 | Link to Comment scratch_and_sniff
scratch_and_sniff's picture

Maybe they are trying to hedge that position?

Mon, 10/04/2010 - 00:36 | Link to Comment Grand Supercycle
Grand Supercycle's picture

Updated GOLD monthly chart:

http://stockmarket618.wordpress.com

Mon, 10/04/2010 - 00:46 | Link to Comment fresbee
fresbee's picture

Here is something for ZH to do some investigative journalism:

The travel advisory against EU comes at exactly the same time as Chinese visit to EU to discuss currency issues. And given that there is absolutely no hard evidence of any potential strike, it was even intriguing at how quickly the advisory was issued and was immediately followed by a deadly attack in Pakistan killing a number of militants and civilians. It is too much of a coincidence and I have heard from more than a few quarters that this advisory and attack is clearly arising out of Washington discomfort with the ever increasing closeness between the socialists and communists challenging the dollar hegemony.  

Here is my prophecy concerning the US policy: US will try every thing in its ability to foster more wars and diplomatics issues between countries to avoid them from coming together against the US stock pile of debt. (Proof: US engineered mistrust between India and China on the recent NY times article on POK occupation by China, travel advisory to EU, Japan/China row...to cite a few). Its game on in my view and getting to be v. interesting.

 

The perfect solution according to US is for dollar to decline in an orderly manner but at the same time it does not want the dollar to be ever replaced by any other currency as it can shoot the borrowing costs for the US and kill and drain the economy and bring down the living standards to unacceptable levels. We are talking of Vietnam living standards for US citizens if dollar loses its status. 

 

 

Mon, 10/04/2010 - 01:30 | Link to Comment anonnn
anonnn's picture

Oh, the irony; the blowback; what goes around...;just desserts.

Who could have known?

We attend the dwindling spiral of  Man.

 

Mon, 10/04/2010 - 00:49 | Link to Comment Coldfire
Coldfire's picture

Trusting gold with JPM would be like trusting your children with a known child molester.

Mon, 10/04/2010 - 01:00 | Link to Comment cbaba
cbaba's picture

+1

I hope the Asian investors know this fact or reading this post..

 

Mon, 10/04/2010 - 05:42 | Link to Comment nathan1234
nathan1234's picture

Asians are far more wiser. Most of them dont trust banks and their governments. They keep their nest eggs under their own watchfull eye.

 

Mon, 10/04/2010 - 03:29 | Link to Comment Hook Line and S...
Hook Line and Sphincter's picture

I'm sending JPM my freshly painted gold colored tungsten bars. The joke will be on them when they steal it and try to pass it off to some CB.

Mon, 10/04/2010 - 09:28 | Link to Comment DarkMath
DarkMath's picture

Anyone who gives their Gold to JPMorgan to store deserves to lose. A fool and their money are soon parted.

Mon, 10/04/2010 - 00:59 | Link to Comment Troy Ounce
Troy Ounce's picture

Come to think of it: whar actually happened to that e.n.o.r.m.o.u.s gold and silver stash Obama and his team found a year ago in Afganistan?

Mon, 10/04/2010 - 01:13 | Link to Comment StychoKiller
StychoKiller's picture

Still in the ground, along with pixie dust and unicorn skittles

Mon, 10/04/2010 - 01:14 | Link to Comment StychoKiller
StychoKiller's picture

Since no else has:

http://www.youtube.com/watch?v=vWz9VN40nCA

"Let's get Physical!"

Mon, 10/04/2010 - 01:19 | Link to Comment geminiRX
geminiRX's picture

Nice camel toe...

Mon, 10/04/2010 - 01:48 | Link to Comment redpill
redpill's picture

If you're going to hand your physical gold over to JPM for safe keeping, you might as well just buy GLD and save yourself the trouble.  Anyone who would do that doesn't understand the reason for owning bullion.

Mon, 10/04/2010 - 02:17 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

To say things are picking up speed is not only understated, but misappropriate.  Things have changed.  Price wise they changed when silver broke $20.92, and as gold made its September run.  This systematic change is picking up speed, though generating growth since the crash of '08, and never looking back. 

