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Is This Where The Secret JP Morgan London Gold Vault Is Located?

Tyler Durden's picture




 

 

In a world defined by "financial innovation", where $1 of hard collateral can spawn over $1000 in repoed and rehypothecated liabilities (and assets), where "shadow banking" is far more important than traditional bank liabilities (and to this date remains completely misunderstood), and where every month the central and commercial banks force create over $100 billion in credit money (which end consumers refuse to absorb and which therefore ends up in the stock market), the concept of a "hard asset" is an increasingly redundant anachronism. Yet while the Federal Reserve has emerged as the bastion of the New Normal's financial innovation front in which the concept of money is backed by absolutely nothing other than the Dollar's increasingly fleeting reserve status, when it comes to the definition of "Old Normal" money - gold - it still is the domain of the first and original central bank: London.

At first blush, most would not associate London with the hard asset mecca of the world: in fact, when it comes to some of the most spectacular hyper-levered "New Normal" cataclysms in recent years: AIG, Lehman, MF Global, JPMorgan's London Whale, all of them originated in London. Yet for the most part these events occurred precisely because of the mindboggling leverage already employed by the London financial system. Recall that the UK has some 600% in financial debt/GDP - an unprecedented amount compared to any other developed world nation. Yet, paradoxically, the fact that there is so much financial leverage implies that there must be an abundance of hard assets at the bottom of the London Exter Pyramid. After all, financial counterparties, especially in this day and age, may be insolvent but they are not idiots, and all will demand at least some paper representation that there is a trace of hard collateral at the bottom of the latest financial Frankenstein CDO, SPV, CLO, CPDO, RMBS or [insert any other modern financial "asset" acronym]. And keep in mind we are talking private sector gold: Gordon Brown's epic blunder of dumping the sovereign UK gold at rock bottom prices hardly needs a mention.

Which is why in order to spawn such a gargantuan amount of financial debt, London, which for centuries was the financial capital of the world and which sequestered the bulk of the world's real, tangible wealth until the ascendancy of the US in the 20th century, London's commercial vaults, are literally full of gold (as much as it may pale in comparison with the total notional amount of liabilities it has created).

After all it is the London Bullion Market Association. Not New York, Zurich or Singapore.

Why is London such an integral part of the gold financial world? We'll let none other than JPMorgan explain:

The characteristics of the London market uniquely support the use of gold as collateral by ensuring:

  • Quality and liquidity: “London Good Delivery” sets the standard for gold quality. Rigorous specifications as to size and purity ensure that each London ood Delivery gold bar meets pre-set standards with little to no variation between one bar and the next. This consistency ensures that counterparties will receive gold of an expected quality (99.5% fine), which allows the metal to be easily transferred between members of the London Bullion Market. Ultimately, this facilitates trading and market liquidity—both desirable attributes for collateral.
  • Flexibility: The London gold market uses both unallocated and allocated gold. In layman’s terms, allocated gold specifically identifies each gold bar with a specific owner. Allocated gold is essentially held in separate accounts; it cannot be pooled with gold from others to satisfy obligations. In contrast, unallocated gold is held in a general pool by the bullion dealer and the customer has a general entitlement to the metal, but not to a specific gold bar. The LMBA states that unallocated gold “is the most convenient, cheapest and most commonly used method of holding the metal.”

    In practical terms, unallocated gold is comparable to putting dollars, pounds or euros into the bank. Once deposited, the money becomes fungible—you can withdraw the same amount of money you put in, but you will not receive back the same exact bills that you deposited. The use of unallocated gold allows for amounts smaller than a gold bar to be used as collateral between counterparties—a significant benefit to a collateral program given that a London Good Delivery bar weighs 438.9 ounces, and gold is currently trading for over US$1,700 per ounce.

  • Transparency: Readily available price information promotes market transparency and aids in daily mark-to-market and margin calculations. Gold is priced by the market twice daily (morning and afternoon) and widely reported by both the financial press and data vendors. Use of a predictable daily price fix point allows counterparties to mitigate their daily exposure and set haircuts to manage ongoing price fluctuations. The afternoon U.S. Dollar London old Fix is viewed by market participants as the appropriate way to mark gold given daily price fluctuations and increasing values.
  • Ease of transfer: The London Bullion Market clears daily using paper transfers that evidence the unallocated gold held between members. This allows them to simply and efficiently settle mutual trades and transfers to/from third parties while mitigating the costs and risks associated with physical movement of bullion. The use of paper transfers and unallocated gold facilitate easy transfers between counterparties when needed.

And speaking of JP Morgan, incidentally the subject of this post, what do we know about their London-based gold vault services? Once again, in their words:

J.P. Morgan recently integrated its gold vaulting service in London with its tri-party collateral agency service.

  • J.P. Morgan operates one of the two largest commercial gold vaults in London (one of only six in the City) and is a member of the London gold clearing system.
  • J.P. Morgan is also one of the few truly global providers of collateral management services. As collateral agent, J.P. Morgan works with two parties that have an established collateralized lending or financing arrangement.

Who is the other largest commercial gold vault in London? Why HSBC of course: the bank which has recently been embroiled in virtually every scandal involving global money laundering, also happens to be the custodian for such massive (supposedly) physical gold repositories as those of the SPDR Gold GLD ETF. The HSBC gold vault is also known as "Gold's secret hiding place" as CNBC penned it, when Bob Pisani was allowed to take a look deep inside the vault's bowels but only after he was theatrically blindfolded (a visit which we commented on at the time).

Yet Pisani's blindfold, while theatrical, was premeditated: the number of people who know where the HSBC vault is located is a handful, because the last thing commercial gold vaults, and certainly their customers, would want to deal with is a Simon Gruber-type Die Hard 2-style goldjacking.

Amusingly it was none other than the Bundesbank who in November invoked the ghost of the fictional New York Fed gold heist when a member of its executive board told NY Fed's Bill Dudley that  "you can be assured that we are confident that our gold is in safe hands with you. The days in which Hollywood Germans such as Gerd Fröbe, better known as Goldfinger, and East German terrorist Simon Gruber, masterminded gold heists in US vaults are long gone. Nobody can seriously imagine scenarios like these, which are reminiscent of a James Bond movie with Goldfinger playing the role of a US Fed accounting clerk." This happened two months before the Bundesbank diametrically (and embarrassingly) flip-flopped and decided to, all pinky swears to the contrary, begin repatriating its gold from the New York Fed (and Paris) after all. But not London (at least not yet). It also perhaps means that the days of Simon Gruber may not be "long gone", especially if the whereabouts of vaults containing billions worth of gold bullion were known to the public.

And just like the SPDR would want nothing less than to have the address of the HSBC gold vault made public (the same goes for HSBC of course), so those other ETF providers who use JPM's London gold vault as a custodian, such as Blackrock's iShares IAU ETF, or ETF Securities, would want nothing less than to have the location of JPM's vault exposed.

Needless to say, the actual addresses of "LBMA Vault" provided by the LBMA in its Annex 2 for "The Good Delivery Rules for Gold and Silver Bars" lists the headquarters office of the vaulting firm, and certainly not the actual address, because it would have been somewhat disingenuous to blindfold Pisani just to deliver him toe 8 Canada Square, or the HSBC head office in London, the address provided by the LBMA as vaulting address of HSBC. And certainly the address given for the JPM vault at 125 London Wall, aka Alban Gate, which was the firm's headquarters until its move to 25 Bank Street in 2012, is the last place even one bar of gold would be found.

Which is why we were quite stunned to find, in the deep recesses of the internet (and hosted by the Indonesian stock exchange of all place), a trade ticket from May 26, 2011, issued by the Perth Mint of Australia to Avocet Gold Mining (a West African gold miner), in which the Mint confirms its purchase of 2,126 ounces of gold at a price of $1,526 for a total transaction price of $3.246 million.

What is notable about the trade ticket is the additional information provided for the account clearer, in this case, none other than JPMorgan Chase Bank NA, London, as well as the number of the Gold Account held by said clearer: "No. 01380" but what is by far the most interesting, is that the actual physical address of the JPMorgan facility is provided: 60 Victoria Embankment, London.

Ladies and gentlemen: we may just have uncovered the actual location of the ultra-secretive JPMorgan gold vault in the city of London.

Where is 60 Victoria Embankment, London? See below:

The building's southern/river face is the glorious facade of the City of London School which occupied this location from 1879 until 1986 (and which is currently situated just east of here along the Blackfriars Underpass, next to the Millennium Bridge).

