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Why Is JPMorgan's Gold Vault, The Largest In The World, Located Next To The New York Fed's?

Tyler Durden's picture




 

When two weeks ago we exposed the heretofore secret location of JPM's London gold vault (located under the firm's massive L-shaped office complex at 60 Victoria Embankment) we thought: what about New York? After all, while London is the legacy financial capital of the "old world", it is in New York that the biggest private wealth of the past century is concentrated, and it is also in New York where the bulk of the hard assets backing the public money of the world's sovereigns are located, some 80 feet below ground level in the fifth sub-basement of the New York Fed, resting on the bedrock of Manhattan.

That the topic of the gold "held'' by the New York Fed - historically considered the gold vault with the largest concentration of gold bars in the world - has become rather sensitive, in the aftermath of the Bundesbank's request to repatriate it (surely, but very, very slowly), is an understatement. Yet in the aftermath of some of the revelations presented here, we believe quite a few other countries will follow in Germany's footsteps for one very simple reason: suddenly the question of whether their gold is located at 33 Liberty, or just adjacent to it, in what we have learned is the de facto largest private gold vault in the world, located across the street 90 feet below 1 Chase Manhattan Plaza, doesn't appear to have a clear answer.

But first, some background.

The locations of New York's commercial vaults, like those of London, are closely guarded. While there is occasional anecdotal speculation of where one may find any given vault, a definitive answer is rarely if ever in the public domain. Luckily, the past few years, which saw a surge in the price of gold and silver, have provided a variety of useful clues, as one after another bank applied to have its legacy precious metal vault certified for commercial use with the CFTC.

For those who aren't easily discouraged, buried deep in the bowels of the CFTC's website, is a veritable goldmine of data, in the form of supplemental applications from assorted CME members, who one after another, and very quietly, had the CME provide supplements to the CFTC vouching for their approval as "licensed depositories and weighmasters for gold, silver, platinum and palladium." 

For those curious (and that should be all who are interested by the precious metals space) what constitutes an approvable vault, we present the fully filed supplement application by Brinks (recently best known for having two of its armored cars captured in a Google Streetview snapshot just outside the JPM office at 60 Victoria Embankment) filed with the CFTC:

The application submitted by Brink's, Inc. and Brink's Global Services USA, Inc. for licensing its facility at 580 5th Ave., New York, NY for storage of the respective NYMEX and COMEX Gold, Silver, Platinum, and Palladium contracts meets the requirements of the Exchanges.

 

BACKGROUND INFORMATION

 

Brink's Global Services USA, Inc. is a wholly owned subsidiary of Brink's Inc. The Brink's Company, which owns Brink's Inc., was founded as Brink's City Express in Chicago in 1859, and has been in operation for 150 years. Currently, it is based in Richmond, Virginia. Starting as an armored transportation service, it evolved to expand its operations to include precious metals storage in the late 1990s. Brink's has been operating Licensed Depositories approved to store precious metals against the Exchanges' Futures Contracts for 10 years. Brink's international network operates about 875 facilities and services customers in over 50 countries. It is estimated that it employs approximately 59,400 employees.

 

NAME AND ADDRESS OF APPLICANT

 

Office Location

 

Brink's Inc. and Brink's Global Services USA, Inc. Suit400
580 Fifth Avenue
New York, NY 10036

 

Vault Location

 

Brink's Inc.
580 Fifth Avenue
New York, NY 10036

 

LEASE/VAULT CLASSIFICATION/INSPECTION

 

Exchange staff inspected the facility at 580 5th Ave., New York, NY on Thursday, June 17, 2010, which is owned by Forty Seventh Fifth Company, LLC. Brink's Inc. is the Tenant in the signed copy of the Lease Agreement, entered into on November 9, 1992, that was provided to the Exchange. There are 5,000 square feet of space available, enclosed by four steel reinforced cinder block walls with a concrete ceiling and concrete floor on top of bedrock. The interior of the facility is divided into several work areas, including a 752 square foot, modular vault capable of housing one million ounces of gold, platinum, and palladium, and an additional two million ounces of silver. The no floor vault solution is surface mounted to the existing basement slab which is described as bedrock. The walls and ceiling-grid carry a U.L. Class-3 designation which is torch and tool resistant. The vault is equipped with one U.L. listed Class-3 oversized vault door offering a clear opening of 52"wide x 78" high. Custom Vault Corporation has certified that the existing vault system at 580 5th Ave., New York, NY meets all current U.L. listings as a Class-3 five-sided structure. It has also certified that all modular components (the modular vault panel components were manufactured by International Vault, Inc.) of the system have passed testing in accordance with the U.L. "Burglary Resistant Vault Doors" and "Modular Panels" standards. Cameras, motion detectors, and entry way alarms are installed throughout the interior and exterior access points. The activity is monitored 24 hours per day, 7 days per week. Access from exterior points to interior spaces is limited by the use of biometric proximity readers that record all activity. A majority of employees assigned to the area are licensed to carry Brink's issued firearms. The Depository employs Metler Toledo SG32001DR high precision self calibrating balances. The scales weigh to a tolerance of 1/1000th of a troy ounce, and meet all of the Exchange's requirements

Thus we know where at least one of the world's largest precious metals depositories is located: deep underground the Diamond Tower located in the heart of Manhattan's jewelry district.

Another such supplement was filed by the Bank of Nova Scotia's Scotia Mocatta. What many may not know is that it was Scotia Mocatta's vault that was destroyed in the events of September 11, as SM's vault was located deep beneath 4 WTC. From the application:

The Bank of Nova Scotia’s Scotia Mocatta Depositary (SMD) is an Exchange-licensed depository for Gold, Silver, Platinum and Palladium. SMD has submitted applications, requesting that a new facility, located at International Airport Center, 230-59 International Airport Center Boulevard, Building C, Suite 120, Jamaica, New York, be approved for the storage of gold and silver deliverable against the COMEX Gold and Silver Futures Contracts, and for the storage of platinum and palladium against the NYMEX Platinum and Palladium futures contracts.

 

History: The Bank of Nova Scotia, doing business as SMD, is an Exchange Licensed Depository for the storage of gold, silver, platinum, and palladium, and its current facility is located in Manhattan at 26 Broadway. SMD was previously known as Iron Mountain Depository (IMD), its name was changed when it was acquired by the Bank of Nova Scotia in 1997. The IMD/SMD facility has been a COMEX licensed delivery point since 1975. SMD has planned to develop a new facility since the terrorist attacks upon the World Trade Center, which destroyed SMD’s facility at 4 WTC. SM subsequently returned to its existing and former facility as an intermediate measure while the new facility was designed and built.

 

In evaluating this application, SMD’s performance in the wake of the terrorist attacks on the World Trade Center must be noted. SMD’s Licensed Depository was located in a sub-basement of the WTC at the time of the attacks. When the material in this facility was trapped within the debris, SMD acted swiftly, offering to purchase any and all of the warranted material that was buried at the request of any holder of warrants to this material. Scotia further prepared to make replacement material stored in Canada available to offset any potential supply shortage that the destruction of its WTC facility might have caused.