Remember, life is a brilliant source of intelligence, and people of many types have begun to get the drift.  One of my favorite examples of this is just how many commercials are using gold statues, gold bars, the terms golden and "gold" to describe their product placements.  I understand it has been this way for awhile, as there has always been something attractive about gold, but lately it has gone pop. 

With silver entering a new range, one that should see its price move from $22-$36 per by the end of December.  The flight to quality, real quality, has only begun, and silver is dirt cheap.  There are several ways and speeds this could play out. 

First note gold has moved better during "strong" dollar phases.  This is one reason why it is now in the best interest of the Fed to continue to devalue the dollar.  If the dollar had bounced off of the low end of support at DXY 81 to DXY 84, the move in gold would currently be a hair under $1400.  Instead we broke the support level down completely, and the dollar is now looking to test DXY 73.  This move down will get gold to the $1400 number easily, maybe higher.  If this continues expect the DXY to trade at 66 by late December, and this will have gold above $1800.  Of course, this is the best case scenario for the Fed because if there is a flight to Treasurie, gold would run up huge in weeks, instead of slowly making its move over the months.  This is what others, like Hendry, have noticed; if there is a melt up in Treasuries, there will be a massive melt up in the price of gold.  If there was all out financial panic again, which should never be out of the question of happening at any point in the day, then gold could make its move to $1800 in a two to three week time period.  The Fed does not want this, because the repercussion would not only mean dumb looking Central Bankers (who knew?/sarc) but would start chaos in politics. 

The last thing the Fed wants right now is chaos in politics, as they want that to happen post election.  Neo Keynesians want Fem Dems to keep the purse so they can continue to dole out free moie to all walks of life, including the military (In Zinn's "People's History" he says it is the Democrats that have managed to fund the wars on the greater scale, not the Replubs).  This is also in the best interest of our foreign depositors, who are already scared that a turn in the House and Senate that would leave Replubs in office.  The Replubs of course hate it when the Fem Dems out do them in any war effort, and would pleasantly be encouraged to go after rouge nations in the name of World Police. 

So each of the players will continue to bite through their arms in an effort to rid themselves of the traps they have gotten themselves into.  Look for BS Bernanke, who has studied Economics by Academia Accounting standards, to be pitifully  drawn down by financial oilgarchs who stand to benefit the most from higher asset prices.  The Fem Dems would try and look tough while meddling in finance, which they know little about.  If the two mentioned cliques (Dems and Bankers) do not succeed, and there is a melt up in gold and bonds, the Replubs will lie in wait for a move to bring the US together sympathetically all the while only wanting to further divide the country in hopes that either Palin, Forbes, or McCrystal could enter in on the back of this event.  Either way it goes, this Fall will be at maximum velocity, with gold set to inherit the dawning of this new day.

If this day is a said confiscation of gold, all hell will break loose.  JPM will want its reserves in a foreign country, and I assume foreign countries will want "their" gold back (I would bet that the custodians ie NY/London banks would want to keep it, sparking debate with countries such as Germany/S. Korea).  This is one of the many swans which are lined up now that would usher in civil "disobedience" at least, with World War possibly ensuing in the name of managing a broken economy.  America could in turn become the ultimate rouge nation, moving troops to force confiscation of oil reserves.  This would be only a bungle at best, as the military NEEDS oil to run its ops, and would force the armed forces into a vulnerable feedback loop.  It would culminate in a pseudo Mad Max scenario that would determine geographically the next stage of world history, with private malitias being paid by organizers at first.  This would include Middle East countries contracting such groups as Xe. 

The US has been dissolving as a power for some time, at least since Rubin/Summers carpet bagged it in the '90s by selling it out, but also when Nixon took it off of the gold standard, and also when Roosevelt took it off of the gold standard and started the Ponzi Train running in the first place (only a few examples; other examples of debasing standards comes from the fact that good policy was set to fail when bad policy intervenes.  Roosevelt's Plan may have seemed like a good thing, but when SS is a ponzi and can be used as a hedge fund, was it really worth it?)