As the map above shows, it is a rather sizable building, located just off the Thames river and steps away from the Blackfriars Bridge, whose official designation until recently was Morgan Guaranty Trust Company of New York, Ltd, a remnant from the firm's merger with Guaranty Trust Company in 1959 (recall that JPM was called Morgan Guaranty Trust until 1989).

A cursory media search about the otherwise very nondescript looking building at 60 Victoria reveals that it had been fully leased by JP Morgan as long ago as 1991. What is more interesting, is that the property had previously been bundled as part of a high-profile commercial mortgage-backed securities, or CMBS, deal called White Tower 2006-3. The deal consolidated properties formerly owned by one-time London real estate mogul, Simon Halabi, one of the financial crisis most notable falls from Grace, who had an estimated net worth of $4.3 billion in 2007, and in April 2010 was declared bankrupt, and whose current whereabouts have since been unknown.

White Tower 2006-3, most infamous for being the first CMBS deal to be placed in liquidation after the start of the currency crisis, held a variety of properties near and dear to JPMorgan's heart, first and foremost 60 Victoria Embankment, the 420,000 sq ft of office buildings fully let to JP Morgan Chase; but notably Alban Gate, the 382,000 sq ft office property located on London Wall in the heart of the City and fully let to JP Morgan Chase. The latter also was JPM's UK headquarters until last year.

What happened next is interesting: in July 2010 Carlyle bought the bulk of the "White Tower" asset portfolio from the defunct CMBS, paying some £173 million for the 60 Victoria Embankment location. Three very short months later, none other than long-time 60 Victoria resident JPMorgan bought the very same building from Carlyle for a whopping £350 million: a transaction which doubled Carlyle's money in an unprecedented three months! At the time the now former CEO of JPM's investment bank Jes Staley (and who currently works for BlueMountain - the same fund that made a killing by squeezing none other than JPMorgan's London Whale traders), said, "These properties are long-term investments and represent our continued commitment to London as one of the world's most important financial centres." Frank Bisignano, chief administrative officer, added: "These properties are among the most attractive pieces of real estate in London. These buildings ensure that our employees will have the necessary technology, infrastructure and amenities to take our businesses forward." Curiously, JPM showed zero love for its Alban Gate location, which it promptly departed to go to its new Canary Wharf HQ, and Carlyle was forced to pull the sale of this property a year later as it did not get enough satisfactory bids.

A pressing question remains: why did JPM, a long-time tenant of 60 Victoria not submit its own bid for the location it knew it would end up purchasing outright in a few months from Carlyle anyway? Why overpay by £177 million in exchange for merely having one more middleman do a three-month transaction? We hope to find out.

Yet what is very clear is that there was something of far greater value to JPM at the 60 Victoria location than at its old headquarters.

What that "thing" may be, and what is the missing puzzle piece in this story, comes from a very peculiar article written nearly four years ago in an Abu Dhabi/Arab Emirates website titled TheNational, titled "Mystery gold cargo linked to Saad, Gosaibi feud", which described just that - the fate of a series of very peculiar gold shipments, the key of which once again involved the two main abovementioned players: Perth Mint and 60 Victoria Embankment.

We repost the entire story below, while highlighting the key parts:

The Qantas freighter QF71 that took off from Perth Airport on November 3 last year bound for London would not have attracted any special attention, despite the fact that it was carrying 1.2 tonnes of gold bullion, then worth about US$28 million (Dh102.8m).

 

Perth, in Western Australia, is home to Australia's Gold Corporation Mint, where bullion is processed and turned into standard 12.5kg bricks. From there, the ingots are shipped daily around the globe to vaults in America, Europe and Asia, evidence of the world's apparently insatiable appetite for the precious metal. But what made this shipment unusual was that it was the first of 15 such cargoes, of varying quantities and values, which over the next seven months were eventually unloaded mainly in London. Smaller amounts were also delivered to Dubai and Zurich.

 

The total value of the bullion exported in these operations approached $430m at current market prices, and it weighed 10.4 tonnes. The other distinguishing factor was the identity of the recipients, or "consignees" as they are known. According to documentation seen by The National, they were all companies associated with the al Gosaibi family of Saudi Arabia. The al Gosaibis have since fallen out spectacularly with their partner, Maan al Sanea of Saad Group, in the biggest corporate scandal to hit the Middle East, leaving about 120 banks worldwide with debts estimated at up to $22 billion and a decreasing likelihood of getting their money back.

 

In a global hunt for assets to offset their losses, the banks have looked into every corner of the Al Gosaibi trading empire and the Saad Group controlled by Mr al Sanea. A small army of lawyers, forensic accountants and corporate investigators has been hired to track down assets over which the banks believe they have claim. They have turned up property, financial investments, relatively small amounts of cash and other baubles of the wealthy, such as aircraft leases. There was even a private zoo. But the most curious discovery so far is the Gosaibi gold.

 

Perhaps the most remarkable fact about the shipments is that although there are detailed and specific records of them having taken place, neither party in the al Gosaibi-al Sanea confrontation seems to lay any claim to their ownership. Each side denies it was responsible for the shipments. Despite being regularly ranked among the world's billionaires, neither the family's controlling partnership, Ahmad Hamad Al Gosaibi and Brothers, nor Mr Al Sanea's Saad Group has any previous known involvement in the bullion business.

 

The first shipment took place just as the world appeared on the verge of financial meltdown last November. They continued until May, when the crisis in the two Saudi families exploded into the public domain after they failed to make repayments on loans associated with their banking businesses in Bahrain. The shipments reached a peak in late February and early March, just as tensions within the al Gosaibi family intensified after the death of Sulaiman, the family patriarch and chairman, on February 22.

 

One shipping document shows that, the following day, "a shipment of 21,500 fine ounces of large 12.5kg gold bars, minimum 99.5 per cent purity" was sent from AGR Matthey, a well known Australian bullion dealer, from Perth Airport via Singapore to London's Heathrow. From there, the bullion was moved to the vaults of Standard Bank of South Africa, located in the London offices of JPMorgan Chase at 60 Victoria Embankment, Blackfriars, London.

 

The shipment was marked "London good delivery", meaning it met the internationally recognised standards for bullion delivery and could be deposited alongside bullion of the same quality. The Standard Bank account in which it was deposited was in the name of Al Gosaibi Trading Services, one of the companies owned by the al Gosaibi family. But financing such a transaction - the gold was worth about $20m - is a complicated process.

 

The usual procedure is for the consignee to arrange a letter of credit with the supplier, which is then guaranteed by a bank. In this case, the letter of credit bears the reference number "Awal 157". Awal is the Bahraini bank owned by Mr al Sanea, but which is now in the administration of the Bahrain Central Bank. Ten of the 15 shipping documents bear the Awal reference, while the rest have reference to "TIBC", The International Banking Corporation, the al Gosaibis' Bahraini bank which is similarly in administration.

 

It is common practice in the trade finance business for those letters of credit to be separately financed by a third party, such as an international bank. This is what happened with the Gosaibi gold. The amounts paid for the bullion were drawn down from lending facilities with these global banks but those borrowings have not been repaid, banking sources say. International banks, so far frozen out of the settlement process in Saudi Arabia or offered derisory amounts by the feuding families, are keen to track down the location and ownership of this bullion, to seize and offset against debts owed them. While most of the bullion ended up in London, two shipments went to other locations.

 

Also on February 23, some 629kg of "London good delivery" were shipped from Perth on Singapore Airlines flight SQ226/SQ490 to Dubai International Airport. The shipment was delivered to the Brinks Global Services facilities at the Dubai Airport Free Zone, marked for the attention of: "Malcolm Clingham, for account of Al Gosaibi Trading Services Ltd." Again, the financing reference was "Awal 158". Attempts to reach Mr Clingham were unsuccessful. An employee of Brinks in Dubai said he left the company about four months ago.

 

The other non-London shipment took place on April 29, when 689kg of gold left Perth on Singapore Airlines flight SQ226/SQ346 to Zurich in Switzerland. The shipment was marked for delivery to: "UBS AG Zurich, for account Standard Bank PLC." Although no named consignee account was mentioned on the shipping document, the financing reference was "TIBC 438". The final shipment to arrive in London took place on May 6, when 722kg was placed on a Delta Airlines flight DL94 in Salt Lake City, Utah, in the US. This was marked for the Al Gosaibi Trading Services account at Standard Bank at the JPMorgan Chase building in London. The financing reference was "Awal 177".

