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JPMorgan's Eligible Gold Plummets 65% In 24 Hours To All Time Low

Submitted by Tyler Durden on 04/25/2013 17:30 -0400

We are confident that in the aftermath of our article from last night "Just What Is Going On With The Gold In JPMorgan's Vault?" in which we showed the absolute devastation of "eligible" (aka commercial) gold warehoused in JPM's vault just over the Manhattan bedrock at 1 Chase Manhattan Place (and also in the entire Comex vault network in the past month), we were not the only ones checking every five minutes for the Comex gold depository update for April 25. Moments ago we finally got it, and it's a doozy. Because in just the past 24 hours, from April 24 to April 25, according to the Comex, JPM's eligible gold plunged from 402.4K ounces to just 141.6K ounces, a drop of 65% in 24 hours,and the lowest amount of eligible gold held at the vault on record, since its reopening in October 2010!

Everyone has seen what a run on the bank looks like. Below is perhaps the best chart of what a "run on the vault" is.

The absolute collapse in JPM's eligible gold inventory, means total Comex eligible gold has fallen to just 5.8 million ounces, half of what it was in early 2011, and back to levels last seen in March 2009.

So, once again, just like last night, we ask the same questions which are even more critical today than they were 24 hours ago:

What happened to the commercial gold vaulted with JPM, and what was the reason for the historic drawdown?
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)?
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?
What happens if and/or when the JPM vault is empty of commercial gold, and JPM receives a delivery notice?

Incidentally, JPM now has just under a paltry 5 tons of eligible gold left in storage. We hope this is also the maximum exposure it faces for imminent delivery requests, because if tomorrow it receives withdrawal requests for 141,581.5 ounces +1, then things get really interesting.

- advertisements -

Thu, 04/25/2013 - 19:41 | 3500330 Maxter

He was joking..

Thu, 04/25/2013 - 19:48 | 3500360 RangerRiley

I know that. So am I. Thanks for taking the time to write that.

Thu, 04/25/2013 - 20:17 | 3500514 mayhem_korner

^{I think your sarcasm defaulted.}

Thu, 04/25/2013 - 18:04 | 3499909 Banksters

DIE MOTHERFUCKERS DIE

(figuratively speaking)

Is this real news on cnbc? Didn't think so.

Thu, 04/25/2013 - 18:13 | 3499956 McMolotov

Back up in yo' ass with the resurrection...

http://www.youtube.com/watch?v=BX-7BlRc_a0

Thu, 04/25/2013 - 19:57 | 3500366 fuu

Is the group harder than an erection.

So here's my tinfoil contribution, JPM has been selling gold to stay alive for the last couple of months. The whale trade killed them and they've needed to sell the gold.

Thu, 04/25/2013 - 21:31 | 3500773 Terminus C

Delivery was over the last 24 hours...

Thu, 04/25/2013 - 21:35 | 3500790 fuu

~1.3 million oz walked previously this year by the chart.

Thu, 04/25/2013 - 22:49 | 3501020 Tijuana Donkey Show

Walked under the street to the Fed as a real security deposit before they loose it to a CDO blowup.

Thu, 04/25/2013 - 18:23 | 3499988 beastie

This article is pure manipulative click bait. It's as bad as the worst fucking shite that came out of Sprotts mouth whilst he was selling over priced silver to the masses all the way up to 20% over spot at 50 bucks an ounce.

To leave the question dangling there asking where is the Gold? First it's an admittance there is gold (which is an admittance that GLD has the gold they say they do) and second it implies it was sold. It implies there is a conspiracy to remove it before TSHTF by bankers or Chinese)

There are no facts here other than eligible is low. This is a game that has beemn played before (see Hunt Bros and there is no more silver hysteria)

It wasn't sold and that inventory will reappear in the vault where it came from.

I'm even willing to bet some shiny ounces on it. Willing to take the bet Tyler?

Thu, 04/25/2013 - 18:33 | 3500055 Just Ice

Seems to be a molehill spun into a mountain inasmuch as it insinuates eligible gold is what must be there to meet "delivery" notices, ( which notices most often are associated with required futures contract deliveries as opposed to storage customer requests). It is, of course, registered gold which constitutes good delivery bars.

Thu, 04/25/2013 - 19:00 | 3500176 Citxmech

"Eligable" just means allocated bullion that is of deliverable quality. Essentially, it's private stuff. No, it doesn't mean anything directly for the registered bullion - but we already know that there's not enough to deliver all the contracts (and we also know how much these cocksuckers respect allocated accounts).

