• BullionStar
    05/30/2016 - 21:24
    The US Gold Market is best known as the home of gold futures trading on the COMEX in New York. The COMEX has a literal monopoly on gold futures trading volumes worldwide, but very little physical...

New Record For GLD Gold Holdings (+5 Tonnes); Gold On Its Way To Validate Goldman's $1,400/Oz Prediction

Tyler Durden's picture

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Tue, 06/22/2010 - 17:28 | 427777 homersimpson
homersimpson's picture

May JPMorgan take a golden shower from the ever-increasing gold price.

Tue, 06/22/2010 - 17:45 | 427825 Turd Ferguson
Turd Ferguson's picture

Gold: "the most manipulated and distorted supply curve in the history of economics."

The understatement of the day. Too bad its too long to fit on a t-shirt.

Tue, 06/22/2010 - 20:56 | 428231 Arius
Arius's picture

hey here is a solution: JPM might get the rights to the 10 trillions discovered in Tora Bora....how fast people forgot about these reserves?

Wed, 06/23/2010 - 05:41 | 428627 Quinvarius
Quinvarius's picture

It won't be worth 10 dollar trillion until next year.  Right now it is still 1 trillion.

Wed, 06/23/2010 - 06:27 | 428642 goldfreak
goldfreak's picture

but we have trolls to remind us

Tue, 06/22/2010 - 17:30 | 427781 Hansel
Hansel's picture

They must have a great supplier to be able to buy all that physical gold, and a big warehouse to store it all.

Tue, 06/22/2010 - 17:48 | 427830 tmosley
tmosley's picture

1000 tons of gold would fit easily into a large-ish bank vault.  It's quite dense, you see.

51.81 cubic meters, to be precise.

I'm with you on the supplier issue, though.

Tue, 06/22/2010 - 18:16 | 427900 Sabremesh
Sabremesh's picture

Just so people can visualise this, 51.81 cubic metres is a cube with sides of just 3.73 metres (that's just over 12 x 12 x 12 ft for you diehard imperialists)

Tue, 06/22/2010 - 21:52 | 428310 Iam_Silverman
Iam_Silverman's picture

Sooooo, that's about the size of 2-1/2 cords of wood?

(one cord of wood is 4'X4'X8').

For those hicks out there, like me.

Wed, 06/23/2010 - 00:51 | 428518 hamurobby
hamurobby's picture

Thad be 2 and a half truckloads here in Florida, better bring a dually for the yeller metal though  :-)

Tue, 06/22/2010 - 19:28 | 428034 JLee2027
JLee2027's picture

Central Bank leasing, and when push comes to shove, poof the Gold will stay at the Central Bank.

Tue, 06/22/2010 - 18:09 | 427877 Monkey Craig
Monkey Craig's picture

it's pretty easy to store paper gold....just add another 0

Tue, 06/22/2010 - 18:09 | 427878 Monkey Craig
Monkey Craig's picture

it's pretty easy to store paper gold....just add another 0

Tue, 06/22/2010 - 17:30 | 427785 unwashedmass
unwashedmass's picture


rolling with laughter...ah, if only they took delivery of 5.2 ACTUAL REAL GOLD.....

as it is, so...how much does the paper weigh here? 5.2 tons worth of futures contracts....worthless futures contracts...

how much do we think it weighs?

Tue, 06/22/2010 - 18:02 | 427859 Vendetta
Vendetta's picture

there is so much paper it weighs as much as a lot of physical gold

Tue, 06/22/2010 - 19:00 | 427986 knukles
knukles's picture

It don't weigh anything.  Paper gold?  It's all naughts and ones on a computer somewhere.  

Tue, 06/22/2010 - 20:34 | 428183 UncleFester
UncleFester's picture

Eventhough the electron rest mass is 9e-31 kg, you are correct...the naughts and ones don't weigh anything.  There is storage somewhere on someone's hard drive, it just won't weigh more when the numbers change.

Wed, 06/23/2010 - 06:29 | 428644 goldfreak
goldfreak's picture

what weighs more a ton of gold or a ton of futures issued on one ounce of gold?

Tue, 06/22/2010 - 17:32 | 427788 unwashedmass
unwashedmass's picture


by the way, why would JPM need to cover? they own the CTFC....and Ben is floating them free cash...

so why do they need to cover, ever?

Tue, 06/22/2010 - 19:16 | 428010 knukles
knukles's picture

Maybe Ben is not floating them free cash.  Maybe the account through which this is being effected is indeed a hedge account of the Fed or Treasury which JPM (or whoever) simply transacts on behalf of, thus not impacting their own balance sheets or P&L's. 