 

So while there is plenty of evidence that the gold shipments took place, there is huge uncertainty about who initiated them, who owns the bullion, and even where the gold is now. The company named as the bullion account holder, Al Gosaibi Trading Services (ATS), is a wholly owned subsidiary of Bahrain-based Al Gosaibi Investment Holdings (AIH), based in Bahrain which is in turn owned by three family members. But the management control of ATS and AIH is in dispute.

 

In a legal filing in New York, John D Potter, a former general manager of Al Gosaibi Investment Holdings, declared that: "Mr al Sanea exercised complete control over the operations and activities of AIH, to the exclusion or virtual exclusion of the other directors and the shareholders." Lawyers for Mr al Sanea, the London firm of Harbottle & Lewis, declined to comment on the gold shipments. But sources close to the Kuwait-born financier have denied he was involved in the transactions.

 

Creditor banks, which asked to remain anonymous, have told The National that their inquiries to Standard Bank in London have not so far produced any positive indication of ownership of the bullion, or even confirmation that it is still in Standard's vaults. Through its South African head office, a spokesman for Standard Bank said: "Our executives in London are adamant they cannot comment - not even off the record - as this would be a breach of client confidentiality."

 

Whoever ends up owning the gold from Perth will at least have made some money out of the Saudi confrontation, which has affected the kingdom's economy and stock market, and ravaged the balance sheets of regional and international banks. The gold price has risen by nearly 50 per cent over the past year. The shipment last November, worth some $28m when QF71 took off from Perth, is now valued at $42m - wherever it might be.

Courtesy of TheNational, we now know that one of the key features of the building at 60 Victoria is that it houses at least the vault of the Standard Bank of South Africa: in other words, somewhere deep underground, there is, indeed, a major gold vault. We also know, that after leasing this location for nearly two decades, JPMorgan decided to take the plunge and bought it outright in 2010, in a transaction that as shown above was a scramble to park cash and to procure the property for sale. In other words, JPM now has sole custodial possession of all the vaulting services offered under its 60 Victoria Embankment address.

So is this where the legendary JPMorgan London vault is located? Certainly nothing short of Blythe Masters admitting on live TV that yes, this is where one of the two largest commercial gold vaults in the UK is located, and as JPM admitted previously, only one of only six commercial vaults in all of London, there will be speculation and one can't be certain.

However, a quick cursory virtual trip around this building using Google's Street View feature shows that this building, barricaded on every side by a dense forest of bollards, is as protected from outside interest (especially of the automotive kind) as any modern day fortress.

The building's entrance on John Carpenter street, just north of Victoria's embankment - bollards everywhere:

The building's reinforced back/delivery entrance: corner of Kingscote and Tudor: barriers, a reinforced gate with a screen on top of it, and even more bollards which surround the entire building and prevent the parking of any cars in proximity to the building:

And finally, not one, but two rows of bollards, cordoning off a 60 foot area in the street on both sides. South view:

And north view:

Needless to say, no car, or any other potential threat, can enter that ~60 foot space from either side.

Is that where, dozens of feet underground, the world's most secretive commercial gold vault is located? Just below what was once the main campus of the City of London School for boys.

* * *

Update: a quick Google Street View trip around the block from the main JPM entrance to Carmelite Street, just south of Tudor Street, or here...

... reveals the following armored Brinks trucks waiting:

And

In front of an even more impressive looking gate:

h/t Ro

 

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Sat, 02/16/2013 - 21:29 | 3250520 Yen Cross
Yen Cross's picture

 You're a Ruskie? Cunny I love you. Are you a Ruskie?

   Cunny come  Kleen?  yen still loves you.

Sat, 02/16/2013 - 21:41 | 3250574 CunnyFunt
CunnyFunt's picture

I <3 YC, but he/she/it is deficient in geography.

Sat, 02/16/2013 - 21:47 | 3250581 Yen Cross
Yen Cross's picture

 Cunny you're awesome. Be well. Thanks for your honesty.

Sat, 02/16/2013 - 21:49 | 3250588 CunnyFunt
CunnyFunt's picture

No, thank you YC, amigo. I'm back home and with my woman, so all is good. Baked potato and lager time ...

Sat, 02/16/2013 - 21:56 | 3250596 Hulk
Hulk's picture

He used to love me...

Sat, 02/16/2013 - 22:01 | 3250603 Yen Cross
Yen Cross's picture

 Give her my(your) best.  A nice Chanti, works well. A spanish desert wine works well.

Sat, 02/16/2013 - 22:07 | 3250613 CunnyFunt
CunnyFunt's picture

Cheers! "somewhat nutty character" I love it! She doesn't need much encouragement ;-)

Sat, 02/16/2013 - 23:03 | 3250649 Yen Cross
Yen Cross's picture

 Cunny ,  Enjoy your evening with your significant other.

Sat, 02/16/2013 - 23:55 | 3250752 TheFourthStooge-ing
TheFourthStooge-ing's picture

CunnyFunt said:

I <3 YC, but he/she/it is deficient in geography.

YC is not a true Scotsman. ;)

Sun, 02/17/2013 - 03:11 | 3250904 CunnyFunt
CunnyFunt's picture

+1 Stoogeie!

Sat, 02/16/2013 - 20:51 | 3250498 Broomer
Broomer's picture

Wouldn't you have a saved copy of the page?

Because you posted the link and it was hammered by everyone reading the thread, it was blocked by Google.

Sat, 02/16/2013 - 21:54 | 3250593 KingdomKum
KingdomKum's picture

fucking unbelievable !   you da man  !

 

 

 

 

 

 

we few, we happy few,  we band of silver holders  .  .  . 

Sun, 02/17/2013 - 02:51 | 3250891 PhilofOz
PhilofOz's picture

Brilliant! I'm amazed by this site and its contributors more on every passing day.

Sun, 02/17/2013 - 06:49 | 3251017 Troy Ounce
Troy Ounce's picture

"A 19m deep excavation for a complex L-shaped basement was carried out using top down construction techniques...."

 

And the Underground line City & Waterloo which runs next to the building directly to the Bank of England is 18 M deep. must be a coincidence?

en.wikipedia.org/wiki/Waterloo_%26_City_line

 

 

Sun, 02/17/2013 - 11:45 | 3251192 francis_sawyer
francis_sawyer's picture

This is getting better all the time...

Sat, 02/16/2013 - 20:24 | 3250466 Hulk
Hulk's picture

Thread Hijcak: A must watch Jim Rickards interview on currency wars and several scenarios he draws up.

Absolutely stunning. 

http://investmentwatchblog.com/the-end-of-the-current-fiat-monetary-syst...

Sat, 02/16/2013 - 21:27 | 3250552 cosmictrainwreck
cosmictrainwreck's picture

thanks, Hulk - that's "as good as it gets"

Sun, 02/17/2013 - 04:48 | 3250964 saulysw
saulysw's picture

Agreed - and interesting watch.

Sun, 02/17/2013 - 06:02 | 3250994 Shell Game
Shell Game's picture

A worthy hijacking, thanks.

Sun, 02/17/2013 - 07:13 | 3251023 Seer
Seer's picture

"The Bears" spelled it out pretty well back in this 2010 video:

http://www.youtube.com/watch?v=1jA7c1_Jtvg

Long rabbits feet!

Sun, 02/17/2013 - 09:22 | 3251070 smacker
smacker's picture

Scary. Is it time to become an ostrich? ;-)

Sun, 02/17/2013 - 00:55 | 3250805 tip e. canoe
Sat, 02/16/2013 - 20:41 | 3250483 rsnoble
rsnoble's picture

The more exposure to these criminals is the closer we are to outright collapse and WW3.  Is that good or bad? LOL.

Sat, 02/16/2013 - 20:56 | 3250504 hannah
hannah's picture

where is pussy galore when you need her....?

Sat, 02/16/2013 - 21:01 | 3250509 CompassionateFascist
CompassionateFascist's picture

I believe Pussy (that is, Honor Blackman) will soon have a page of her very own @ http://seductivejewess.com. 

Sat, 02/16/2013 - 21:06 | 3250517 BeansBulletsBandaids
BeansBulletsBandaids's picture

Wasn't it the 3rd die hard where Simon Gruber stole the gold? I thunk the second one was set at an airport or something.....