Looks like some big players are grabbing their chairs early because they know the music's about to stop.

Thu, 04/25/2013 - 20:47 | 3500620 Tyler Durden

Hmm. Wonder why it "insinuates" that.... Oh yes, here's why. From Chapter 7A in the NYMEX Rulebook (source) which provides the following definitions:

(p) "Eligible" shall mean, with respect to any Commodity, that such Commodity is acceptable for delivery against the applicable Commodity Contract.

Thu, 04/25/2013 - 23:17 | 3501111 Just Ice

You know very well your article was worded disingenuously... as if the eligible gold your graph shows depleted is what is to stand for gold deliverable under futures contracts while remaining silent to the fact deliverable precious metals bars must be/are registered stock...a perusal of the comments following the article's post evidenced quite well the understanding imputed to a large majority of your readership as well. Perhaps your audience may glean a better understanding between eligible versus registered stock from the following. http://budgeting.thenest.com/difference-between-registered-eligible-silver-comex-29805.html

Being technically correct, as you reemphasize with your snarky reply to my post, while keeping silent as to facts that would change the impression left, and meant to be left in absence of the omitted facts, is deceptive and dishonest.

Once upon a time Zeroheldge seemed to be a financial website with intelligent, open and honest discussion. That's why I finally decided to join after reading for years. Recently it seems to be becoming agenda driven with red arrows and insults toward anyone wishing to make market or trade or financial commentary. The article is disingenuous in its tone, insinuation and, apparently, intent.

Thu, 04/25/2013 - 23:58 | 3501243 prains

not to be insulting but i think you missed TD's point in your rebuttal

Fri, 04/26/2013 - 00:03 | 3501257 Just Ice

I'm sure you're right.

Fri, 04/26/2013 - 00:04 | 3501259 prains

and we're not even married

thanks

Thu, 04/25/2013 - 23:51 | 3501215 jerry_theking_lawler

Tyler, how do you do it?? You see stupid people everywhere you look!! haha. love the continual 'smackdowns' of these blabbering idiots.

you ever thought about joining WWE?

Fri, 04/26/2013 - 00:03 | 3501251 Just Ice

You're right, contributing to this board has become nothing more than blabbering idiocy. It's degraded from quality to quantity of both articles and subsequent commentary.

WWE sounds about right for the caliber of membership to continue shooting for.

Fri, 04/26/2013 - 00:35 | 3501305 Seer

And that you're here should speak volumes...

Yeah, I dislike the childish shit too, but that's reality. Another reality is that this is a non-moderated, FREE site. So, once again I'd have to ask how you can be expecting one thing when it's clear that it is not what you think it is?

That you want "financial" information, well, that certainly sounds proper and all, and far be it from me, a lowly serf with ZERO education in things pertaining to economics (other than simple accounting), to be challenging one such as lofty as you to a discussion on "economics."

WAKE THE FUCK UP!

Whatever the fuck you think is supposed to be happening ISN'T happening. Perhaps it's because the entire fucking system is on its final descent? that our underpinnings are based on things that are NOT backed in reality. You're expecting WHAT kind of dialog?

Perpetual growth on a finite planet is NOT possible. The notion of predicating the entirety of human existence, driven by the tie-in with economics, on something this patently troubling is FAR, FAR more disconcerting than whether we're deceptive about what is being held in some cave somewhere or whether stuff written in a virtual cloud somewhere holds to some level of ethics....

The Tylers could very well be scamming, it doesn't matter. If you aren't comfortable then LEAVE.