The race to the bottom in the respective world currentseas continues to have little affect in bringing prosperity to the fascist nations of the world.  So with bad monie chasing good as the dollar chases gold, there could be a most parabolic move.  The Fed, Fem Dems, and Foreign creditors do not want to see this happen yet.  Replubs do, because they want to generate as much fear as possible going into the election.  Interestingly, the Jeckle and Hyde Fed Chair, who was nominated by the Prince of the Neo Cons but is a Neo-Keynesian, would like nothing better than to succeed in devaluing the dollar AND printing more monie.  His best bet is to slowly devalue and hope that there is a cataclysmic event after the election, this so QE II can be justified.  This is the dark state where politics lie; turmoil is in the best interest of the parties.  The only question remaining is the matter of timing.  What happens when will be the critical mass for the politicos.  Look for hell to be put on a pedestal so it can be called down. 

The only thing that can be done now is for us to continue the good fight.  We must understand that it is us against them; if this means the people themselves that is fine but it is the regime that we are after.  The regime is not one of left and right but right and wrong, and neither of the colored parties are here to help.  Although the Tea Party meant well, they have been hijacked and their message is muttled.  What needs to happen is people must take arms against the Income Tax, which is unconstitutional.  Our weapons are our voice and our monie, which is why money must be taken out of the system (fractional reserve system as well as the global finance system) and put in local treasures.  This includes owning PMs, shopping locally, and being as sustainable as possible.  The effect of this action could not only render the global thieves without money power, it could change our geographical landscape; the matter of climate change is a farce, as THE ISSUE is that we our destroying the nature of our planet.  If people would shut up for a minute about climate change and realize that it is the POLLUTION that matters, the trite and uncomfortable Hegelian debate would be cut down.  The solution is freedom, and we must not only free our monie from the grasp of the banksters, we must free our voices from the grasp of the politicos.  Let no person say what you want to say.  You must say it yourself.  It is that time where it is all or nothing, and we need our all, so we can have our freedoms.

Mon, 10/04/2010 - 07:52 | Link to Comment Pegasus Muse
Pegasus Muse's picture

Thanks LH.  Your insights help clarify the big picture. 

So does The Daily Bell.   

A Quiet, Global Revolution

http://www.thedailybell.com/1417/A-Quiet-Global-Revolution-.html  

Mon, 10/04/2010 - 08:59 | Link to Comment Vernon Wormer
Vernon Wormer's picture

Damn. Nice post. Thank you.

Mon, 10/04/2010 - 20:02 | Link to Comment Buck Johnson
Buck Johnson's picture

Lennon that was great, you told exactly what is going on in the US and the western world.  It is a matter of timing, they know the game is done they just all of them have a different time schedual for the event to happen.  Also I believe that JP Morgan is either trying to sucker people into placing their gold in their posession or they are under guise trying to move gold from the US to Asia.  I'm up in the air, it could be a little of both.

Mon, 10/04/2010 - 03:44 | Link to Comment Catullus
Catullus's picture

Wasn't this part of the RBS Sempra/JP Morgan European Metals transaction?

I think it speaks volumes about the insignificance of London.

Mon, 10/04/2010 - 05:39 | Link to Comment nathan1234
nathan1234's picture

I wouldnt trust them at all - period

Neither would i trust Goldgayman Sucks, Bunch of Asses, CitiBunkum and other Banks

 

Mon, 10/04/2010 - 06:00 | Link to Comment Kobe Beef
Kobe Beef's picture

Here's what works for me:

Identify an offshore storage facility you trust. Do not use a bank with any branch in the USA, or in your local domicile. Singapore is good. Dunno about Switzerland.

Load whatever amount is just below your local reporting requirements in your carry-on & take a vacation. Make a deposit. Enjoy local scenery.

Rinse, repeat as necessary.

Cheers,
Beef

Wed, 10/06/2010 - 21:26 | Link to Comment laosuwan
laosuwan's picture

Not Singapore if you use an american passport> it is next on the USA's list of countries that have to report bank accounts of US citizens to the Treasury and IRS.