Sat, 02/16/2013 - 21:17 | 3250535 faustian bargain
faustian bargain's picture

I liked the one where Simon Gruber takes over as headmaster of Hogwarts...

Sat, 02/16/2013 - 21:11 | 3250525 Peter Pan
Peter Pan's picture

THAT IS THE ADDRESS OF THE VAULT BUT NOT THE ADDRESS OF THE GOLD.

Sat, 02/16/2013 - 21:26 | 3250550 SolidSnake961
SolidSnake961's picture

would love to see someone try pulling an ocean's 11 on this place

Sun, 02/17/2013 - 07:18 | 3251025 Seer
Seer's picture

It already happened, didn't you read the article?  JPM did it! :-)

Sat, 02/16/2013 - 21:32 | 3250558 e_goldstein
e_goldstein's picture

Articles like this are why I keep reading ZH. Good work, Tyler.

 

Sun, 02/17/2013 - 00:56 | 3250808 tip e. canoe
tip e. canoe's picture

another excellent link.   interesting that the 1987 excavation is nowhere to be found in those docs.

Sat, 02/16/2013 - 21:38 | 3250571 q99x2
q99x2's picture

 I'm getting my metal detector and a ticket to London when the revolution against banksters starts. Thanks for the map.

Sun, 02/17/2013 - 07:20 | 3251026 Seer
Seer's picture

Just be sure to set that detector to "Gold" and not "Tungsten!"

Sat, 02/16/2013 - 21:44 | 3250578 Yen Cross
Yen Cross's picture

 Tyler . respectfully. Can the forum have a ( GMT real time widget) ? Your posts are beautiful. sometimes +7 on your posts makes me silly.   Z/H should be GMT.   ( Z/H is global and we all know it)

Sat, 02/16/2013 - 21:49 | 3250587 Charles Nelson ...
Charles Nelson Reilly's picture

So when do we get Jaime Dimon's mistresses address?

Sun, 02/17/2013 - 10:52 | 3251141 francis_sawyer
francis_sawyer's picture

I'd suspect they were one in the same...

Sat, 02/16/2013 - 21:55 | 3250597 CalibratedConfidence
CalibratedConfidence's picture

killed it.  great report

Sat, 02/16/2013 - 22:04 | 3250606 earleflorida
earleflorida's picture

Bravo... Tyler!!!

 

 


Sat, 02/16/2013 - 22:05 | 3250612 amanfromMars
amanfromMars's picture

I have a question. Well, a couple of questions, actually, which may probably cause a few more to be asked.

If one deposits/purchases a weight of gold …. and is furnished with a paper value note/fiat currency advice note for that gold, and let us imagine a holding deposited/purchased a number of decades ago, does one today, on redemption of that furnished invoice, receive the original weight of gold or just a fraction of that gold to the fiat currency paper value on the original invoice.

Should the latter be the case, is the vault full of gold which has no owners, although with possession being nine-tenths of the law*, is someone doing very nicely, thank you very much, for practically/virtually nothing.

And if one were to purchase gold today, because of the seriously inflated price of the bubbling commodity, a correspondingly much smaller/lighter weight of gold, and receive a paper value note/fiat currency advice note for that vaulted gold in a deposit, does the reverse happen on a crashing of the gold price, with one receiving a greater weight of gold to the value of the original fiat currency invoice should one wish to take possession? 

* ... "Possession is nine-tenths of the law is an expression meaning that ownership is easier to maintain if one has possession of something, and much more difficult to enforce if one does not. The expression is also stated as "possession is nine points of the law", which is credited as derived from the Scottish expression "possession is eleven points in the law, and they say there are but twelve"" ….. http://en.wikipedia.org/wiki/Possession_is_nine-tenths_of_the_law

Sat, 02/16/2013 - 22:15 | 3250628 Kingkongballs827
Kingkongballs827's picture

PVC Assault Weapons Burial Tube. Bury your guns now before its too late! Nitrogen Sealed

http://www.ebay.com/itm/160973339240?ssPageName=STRK:MESELX:IT&_trksid=p3984.m1555.l2649

 

Sun, 02/17/2013 - 03:51 | 3250935 aaxiom
aaxiom's picture

If you're referring to a depository (and while I hate depositories, I encourage the use of private ones only these days), you typically deposit ounces and receive ounces in kind. If your holdings are segregated, you have title to specific serial numbers and specie. These services cost money on some periodic basis and those fees are determined by the average market value over the specified period.

Sun, 02/17/2013 - 09:26 | 3251074 francis_sawyer
francis_sawyer's picture

Once again... paper upon paper upon accounting ledger entries upon accounting ledger entries...

~~~

I'm not saying the following will happen, but at the end of the day, whoever HOLDS the shit can just burn all the records, & melt the shit down & recast it as a giant dildo if they're so inclined...

Sat, 02/16/2013 - 22:30 | 3250641 jonjon831983
jonjon831983's picture

Um... intriguing...

Sat, 02/16/2013 - 22:34 | 3250650 constantine
constantine's picture

I almost forgot about the tour of the GLD vault.  It was so nice of Bob Pisani to give us a tour of that space that Evelyn De Rothschild cleared out of his winecellar.

Sat, 02/16/2013 - 22:40 | 3250659 Broomer
Broomer's picture

Quote from the article:

 

 

“London Good Delivery” sets the standard for gold (...) of an expected quality (99.5% fine)

That's relatively impure. More like a lot (1 part in 200).
I could think of only two reasons for this:

 

  1. the standard is old. Better purity would add too much to the cost in the old days, and to rectify this nowadays, the bars would have to be recast at a high cost.
  2. <tinfoilhat> Such an amount of impurity would allow the bars to be easily tracked. You would add controlled amounts of trace metals to mark the origin of the bar. This would allow tracking of the bar even if it was recast. </tinfoilhat>

It's paranoia of course, but only the paranoids survive and my tinfoil hat seldom disappoints me.

Sun, 02/17/2013 - 01:06 | 3250821 DoChenRollingBearing
DoChenRollingBearing's picture

Your Number Two idea is very good.

But, you could do that as well at .999 fine.

Sat, 02/16/2013 - 22:41 | 3250660 Northeaster
Northeaster's picture

So doesn't this receipt show that J.P. Morgan does in fact have a physical position in PM's? If this was that long ago, and continued over time (speculating here), then they could in fact control/influence the market. This of course would blow holes in all those paper/Blythe "manipulation" theories/conspiracies no?

I don't know one way or the other, but if this is legit, then they do in fact have physical holdings, which sinks the conspiracy arguments of not having any or being "short" just in paper.

Next?

Sun, 02/17/2013 - 12:43 | 3251293 francis_sawyer
francis_sawyer's picture

Most of the 'hubub' on JPM paper shorts are with regrds to Ag...

~~~

Long story short... The vault ain't big enough...

Sat, 02/16/2013 - 22:42 | 3250663 Clas Greve
Clas Greve's picture

Awesome article Tylers !

... Interesting 1908 London tube map showing the District Line between Temple station and Blackfriars station running directly beneath said 60 Victoria Embankment ... I'm sure they have their own private stop on the line ... 

http://en.wikipedia.org/wiki/File:Tube_map_1908-2.jpg

Sat, 02/16/2013 - 23:23 | 3250711 Yen Cross
Yen Cross's picture

 I actually took the " TIME" to read, and re-read your post Tyler. Shares financial schematics.

Sat, 02/16/2013 - 23:35 | 3250727 Cosimo de Medici
Cosimo de Medici's picture

It's a good piece of sleuthing, but its significance escapes me. I know where Ft. Knox is, too, but it doesn't really affect daily life.

Sun, 02/17/2013 - 00:11 | 3250769 cornflakesdisease
cornflakesdisease's picture

Yes, but when you spit this out there, other folks add their parts and the dots start to connect.  It's fun to see where it goes.

Sun, 02/17/2013 - 10:20 | 3250810 tip e. canoe
tip e. canoe's picture

.

Sun, 02/17/2013 - 00:01 | 3250756 jonjon831983
jonjon831983's picture

Here's some interesting gold news that came out a few days ago from Japan.  Someone anonymous has been sending gold to 2011 tsunami hit port in Japan:

"Golden gifts sent to tsunami-hit Japan port"

http://www.bbc.co.uk/news/world-asia-21488981

 

From the video the gold bars appear to have been refined from: Tanaka Tokyo Melters

 

Makes one think of: http://en.wikipedia.org/wiki/Yamashita's_gold

Sun, 02/17/2013 - 15:09 | 3251555 sampo
sampo's picture

Ain't JPM, for shure.