"Men argue, nature acts." - Voltaire

Fri, 04/26/2013 - 00:56 | 3501323 francis_sawyer

Perpetual growth on a finite planet is NOT possible... (+1) [& fractional reserve tends to exacerbate that distinction]...

~~~

If anything ~ ZH is better now than it has EVER been because the misguided 'eCONOmists' have left the building when the candy tray ran out of blue pills...

I mean, when you get to the point that judges are tossing out Libor lawsuits [as well as countless other things], you've pretty much jumped the shark...

Fri, 04/26/2013 - 01:07 | 3501340 Bay of Pigs

Interesting how many bitchers, whiners and trolls show up on the gold threads?

Long Live the Hedge!

Fri, 04/26/2013 - 00:49 | 3501319 Bob Sacamano

I am wondering what the significance of JPM gold vault levels going back to levels that existed Jan 2000 thru Sept 2010??

Fri, 04/26/2013 - 00:50 | 3501321 Bob Sacamano

Duplicate

Thu, 04/25/2013 - 18:41 | 3500101 Boeing Boy

Maybe, but I am sensing a raging bull. Everyone wants fizz at exactly the same time.

Thu, 04/25/2013 - 18:41 | 3500104 RangerRiley

Totally agree with this comment. ZH sure knows its audience and how to make them crazy--er.

Thu, 04/25/2013 - 18:55 | 3500153 AllWorkedUp

Same thought occurred to me. These fucksticks lie about everything else, why would they suddenly tell the truth about their inventory numbers? Reminds me of the bullshit COT Reports. 1000 tons of paper gold were sold in two days and there was barely a blip in the reports.

If we can't trust anything else out of these criminal mouths, why all of a sudden trust this, as great at it sounds?

Thu, 04/25/2013 - 19:40 | 3500327 RangerRiley

Getting warmer.

Thu, 04/25/2013 - 19:48 | 3500371 Almost Solvent

Makes perfect sense. Tyler is actually Dimon and this site is the greatest disinfo campaign ever.

Once this is exposed, gold will be back to $200 and silver $9 and JPM/HSBC/COMEX laughing all the way to their bank, the Fed.

/s (as if I needed to add it)

Thu, 04/25/2013 - 20:46 | 3500617 akak

You're wrong.

Silver will actually plummet to $5 an ounce, at which point Mathman will commence digging for silver in his backyard ---- because after all, the shit is everywhere!

Thu, 04/25/2013 - 21:36 | 3500791 Terminus C

I miss Mathman, he had such valuable insights. I mean, I took his advice and started mining my back yard. Lo and behold... SILVER everywhere. Not to mention, my dollar cost average of mining it was right around $5! The guy is a genius!

I have made so much money selling my backyard mined $5 production cost physical silver that I have been feasting on a mountain of fiat ever since. Been gaining weight though... fiat is fattening.

Thu, 04/25/2013 - 20:47 | 3500629 pods

Gold hits $200 I will take my gold and cram it back into the quartz vein from which it came.

pods

Thu, 04/25/2013 - 23:55 | 3501235 XitSam

Oh, it will hit $200. In brand new Redbacks^TM after exchanging 150:1 from those old Federal Reserve Notes.

Fri, 04/26/2013 - 06:18 | 3501332 francis_sawyer

I prefer ANYTHING over a piece of rectangular linen with occult worship shit printed all over it serving as propaganda leaflets... Gold will do just fine ~ if they try that shit with gold, I can just take a hammer to it...

Thu, 04/25/2013 - 18:57 | 3500167 Banksters

LOL..

The WHOLE MOTHERFUCKIN SYSTEM IS BASED OFF OF FRAUD. How we assess value is currently a function of this scheme- no more, no less. Therefore, your assumption of financial integrity is simply laughable.

HAHahahahahah

hahahahah

MUAHAHAHAAHAHAHAAHAH!!!

Thu, 04/25/2013 - 19:38 | 3500315 Diablo

These comex/jpmorgan inventory stories sure do sound familiar. hmmm....lets see where ive seen them before:

http://www.zerohedge.com/article/comex-physical-silver-drops-fresh-all-time-low-288-million-ounces-3-drop-overnight-30-drop-s

http://www.zerohedge.com/article/comex-registered-silver-bullion-inventories-fall-sharp-385-two-weeks-%E2%80%93-risk-comex-silver-def

http://www.zerohedge.com/article/and-so-it-continues-another-92-thousand-ounces-physical-silver-withdrawn-comex-despite-histo

PS; notice the date? now look at todays price.

The typical ZH'er isnt the shiniest gold coin in the stack so he doesnt realize this is a non-event.

Thu, 04/25/2013 - 20:08 | 3500476 ReactionToClose...