So Scotia Mocatta's place for a new vault is deep in Queens under what is described as a "two-story elevatored building located in a four building industrial park, Located within close proximity to JFK International Airport."

Just in case the gold has to take off rather quickly we assume.

And since both of these applications also contained an official list of licensed "depositories and weighmasters" we finally can compile a full, official list of where the largest commercial gold vaults in New York are located:

We now know that in addition to Brink's vault lying on the bedrock at 580 Fifth, the following gold vaults are located as follows:

HSBC Bank USA 

1 West 39th St.
SC 2 Level
New York, NY

Manfra, Tordella, & Brookes   

90 Broad St. 
Sub-Basement
New York, NY

Scotia Mocafta Depository, a Division of the Bank of Novia Scotia   

230-59 Int'l Airport Center Blvd. 3002
Building C, Ste. 120
Jamaica, NY

Yet one name is missing. The same name which as we reported back in October 2010, reopened its undisclosed New York gold vault after it had been "mothballed in the 1990s." 

The name of course is JPMorgan.

Curiously (or perhaps not at all), when the CME on behalf of JPM submitted the certification filing alongside the comparable such supplements as filed by Brinks above, it requested a FOIA (Freedom of Information Act) confidential treatment. As a reminder, to be eligible for FOIA exemption status the protected information must be of vital importance to the nation's safety. This is precisely what JPM thought the details surrounding its New York vault are. To wit:

Pursuant to Sections 8 and 8(a) of the Commodity Exchange Act ("CEA"), as amended, and Commission Regulation 145.9(d), NYMEX and COMEX request confidential treatment of Appendix A, Appendix B, and this letter on the grounds that disclosure of Appendix A and/or Appendix B would reveal confidential commercial information of the submitters (NYMEX and COMEX) and of other persons. Pursuant to Commission Regulation 145.9(d)(5), NYMEX and COMEX request that confidential treatment be maintained for Appendix A and Appendix B until further notice from the Exchanges. We also request that the Commission notify the undersigned immediately after receiving any FOIA request for said Appendix A, Appendix B or any other court order, subpoena or summons for same. Finally, we request that we be notified in the event the Commission intends to disclose such Appendix A and/or Appendix B to Congress or to any other governmental agency or unit pursuant to Section 8 of the CEA. NYMEX and COMEX do not waive their notification rights under Section 8(f) of the CEA with respect to any subpoena or summons for such Appendix A or Appendix B.

 

Please contact the undersigned at (212) 299-2207 should you have any questions concerning this letter.

 

Sincerely, /s/ Felix Khalatnikov

Yet oddly enough, the FOIA request letter itself, while also being filed with a request for Confidential Treatment, never got it. As a result it was posted at this address. Ooops.

But a far bigger oops, is that on the first page of said declassified confidential FOIA app, in black ink, we get the missing piece:

In addition, the Exchanges are providing the Commission with the application summary of requirements for the JP Morgan Chase Bank N.A. facility located at 1 Chase Manhattan Plaza, New York, NY.

And so, despite the extended attempts at secrecy, we finally hit the proverbial goldmine vault.

So what do we know about 1 Chase Manhattan Plaza. Well, aside from the fact that the 60-story structure, built in the 1950s, was the headquarters of the once-legendary Chase Manhattan corporation, and which when it was built was the world's sixth tallest building, not much.

So we set off to learn more.

To learn more, we first went to the motherlode: the Landmarks Preservation Commission, whose report on 1 CMP describes everyone one wants to know about this building and then much more, such as that:

One Chase Manhattan Plaza combines three main components: a 60-story tower, a 2½ acre plaza, and a 6-story base, of which 5 floors are beneath grade.

So the old Chase HQ, once the stomping grounds of one David Rockefeller, and soon to be the other half of JPMorgan Chase, has 5 sub-basements, just like the NY Fed...

Reading on:

Excavations, said to be the largest in New York City history, reached a depth of 90 feet

Or, about the same depth as the bottom-most sub-basement under the NY Fed...

But then we hit the jackpot:

Originally constructed with white marble terrazzo paving and enclosed by a solid parapet of white marble travertine that was personally selected by Bunshaft in Tivoli, Italy, the L-shaped plaza levels the sloping site and conceals six floors of operations that would have been difficult to fit into a single floor of the tower, including an auditorium seating 800 [and] the world’s largest bank vault.

And there you have it: the JPM vault, recommissioned to become a commercial vault, just happens to also be the "world's largest bank vault."

Digging some more into the curious nature of this biggest bank vault in the world, we learn the following, courtesy of a freely available book written by one of the architects:

On the lowest level was the vault, which rested directly on the rock - the "largest bank vault in the world, longer than a football field." It was anchored to the bedrock with steel rods. This was to prevent the watertight, concrete structure from floating to the surface like a huge bubble in the event that an atomic bomb falling in the bay would blow away the building and flood the area.

In other words, the world's biggest bank vault, that belonging to the private Chase Manhattan empire, and then, to JPMorgan, was so safe, the creators even had a plan of action should it sustain a near-direct hit from a nuclear bomb, and suffer epic flooding (such as that from Hurricane Sandy).

It is no surprise, then, that the street entrance to this world's biggest vault located under 1 Chase Manhattan Plaza makes the entrance to any medieval impregnable fortress seem like child's play in comparison. Courtesy of Google StreetView:

and if you rotate the StreetView 180 degrees...


View Larger Map

 

 

Yet it is not what is on this side of the street, which just happens to be known as Liberty Street, that is what is the most interesting part of this whole story. It is what is on the other:

Or, shown another way...

That's right, ladies and gentlemen, as a result of our cursory examination, we have learned that the world's largest private, and commercial, gold vault, that belonging once upon a time to Chase Manhattan, and now to JPMorgan Chase, is located, right across the street, and at the same level underground, resting just on top of the Manhattan bedrock, as the vault belonging to the New York Federal Reserve, which according to folklore is the official location of the biggest collection of sovereign, public gold in the world.

At this point we would hate to be self-referential, and point out what one of our own commentators noted on the topic of the Fed's vault a year ago, namely that:

Chase Plaza (now the Property of JPM) is linked to the facility via tunnel... I have seen it.  The elevators on the Chase side are incredible. They could lift a tank.

... but we won't, and instead we will let readers make up their own mind why the the thousands of tons of sovereign gold in the possession of the New York Fed, have to be literally inches across, if not directly connected, to the largest private gold vault in the world.

We think readers can do a good enough job on their own.

h/t Ro

 

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Sat, 03/02/2013 - 19:36 | 3294302 bigkahuna
bigkahuna's picture

More proof of whats really goin' on. I am going to send this story to drudge.

Sat, 03/02/2013 - 19:46 | 3294320 CactusLand
CactusLand's picture

Hey Zero Hedgers, I came across this Manifesto, and I think it is something that the folks here can get behind.  I think we are all tired of talking, and we need to act, but individually, and this might be way to start... please give it a read, and if you think it is something that can work, please post on your social media etc....

http://www.marchmanifesto.com/

 

Sun, 03/03/2013 - 00:17 | 3294764 Kirk2NCC1701
Kirk2NCC1701's picture

#1.  Completed months ago.

#2.  Completed months ago.