Sun, 02/17/2013 - 00:19 | 3250778 buryfarmer
buryfarmer's picture

THERE IS AN UNDERGROUND TUNNEL THAT LINKS 60 EMBANKMENT TO THE BANK OF ENGLAND, SEE HERE: 

Sun, 02/17/2013 - 08:24 | 3251039 smacker
smacker's picture

Indeed. The tunnel being the Waterloo and City Underground Line, which is closed (to the public) Sundays. Perhaps Sundays are when they move the gold about.

Sun, 02/17/2013 - 11:02 | 3251147 TruthInSunshine
TruthInSunshine's picture

"The Waterloo...."

How absolutely sublimely ironic.

Sun, 02/17/2013 - 11:52 | 3251201 smacker
smacker's picture

The line was named "Waterloo ..." because it connects Waterloo Main Line railway station with the City and only takes about 5 mins. I use it quite a lot, but on Sundays I have to use a different route.

Sun, 02/17/2013 - 12:44 | 3251295 francis_sawyer
francis_sawyer's picture

If I were you I'd try to start using it exclusively on Sundays...

Sun, 02/17/2013 - 15:58 | 3251618 smacker
smacker's picture

Access is barred. Sorry to disappoint you ;-)

Sun, 02/17/2013 - 18:07 | 3251822 ziggy59
ziggy59's picture

Good find! I wonder if thats the way the queen visited Bof Es gold last year?

http://www.telegraph.co.uk/news/uknews/queen-elizabeth-II/9743032/Queen-...

http://www.dailymail.co.uk/news/article-2247578/Queen-gives-Bank-chiefs-...

Articles say its one of 9 places their gold is stored...

Sun, 02/17/2013 - 00:21 | 3250780 Bansters-in-my-...
Bansters-in-my- feces's picture

"The London Billion Association"

Huh.!

Sun, 02/17/2013 - 00:39 | 3250793 Yen Cross
Yen Cross's picture

     Shit Happens

Sun, 02/17/2013 - 01:05 | 3250818 billybobtx
billybobtx's picture

Man this place would be funner without the 10+ tracking entities here, Tyler. 

Sun, 02/17/2013 - 03:13 | 3250828 Xibalba
Xibalba's picture

http://info.goldavenue.com/info_site/in_who/in_who_jpm.html

 

J.P. Morgan Chase & Co.

 


J.P. Morgan Chase & Co. (NYSE: JPM, www.jpmorganchase.com) is a premier global financial services firm with assets in excess of $715 billion and operations in over 60 countries. The firm is a leader in investment banking, asset management, private equity, consumer banking, private banking, e-finance, and custody and processing services. Headquartered in New York, J.P. Morgan Chase serves 32 million consumer customers and over 5,000 corporate, institutional, and government clients.


United States

JP Morgan / Morgan Guaranty Trust Company of New York
60 Wall Street
New York
NY 10260
United States

Tel. +1 212 648 2300
Fax +1 212 837 5930
Telex  232993 MGTNGL
Reuters MGBL (New York)
MGTN (London)
Web www.jpmorgan.com


United Kingdom

Morgan Guaranty Trust Company of New York
60 Victoria Embankment
London EC4Y 0JP
United Kingdom

Tel.  +44 20 7325 1888

oh and...

http://www.bankencyclopedia.com/Morgan-Guaranty-Trust-Company-of-New-Yor...

 

Sun, 02/17/2013 - 01:17 | 3250829 Sopra Tutt1
Sopra Tutt1's picture

Is that where, dozens of feet underground, the world's most secretive commercial gold vault is located?

Not anymore.

Sun, 02/17/2013 - 01:21 | 3250832 Gamma735
Gamma735's picture

How soon before the elite pull the plug on the interent?  Too much info already out there.

Sun, 02/17/2013 - 01:21 | 3250833 They Tried to S...
They Tried to Steal My Gold's picture

The Archaeological site and dig provided this !

 

'Completing the sequence was a forgotten Second World War public air-raid shelter." - Perfect for a vault

and the Illuminati love historical connections to their plots:

"Copper-alloy material appears to come from a later medieval workshop, including a copper-alloy coil and a rod, which may be the forms in which the metal was traded in the medieval period. An important find relating to this was a pilgrim's badge of St Eloi, the patron saint of smiths and other metalworkers"

Sun, 02/17/2013 - 01:55 | 3250852 zjxn06
zjxn06's picture

"Allright. Alright. That's enough horsing around on the internet. Time to go to bed boys and girls."

Jamie Dimon

Sun, 02/17/2013 - 17:16 | 3251749 The Heart
The Heart's picture

"and the Illuminati love historical connections to their plots:"

Not to mention the darkness yet to be revealed in the light of True Justice. Truly, it is probably a lot more amazing to know what happens in certain English mind-controled lodges of the elitist who have hijacked an original Charter that was given for all men, and not just a few who can keep these certain bankster secrets for profits, or weld powers never meant for them to have, than this story that gorgingly scrapes well the slaucy underside of the beast. Whose god is gold? How many can claim the Philosophers Stone within and smile in a reassuring pride as you look at your sterling eyes every morning in the mirror? Sooner or later, each and every Soul on Board will meet the Master of the Ship. Be well laden with a record of good and righteous deeds, and not any heavey anchoring gold karma, for it's very color tarnishes the brilliance of the rare diamond we are all meant to be.

Having enough is different than hording for a future imf/wb bankster digital tax and totally track money(god) scheme to control what is left of a world after another war for profits is started. The spoken mind of the planet is that we all can get along just fine developing new Eco-friendly technologies that are kept secret so mankind can not benefit, thus keeping the mass back from profiting from simple things like free energy for everyone world-wide. Imagine that one thing alone and how it would effect all the souls aboard. We all can get along just fine without the profits THEY the banksters make in destroying countries in useless senseless wars for elitist profits. Look at Syria now as the babalonians pay the foreign soldiers to fight for them letting the USA take the blame when it is in fact NOT the American people making wars on poor innocents of other countries, rather it is the London banksters and corrupted minions profiting from these baseless wars and the evil destruction of the planet and peoples. If the world would do what Iceland did, then there is a chance to develop into the world of the new century of prosperity and plenty for all. Look at how well Iceland is doing now. Anything less is just an exact repeat of the past century in lock step. Everyone knows.

Many thanks to each and every one here as you fearlessly add your light to the collection and forum of some of the worlds greatest thinkers and expressers of what stays forever in the etheic of time. Long to long have many to many been distracted by whacking at the branches. It is now apparent that massive forces are uniting all across the globe to join as One to do battle against this beastly banksterous monster that seeks to kill everyone off. It is good to see now that what has long been encouraged is actually happening. It is time to take out of the roots of all evil, like a ginormous dumping of the trash they all are. Little doubt they actually go into the ground here. Dig deeper and find out just how close to hell they all are there. When good men do nothing, bad things happen. Who in jolly ol' still stands strong with their double-edged swords of Truth, and Justice? Who will continue to spin these wheels of justice that have already begun to find and quarter the criminals involved in this mess that is effecting everyone in the world?

https://www.google.com/hostednews/afp/article/ALeqM5hkg5VhwETJHWaiIqxwwj...

http://www.pbs.org/wgbh/pages/frontline/business-economy-financial-crisi...

Soon...the precious will call out for it's own justice. Men, nor beast are worthy of holding onto this kind of evil for much longer.

Sun, 02/17/2013 - 01:51 | 3250849 putaipan
putaipan's picture

i'll go back and look at the charts and the perrty pictures onna sunaday mornin', but for now all i got is-

 

redundant anachronism bitches !

Sun, 02/17/2013 - 02:09 | 3250860 putaipan
putaipan's picture

60 Victoria Embankment bitches!

 

(pre-sunday skimming gps edition)

Sun, 02/17/2013 - 01:51 | 3250850 Bansters-in-my-...
Bansters-in-my- feces's picture

Wow...

25,000 reads and counting

Seems like a big number for a short period of time.

 

I think Tylers have the bee hive buzzing at the Bullion Bankers Ball.

Sun, 02/17/2013 - 09:15 | 3251064 shutdown
shutdown's picture

34,000. Wow, someone's awake and shouting.