Diablo .... are you an 'investor' or a 'storyteller'? Just askin'. See Big Pitcher Blog for reference

Thu, 04/25/2013 - 20:48 | 3500626 Diablo

I read both and make up my own mind...unlike the typical reader here who comes to join the circle-jerk.

Heres some news (that wont be published here)...its about someone that ZH loves to talk about:

http://www.bloomberg.com/news/2013-04-24/texas-university-fund-sold-375-million-in-gold-bar-holdings.html

Got physical? :D

Thu, 04/25/2013 - 21:57 | 3500867 Charles Nelson ...

Hey, look at me, I'm Diablo... Independent thinker, all around bad boy and anal prober of show poodles.

Thu, 04/25/2013 - 22:10 | 3500902 Diablo

Yup, thats the type of retort I would expect from someone on here.

Fri, 04/26/2013 - 00:08 | 3501263 ReactionToClose...

unless you get a specific remark .... that trade means nothing other than prudent stewardship. So what? Sounds like an investor versus a 'storyteller'. Good for him & them ..... but it does not change the overall market dynamic in and of itself.

Next .......I need me some 'empirical analysis' that one can only get at Big Pitcher Blog ..... unlike the trash at Zerohedge. If that is the case Diablo then why are you wasting your precious mind & time here? again just askin'

Thu, 04/25/2013 - 18:25 | 3500017 Abi Normal

It's deja vu all over again...didn't we just see these charts yesterday? I guess the big difference is it is today?

All kidding aside, JPM is either in big trouble, or bailing someone out, not sure which?

Thu, 04/25/2013 - 18:37 | 3500084 Dr. Richard Head

Jamie's gold vault run (in parody of Janies Got A Gun)
Derivatives must be undone
Fucking banker is on the run

What did Bernanke dooooooo
Jamie holdin IOUs!

Thu, 04/25/2013 - 19:19 | 3500233 ugmug

I live near the Canadian border and right next to a major US-Canadian rail line that leads to a railroad bridge crossing the border. Less than a month ago there was a strange looking solitary rail car covered with thick white plastic (to shield it from satellite surveillance??) being pulled by "two'" freight engines. These two train engines were pulling this solitary rail car under full power (lots of diesel engine noise which attracted my attention). I'm starting to put two to two together and coming up with a gold shipment of huge proportions.

Thu, 04/25/2013 - 19:56 | 3500403 Deo vindice

Which diection was it going?

Thu, 04/25/2013 - 20:33 | 3500469 ugmug

Most trains on that line, going in that direction, head to Canada. But there is a branch that will take coal cars up to the electric power plant and onwards towards Niagara Falls which also has several railroad bridges heading into Canada. What is also weird is that prior to the train appearing there was a lot of train company service vehicles inspecting the track (more than usual). Also for several months prior we have had 24/7 surveillance by helicopters and (2) C-130's flying in close formation in a circuitous route all up and down the border. When you live near the border the helicopters and C-130's have become a common sight.

Thu, 04/25/2013 - 21:39 | 3500801 Terminus C

Ah, those JPM guys are so smart. They know the Canadian banks are impenetrable to the tsunami of global finance.

Thu, 04/25/2013 - 21:49 | 3500839 ugmug

It is a known fact in these parts that many foreigners (especially those to/from South America) will bypass 'all' american airports to avoid being tracked by our homeland security. Canada does big business in direct routes to/from South America - Asia - Europe that avoids stopping at any US airport.

Fri, 04/26/2013 - 00:04 | 3501253 XitSam

Just off-hand, I thought that TSA was now requiring the passenger lists of any flight that flew over US territory, even if it did not land in the US. (I'm not contadicting you)

Fri, 04/26/2013 - 04:25 | 3501473 ugmug

At any border crossing point around here there is a machine that scans trucks for contraband and/or hidden items. The only place where this does not take place is with rail traffic (trains). There has been a lot of weird happenstance events concerning train traffic occurring every now and then like border crossing security cameras on bridges catching lone runaway rail cars crossing the border with no train engine attached.