Mon, 10/04/2010 - 06:33 | Link to Comment Zerohedge fan
Zerohedge fan's picture

I'm glad you did

http://www.youtube.com/watch?v=FHvhFZOOXrs&feature=related

 

(stored gold with me)-JPM

Mon, 10/04/2010 - 06:32 | Link to Comment knightmare
knightmare's picture

This brings out an interesting question. Where is the best tax haven for storing gold? What is the tax savings of keeping gold in Singapore versus US versus Hong Kong?

Mon, 10/04/2010 - 06:35 | Link to Comment dujonn
dujonn's picture

http://www.financialsensearchive.com/editorials/townsend/2010/0419.html

Just want your guys thoughts on the 100:1 issue that was raised by Jeff Christian comment

Mon, 10/04/2010 - 06:39 | Link to Comment Zerohedge fan
Zerohedge fan's picture

 

I'm glad you did

http://www.youtube.com/watch?v=FHvhFZOOXrs&feature=related

 

(deal gold with me)-Jeff Christian

Mon, 10/04/2010 - 06:45 | Link to Comment EVQ
EVQ's picture

Afghanistan awarded the mining contract to a Chinese company.

Wed, 10/06/2010 - 21:23 | Link to Comment laosuwan
laosuwan's picture

How big do you think G. Bush Sr.'s commission was on that one?

Mon, 10/04/2010 - 07:10 | Link to Comment JonNadler
JonNadler's picture

Trusting your gold to JP Morgan? HA HA HA HA, yeah, and also trust your beautiful 16 year old daughter to Jeffrey Dahmer to baby sit her for the weekend!
Oh man, thank goodness for suckers, now Jamie can alleviate the gold shortage and have a new supply from which to short gold, besides the ETFs. Jamie you're a genius, I knew your promises would not go unfullfiled, my call for 200 gold may still come true

Mon, 10/04/2010 - 07:18 | Link to Comment Zerohedge fan
Zerohedge fan's picture

"I knew your promises would not go unfullfiled, my call for $200 gold may still come true"

Now, we know, Jamie nick is Jon Nadler

Mon, 10/04/2010 - 07:18 | Link to Comment sethstorm
sethstorm's picture

Opening it in Asia(or anywhere that may appear to be outside the control of the US) will not make it any safer. 

Mon, 10/04/2010 - 11:07 | Link to Comment Bagbalm
Bagbalm's picture

I own a shovel, a post hole digger, and a GPS. Bury it deep and bury it where someone can not easily pass a metal detector over it.

Tue, 10/05/2010 - 19:46 | Link to Comment V07768198309
V07768198309's picture

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Wed, 10/06/2010 - 10:01 | Link to Comment bobboberson
bobboberson's picture

Guys,  I live in Europe and I just ran into a couple American guys that are pushing a gold investment scheme they claim is backed by JP Morgan / Chase.  They actually want Europeans to send money to the states to buy gold presumably to be stored in a vault owned by JP Morgan / Chase.  They are also pushing the idea of 2.5 times leverage.  I don't know why 2.5 or why they care if investors would leverage at all as long as they collect their commission but they were very insistent about selling: Gold Investment, 2.5 times leverage, JP Morgan / Chase holds it in the states.  The commission they were taking was 3% plus some fixed component.  This seems pretty high for gold you're not going to take physical delivery of.  They are pushing this deal very hard in a boiler room type way.

This also gives me two thoughts, perhaps totally outlandish but maybe not...  Could JP Morgen be stock piling the gold using other peoples money (even targeting foreign investors like in my case) to setup for the US Government to seize it when the real panic comes? OR could they be planning a move with their wall street buddies to engineer a temporary dip in the price - enough to margin call some people and then walk away with their investors gold scott free?   - i.e. hence the 2.5 times leverage they're pushing so hard....

Thoughts?

Wed, 10/06/2010 - 21:21 | Link to Comment laosuwan
laosuwan's picture

I dont think many europeans will sell their gold and give it to some American guys they met over the phone or in a bar. Ask to see their work permits.

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