#3.  WIP (work in progress).  Picked up more bullion today.  Note to self:  Avoid Debit card.  Withdraw enough cash each Friday, to cover gas, groceries & mad money for the week.  Not feeding FRB, nor online marketeers, and maintaining privacy. 

PRIVACY:  1. Keep phone in Airplane mode, except to check for voice-mail and call back, then set back to A/mode.  Great for time management also (used by power-people).  Don't be a 'girlie-man': Keep phone calls short & to the point.  Chit-chat for hours in person.  Consider getting a b/berry for better privacy.  2. Use privacy browser like Tor or Viscosity/Cryptohippie.  3. Reduce FB use to minimal and 'vanilla' trivial.  Log off when done, and delete Cache, Cookies and Browsing History.  Close FB-dedicated browser window.  Do not surf while logged into Google.  Treat Google like FB.  Turn off WiFi when not in use.  4.  Snail-mail stuff that's too damn sensitive.  Or swap thumb drives.

To quote an old friend:  "Fuck 'em if they can't take a joke."

Sun, 03/03/2013 - 01:49 | 3294877 MeelionDollerBogus
MeelionDollerBogus's picture

Seriously, I've been without facebook for a long time. It's not worth keeping at all.

Back when Mafia Wars was actually fun, it was OK. Other than that, no, it's worthless to me. Doesn't help me for work, for finding news, for finding funny shit, for games I actually want to play (minecraft), so why bother? No need. Goodbye Failbook / faceplant.

Sun, 03/03/2013 - 09:47 | 3295147 CJHames
CJHames's picture

Loved your post, but I have an addition:  we purposely never let our vehicles get under a half tank of gas and we have six 5-gallon gas containers full at all times so we can get the hell out of dodge if and when we need to. Gives us a minumum 400-mile range for all of our (6) vehicles before we have to stop for gas.  And we keep 20 oz's of silver and 2 oz's of gold (in 1/10th oz. sizes) and $1,000 cash in the house for get away money.  Not to mention a 4-month food supply stashed away at our property, which is 105 miles away.

Bring it, bitchez.  Make my effing day.

Killed Facebook long ago.  Everyone with a brain should, too.

 

 

 

 

Sat, 03/02/2013 - 19:46 | 3294321 Kirk2NCC1701
Kirk2NCC1701's picture

Seems like the Canucks (Scotia Moccata) have the best idea:  close to the airport.

Sat, 03/02/2013 - 19:53 | 3294336 Atlantis Consigliore
Atlantis Consigliore's picture

try to get delivery on any of those; just try 1 contract,  see if any delivery will to it, i only got Mocatta done barely

brings told ya to drop dead, on any delivery,  if you cant take delivery how do you take delivery,  you look up the charges

at the others.

Sun, 03/03/2013 - 09:31 | 3295130 CJHames
CJHames's picture

Is there an English version of your post?  I think it might have had some merit, but you lost me after "see if any delivery will ..."

Sat, 03/02/2013 - 19:57 | 3294349 SubjectivObject
SubjectivObject's picture

1 CMP; now there's a building that begs to get hit by a big plane.

Sun, 03/03/2013 - 08:31 | 3295068 fudge
fudge's picture

hit by a big plane or have one land close by ?

http://www.antonov.com/services/antonov-airlines

room for lots o' gold :)

Sat, 03/02/2013 - 20:05 | 3294374 proLiberty
proLiberty's picture

A more important question is this: for any gold in these vaults, who claims financial interest apart from physical custody? In other words, is the US Treasury or the US Federal Reserve Corporation or any party acting under contract to them, holding physical gold for which they represent ownership but whose ownership is encumbered in any way?

Sat, 03/02/2013 - 20:18 | 3294415 nathan1234
nathan1234's picture

Simple - The boss JPM is located to it's subsidiary- The Fed

Sat, 03/02/2013 - 20:21 | 3294420 Hannibal
Hannibal's picture

The powers that shouldn't be must be royally pissed, exposing details of locations herein could endanger Tyler's "wellbeing".

Sun, 03/03/2013 - 01:26 | 3294856 MeelionDollerBogus
MeelionDollerBogus's picture

There's a lot of space-monkeys using Tyler's name these days :D

Sun, 03/03/2013 - 07:14 | 3295031 Haager
Haager's picture

I think everyone knows what to do in that case and similar other ones.

I am the guy known as Tyler

Sat, 03/02/2013 - 20:47 | 3294470 Bansters-in-my-...
Bansters-in-my- feces's picture

This is exactly why they make HOLLYWOOD TV programs for the sheep.

Tylers....don't you(s) watch television...?

Sun, 03/03/2013 - 01:18 | 3294854 MeelionDollerBogus
MeelionDollerBogus's picture

"exclusive deal with Bitcoin exchange Mt. Gox"

Call it what it is: MAGIC THE GATHERING ONLINE EXCHANGE

M T G O (e)X

ShitCoinz = Magic the Gathering tokens, same value, same dependability

which is none.

It's a sucker-siphon for anyone foolish enough to want on-grid money vaporized at exchanges (high counterparty risk) instead of real money (gold, silver)

Sat, 03/02/2013 - 20:57 | 3294496 jg
jg's picture

You guys are GOOD!

Sat, 03/02/2013 - 21:04 | 3294507 Sizzurp
Sizzurp's picture

I guess we know why the Fed and others in treasury fought so hard against Ron Paul's Audit the Fed bill, which was ultimately killed by Harry Reid.  The Fed went out and hired a lobbying firm, and Timmy was going beserk, saying the bill would be highly inflationary.  I mean what could be worse than allowing congress and the public to really know what was going on.  When all these shenanigans are finally exposed, I am sure that even the most ardent Fed critics will be shocked.

Sat, 03/02/2013 - 21:11 | 3294513 Yes We Can. But...
Yes We Can. But Lets Not.'s picture

I wonder if the Pope resigned over some issues pertaining to the church's gold...you know, being a good German, perhaps he insisted on actually seeing the stuff, and well, ....

Sat, 03/02/2013 - 21:22 | 3294538 The Shootist
The Shootist's picture

Breathtaking.

Sat, 03/02/2013 - 21:29 | 3294552 Jim in MN
Jim in MN's picture

Like I always say: Get anything you value the heck away from NY or DC....or London.

 

Don't be a fool.

 

Agents of sovereign entities, this means you too. 

Sat, 03/02/2013 - 21:37 | 3294568 Yes We Can. But...
Yes We Can. But Lets Not.'s picture

You know, I had been wondering why the interest in colonizing Mars or other places in space.  I mean, we're built for Earth, and will find no more hospitable habitat.  But I guess if the whole charade comes crashing down, some deep-pocketed culprits might be longing intensely for an off-planet sanctuary...

Sun, 03/03/2013 - 02:32 | 3294911 IrritableBowels
IrritableBowels's picture

You should be listening to C2C with John C. right now...