Thu, 05/02/2013 - 09:52 | 3522060 XitSam

Someone should post their own motion sensitive camera near the border. They are quite popular with hunters.

Fri, 04/26/2013 - 05:09 | 3501493 ugmug

Toronto has a section of Young Street devoted to obtaining fake ID cards. Most are acquried by underage Canadian/American teenages trying to get into bars.

Thu, 04/25/2013 - 20:07 | 3500467 ReactionToClose...

you can bet 'storyteller' Barry Ritholz will be all over this story in the usual 'analytical' & 'empirical' way Big Pitcher Blog always is ....... hah!

Thu, 04/25/2013 - 20:24 | 3500551 Silver Garbage Man

It's articles like this that make Zero Hedge such a good site. The Best site out there.

Thu, 04/25/2013 - 21:12 | 3500715 Croesus

Goldbugs Advertising Campaign!!

https://lh3.ggpht.com/-6FXMEfUw1wI/UXlnR1GfVoI/AAAAAAAABJI/Wpi0Q6wg8ug/s...

Thu, 04/25/2013 - 22:12 | 3500915 H E D G E H O G

(ooh, ooh, ooh ) Jamie's DEAD....would be my most hopeful sentiments.

Thu, 04/25/2013 - 22:47 | 3501009 ToNYC

Tomorrow vault revised as short a million Oz of Corzine.

Thu, 04/25/2013 - 23:06 | 3501027 Hurdy Gurdy Man

-260,792.233

Thu, 04/25/2013 - 23:35 | 3501055 qmhedging

meanwhile in China

http://i1211.photobucket.com/albums/cc435/lx008/chinagoldfrenzy130426_zp...

Fri, 04/26/2013 - 00:29 | 3501287 freewolf7

This is a great party!!!
Cheers!!!

Fri, 04/26/2013 - 02:49 | 3501405 JuliaS

Remember Max Keiser's call to drive JPM out of business by forcing it to cover silver shorts. Well, what if JPM had gold shorts and the reason for the vault depletion was obligation fulfillment. What if the reason the valults are dry is because it was on the rigth side of the trade?

Thu, 04/25/2013 - 17:32 | 3499744 francis_sawyer

I hope those JPM bankers private yachts are seaworthy...

Thu, 04/25/2013 - 17:48 | 3499846 BanksterSlayer

we could send THOSE to the coast of Syria, yes?

Thu, 04/25/2013 - 18:15 | 3499932 Ag Tex

They will find no slips to welcome them and no ports to call home. This is about to get ugly for the money changers. The chickens are coming home to roost.

Thu, 04/25/2013 - 17:31 | 3499745 Magnum

It's doozy.

Thu, 04/25/2013 - 17:32 | 3499749 Xibalba

Jawohl!

Thu, 04/25/2013 - 17:34 | 3499750 fonzannoon

are there 5.8 million of us on here? Everyone buy once ounce right now!

"We hope this is the maximum exposure it faces for potential delivery requests"

Nah I am hoping for plus 1

Thu, 04/25/2013 - 17:47 | 3499842 European American

Let me see, now. That would mean I would probably kiss my my initial one ounce investment of around $1450 goodbye (they surely won't be sending me anything physical in the mail), but then, when gold hits $5000 shortly thereafter, the few ounces I do have...

Is that how it would work?

Thu, 04/25/2013 - 17:56 | 3499877 Cursive

@fonzannoon

Jamie says he's not worried. Says he's got a "fortress balance sheet."

Thu, 04/25/2013 - 20:11 | 3500489 teolawki

Titanic meet iceberg.

Thu, 04/25/2013 - 17:32 | 3499751 thismarketisrigged

all i can say is GOOD. FUCK JPM

Thu, 04/25/2013 - 17:58 | 3499886 ChanceIs

Does this mean that "Buy Silver - Crash JP Morgan" is back in play? God I love watching a good, well deserved, corporate implosion. We haven't had one of these since Lehman. Poor Dick Fuld. I can still remember him sobbing about those horrible shorts, and why he deserved a bailout just like Bear-Stearns'. Wasn't fair. I can still remember Our Lady of Perpetual Banking Sorrows, Meredith Whitney, calling for Lehman at $1 about six months before implosion day. Such good times. Pass the popcorn.

Will be calling my Congresspuke in the AM - don't you dare bail them out.

Thu, 04/25/2013 - 18:24 | 3500000 Pairadimes

Not to worry. Bruce Willis and Samuel L. Jackson will find the gold. I've seen them do it before.

edit: Check that out. Comment #3500000. What did I win, Tyler?

Thu, 04/25/2013 - 18:35 | 3500079 McMolotov

A rehypothecated gold star?

Fri, 04/26/2013 - 01:06 | 3501337 francis_sawyer

A NEW CAR!!!!

Fri, 04/26/2013 - 02:02 | 3501386 Jam Akin

A pocket ginsu fish-o-matic!!! Its incredible!!! It slices, it dices, it even makes julienne fries!!! Cuts thru a tin can like butter, produces mounds and mounds of cole slaw and man can it catch fish!

Fri, 04/26/2013 - 02:09 | 3501388 Jam Akin