Tue, 06/22/2010 - 20:00 | 428118 unwashedmass
unwashedmass's picture


frankly given the level of corruption necessary to keep the markets high and the peasants oblivious, i wouldn't be surprised.

not a bit.

Tue, 06/22/2010 - 17:36 | 427798 BumpSkool
BumpSkool's picture

wake up peeps... JPM is NOT short physical ... they are short OTC derivs - sold to the ETFs through a stand alone entity that has NO parent guarentee 

Tue, 06/22/2010 - 17:40 | 427814 A Man without Q...
A Man without Qualities's picture

and The Fed is on the other side of the trade...

Tue, 06/22/2010 - 17:46 | 427826 I need more asshats
I need more asshats's picture

When the time is right the short side of this blow-off top is going to be EPIC.

Up like an escalator, down like a over-weighted elevator.

Tue, 06/22/2010 - 17:58 | 427843 Bam_Man
Bam_Man's picture

It will look very much like the Nov. 1979-Jan. 1980 moonshot, the only difference being it won't be a "blowoff top" this time.

Tue, 06/22/2010 - 21:39 | 428294 long_and_short
long_and_short's picture


whatever happened to GS being wrong on their calls

FX etc., as soon as its gold they are golden.  turn your heads and hang on to your nut sack

Tue, 06/22/2010 - 21:39 | 428295 long_and_short
long_and_short's picture


whatever happened to GS being wrong on their calls

FX etc., as soon as its gold they are golden.  turn your heads and hang on to your nut sack

Tue, 06/22/2010 - 17:36 | 427800 Locodonkey
Locodonkey's picture

These firms have risk control policies. Oh you mean the taxpayer?

Tue, 06/22/2010 - 17:36 | 427802 Steaming_Wookie_Doo
Steaming_Wookie_Doo's picture

I'd be more excited if Sprott were the one adding 5.2 tonnes to their pile, since they do actually hold the real thing.

Tue, 06/22/2010 - 20:17 | 428156 oddjob
oddjob's picture

Central Gold Trust is adding 7 tonnes.John Embry(Of Sprott) is a trustee and owns a few hundred thousand units himself.


Tue, 06/22/2010 - 17:37 | 427804 jesusfreakinco
jesusfreakinco's picture


Where do you get these NAV figures for GLD?  How doyou know these aren't paper purchases and are actually physical purchases?


Tue, 06/22/2010 - 17:46 | 427829 BumpSkool
BumpSkool's picture

You don't! That's the "beauty" of an ETF!!

Tue, 06/22/2010 - 20:10 | 428140 Hephasteus
Hephasteus's picture

Plus when you read the fine print. They pretty much say you'll never know and you'll have no way to hold them accountable for anything. It's like the evolvement of the EULA in software to the pinnacle of making people devoid of any right NOT TO BE SCREWED.

ETF's are the ultimate sucker learning experience.

Tue, 06/22/2010 - 20:42 | 428211 Implicit simplicit
Implicit simplicit's picture

"Redemption orders are subject to postponement, suspension or rejection by the Trustee" That is from GLD's prospectus

Also from their web site

"Because the expenses of the Trust will be offset by the sale of Trust gold, the amount of gold backing each share (Ounces Per Share) will decrease gradually.

Each share will initially represent 1/10th of one ounce of gold, but this will decline over time. This reduction in ounces per share will be reflected in the NAV of the Trust."

Tue, 06/22/2010 - 17:38 | 427806 truont
truont's picture

The price of gold severely lags the supposed increase in GLD holdings.  This is because GLD is reporting paper gold in its holdings (derivatives, futures, options).  If GLD were buying spot gold and transferring the bars in its main vault, then the price of gold would more closely track the gold holdings in GLD.

The reason the price of gold is rising is because of the physical gold bullion rush in Europe.  You can fool the Germans once with currency debasement, but not twice.  Germans are leading the Europeans in diversifying their euro holdings into foreign currencies and gold.

Tue, 06/22/2010 - 17:45 | 427827 unwashedmass
unwashedmass's picture


oh, you are so, so right. you have to love that Merkel tore Obama a new one today. she can't destroy her currency, not and have a career left....so, she's leaving Ben and O swinging in the wind.....good luck boys.....Germany is not going to participate with endless Euro printing.

i think we see the Deutschmark come back before we see the Germans agree to just allow Jean Claude to enter the printing press races with Bennie Boy.