Sat, 03/02/2013 - 22:02 | 3294600 holdbuysell
holdbuysell's picture

A couple of the best of Ron Paul vs. Bernanke

Because it never gets old:

Ron Paul vs Bernanke: Is Gold Money? - July 13, 2011

http://www.youtube.com/watch?v=2NJnL10vZ1Y

Ron Paul : Why do central banks hold Gold? Bernanke : Tradition

http://www.youtube.com/watch?v=2Dj9v9s9buk

Sat, 03/02/2013 - 22:22 | 3294624 socalbeach
socalbeach's picture

Maybe International Vault, Inc. was having a two-for-one sale, and JPM and the Fed decided to split the cost.

Sat, 03/02/2013 - 22:21 | 3294625 tempo
tempo's picture

Drones not gold will be the most commodity in the future.

Sun, 03/03/2013 - 07:07 | 3295027 Punch Bag
Punch Bag's picture

Or gold drones

Sat, 03/02/2013 - 22:22 | 3294626 Broomer
Broomer's picture

"courtesy of a freely available book written by one of the architects"

Link is pointing to http://books.google.bg/

Bulgary... the original Tyler is posting.

Sat, 03/02/2013 - 22:22 | 3294628 nathan1234
nathan1234's picture

Ok one more reason.

Easy to do a Switcheroo

Gold plated Tungsten for real Gold

 

Sat, 03/02/2013 - 22:35 | 3294648 BobPaulson
BobPaulson's picture

x

Sat, 03/02/2013 - 23:59 | 3294768 itcanthappenhere
Sun, 03/03/2013 - 00:17 | 3294781 Derezzed
Derezzed's picture

This my friends is journalism, the opposite to "The Failconomist"

Sun, 03/03/2013 - 00:19 | 3294784 jeebus
jeebus's picture

Was it really a huge mystery where JPM's vault is? People just had bee too lazy to type a search query into google I guess.

Sun, 03/03/2013 - 00:21 | 3294789 thedrickster
thedrickster's picture

So Jamie has John McClane on the payroll.

Sun, 03/03/2013 - 00:48 | 3294813 observer007
observer007's picture
History: De Gaulle talking about Gold Standard

 

In 1965, former French president Charles De Gaulle called for an international return to the gold standard. “The fact that many countries, accept as a principle, dollars being as good as gold, for the payment of the differences existing to their advantage in the American balance of trade,” said De Gaulle, “this fact, leads Americans, to get into debt and to get into debt for free at the expense of other countries" Video:

http://homment.com/pdzUzsajsY

Sun, 03/03/2013 - 01:00 | 3294831 Colonel
Colonel's picture

It almost reads like something from the movie script National Treasure.

Sun, 03/03/2013 - 01:31 | 3294864 resurger
resurger's picture

So there is a tunnel between those two buildings 100%, i wont be surprised to know that there is a train that moves gold between the NYFED and JPM Chase, and maybe GS, BONY, HSBC, it's a banking clandestine underground gold metro.

+5 for the analysis

Sun, 03/03/2013 - 01:32 | 3294866 headless blogger
headless blogger's picture

Let's storm it....

 

...before they read this article and increase the secret service on that block.

Sun, 03/03/2013 - 09:31 | 3294946 bunnyswanson
bunnyswanson's picture

Deals built on deceptive terms fall apart.  Only a few perhaps easy methods found to be successful in the past:

Tell them we didn't get the paperwork.  To resend the paperwork.  Do it again.  And again.  Time lapses, interest grows, desperation mixed with relief and sleepless nights create a human wreck deemed unfit for public display.  They land in a room in some relative's home.

Oh sorrry...this is the Chase bank widows, who were screwed out of their homes in the guise of extending a helping hand.

http://www.consumeraffairs.com/finance/chase_mortgage.html  A thousand stories of Chase bank customers who were unsatisfied with their service.  Apologizing at times.  A couple of grannies stories made me so angry, I had to stop reading the site for a minute. 

Senior citizens are losing their homes to the banks.

http://www.youtube.com/watch?v=m_9hfHvQSNo  Father Figure - George Michael 

For your listening pleasure while we surf the turbulent high seas in gale force winds and pretend it's just another day. (rearranged and modified)

Sun, 03/03/2013 - 02:21 | 3294898 Vlad Tepid
Vlad Tepid's picture

And this, boys and girls, is what you call reporting.

Sun, 03/03/2013 - 03:07 | 3294934 widget
widget's picture

They probably have secret get-togethers in the tunnel smelling each other's flatulence like the ones Max Keiser talks about

Sun, 03/03/2013 - 03:10 | 3294937 Longtermnotreally
Longtermnotreally's picture

One day, hopefully soon, this is going to blow up in their faces, and it won't be a pretty sight

Sun, 03/03/2013 - 03:20 | 3294942 Element
Element's picture

 

 

"...In other words, the world's biggest bank vault, that belonging to the private Chase Manhattan empire, and then, to JPMorgan, was so safe, the creators even had a plan of action should it sustain a near-direct hit from a nuclear bomb, and suffer epic flooding (such as that from Hurricane Sandy)."

Well I think we can safely presume this site is very precisely targeted for multiple high-yield ground-bursts now.

(I'm pretty sure it already was though)

Sun, 03/03/2013 - 03:21 | 3294944 GOLD AND SILVER...
GOLD AND SILVER NATZI's picture

Can't imagine all the tungsten they can hold in there.

Sun, 03/03/2013 - 03:34 | 3294952 Cardinal Fang
Cardinal Fang's picture

Years ago, I worked for a company that had an account to draw Platinum from to fabricate lab equipment for R&D purposes. One experiment called for a platinum crucible to be used in a furnace to melt down some rocks with room sized RF generators...well the mad scientist screwed up the connections and "poof!" $10,000 ('bout 1983) worth of platinum vaporized and went out the air handler. I think the company had a hard time explaining what happened and at some point it wasn't about the cash value of the material, it was that a couple of pounds of pure platinum went missing and wasn't coming back.

Sun, 03/03/2013 - 03:45 | 3294959 are we there yet
are we there yet's picture

Refreshing, Honest investigative reporting. Gosh I miss Clark Kent.

Sun, 03/03/2013 - 05:40 | 3294988 theprofromdover
theprofromdover's picture

".. anchor the vault to bedrock .. in case it floated away ..."

Gold floats nowadays does it? I knew about empty air floating, but I suppose you learn something new every day.

Sun, 03/03/2013 - 06:05 | 3294997 smacker
smacker's picture

 

 

So when the Fed was created in 1913 it was for all intents and purposes a coup d'état by private banksters. They now own and run American economic and monetary policy. The Fed Chairman is simply the public face of a crime syndicate.

In this context it makes sense (for JPM) to have its gold vault right next door to the Fed's vault (possibly with interconnecting doors). It makes stealing of the nation's gold much easier and it's carried out 90 feet underground where nobody can see it happening.

Score:

Criminal Banksters = 1

American citizens = 0

Sun, 03/03/2013 - 09:18 | 3295112 CJHames
CJHames's picture

I appreciate your comments, but me thinks the score is a whole lot more lopsided than 1-0.

Sun, 03/03/2013 - 10:50 | 3295241 smacker
smacker's picture

Agreed.

From what I see, it seems to me that successive American governments are trying, step-by-step, to align America's model of democracy with the one in Britain.