Or alternatively...a commemorative trillion dollar coin.

Fri, 04/26/2013 - 06:21 | 3501534 francis_sawyer

On that 'trillion dollar coin' special... Call within the next 30 minutes & we'll double the order!

Fri, 04/26/2013 - 08:13 | 3501723 Jam Akin

Operators are standing by.

Thu, 04/25/2013 - 17:32 | 3499753 mayhem_korner

Maybe they hadn't done a physical inventory count in a while...

Thu, 04/25/2013 - 17:37 | 3499762 negative rates

Too busy pumping iron in the gym, and then subin gold for it in the office.

Thu, 04/25/2013 - 18:06 | 3499923 Rustysilver

The physical inventory was done by KPMG or Andersen

Thu, 04/25/2013 - 18:14 | 3499963 mayhem_korner

Andersen? U in a time warp or just OD-ing on The Matrix?

Thu, 04/25/2013 - 17:32 | 3499755 negative rates

This is like a psychiastrist on death row, it won't well.

Thu, 04/25/2013 - 17:34 | 3499757 gjp

why was storage basically zero in the early 2000s? Was there no COMEX trading before then?

Thu, 04/25/2013 - 17:37 | 3499772 negative rates

Yup, that was before we financialized the economy.

Thu, 04/25/2013 - 17:37 | 3499778 Urban Redneck

the rise of the machines...

Thu, 04/25/2013 - 17:38 | 3499789 Tyler Durden

In the days before "financial innovation" and ETF-ization, warehoused physical gold was mostly registered, aka non-rehypothecatable, lendable and repoable (i.e., pseudo paper) gold:

Reigstered gold has always been stored in vaults and is what is conventionally known as "wealth preservation" gold. As the chart above shows it hasn't really budged much in recent years.

Eligible, on the other hand, is what fed assorted repo pathways, and could mysteriously appear in many places at the same time. That explains why its advent really started with the Bernanke era, when all sorts of strange things started happening with paper gold.

Thu, 04/25/2013 - 17:45 | 3499837 mayhem_korner

Gives new meaning to "black market"...

Thu, 04/25/2013 - 17:46 | 3499839 Sudden Debt

so anybody with 200 million can break the market?
Cool :)

Thu, 04/25/2013 - 17:58 | 3499885 kaiserhoff

Not break, SD. Revive, rehabilitate, liberate.... It's Alive!

Thu, 04/25/2013 - 17:57 | 3499888 Alpo for Granny

Paging Eric Sprott....

Thu, 04/25/2013 - 18:00 | 3499894 McMolotov

I got that in my sock drawer, yo.

Thu, 04/25/2013 - 18:27 | 3500020 Winston Churchill

Left in my other jacket.Its at the dry cleaners....

Thu, 04/25/2013 - 18:47 | 3500121 THX 1178

I could buy 200 million worth of gold... i just don't wanna.

Thu, 04/25/2013 - 19:22 | 3500252 SnobGobbler

Silver my friend. 200 mills would "crash-the-bitch" and they know it. perhaps something more nefarious is amok?

Thu, 04/25/2013 - 21:18 | 3500735 HyperinflatmyNutts

I really do have it in my sock drawer and a whole lot more.. Like I told u before I live in Zimbawe. lol

Thu, 04/25/2013 - 18:02 | 3499908 tmosley

Nope. There is a limit to the amount that any one long can demand for delivery in a given month. But of course, anyone can be naked short as much as they want.

Thu, 04/25/2013 - 19:25 | 3500264 SnobGobbler

limits are for pussies. strength in numbers of unique delivery is what is playing out.

Thu, 04/25/2013 - 18:05 | 3499925 seek

Break JPM. The market will require a little more cash.

I'm perfectly OK with JPM breaking, btw.

Thu, 04/25/2013 - 17:49 | 3499857 ChanceIs

I think that it started with Sandy Weil. At least that fat slob acknowledged all of the damage he caused and even recommended breaking up the TBTFs. Hey!!! Get under the umbrella.

Thu, 04/25/2013 - 18:51 | 3500134 Alea Iactaest

Golden shower getting you wet?

Thu, 04/25/2013 - 17:52 | 3499865 IridiumRebel

I love you.

Thu, 04/25/2013 - 18:03 | 3499920 Dr. Engali

You've been drinking again, haven't you?

Thu, 04/25/2013 - 19:40 | 3500319 Room 101

I love you too. Here's a big, wet, sloppy kiss...<<<SMACK>>>

Thu, 04/25/2013 - 17:53 | 3499871 rosiescenario

"... could mysteriously appear in many places at the same time..."

Quantum gold......this might also help explain where those disappearing electrons go, they have memerly been re-hypothocated.

Thu, 04/25/2013 - 18:12 | 3499947 knukles

Conspirac Theory ...
Quantun Gold
Quantum Fund
George Soros
New World Order
Democrats
Lions, Tigers & Bears
Environmentalism
Green
Monkey Piss
Green Monkey Piss
