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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Wed, 04/24/2013 - 21:37 | 3495532 Gringo Viejo
Gringo Viejo's picture

There is no "there" there.

Wed, 04/24/2013 - 21:43 | 3495561 Aeternus
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?......................................







Wed, 04/24/2013 - 21:44 | 3495574 TwoShortPlanks
TwoShortPlanks's picture

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

Wed, 04/24/2013 - 21:47 | 3495596 Ahmeexnal
Ahmeexnal's picture

They are coming back for their gold:


Wed, 04/24/2013 - 21:58 | 3495650 zaphod
zaphod's picture

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

Wed, 04/24/2013 - 22:12 | 3495676 AllThatGlitters
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.


Wed, 04/24/2013 - 22:28 | 3495699 Harlequin001
Harlequin001's picture


Wed, 04/24/2013 - 22:40 | 3495788 Boris Alatovkrap
Boris Alatovkrap's picture

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

Wed, 04/24/2013 - 23:14 | 3495879 FEDbuster
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"

Wed, 04/24/2013 - 23:38 | 3495964 Ident 7777 economy
Ident 7777 economy's picture

+1 thanks for the link.

Thu, 04/25/2013 - 00:10 | 3496117 THX 1178
THX 1178's picture

You know how to get gold? War.

Thu, 04/25/2013 - 01:05 | 3496277 strannick
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.

Thu, 04/25/2013 - 05:32 | 3496601 Supernova Born
Supernova Born's picture

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


Thu, 04/25/2013 - 06:11 | 3496629 GetZeeGold
GetZeeGold's picture





...and it's gone.

Thu, 04/25/2013 - 08:16 | 3496848 doomandbloom
doomandbloom's picture

...edible gold?

Thu, 04/25/2013 - 00:06 | 3496086 Prometheus418
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."

Thu, 04/25/2013 - 06:37 | 3496654 jeff montanye
jeff montanye's picture

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

Thu, 04/25/2013 - 07:50 | 3496795 Mike in GA
Mike in GA's picture

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

Wed, 04/24/2013 - 22:43 | 3495794 markettime
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. 

Wed, 04/24/2013 - 23:16 | 3495895 fonzannoon
fonzannoon's picture

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

poor liberal douche audience has no clue.

Wed, 04/24/2013 - 23:44 | 3495990 daveO
daveO's picture

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

Thu, 04/25/2013 - 06:57 | 3496695 max2205
max2205's picture

That thursday meeting with barry?  Everyone can frontrun

Thu, 04/25/2013 - 07:30 | 3496719 GetZeeGold
GetZeeGold's picture




Jon Stewart...the MTV guy?


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

Thu, 04/25/2013 - 07:55 | 3496780 TeamDepends
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!

Thu, 04/25/2013 - 00:21 | 3496149 OutLookingIn
OutLookingIn's picture

Jon Stewart is just parroting the 'Tinkerbell Effect.' 

Thu, 04/25/2013 - 00:40 | 3496198 Freddie
Freddie's picture

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

Thu, 04/25/2013 - 00:51 | 3496235 putaipan
putaipan's picture

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

Thu, 04/25/2013 - 00:54 | 3496250 Deo vindice
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.

Thu, 04/25/2013 - 02:07 | 3496375 dogbreath
dogbreath's picture

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

Thu, 04/25/2013 - 02:36 | 3496411 vulcanraven
vulcanraven's picture

In Soviet USSA, TV Programming YOU

Thu, 04/25/2013 - 00:51 | 3496240 Shell Game
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?

Thu, 04/25/2013 - 07:28 | 3496753 GetZeeGold
GetZeeGold's picture




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

Thu, 04/25/2013 - 01:34 | 3496334 MedTechEntrepreneur
MedTechEntrepreneur's picture

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

Thu, 04/25/2013 - 07:41 | 3496777 GetZeeGold
GetZeeGold's picture



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

Thu, 04/25/2013 - 02:52 | 3496429 Clashfan
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.

Thu, 04/25/2013 - 08:19 | 3496856 SheepDog-One
SheepDog-One's picture

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

Thu, 04/25/2013 - 14:41 | 3498986 akak
akak's picture

Aye, matey, there you be correct!

Wed, 04/24/2013 - 23:31 | 3495944 Vint Slugs
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?

Wed, 04/24/2013 - 23:47 | 3496003 Fred Hayek
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?

Thu, 04/25/2013 - 00:39 | 3496197 FEDbuster
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.

Thu, 04/25/2013 - 01:34 | 3496338 IamtheREALmario
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.

Wed, 04/24/2013 - 21:51 | 3495617 El Oregonian
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...

Wed, 04/24/2013 - 21:56 | 3495640 Dave Thomas
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.


Wed, 04/24/2013 - 22:06 | 3495662 knukles
knukles's picture


J Edgar's Diaphrams.  Holy shit!

Thu, 04/25/2013 - 00:52 | 3496245 putaipan
putaipan's picture

was that a foul weather yarmaucle?

Thu, 04/25/2013 - 01:51 | 3496360 Svendblaaskaeg
Svendblaaskaeg's picture

Saw it too, must have been the same TV

Wed, 04/24/2013 - 23:21 | 3495910 Al Gorerhythm
Al Gorerhythm's picture

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

Thu, 04/25/2013 - 02:31 | 3496405 Dr. Sandi
Dr. Sandi's picture

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

Thu, 04/25/2013 - 04:38 | 3496562 irishlink
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!!

Wed, 04/24/2013 - 21:44 | 3495566 knukles
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?

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