Britain has the world's most sophisticated sham democracy known to man, where the people are disarmed, nobody in power is responsible or accountable for anything and taxpayers' money is used as little more than a slush fund for the political elites to throw around to fund their dogmas. It doesn't even feature a proper constitution, the legal system and the whole structure that supports it has been refined over hundreds of years to protect the guilty and persecute the innocent.

The good news is that more and more people are waking up to the obscene reality and it will not be allowed to continue forever. What the tipping point will be and when it comes is open to speculation. But the economic collapse has forced people to wise up about WTF is happening.

Sun, 03/03/2013 - 06:35 | 3295011 resurger
resurger's picture

"Thats why am richer than you"

Sun, 03/03/2013 - 07:02 | 3295024 flyboy
flyboy's picture

Nice piece of work there. The 9/11 story makes some sense for the HSBC "vault", but check out the storage facility of another CME authorized warehouse - The Delaware Depository Service Company, LLC. Google the address, go to street view and walk your way around THAT building.

Sun, 03/03/2013 - 07:19 | 3295034 falak pema
falak pema's picture

Interesting twist in an Ongoing feud : 

Lehman Blames Bankruptcy On London Whale - Business Insider

Sun, 03/03/2013 - 08:17 | 3295060 Downtoolong
Downtoolong's picture

Because, when it’s serious they might have to re-hypothecate. Don’t worry, it still will be an arms-length transaction, in the sense that all they have to do is reach over and grab it.

Sun, 03/03/2013 - 08:48 | 3295080 fudge
fudge's picture

 

Great article

 

Me thinks the Tylers should archive this site --just in case.

 

 

Sun, 03/03/2013 - 10:15 | 3295186 bunnyswanson
bunnyswanson's picture

Ruining lives whereever they go!

http://www.youtube.com/watch?v=pojL_35QlSI

Dixie Chicks - Not Ready to make Nice

(anti Iraq war stand, rejecting Bush's policy and paying a hefty price)

 

Sun, 03/03/2013 - 08:58 | 3295092 Divine Wind
Divine Wind's picture

 

 

It is rare to see journalistic effort of this kind anymore.

That is, unless the target of the investigation it is a conservative whom the liberals are trying to destroy.

Then the sleuths come out of the woodwork and dig until no stone or cow pie has been left unturned.

Luvs me some ZeroHedge.

 

Sun, 03/03/2013 - 08:59 | 3295093 Mr. Hudson
Mr. Hudson's picture

During the 1920's Benjamin Strong agreed to ship all the gold sitting in the New York Fed's vaults to the Bank of England. When FDR took office, there was no gold. It had all been stolen. There is no gold in JP Morgan’s “vaults”. It has all been shipped to Israeli banks; just as Lehman Brothers shipped $400 billion in assets to three Israeli banks right before Lehman Brothers went bankrupt.

Sun, 03/03/2013 - 09:05 | 3295103 fijisailor
fijisailor's picture

So lets see here.  The asians have been buying like crazy and somehow it is all ending up In Israel?

Sun, 03/03/2013 - 09:17 | 3295110 Divine Wind
Divine Wind's picture

 

 

Brahahahahaha. Excellent.

My thoughts exactly.

Wait until Francis sees your comment.

Gird your loins, brother.

 

Regarding your username, would that be single or multihull?

My preference is multihull, and the name is "Exit Strategy".

Sun, 03/03/2013 - 09:32 | 3295132 fijisailor
fijisailor's picture

Single hull.  I like the concept of "Exit Strategy".  The world is at your feet with no one telling when and where you can go.

Sun, 03/03/2013 - 09:20 | 3295114 Mr. Hudson
Mr. Hudson's picture

Where did I say anything about Asian's buying gold? The private citizens of India possess more gold than all the Central Banks combined. I never said Israel holds the entire supply of the world's gold. I am talking about JP Morgan. Let me ask you something. Why is it, when Germany requested from America that their gold be shipped to Germany, we told them it will take seven years? Because we don’t have any gold. Do you really think that all the missile defense systems that surround Israel (such as the "Iron Dome), are solely for the purpose of defending Israeli lives? Hardly. Israel is one gigantic "Fort Knox".

Sun, 03/03/2013 - 09:35 | 3295136 fijisailor
fijisailor's picture

Got any evidence showing how much is in Israel?  A link perhaps?

Sun, 03/03/2013 - 09:38 | 3295139 Mr. Hudson
Sun, 03/03/2013 - 09:45 | 3295145 fijisailor
fijisailor's picture

Bwahahahaha.  That was your link?  "A bunch" was the answer with no othr data.  Surely you can do better than that.

Mon, 03/04/2013 - 06:49 | 3297216 Dieselclam
Dieselclam's picture

Gold in India? This is the problem I have with "Another's" "thoughts" on gold heading to $50,000 or whatever: Depending on who you believe, India has enough gold in the hands of the people that they would become very, very rich at those prices: 20,000 tons. Do the gold owning powers that be want them that rich?
http://www.financialexpress.com/news/indians-hoard-20k-tonnes-gold-worth...

As for Israeli gold, it's like their nuclear weapons. Hey! Iran has gold!

Sun, 03/03/2013 - 10:18 | 3295195 Sandy15
Sandy15's picture

Please provide links to the info you discussed........

Sun, 03/03/2013 - 12:14 | 3295378 Mr. Hudson
Mr. Hudson's picture

http://rense.com/general83/400.htm

http://the-aed.com/YaBBSE/index.php?topic=375.0

http://www.whale.to/b/mullins5.html

 

 

 

Sun, 03/03/2013 - 09:28 | 3295124 Divine Wind
Divine Wind's picture

 

 

Correct, you did not mention Asians. Others did, including myself higher up the page.

Israel has great wealth, realized and not, as well as has several million living, breathing souls living within its borders.

I would venture to guess that the exceptional defense capability is there, principally, in protection of the Nation and the people.

The gold would be an afterthought, as they would end up with it anyhow.

ONe of the benefits of being a Jew and God's chosen people.

Sun, 03/03/2013 - 09:46 | 3295146 bunnyswanson
bunnyswanson's picture

Zionists try so hard.  counting down. eh?  but oh golly gee, it's all a big mistake.

"The collapse of the United States of America would certainly create the chaos necessary to justify the formation of a new global reserve currency and ultimately a new world order, with its central power residing in Eurasia.

 http://www.haaretz.com/jewish-world/2.209/will-u-s-financial-woes-lead-to-new-world-order-1.272955

http://www.youtube.com/watch?v=1yw1Tgj9-VU 

In The End (it doesn't even matter).  Linkin Park -

We don't need to be reminded that dire situation.  You think you can throw 300 million people to the side to advance an agend?  Good luck!

Sun, 03/03/2013 - 11:28 | 3295290 LongOfTooth
LongOfTooth's picture

"...You think you can throw 300 million people to the side to advance an agend?..."

 

It would appear that they (whoever "they" are) are doing a pretty good job of it.  

 

 

Sun, 03/03/2013 - 12:19 | 3295391 bunnyswanson
bunnyswanson's picture

The only explanation for the success so far is their segmentational approach, beginning with the least powerful, especially in light of the job loss which can render this large a number into a state of lack of self confidence, and rightly so.  Financial ruin does that.