Paul Krugman

_{^{Expalins a lot late in the afternoon}}

Thu, 04/25/2013 - 18:05 | 3499917 Ident 7777 economy

"Fractional Gold holding" (or reserves, your choice); this is not news.

Well, it maybe news to some. (Apparently, it is.)

See Kyle Bass explain it here (hat tip to a fellow ZHer):

Kyle Bass Explains Why He Had The U of TX Take Physical Delivery Of $1 Billion in Gold http://www.youtube.com/watch?v=lgNVNTvlpFY&feature=youtu.be

Thu, 04/25/2013 - 20:00 | 3500427 SHRAGS

April 25, 2013 Texas U. Sold $375 Million in Gold Bars; Exposure Steady

Thu, 04/25/2013 - 22:08 | 3500895 Ident 7777 economy

You notice that Kyle Bass addresses this in that video linked above:

"Utimco’s Zimmerman said the fund would consider moving gold to Texas from New York if storage costs were lower and its holdings could be easily traded through an exchange."

Turns out it costs like 80 basis points per month to 'store' (actaully turn) TimCo's gold each month while it's held by somebody else ...

Thu, 04/25/2013 - 18:16 | 3499968 NotApplicable

So, gold registered as deliverable, doesn't change, but eligible, non-deliverable gold is running out the door (and every other exit, it seems).

Is this evidence of forced settlement of cash for those standing for delivery? Or does it mean they've effectively killed off that avenue by the threat of Corzining anyone who dares try?

Thu, 04/25/2013 - 18:21 | 3499991 Just Ice

"Incidentally, JPM now has just under a paltry 5 tons of eligible gold left in storage. We hope this is also the maximum exposure it faces for imminent delivery requests"

Eligible gold is not deliverable gold under futures whereas "registered" is. Eligible gold is for practical purposes the same as owned by someone else so why the big deal if that someone else chose to no longer have their gold stored with JPM?

Thu, 04/25/2013 - 18:39 | 3500097 forwardho

Its a big deal since JPM would use it as a AAA+ asset.

It is the asset that derivative dreams are made of.

It is " the " top shelf asset.

Thu, 04/25/2013 - 23:40 | 3501186 Just Ice

Why would JPM use gold they are storing as an asset, triple A plus or otherwise, unless also owned by them? Do they need to prove assets to get a loan from someone? (Not hardly) Or to garner favor with (debunked) credit rating agencies? Likewise, not hardly.

The only big deal would be if whoever owned that gold wanted to move it and JPM said, nope, "ours" when it wasn't.

Thu, 04/25/2013 - 20:20 | 3500532 Tyler Durden

Or, you are simply wrong.

Chapter 7A in the NYMEX Rulebook (source) provides the following definitions:

(p) "Eligible" shall mean, with respect to any Commodity, that such Commodity is acceptable for delivery against the applicable Commodity Contract.
(ee) "Warrant" shall mean a document of title issued by a Licensed Facility, meeting the requirements of Article 7 of the UCC, and demonstrating that the referenced quantity of the covered Commodity, stored in the Licensed Facility referenced thereon, meets the specifications of the applicable Commodity Futures Contract.

Warrant, in this case referring to registered gold, which simply means it is "warranted."

Thu, 04/25/2013 - 23:29 | 3501145 Just Ice

Eligible bars are not deliverable gold sold under contract until registered. All of the registered gold shown in your graph may be deliverable to meet contract requirements. Therefore, depletion of the eligible gold does not mean no gold remains in storage to stand for delivery as suggested by your article. Disingenuous at best.

Fri, 04/26/2013 - 08:30 | 3501771 Croesus

@ Just Ice:

What is going on @ Comex?

Very simple. People who own "eligible" Gold are getting their metals and "bolting for the exits", before the exchange takes it to fill delivery requests and swaps it out for receipts.

What does that tell us?

Perhaps it means that "registered Gold" is not actual physical metal?

Could this be why Leo Mahlamed couldn't get delivery on 2 contracts? (supposedly)

Thu, 04/25/2013 - 17:34 | 3499759 Rustysilver

That's nice, but we need more slide to the south on first graph.

Thu, 04/25/2013 - 17:35 | 3499760 Yen Cross

Must have been like [Wall Mart] on Black Friday over at JPM...

Thu, 04/25/2013 - 17:36 | 3499761 Poor Grogman

Crash JPM buy .....(silver)?

What does it all mean?

