Just What Is Going On With The Gold In JPMorgan's Vault?

Tyler Durden's picture

We know that back in early October 2010, when gold closed at a then record high of $1,320, JPM decided to reopen its previously mothballed precious metal vault due to soaring demand for metal vaulting, thus becoming only the fifth official Comex private gold depository in New York in addition to HSBC, Bank of Nova Scotia, Brinks and MTB (and of course the New York Fed).

We also know, courtesy of a Zero Hedge exclusive, that the JPM vault - the largest private gold vault in the world - is located at 1 Chase Manhattan Plaza, and is literally adjacent to the vault of the New York Fed 80 feet, and 5 sublevels, below street level.

We know that for a long time the vault held around 2.5 million ounces of eligible (commercial) gold, a number which declined only gradually until very recently.

We know that the total amount of registered (investment) gold has been steady for the past 4 years (after peaking in early 2006).

Finally, everyone knows that in the past month gold has experienced a very severe move lower which is still largely unexplained.

What many may not know, is that while registered Comex gold has been flat, the amount of eligible gold in Comex warehouses (the distinction between eligible and registered gold can be found here) in the past several weeks has plunged from nearly 9 million ounces, to just 6.1 million ounces as of today- the lowest since mid-2009.

What nobody knows, is why virtually the entire move in warehoused eligible gold is driven exclusively by one firm: JPMorgan, whose eligible gold has collapse from just under 2 million ounces as of the end of 2012 to a nearly record low 402,374 ounces as of today, a drop of 20% in one day, though slightly higher compared to the recent record low hit on April 5 when JPM warehoused commercial gold touched a post-vault reopening low of just over 4 tons, or 142,700 ounces.

This happened just days ahead of the biggest ever one-day gold slam down in history.

Some questions we would like answers to:

  1. What happened to the commercial gold vaulted with JPM, and what was the reason for the historic drawdown?
  2. Gold, unlike fiat, is not created out of thin air, nor can it be shred or deleted. Where did the gold leaving the JPM warehouse end up (especially since registered JPM and total Comex gold has been relatively flat over the same period)?
  3. Did any of this gold make its way across the street, and end up at the vault of the building located at 33 Liberty street?
  4. What happens if and/or when the JPM vault is empty of commercial gold, and JPM receives a delivery notice?

Inquiring minds want to know...

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Gringo Viejo's picture

There is no "there" there.

Aeternus's picture

Answer #1 - The physical gold is being repatriated to sovereign nations who have requested the return of their countries gold.


Answer #2 - It's being tunneled across the street to Liberty 33 in order to bring about the return of the dollar being backed by gold.


Answer #3 - It's being transferred right into the personal vaults of numerous high level bankers because the shit is about to hit the fan.


And the answer is?......................................







TwoShortPlanks's picture

Central Banks want their Leased Gold back, they don't have it, so Allocated & Unallocated accounts get......Repariated, Cyprus style!

zaphod's picture

So from 2000 through 2003 Comex had zero gold held in vaults? I'm confused...

AllThatGlitters's picture

On the retail front, I kept saying that gold did not seem in short supply at dealers, after silver was clearly sold out.

Then the 1/10 ounce Eagle depletion happened.

Now, today, a bunch of the 1 Ounce Gold bars and the 10 Ounce gold bars are apparently on delay.

But, there are still some 1 ounce bars and the premiums haven't budged. Weird.


Boris Alatovkrap's picture

Boy, that is much Titanium. How is move all it!?

FEDbuster's picture

Everything you ever needed to know about COMEX gold in two minutes from Kyle Bass, founder Hayman Capital Management, board member of the University of Texas Investment Management Co (UTIMCO owns of $1 billion + in physical gold, and my guess is Kyle owns a sunken boat load of physical gold, too):


"Ok, give me the gold"

THX 1178's picture

You know how to get gold? War.

strannick's picture

The problem with trying to answer these questions is that CFTC regulators like Bart Chilton are sociopathic criminals, so these questions will have to remain rhetorical.

Supernova Born's picture

I'm surprised FEDbuster's Bass link didn't generate a Tyler D. post of its own.


Prometheus418's picture

Don't kid yourself Boris, I'll buy Ti, too- but it has to be certified ELI alloy, and @ a Ti price.

That being said, I beleive you meant "Tungsten."

jeff montanye's picture

and i before e except after c.  it's that weird, neighbor. be sure to weigh it first.