But the stress from the impact of the attack is less than the stress that attackers feel because, inherently, mankind moves to a high road, keeping it simple because anything else is a trip to the funny world, where everything is beautiful, all the time and anything goes.  It's insanity..

This is a song to the boys at the time and then I will leave you people alone.

http://www.youtube.com/watch?v=DlUHIiTwBzQ Nikka Costa - Push and Pull (you are nothing in the end regardless how long it takes to get there, when you cheat)

Sun, 03/03/2013 - 09:52 | 3295151 Cacete de Ouro
Cacete de Ouro's picture

Vault is on level B5 at 1 CPM. 90ft down. Mosler built vault. 6 doors each weighing 45 tons. Number of different locking mechanisms. Vault weighs 985 tons. 35,000 sq ft vault. Installed May 1960. Each basement 100,000 sq ft.

Sun, 03/03/2013 - 10:00 | 3295161 d edwards
d edwards's picture

Recently, Mexico asked to SEE their gold-still waiting.

 

My guess-the mega-banks and/or the Fed (one in the same, actually) have used the gold as collateral over the years to borrow money to feed the massive debt OR have sold it off for the same reason. Either way it isn't available to the rightful owner countries.

What and international fiasco!

Sun, 03/03/2013 - 10:31 | 3295222 overmedicatedun...
overmedicatedundersexed's picture

cacete doors to vault weigh 45 tons, but gold is a useless and only tradition..who cares if it gets stolen, it has no value to any central banker..but seems it needs massive security anyway..so confused I am.

Sun, 03/03/2013 - 10:01 | 3295165 William.M.Tweed
William.M.Tweed's picture

In that google street view shot of the lower level, the black garage door is usually open in the morning and not heavily guarded (there are typical OCMP building workers with oversized jackets that don't fit properly and they're definitely not armed). However every entrance of the Fed has armed guards standing around most of the time... But maybe that's all part of the deception and you're obviously not supposed to know there is anything important down below

 

The appearance of the law must be upheld, Especially when it's being broken

Sun, 03/03/2013 - 10:11 | 3295182 rsnoble
rsnoble's picture

So wtf is going on here, they are 'sharing' the gold and both claim it's there's?  Or what?  I'm too fkn tired and hungover this am.  More criminality. Big surprise.

Sun, 03/03/2013 - 10:18 | 3295192 trentusa
trentusa's picture

damn tyler i like the way you do business- ZH continue to fly that pirate flag high in search of the golden booty. Dispel the darkness of illusion borne of ignorance w/ the sword of truth. By bringing enlightenment to the world, person by person & article by article, perhaps we can find world peace in our lifetimes.    

Sun, 03/03/2013 - 11:18 | 3295270 bunnyswanson
bunnyswanson's picture

Reminding everyone the reality of it all is a fulltime job.  Introducing Americans to themselves is the most daunting task I have ever undertaken.

Americans, say hello to a country that you created which offers/offered mercy to the downtrodden.

http://www.youtube.com/watch?v=O-fyNgHdmLI

Creed Sacrifice (what it takes to remember who you are)

Sun, 03/03/2013 - 14:08 | 3295565 Liberty2012
Liberty2012's picture

Yes, Success attracts thugs. The more productive you are the more room there is for theft. Part of success is watching out for the inevitable con. Maybe that's the meaning of "Success breeds Contempt"? That's a phrase I havent heard in awhile, and the concept of responsibilities has certainly fallen into disrepair.

bunnyswanson Thank you! :)

Sun, 03/03/2013 - 10:23 | 3295204 monopoly
monopoly's picture

What an amazing find from Zero Hedge. Kudos.

Sun, 03/03/2013 - 10:28 | 3295216 Its_the_economy...
Its_the_economy_stupid's picture

The hell with their gold. Know where your gold is.

Sun, 03/03/2013 - 14:19 | 3295587 Liberty2012
Liberty2012's picture

Yes ..... also, no thing, including Gold, is Wealth. It is one of the most tradeable things. All wealth is dependent upon work; the more people trading work freely the better. However if one person actually acquired all the Gold in the world it would then become worthless. Tradeable things are useful only to the extent that they are used in the furtherance of work.

Sun, 03/03/2013 - 10:35 | 3295227 Sandy15
Sandy15's picture

If you guys read "The Creature from Jekyll Island" it explains this and so much more.  JP Morgan Chase was letting the USA borrow money before the Federal Reserve was created.  He was smart with his money and investment.  The USA has had desceptive politicians for 100 years, AKA Progressives.  They have and continue getting the USA in debt beyond what can be handled, so I believe the stored gold is non-existance.  If it existed, why can't people in congress see or audit the gold?  It's rediculous that Germany must wait 7 years for their gold!!!!  Since Germany asked for their gold, the price of gold has gone down dramatically, with an 8:00 am slam down in the market.  Anyone think the Fed is doing that so they can buy the physical needed to give to Germany.........

Sun, 03/03/2013 - 11:25 | 3295282 Mr. Hudson
Mr. Hudson's picture

I did read "The Creature from Jekyll Island" and Griffin does a poor job of explaining how all of our gold ended up in the vaults of The House of Rothschild. The way he explains it is this: when Benny Strong lowered the interest rates (at the same time England upped their interest rates), investors shipped their gold to England to follow the higher interest rates. That is not what happened. Read "Secrets of the Federal Reserve" by Eustace Mullins. He has better insight on this matter. The bottom line is this: the gold that was sitting in the vaults of the New York Fed during the 1920's was ripped-off by Rothchild via The Bank of England. Did you ever wonder why England all of a sudden went off their psuedo "Gold Standard" in 1931? It was because "Mission Accomplished" by the Bank of England. Once the Bank of England stole all of America's gold for the House of Rothschild, there wasn't a need anymore for England to pretend that it was on a "Gold Standard".

Sun, 03/03/2013 - 11:30 | 3295295 Sandy15
Sandy15's picture

Why would England go off the gold standard when they have the gold? 

Sun, 03/03/2013 - 11:43 | 3295316 Mr. Hudson
Mr. Hudson's picture

Because England didn't "have the gold". Eustace Mullins explains that Montagu Norman, Governor of the Bank of England, used the Bank of England as a ruse to funnel America' gold into other hands. Governor Norman admitted that some of the gold would go to other European Central Banks that were financially hurt by WWI, but the question is: What Central Banks? The Bank of England is a tool of The House of Rothschild, and America's gold ended up in Rothschild’s vaults; not the Bank of England, according to Mullins.

 

Sun, 03/03/2013 - 14:02 | 3295567 earleflorida
earleflorida's picture

england never wanted to go off the gold standard? it was only after the war that they were caught between the 'horns of a dilemma'-- thusly, 'hoisting with ones own petard',... a snipehaunt'd carpe`diem, ensuing to the present day?  

you see, with a gold standard... inflation and deflation becomes`equillibrium... a null'd-n-void'd quandary?-- and the UK needed inflation to dig out this pre-ordained?, and devastating pyrrhic victory.

jmo   

Sun, 03/03/2013 - 11:27 | 3295287 highwaytoserfdom
highwaytoserfdom's picture
Why Is JPMorgan's Gold Vault?