Sun, 02/17/2013 - 20:48 | 3252033 BidnessMan
BidnessMan's picture

56,000 reads now

Sun, 02/17/2013 - 02:39 | 3250853 news printer
news printer's picture

Meanwhile in Germany

Search is on for golden cookie stolen in Germany

http://www3.wdtn.com/dpps/news/strange/search-is-on-for-golden-cookie-st...

Sun, 02/17/2013 - 02:21 | 3250871 Arkadaba
Arkadaba's picture

Saw and seen a while ago:

http://www.youtube.com/watch?v=YSvyai33vhc

 

Mon, 02/18/2013 - 02:11 | 3252437 Arkadaba
Arkadaba's picture

Yeah I had had a few drinks when I posted that and yes not specific to the article but illustrative of ...not sure

Who makes money when governments go in debt?

Who makes more money when your gov goes into more debt?

Haven't we seen this scenario played out and out again?

Sun, 02/17/2013 - 02:47 | 3250889 resurger
resurger's picture

unbelievable... you know the corrupt will always protect the corrupt, the banks did not get an Oz from all teh saad and Qusabi gold.

Sun, 02/17/2013 - 04:48 | 3250893 Troy Ounce
Troy Ounce's picture

 

 

 

Former JP Morgan Executive Sees Gold Mine In Unused Subway Stations

www.bloomberg.com/news/2011-09-08/london-entrepreneur-sees-a-gold-mine-i...

 

I wonder where he got that idea?

Can't hide, Schmuck.

Sun, 02/17/2013 - 07:40 | 3251029 Seer
Seer's picture

Anyone know whether they did get the nod to undertake this?

"At the Brompton Road station he aims to open a members club on the roof of the above-ground portion and house the London Fire Brigade museum in its tunnels and shafts, he said in the interview inside the disused property."

Ha ha!  "Members club."  Future withdrawal portals?

Sun, 02/17/2013 - 09:42 | 3251087 booboo
booboo's picture

Yea, a pedophile members club, these knob gobbler uber rich have a saying, "What do you do witha 13 year old girl when you are finished? roll her over and pretend she is a 13 year old boy" It is no small coincidence that this was a boys school. To many good memories in that basement for these fuckers to let go. Hope they like it hot cause where these guys are going they gonna need some ice on their arshole.

Sun, 02/17/2013 - 03:58 | 3250939 lickspitler
lickspitler's picture

click clackin

clack a lackin

get stacken

 

shame about the spot price

Sun, 02/17/2013 - 08:11 | 3251035 Bokkenrijder
Bokkenrijder's picture

Pardon my ignorance, but I fail to see the importance of where the vault is located.

What's much more important IMHO is how much is inside the vault.

p.s. there are plenty of parked cars in Jonh Carpenter street, and one parked car in Kingscote street and those bollards close to that delivery area are spaced too far apart to prevent cars from parking. In addition, there is a huge gap in those double layered bollards when approached from the north on John Carpenter street. To quote Snatch: "you could land a Jumbo fucking Jet in there."

p.p.s. there are bollards everywhere in that area (just pick any random location), HSBC's vaults must be around the corner, hahaha! And speaking of bollards, the whole city of Amsterdam must be one big vault judging by the number of bollards there!

Sun, 02/17/2013 - 09:24 | 3251072 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

Know where and the rough dimensions one can make a rough estimate of how much gold bars it could hold if full. The truth will be less if any at the location. Simon Gruber better make a nice donation to the site later on.......

Sun, 02/17/2013 - 11:28 | 3251170 Siouxwestern
Siouxwestern's picture

It is important because a private party, such as a bank, cannot ignore a Writ of Replevin - the sheriff standing at the door with a judge's order to allow an inspection or a seizure. It can be delayed, for sure -- but not ignored. The liability for the value of the goods shifts to the bailee (the holder of the goods; the warehouseman) once that writ is served.

The article describes a lawsuit that seems a bit too cute by half - feuding parties with perhap billions of dollars of creditors, and -- poof! -- no one knows where their gold is. Of course there is fraud involved. Nobody knows nothin'.......

My guess is that the swarms of attorneys who are pursuing their various creditor claims in those lawsuits, will begin asserting and delivering the equivalent of Writs of Replevin on JP Morgan regarding the specific gold at this specific facility, in order to sort out whether the specific gold is located there. (And all good gold bugs know the importance of allocated vs. unallocated gold). And if such creditors then seek to remove such gold as part of their recovey, JP Morgan will be required to give notice to all persons whose claims against such gold might be adversely impacted - that is, all the lessees, lienholders, etc. In fact, JP Morgan will likely have to notify all, if and when a writ is merely served.

If the Replevin scenario played out a certain way, it would be a dream come true for gold bugs, indeed. Because 100 dollars of claims for every dollar of gold would then descend upon JP Morgan, and......

That is why it is important.

Sun, 02/17/2013 - 11:58 | 3251213 tip e. canoe
tip e. canoe's picture

+1, that's a pretty outstanding 1st post on ZH

wonder how a writ of replevin could be executed considering that this hypothetical vault is located in the City of London (not the UK)?   i found this but it's quoting English & American case law.

HANDBOOK OF COMMON LAW PLEADING

http://www.famguardian.org/Publications/CommonLawPractice/CL_Pleading.pdf

there's some interesting stuff though on page 272:

Replevin will not lie for timber, crops, or minerals severed and removed from land by one who is in the
adverse possession of the land under a claim of title.’° It will not lie for property which is in the custody of the Law;
that is, in the hands of Court or Executive Officers under Attachment or otherwise.’

In theory, therefore, one who was disseised of a chattel might elect to sue in Detinue, Replevin and Trespass. If he sued in Detinue he might recover the chattel, or if it was not available, then he might recover its value, but it remained in the defendant’s hands until the action was completed. If he sued in Replevin, he reacquired the chattel as his own, plus damages for the wrongful detention. If he sued in Trespass, he could recover damages for the full value of the chattel, as the action proceeded on the theory that the property had vested in the tortfeasor.

 