Mike in GA's picture

LOL...I gotta kick outta that one, jeff...never seen that rule so thoroughly trashed!

markettime's picture

I would say they seem to be running out of it really fast. I bet the NWO is behind all of it. I wonder how accurate those reports are anyway? I bet the gold has been gone for years, more than likely in Bernanke's basement. 

fonzannoon's picture

Jon Stewart doing a massive hit piece on gold right now. Massive. 

poor liberal douche audience has no clue.

daveO's picture

I wonder if he gets paid in gold or Bernanke Bucks? Shalom.

max2205's picture

That thursday meeting with barry?  Everyone can frontrun

GetZeeGold's picture




Jon Stewart...the MTV guy?


Next thing you know CNBC is gonna be playing rock and roll.

TeamDepends's picture

As people of Scottish descent, we are pondering starting a petition to make him switch back to his actual name.  Enough with the fraud!

OutLookingIn's picture

Jon Stewart is just parroting the 'Tinkerbell Effect.' 

Freddie's picture

TV is for retards along with Hollywood's crap.  Morons who support The Matrix and the tribe.

putaipan's picture

freddie- i suspect it's your picture/avatar....but your keauno self referential reference belies you-

Deo vindice's picture

People who base their morals and decisions in life on what they watch on T.V. have arleady capitulated to those who wish to control both aspects of their lives.

I haven't had a TV for over a decade and haven't missed it a bit.

dogbreath's picture

+1   its been longer for me.  My social skills have suffered

vulcanraven's picture

In Soviet USSA, TV Programming YOU

Shell Game's picture

Colbert bashing austerity the other night.  So, gold bashed; government spending within it's means bashed.  Is that liftoff code for Ctrl-C?

GetZeeGold's picture




Maybe Colbert just doesn't understand what austerity actually is.

MedTechEntrepreneur's picture

Snarkyness is soooo cool! So says the groupthink progs...

GetZeeGold's picture



It's like porn....I know it when I see it.

Clashfan's picture

Good. Know who his brother is? Web search "John Stewart's brother" to see his Wall Street sibling.

I hope Stewart does a good job and drives the price back down. Those buying opportunities aren't going to last forever.

SheepDog-One's picture

Gold...arggghhhhh....she be only fer PIRATES I tells ye!

akak's picture

Aye, matey, there you be correct!

Vint Slugs's picture


I notice that you keep linking pmbull.com.  Are you shiiling for them or what?

So that the typical ZH oddlotter might benefit from some straight info, why don't you mention reputable high volume dealers like goldmoney, kitco and tulving that are meeting demand for size and not showing any appreciable change in premium?

Fred Hayek's picture

Kitco is reputable? What, does a bad reputation qualify, too? Aren't they still charged with fraud by the canadian government?

FEDbuster's picture

My last order at Westminster Mint took about two weeks to arrive, the order I placed last week they said might take three to four weeks for delivery.  Good prices, ok customer service via email but delivery can take awhile.  Not a shill, just a customer of theirs.

IamtheREALmario's picture

Maybe there were other store houses except the current 4.

And as a bonus ...

There was supposedly a gold hoard taken from under the world trade center the day of 9/11. Maybe that is where it was stored before it ended up in the bullion bank vaults

... or simply at the Fed.

El Oregonian's picture

Just ask Geraldo Rivera about Al Capone's Vault and you will start to understand just what's inside Jamie Dimon's JPM Vault...

Dave Thomas's picture

I remember that on TV, I saw a moustache, an old wine bottle, and one of J. Edgar Hoover's diaphrams.


Good times.


knukles's picture


J Edgar's Diaphrams.  Holy shit!

putaipan's picture

was that a foul weather yarmaucle?

Svendblaaskaeg's picture

Saw it too, must have been the same TV

Al Gorerhythm's picture

On the up side, at least there will be room for visitors of German extraction.

Dr. Sandi's picture

I think that's what the Fed's gold counters are worried about: a German extraction.

irishlink's picture

4. Now we know why Obama had an unscheduled meeting with the top bankers last week. What other countries want their GOLD back. The Swiss are voting soon!!

knukles's picture

If no's not there then where is the unknown thats not there in the know?

Note to self: Quit making fun of that guy who really used to talk like that that you had gracefully see exit because nobody could understand what the fuck he was talking about.  You know?