Why does JPM do the food stamp processing?

How about 71 T in swaps?

NOTICE THE PRIMARY DEALERS AND THE FED IS BUYING THE BONDS....  REAL WELFARE...  ! TBTF   TBTE(to big to exist)

http://www.occ.treas.gov/topics/capital-markets/financial-markets/tradin...

 

 

"The Rothschilds, and that class of money-lenders of whom they are the representatives and agents -- men who never think of lending a shilling to their next-door neighbors, for purposes of honest industry, unless upon the most ample security, and at the highest rate of interest -- stand ready, at all times, to lend money in unlimited amounts to those robbers and murderers, who call themselves governments, to be expended in shooting down those who do not submit quietly to being robbed and enslaved." by: Lysander Spooner
(1808-1887) Political theorist, activist, abolitionis

 

Sun, 03/03/2013 - 11:57 | 3295346 Cacete de Ouro
Cacete de Ouro's picture

Wasn't there a Jerky Boys call about this?

Frank Rizzo: "Ye, hello. This is Frank Rizzo. I'm callin' about the forklift job."

Chase: "I'm sorry Sir?"

Rizzo: Ye, I'm callin' about the forklift job down in your fuckin' vault. Right down there on Liberty. Ya know it says here the help wanted. I've been driving forklifts for 15 years now with the gold and shit. I'm the best! The forklift, I drive it silly. silly I'm tellin' you. I had a little problem with the job out in Queens right near the airport. But I don't wanna talk about that." I also work the tunnels, I used to drive the trains there on the 2 and 3, I like the tunnels".

Chase: "Sir, who do you need to talk to?"

Frank: "What the..? I don't need to talk to you! Get me Jaime, Get me Jaime I said!"

Chase: "I'm sorry, I can't do that Sir"

Frank: "Don't make me have to come down there to you.. I'll wrap the gold around your fuckin' neck. Get me Jaime I said".

Jonny Breenan can't keep it together...guffaws all around..hangs up..

Sun, 03/03/2013 - 12:23 | 3295400 Siouxwestern
Siouxwestern's picture

Enough innuendo, let me see if I grasp the possibilities:

1. Close But Not Connected. Suppose the two vaults are indeed just that, two vaults, no connecting passageway. To move gold from A to B, it would have to be removed from A, elevated, presumably Brinked across the street, and deposited into B. Seems like a big "so what?" to me; materially irrelevant to anything meaningful, except that it makes for mildly amusing innuendo similar to noting that both parties regualarly experience the sun rising in the east.

2. Connected Historically for Reasons Lost.  Suppose the two vaults were connected by a passageway 50 years ago, under (i) some program or reasoning that predates Nixon's 8.15.71, or (ii) some architectural, security/cold war, engineering or cost sharing rational. (Seems that if the planners were anticpating a nuclear blast, then their strategic planning may have included some notice that there was an equally secure chamber sitting just 10 feet away...). This is far more interesting to the didactism groupie, like myself, and such historical details would be rich and engaging. But let's again demonstrate some honesty, as those we mock refuse to do, and admit that this would also be a big fat nothing as it relates to the real issues that ZHer's visit this page.

3. Physical Connection is Actively Used to Physically Move Bullion Between A and B. Subject to #4, below, which is my own favorite, isn't this the crux? Noting matters except whether the Fed and JPM actively move gold between each other vaults, in a simple 20 minute exercise. Any why? Because it would almost assuredly be done prusuant to a physical gold leasing between the Fed and JPM, whereby gold bullion that is nominally possessed by the Fed, is leased to JPM for JPM's trading operations.  More to my own suspicions, although perhaps not shared by other ZH readers, is that JPM's potential ablity to physically take possession, daily if needed, of an enormous amount of gold, at an effective ZIR, allows JPM an almost unlimited ability to short gold, against its physical possession of such vaultload. If the price of gold is rising against JPM's short position, JPM could effect huge sale/short equivalent trades in futures or options markets, before settlement, to swing the fix price back to one in which JPM is able to pocket all of the premiums paid by counterparties. [Compare with the old "Martingale" betting systems - the guy with the effectively unlimited stake will never lose, if he simply doubles down; here, doubling down is achieved by use of the expiry of commodities contracts to casue the closing fix at settlement to be exactly where JPM wants it.] Because such continual "massaging" of the market at settlement would begin to embarass the CFTC, the same basic program can be spread across a number of trading days, aka via a number of smaller, yet equally effective "takedowns," which achieve the same objective.

"So what?," is a fair question. It's the fricking commodities market, this simply describes the normal workings of the markets, and just because you can describe it, doesn't make it illegal or conspiratorial. It's just ordinary course of business.

Well...not so fast. Imagine if someone owned the mineshaft next to the US Strategic Petroleum Reserve. Imagine that a pipe was inserted between the Reserve, and the emply mineshaft next door; and the Reserve agreed wit the empty mineshaft owner that the owner could borrow the petroleum, at a rate of 50 bps per year; and that such owner then used physical possession to go play in the oil market. Something seems wrong, that the US would agree to loan out its strategic petroleum, to a speculator.

So, why is gold any different?

Etc.

THAT is why a possible physical passageway or connection, with physical swaps occuring, is meaningful.

4. There Is No Effective Physical Connection, but One Is "Derived" to Exist and the Parties Conduct Themselves Accordingly. I posit that in this era of derivatives, the Fed and JPM might simply bypass the necessity of #2 or #3, above. The reasoning would be something like, "In theory we could use that [old cold war passageway/the ducting system/supplemental vault door 8b/Brinks delivery service] physical exchange system, and trade gold between our vaults. Instead, let's act like it is the modern age and simply agree, on paper, that some big stash of gold bullion in the Fed's basement vault, is effectively (x) deemed delivered to JPM, even though it is not but we can promise that we would do so, and we will report to anyone that is is delivered, when in fact it is not, (y) held in a segregated or allocated porton of the Fed's vault, for JPM (that is, JPM now has its own locker inside the Fed vault, like an American cemetery on the coast of France], or (z) otherwise made available for trading to JPM, in some exotic paper agreement which otherwise would have required physical possession or ownership by JPM.

OK ZHer's you read this far, here is the money shot: And what if that foreign, sovereign gold sitting in the Fed basement vault, which may or may not have a passageway directly into the JPM vault, has been (i) leased and delivered to JPM [and the Fed is a mere unsecured creditor of JPM as to ever getting it back], (ii) thereupon encumbered by JPM once, if not 10 times, by JPM's daily, monthly or quarterly trading operations, and/or (iii) by JPM's trading operations, been made subject to 2 or 5 or 13 layers of counterparty claims, liens, delivery obligations or the like, so that the claim of Germany or Chile or [insert country] that it "owns 1000 tons of gold bullion", is in fact so untrue that it would be a 10b-5 violation if made by any private party?

So this whole "juxtaposed vault" story, although perhaps not really material in modern trading, is critically important because it clarifies for the average person the precarious, and prima facie misleading, ecosystem that exists respecting that is supposed to represent bedrock safety.