Sun, 02/17/2013 - 14:35 | 3251486 francis_sawyer
francis_sawyer's picture

@Siouxwestern

~~~

Fuckin' A... That's GLORIOUS!...

Sun, 02/17/2013 - 14:52 | 3251523 Siouxwestern
Siouxwestern's picture

Thanks, but the Durden boys deserve all the credit for such a great primary article.

 

Sun, 02/17/2013 - 17:28 | 3251766 The Heart
Sun, 02/17/2013 - 12:36 | 3251277 Bokkenrijder
Bokkenrijder's picture

Well, fair enough, thanks for the reply and explanation Siouxwestern.

I'm still a bit sceptical that this is a big deal and that Blythe/JPM is losing any sleep over it, but let's wait and see where this takes us...

Sun, 02/17/2013 - 14:05 | 3251447 TruthInSunshine
TruthInSunshine's picture

An out-of-court settlement, with lots of wink-winks and nudges, as a means to pull one over on the bankruptcy court as well as other courts, administrators and judges is another distinct possibility (the kind of out-of-court settlement that is really, really informal, yet is binding because of reams of reciprocal dirt each participant has on the others).

Sun, 02/17/2013 - 14:48 | 3251513 Siouxwestern
Siouxwestern's picture

Here is the germane paragraph from the excellent ZH article:

 

"The total value of the bullion exported in these operations approached $430m at current market prices, and it weighed 10.4 tonnes. The other distinguishing factor was the identity of the recipients, or "consignees" as they are known. According to documentation seen by The National, they were all companies associated with the al Gosaibi family of Saudi Arabia. The al Gosaibis have since fallen out spectacularly with their partner, Maan al Sanea of Saad Group, in the biggest corporate scandal to hit the Middle East, leaving about 120 banks worldwide with debts estimated at up to $22 billion and a decreasing likelihood of getting their money back."

 

 

Presumably, one or more attorneys for the "120 banks" who stand to lose up to $22 billion,  have been getting the run-around by various institutions, including JP Morgan, in trying to locate assets (that is, find out where precisely they are located). All a big game of hide-the-ball, facilitated by all kinds of ball-hiding techniques well-known to ZH readers (protector trusts, etc.)

 

And - ahem - JP Morgan specializes in these servcies.


But once a precise location, holding specific goods ("identified" goods, under US Uniform Commercial Code parlance), can be pointed to by a creditor (that is, pled to a court with specificity), the creditor will quickly seek a Writ of Attachment (basically, a judicial lien which freezes specific property) and/or a Writ of Replevin.  The Writ of Attachment might be even more dangerous here, for JPM.  

 

The gist of receiving either writ, for JP Morgan is: "Hey, turn over this specific XXX to the court, so the court can give it to the proper owner; and don't you dare move it until the court says OK, otherwise you [JPM] are personally liable to the creditors for conversion of their prooerty."

 

The laws applicable to bailees (like JP Morgan) are opaque but generally result that a bailee will (i) implead (ie, turn over) the property to the court, because in theory the bailee has no ownership in the property, he is just the storage clerk, and (ii) give notice of the wri to anyone who appears in the bailee's records as having some legal interest in the property. Those folks getting notice thus have the chance to run into court and fight off the claiming creditors.

 

All diehard gold bugs suspect, of course, that JP Morgan isn't a simple bailee; rather, through leases, derivatives, futures and [etc], JP Morgan has geared the bejezus out of the bullion, regarless of who the legal owner(s) are, regardless of whether the gold is supposedly allocated or unallocated (think MF Global), regardless of ....pretty much any assumption one might have. Borderline lawless, but certainly not the orderly quartering of gold that one is told to believe.

 

So the thought that JP Morgan might have to send its legal team in to court, not to be chummy with the two Saudi groups who appear to be hiding the gold, but rather to do battle with barbarians at the gate - the 120 banks looking for assets - is juicy. And a true headache for JP Morgan, because if or when it happens, JP Morgan no longer controls the situation. And its complicated status as "not simply a bailee" would be in court documents, for all to see. The 120 bank creditors don't give a whit about JPM's or the Saudi's claims of "privacy." 

 

NB to any attorney reading this: Be sure to deliver your writ to Brinks, who will then be on notice that they cannot be moving gold OUT of the building, willy-nilly.

 

This really is a keen development, if only for commercial attorneys and creditor geeks. But in today's taughtly-levered world, pretty much anything can be the flap of the butterfly's wings which set loose the upset of a system.

 

Sioux

 

Sun, 02/17/2013 - 19:46 | 3251950 tinylittleguy
tinylittleguy's picture

Sioux,

You truly are a gem! Hoping the appropriate commercial attys and interested parties read thru to the end of these many comments for their reward will be your enlightening words.

Sun, 02/17/2013 - 22:29 | 3252169 Siouxwestern
Siouxwestern's picture

A tidbit from a certain London clearinghouse website which made me promise not to copy and paste its contents (but which I am brazenly doing anyway):

 

"Facilities exist for the safekeeping of gold and silver in high security vaults. Rates for storage and insurance are subject to negotiation. Both metals can be held on allocated or unallocated accounts. Allocated accounts are opened when a customer requires metal to be physically segregated and a detailed list of bar numbers, weights and assay qualities is provided by the vault holder who acts as a custodian on behalf of the client. Unallocated accounts do not entail specific bars being set aside and the customer has a general entitlement to fungible metal. Unallocated accounts are the most convenient and commonly used method of holding gold and silver. The owner is an unsecured creditor of the clearing member."

 

Got that?: "Unallocated accounts are the ... most commonly used method of holding silver." OK, using the Pareto rule, I'll assume that 80% are unallocated.

And this little detail: "The owner [that is, the 80% who store gold with bullion bank vaulting services like JP Morgan] is an unsecured creditor of the clearing member."

So to summarize:  Something like 80% [my guesstimate] of the counterparties who think they own the gold bullion they have stored in JPM's gold vault, don't own gold bullion at all.

Man alive are they gonna be p.o.'ed if and when the SHTF. Just like the 120 banks chasing the Saudi folks in the main article.

Sun, 02/17/2013 - 09:32 | 3251082 Lost Wages
Lost Wages's picture

Next time there are riots in London, break into this dump instead of stealing a bottle of wine from the local shopkeep.

Sun, 02/17/2013 - 10:09 | 3251108 Tommy Gunn
Tommy Gunn's picture

I can't believe no one has spotted the two 'BRINKS' trucks outside the building on Carmelite street!! It falls in nicely with the L shaped basement excavations posted by CP.

Sun, 02/17/2013 - 11:02 | 3251149 Tyler Durden
Tyler Durden's picture

Great catch:

Trucks outside of reinforced entrance just south of Tudor Street on Carmelite Street, in front of a building that is an extension of 60 Victoria.

Photo 1

photo 2

Sun, 02/17/2013 - 12:12 | 3251233 news printer
news printer's picture

in place where are 2 trucks, there were motorcycles before

Try http://www.bing.com/maps/

they kicked them out

Sun, 02/17/2013 - 12:38 | 3251283 Bokkenrijder
Bokkenrijder's picture

Told you the area was full of bollards a.k.a. vaults! ;-)

Sun, 02/17/2013 - 16:40 | 3251696 Atomizer
Atomizer's picture

What twat photo shopped the license plates? These trucks are equipped with GPS tracking. Show me the plates to verify time stamped location. Upload the photos again.. Thank you

Sun, 02/17/2013 - 12:49 | 3251303 Bokkenrijder
Bokkenrijder's picture

p.s. when you zoom out from Google Maps/Earth and you look a bit more south on Carmelite street (just before the intersection of Tallis street) you'll see that there is the head office of Christie's there.

Might explain the Brinks trucks.

White Friars House, 6 Carmelite St, London EC4Y 0BS, United Kingdom
+44 20 7227 0700 ‎

p.p.s again, plenty of parked cars near that entrance...

Sun, 02/17/2013 - 14:43 | 3251505 francis_sawyer
francis_sawyer's picture

Yeah Yeah... It's all a 'Potemkin Vault'... Nothing to see here ~ move along... Occam's Razor clearly favors a hypothesis whereby the gold bars are located in cookie jars & otherwise buried in 'Prince Albert' tins under the 3rd tomato plant in every 3rd row of backyard gardens of anonymous phonebook entries whose surnames begin with the letter "G"...

~~~

Otherwise ~ it would all be too simple...

Sun, 02/17/2013 - 16:32 | 3251674 Tango in the Blight
Tango in the Blight's picture

J.P. Morgan's personal effects (including gold jewellery) were auctioned at Christie's on November 21 last year:

http://en.wikicollecting.org/j-p-morgan-collection-catalogues-come-to-ch...

#theplotthickens

 

Sun, 02/17/2013 - 16:26 | 3251672 Atomizer
Atomizer's picture

Let’s add a bit of humor….

We’re watching the transport of Germany Gold without flames & plumes of smoke. /sarc

Mon, 02/18/2013 - 01:05 | 3252381 resurger
resurger's picture

Ill drive those trucks, drone me if you can

Mon, 02/18/2013 - 12:34 | 3253124 Cacete de Ouro
Cacete de Ouro's picture

You were only supposed to blow the bloody doors off!

http://uk.linkedin.com/pub/phil-wright/46/996/1a7

Sun, 02/17/2013 - 12:27 | 3251120 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

You can also bet your sweet asses the FED in New York and all major vaults down on Wall Street have underground access tunnels to move contents off the island in case of an attack. I'd be willing to bet they repurposed an old unused Amtrak or NJ transit tunnel into Jersey along with subway tunnels for just this purpose. The Sandhogs Local 147 would probably know which tunnels too since if anyone would have done work to refurb or dig connecting tunnels they would be the people.

Sun, 02/17/2013 - 12:48 | 3251298 knukles
knukles's picture

Dear Abby,

I can't forget the secret railroad line (not subway, but rail, probably linked to GCT tracks) under the Waldorf which to this day still has FDR's armored rail car therein.
Seems Rails & Passages all over the place.
And I can't forget the pictures of the underground passages neath WTC vault with the 18 wheeler and the empty vault (like WTF if the building fell down instead of being vaporized) and the dah may-yah tellin' everybody the gold been recovered before the place stopped melting.
Nor any claims for insurance thereupon...
So where'd the 18 wheeler come from?
I mean like, What the Fuck

Confused.
K

Sun, 02/17/2013 - 14:40 | 3251499 Cardinal Fang
Cardinal Fang's picture

If you had a time machine, you could go back to 9-11 and see where the blacked out Virginia registered Suburbans were parked with AR toting, sunglass clad 'drivers'. Wait, there is a knock at the door, I'll be right back...

Sun, 02/17/2013 - 22:31 | 3252171 Peter Pan
Peter Pan's picture

I'm still waiting.

Sun, 02/17/2013 - 16:31 | 3251681 Atomizer
Sun, 02/17/2013 - 11:10 | 3251153 Seasmoke
Seasmoke's picture

This is just where Blythe sleeps during daylight hours.