Tue, 06/22/2010 - 18:00 | 427846 I need more asshats
I need more asshats's picture

And through the years the people of India have exchange Rupees for physical gold. Wedding gifts, dowry, exchange for black money, etc... They literally sew it into their clothes when they travel to prevent theft.

Who is selling now? Americans are deep in paper debt exchanged for worthless items from Circuit City, Re-Max, and GM.

Let's keep an eye on India, OK team?

Tue, 06/22/2010 - 17:42 | 427820 Amish Hacker
Amish Hacker's picture

First notice day coming up. It will be interesting to see how many Comex players announce their intention to stand for delivery. If not this week, then someday soon, it will become obvious to everyone that there is way too much paper chasing way too little physical gold. Then we will see how well Jeff Christian's "cash settlement" theories work out.

Tue, 06/22/2010 - 17:42 | 427821 Turd Ferguson
Tue, 06/22/2010 - 21:48 | 428306 daneskold
daneskold's picture

I love graphs such as that.  It demonstrates the ludicrous lie that gold is an inflation hedge.  If gold were an inflation hedge, there would be no need to adjust the price for inflation to show that gold has a long way yet to run....adjusted for inflation.

Tue, 06/22/2010 - 17:43 | 427823 Charley
Charley's picture

Thie dollar price of gold is not relevant here, since the dollars in which gold price is denominated are worthless. If gold rose to $10 billion this dollar price would not even begin to express the value of gold in dollars. Dollars have zero value!

What is relevant is the measure of real output by the nominal price of an ounce of gold. Once you do that calculation, it becomes obvious that higher gold prices are only the inverse expression of the continuing contraction of economic activity.

As long as the economy continues to contract the dollar price of an ounce of gold will rise.

Tue, 06/22/2010 - 20:35 | 428184 Implicit simplicit
Implicit simplicit's picture

True that. The dollar is worthless but perception being deluded reality has the investor red ants confused as they scurry about carrying the dollar over the euro and others to take it back to the nest hole for safety. When they discover that their dollar feast is just a hollow exoskeleton with no nourishing value, the masses of red ants will climb over each other for the golden calf carcus.

Tue, 06/22/2010 - 22:06 | 428330 Iam_Silverman
Iam_Silverman's picture

Uhmmm, the dollar really isn't "worthless", it's just worth less (when compared to gold).

I can still exchange dollar denominated FRN's for gold, and canned goods, and ammo, and reloading supplies, etc.

Tue, 06/22/2010 - 17:51 | 427834 BlackDouglas
BlackDouglas's picture


I've never had anything but a bank account and about to move into goldmoney. Can anyone tell me when the next gold option expiry date is as that seems to me to be a good time to buy as the price is deflated, right..

Tue, 06/22/2010 - 17:58 | 427844 unwashedmass
unwashedmass's picture


expiry is thursday....the Comex closes at 1:30. I usually start buying at about 1.29.....

you might try APMEX.com, they are straight shooters and won't ram you on the premiums. also they have always, always come thru and delivered, which is not the case with some others.

Oh, and you won't ever get a hard sell from salesperson about why you should leave it with them for "safe storage" at a "reasonable fee"....

with APMEX, you order ya gold, ya get ya gold at the price you bought at ... in my experience. don't know what other people have found.

Tue, 06/22/2010 - 18:53 | 427973 AVP
AVP's picture


I think your *spot on* on your assesment of Apmex.com.

Tue, 06/22/2010 - 20:58 | 428233 Pope Clement
Pope Clement's picture

Ditto on that observation unwashed and apmex takes credit cards too - what a deal...

Tue, 06/22/2010 - 21:20 | 428273 nmewn
nmewn's picture

Thursday the 24th.

For me...I pay cash and do it locally.

Only my hairdresser knows for sure ;-)

Tue, 06/22/2010 - 22:36 | 428383 Iam_Silverman
Iam_Silverman's picture

I hear ya'!

How will next year effect us?  The new requirement for 1099's to be submitted for any cash transaction above X dollars?  I have to buy in lots greater than $1,000 to avoid paying taxes here in Texas.  Kinda seems silly, doesn't it?  To me, it's like getting change for a dollar.  I give them FRN's and they give me coins.  Why would that transaction (less than $1k) need to have sales tax added?

Tue, 06/22/2010 - 17:55 | 427838 teaddy bearish
teaddy bearish's picture

am i the only one who expected a sharp decline in the price off gold (temporary correction)

i hope it will decline a lot so i can increase my holding at discount price


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