Thanks Mssrs. Durdens, this is like Woodward and Bernstein, gradually peeling off the layers....

 

Sun, 03/03/2013 - 13:10 | 3295486 Cacete de Ouro
Cacete de Ouro's picture

The Bank of England offered set-aside gold accounts to central bank customers pre WWII where each customer had allocated bars. Then near the beginning of WWII they switched to a fine ounce basis due to what was described as a shortage of labor in the bullion office, but in a connected way because they had to shift vast quantities of gold to Canada at short notice. The gold came back from Canada in 1945 but they retained the fine ounce pool method when the London gold market reopened in 1954. After a few years the question of whether this method was legal was raised since a few customers were concerned, and after outside legal councel was consulted the Bank of England switched back to an allocated bar set-aside basis. In the late 1970s the Bank of England looked at whether they could move again to a fine ounce basis for customer accounts. This was to save shifting bars around and to avoid labor costs and the odd van heist in the City. Again some eminent old codgers in Temple said no. But at some stage in the late 80s / early 90s, the Bank of England switched to a fine ounce basis since they changed the Terms and Conditions of customer gold accounts to allow gold leasing.

Now, in the late 1950s the FED examined the at that time pooled fine ounce method in the Bank of England and considered whether to implement it also for labor saving reasons. The question is, did the FED ever implement this? Gold lending (to JPM or any other party) could not legally occur unless the Central Bank customers signed revised FRBNY Terms and Conditions.

If they didn't then if the FRBNY allows movement of gold via a tunnel to The B5 1 CPM vault, or if they allow JPm or others to have a claim on FRBNY vaulted gold bullion owned by other Central Banks, then this is highly illegal and could result in international legal cases against the FED.

Are you reading this Central Banks of the World? Why does it take ZH to point it out to you as you jet around to inane conferences and sip the best wines. Assholes!

Well done Tylers;)

Sun, 03/03/2013 - 13:25 | 3295513 Siouxwestern
Siouxwestern's picture

To me, old codgers speaking in technospeak that 99% do not comprehend, are like a tree that falls and no one hears. The codgers may be 100% technically correct, but unless it is comprehendable, everyone tunes out. No one cares. QED today's mess.

What the average guy on the street - any street, be it in Berlin, London, St. Louis or Rio - understands is that there is something wrong with his country's gold being lent to private parties for speculating.

That's just not the "deal" that the guy-on-the-street thought existed.

So the adjoining vault story, which [as I tried to do] can be broken down and written off by apologists, nonetheless is important because the man on the street can and will pay attention to the notion that gold is moving from Vault A to Vault B, so that Vault B can gamble with it. 

"That ain't right."

 

Sun, 03/03/2013 - 12:24 | 3295401 lunaticfringe
lunaticfringe's picture

Many years ago, back in my questioning phase, I wanted to know if the government had to report gold sales. Could they just sell gold if they felt like it?

The answer is yes. In fact the treasury could have liquidated our entire gold holdings- and not been obligated to report it. Fascinating. . -http://www.gata.org/node/4259

Sun, 03/03/2013 - 13:30 | 3295524 earleflorida
earleflorida's picture

What we have here today,... is the greatest financial-monetary sleuthing in modern day history?! Uncovering, 'Solomon's Gold Mines' in a faraway theocracy-republic ,formally once removed from a gild'd-shire York, but, unbeknownst to all, asway on a timid ocean's girth, a new... New York, is by no means, no small feat!?  

This latter 'Shire', we now call, 'The City at 33 Liberty`Quarters', houses in its bowels, the entirety of the, 'First Temple of Israel', sequestered and guarded by 'YHWH', from the depths of 'Satan's belated and benevolently requiemed, death Angels'!!

This is a monumental victory for journalistic investigation... and we owe it all to one, and ONLY one... the 'Tyler Durden'!!!

Bravo!!!    

Sun, 03/03/2013 - 14:58 | 3295672 Liberty2012
Liberty2012's picture

In the end, counting systems are irrelevant. What lasts is what you share with those around you. Share your time, your knowledge, your things. That us what true wealth is - work. The best morallly,and most productive, form of sharing work is Free.

The cost of anything is the amount of life you are willing to exchange for it.

- Henry David Thoreau

Freedom is both infinitely costly and infinitely free :)

Live long and prosper ;)

Sun, 03/03/2013 - 15:23 | 3295728 Money 4 Nothing
Money 4 Nothing's picture

Makes it real convienient days before an audit to move from 1 basement to the other seemingly to be both flush with gold reserves at mear days notices either or. Brilliant!

Sound plausable? or is one not subject to oversight audits? please advise.

Sun, 03/03/2013 - 19:57 | 3296216 Flatchestynerdette
Flatchestynerdette's picture

Dear ZeroHedge,

Its been nice knowing you. I now fear for you.

1 word: Drones.

2 words: move your ISP somewhere like - outer space so they can't shut you down.

I would say "Truth to Power!" but I'd have to climb out from under my rock as now I'm scared. very very scared. You're not supposed to talk about things like this. MIB show up late in the night while you're in your PJs.

Please, stick to stupid stuff they don't care about like ben printing money faster than popcorn popping, hft and flashcrashes. They don't care about stuff like that. This? They'll care about.

Sun, 03/03/2013 - 22:17 | 3296576 Dubious Maximus
Dubious Maximus's picture

that was my thought while reading this too....

Mon, 03/04/2013 - 06:11 | 3297193 Dieselclam
Dieselclam's picture

This article is now hyperlinked on the anti-secrecy web site cryptome.org as article 2013-00124 "The Gold Vaults of New York" March 3, 2013 in the "offsite" listings.
Great sleuth work, Tylers!

Mon, 03/04/2013 - 08:31 | 3297307 Cacete de Ouro
Cacete de Ouro's picture

Here is a photo of one of the Chase Plaza vault doors, photo 7 from a Mosler advert.
The vault is in good company with photo 1 the Treasury's Fort Knox and photo 4 a Federal Reserve vault
http://www.empiresafe.com/uploads/0000/0183/A_Tradition_of_Quality_and_I...

Mon, 03/04/2013 - 07:53 | 3297228 falak pema
falak pema's picture

J P Dimon; chief shareholder of FED and mandated money printer and gold storer of the US Treasury; also the biggest player on the Derivatives OTC opaque market; virtual holder of steroid pumped financial WMDs that could bring down WS and global finance.

This man is the prime Templar of Pax Americana capitalism; and who is going to burn him and his Temple of fiat cum gold?

The People, the Potus or the MArket collapse?

His point man at FED, Ben, keeps pumping the fiat machine, singing : whats good for JPM is good for USA and the world!

Its great to be doing God's work! 

Meanwhile : as pointed out here : 

Did JPM's CIO Intentionally Start The Margin Call Avalanche That Crushed Lehman? | Zero Hedge 

as earlier here :3295034

Thieves always fall out and stoke the fire of their own sham hubris and insider corruption.

Mon, 03/04/2013 - 19:14 | 3299221 Cacete de Ouro
Cacete de Ouro's picture

A friend asked me today "what's the significance of this article?". And I had a think, and then I thought "I don't know", and I said "We'll just have to wait and see."

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