Sun, 02/17/2013 - 11:46 | 3251196 Max Cynical
Max Cynical's picture

Someone should fly a remote controlled drone around the building at 30 feet and see how fast it's shot out of the air.

Sun, 02/17/2013 - 11:57 | 3251212 Hannibal
Hannibal's picture

Shining the light on and expose the effin' frauds.

Sun, 02/17/2013 - 17:39 | 3251782 The Heart
Sun, 02/17/2013 - 13:26 | 3251349 Dre4dwolf
Dre4dwolf's picture

Reminds me of the movie the bank job.

Sun, 02/17/2013 - 13:31 | 3251364 Philippines
Philippines's picture

What is this? A post about casing the joint?

Sun, 02/17/2013 - 13:46 | 3251403 No Euros please...
No Euros please we&#039;re British's picture

.....Hang on a minute, lads.

I've got a great idea.

Sun, 02/17/2013 - 14:21 | 3251470 ptoemmes
ptoemmes's picture

Why does this make me think of Geraldo: http://www.youtube.com/watch?v=P84OKTUx6LY

Sun, 02/17/2013 - 14:35 | 3251489 Cardinal Fang
Cardinal Fang's picture

Look, the only reason they are turning gold bars into paper is to make it easier to carry it from the basement to the roof so you can drop them from a helicopter.

Sun, 02/17/2013 - 14:35 | 3251491 Ralph Spoilsport
Ralph Spoilsport's picture

Excellent - ZH does it again. 3 Cheers to the commentors who provided additional information about excavations and history of 60 Victoria Embankment. Can't find this kind of credible, detailed and revelatory reporting anywhere else AFAIK.

Sun, 02/17/2013 - 15:12 | 3251552 Monedas
Monedas's picture

If they were proud and confident of their PM vaults and the security they offer their clients .... they would be transparent and screaming it from the roof tops .... it's great, FREE PR .... since when would they not take advantage of FREE PR ????????    All the glitter, glamour, sexiness, mystique, 007 cachet .... and they sit there like liberal nerds .... in their offended dignity .... when there's a billion dollars of free advertisement for their brand ??????????

Sun, 02/17/2013 - 15:29 | 3251577 alentia
alentia's picture

The less of majority of the public knows where the gold is stored the more secure it is. There is no PR for the gold vaults. There is no security it can be bypassed. People get crazy ideas once they know where to go to get gold and how to move it.

Gold is untraceable so it makes it desireable target. Serial numbers on bars mean nothing when it's remelted and re-refined.

Besides, there is 0.5% worthless crap in Good Delivery bars, which accounts for about 62 grams per 400 oz bar and that makes it overprices by about $3,300 compared to 999.9 bars.

Sun, 02/17/2013 - 15:45 | 3251601 Bansters-in-my-...
Bansters-in-my- feces's picture

Here comes 50,000 reads ....!!!!

Go Tylers...!!!!

Fuck yous bankers.

Sun, 02/17/2013 - 15:53 | 3251611 Miss Expectations
Miss Expectations's picture

So, I started snooping around JP Morgan's website and it's worth reporting that they are announcing:
"J.P. Morgan Renews Commitment to Bankers without Borders"

http://investor.shareholder.com/jpmorganchase/releasedetail.cfm?releasei...

Sun, 02/17/2013 - 16:06 | 3251636 Atomizer
Atomizer's picture

Mockingbird maneuver by ways of….War Cycles, Peace Cycles 

528 Hz

 

Who wants to play a game of Prisons Dilemma aka Game Theory?

 

 

Sun, 02/17/2013 - 16:08 | 3251640 Atomizer
Atomizer's picture

* duplicate post

 

 

Sun, 02/17/2013 - 17:24 | 3251761 Atomizer
Atomizer's picture

Bank of International Settlements: The Changing Policy

Sun, 02/17/2013 - 17:44 | 3251792 The Heart
The Heart's picture

B.B.: "Hello Germany, amazing news! We have found your gold and will deliver it to you a lot sooner since we now have had a huge realization that the shipping charges will only be half the costs we had originally figured. Payment will begin after Seal Team Six has reported back to us."

Cheers!

Sun, 02/17/2013 - 18:55 | 3251875 Poor Grogman
Poor Grogman's picture

Is it just the river thames or does all this smell very fishy?

Sun, 02/17/2013 - 20:10 | 3251991 847328_3527
847328_3527's picture

let me jot this down....60...Victoria .......

Sun, 02/17/2013 - 20:51 | 3252039 Atomizer
Atomizer's picture

Scenario Uno: Stack all money in a safe place. Pray that a blue stick match doesn’t ignite the entire cash holdings or shall we hope for insurance to cover losses? What was that noise?

 

Did I hear someone reading this have their ass pucker up? You can run, but never hide.

Sun, 02/17/2013 - 20:55 | 3252045 N57Mike
N57Mike's picture

"Do not lay up for yourselves treasures on earth, where moth and rust destroy and where thieves break in and steal; but lay up for yourselves treasures in heaven, where neither moth nor rust destroys and where thieves do not break in and steal. For where your treasure is, there your heart will be also." Matt. 6:19-21

Sun, 02/17/2013 - 21:21 | 3252089 Atomizer
Atomizer's picture

Why don’t we skip the DOJ side show theatrics and go right to the heart of corruption.

 

Former Supreme Court Justice Diane Hathaway pleads guilty - January 31, 2013

Democrat Diane Hathaway pleaded guilty Tuesday in Ann Arbor federal court and faces 1 1/2 years in prison under a deal with prosecutors. She resigned last week. Prosecutors say Hathaway and her husband transferred a debt-free Florida home to a relative so that they'd qualify to short sell a Grosse Pointe Park home that carried a big mortgage. After they unloaded the Michigan property in a 2011 short sale, the Florida property was transferred back to them. In short sales, banks let distressed owners sell property for less than what's owed on it.

Sun, 02/17/2013 - 22:09 | 3252153 Poor Grogman
Sun, 02/17/2013 - 22:31 | 3252173 Atomizer
Atomizer's picture

TV repeaters will remind you that it’s just a 200 year old piece of paper that needs massive reform. Meanwhile, too big to hang from a light post prevails.

Mon, 02/18/2013 - 04:11 | 3252504 Poor Grogman
Poor Grogman's picture

At least for now

Sun, 02/17/2013 - 22:01 | 3252145 TheFourthStooge-ing
TheFourthStooge-ing's picture

Another bank's PM vault is located here as well: ABN AMRO BANK N.V., AUSTRALIAN BRANCH.

http://www.sec.gov/Archives/edgar/data/818479/000081847907000017/ex1018d...

"Any physical return of Consigned Precious Metal to the Consignor's vault in at J P Morgan Chase Bank, 60 Victoria Embankment London C4YOBX shall be at the Company's expense and risk and shall only be credited to the Company's account upon the Consignor's assaying the value thereof."

"CONSIGNMENT AGREEMENT, dated as of December 15, 2006, by and between ABN AMRO BANK N.V., AUSTRALIAN BRANCH, with offices at Level 5, ABN AMRO Tower, 88 Philip Street, Sydney, New South Wales 2000 (the "Consignor"),"

Sun, 02/17/2013 - 23:01 | 3252206 Mister Minsk
Mister Minsk's picture

Magnifique!

Mon, 02/18/2013 - 04:18 | 3252507 awakening
awakening's picture

Now this is what makes ZH worth reading, brilliant.

Bonus points: Perth Mint logo is none other than the same thing featured on the flag of the state of Western Australia - a black swan. :)

Mon, 02/18/2013 - 06:56 | 3252563 smacker
smacker's picture

Here's a map of the London Underground, clearly showng the Waterloo & City Line route and its proximity to JPM. Note the RH side where it mentions opening times:

http://files.aracari.warpmail.net/Images/London-Tube-Map.pdf

or if you prefer large scale jpeg format:

http://files.aracari.warpmail.net/Images/London-Tube-Map.jpg

Mon, 02/18/2013 - 08:27 | 3252588 Anasteus
Anasteus's picture

Great work ZH!

Mon, 02/18/2013 - 15:41 | 3253825 Cacete de Ouro
Cacete de Ouro's picture

Jamie Dimon: "Fuck Zero Hedge! Our London vault has gone all L-shaped, eh, sorry, I mean pear-shaped".

Do NOT follow this link or you will be banned from the site!