Thu, 04/25/2013 - 17:36 | 3499765 ChanceIs

Max Keiser interviews AndrewMaguire today, Thursday. Lays out all of the manipulation and gold leasing. Must watch:

http://www.youtube.com/watch?feature=player_embedded&v=VVdHsAWDrAk

Thu, 04/25/2013 - 17:41 | 3499786 ebworthen

Good stuff, thanks.

My favorite line from Max:

"These markets are essentially a hologram...a shadow of a shadow of a chimera of a hologram."

Thu, 04/25/2013 - 19:16 | 3500229 A82EBA

I cant follow a lot of what theyre saying but I can tell it's a very relevant conversation to what's happening now, very interesting!

Thu, 04/25/2013 - 19:21 | 3500255 Kirk2NCC1701

Nothing personal, but Max Kaiser is an amateur who bores the shit out of me. Nice MILF side-kick though.

Thu, 04/25/2013 - 23:34 | 3501160 Ludwig Van

Kaiser *is* an amateur ("journalist" at least). He is the worst kind of interviewer. He cannot keep his fucking mouth shut; he cannot get out of the way. And that's too bad. He's got the right ideas, but comes off as a strident ideologue.

Nice MILF sidekick though.

Thu, 04/25/2013 - 17:35 | 3499767 diging deep

anyone got a good map of the old subway tunnels..as i guess thats where jpm going to be hiding out friday

Thu, 04/25/2013 - 19:07 | 3500207 Miss Expectations

The nice one is the old City Hall Station...give a look...and not too long a walk, either.

: http://www.bing.com/images/search?q=old+city+hall+subway+station+nyc&qpv...

Thu, 04/25/2013 - 17:36 | 3499769 Frank N. Beans

Jamie: "Go to DEFCON 2!"

Thu, 04/25/2013 - 17:36 | 3499770 ziggy59

Couldnt happen to a nicer bunch of lying phuckun banksters..,

Thu, 04/25/2013 - 17:37 | 3499773 ebworthen

Bullish for tungsten.

Thu, 04/25/2013 - 17:37 | 3499774 The Miser

It does not evaporate like water. Where could it be going? Hmmm.

Thu, 04/25/2013 - 17:36 | 3499775 mt paul

buy an ounce today

make JPMorgan go away...

Thu, 04/25/2013 - 18:02 | 3499907 kaiserhoff

Yes, Ice Bear.

Doing well by doing good.

Thu, 04/25/2013 - 18:24 | 3500002 Tango in the Blight

Sadly no money to buy even one ounce of silver for a while.

Received a 20 gram bar today though.

Fri, 04/26/2013 - 00:14 | 3501277 XitSam

That's ok, I got you covered this time. Cheers.

Thu, 04/25/2013 - 17:36 | 3499777 Lost Wages

At first I thought it said "edible gold." Boy was I confused.

Thu, 04/25/2013 - 17:38 | 3499779 seek

I can't imagine what the pandemonium is going to be like this weekend, and what Asia will look like sunday night.

Given today's run-up, shit is about to get real in the AU market. There's got to be a wall of delivery notices hitting right about now.

Thu, 04/25/2013 - 17:38 | 3499790 fonzannoon

I hope Kyle Bass got his gold delivered back that he sold....or since he seems to have been tipped off I hope he does not.

Thu, 04/25/2013 - 17:48 | 3499850 Dr. Engali

After what happened at the CBOE I wonder if he's shitting his pants on that move.

Thu, 04/25/2013 - 17:49 | 3499854 fonzannoon

as if his hairline was not already receeding....

Thu, 04/25/2013 - 17:48 | 3499848 Irene

China Bank Holidays: MTW, April 29, April 30, and May 1

Thu, 04/25/2013 - 18:08 | 3499936 seek

How convenient!

Thu, 04/25/2013 - 19:53 | 3500398 Crash Overide

You think they know it's coming...?

Thu, 04/25/2013 - 17:38 | 3499782 MSO

I didn't do it. Did I?

Thu, 04/25/2013 - 17:39 | 3499795 mayhem_korner

+1 That is really funny.

Thu, 04/25/2013 - 17:40 | 3499803 kaiserhoff

Throw two rocks around here, and you'll hit three guilty parties;)

Thu, 04/25/2013 - 17:37 | 3499783 mayhem_korner

What happens if and/or when the JPM vault is empty of commercial gold, and JPM receives a delivery notice?

In Survivor, eventually the "alliances" have to turn against one another. I'm wondering if Lloyd Blankfein doesn't just pen a nice, fat delivery request to his compadre Mr. Dimon. Just for yuks, eh?

Thu, 04/25/2013 - 19:44 | 3500347 Room 101

+1000. No honor among thieves.

Thu, 04/25/2013 - 17:37 | 3499784 fockewulf190

The Morgue is heading for the morgue. On a long enough timeline, the survival rate of everyone drops to zero.

Thu, 04/25/2013 - 17:46 | 3499838 Urban Redneck

On a short enough timeline, TPTB will step in to prevent that from happening.

JPMorgan's Eligible Gold Plummets 65% In 24 Hours To All Time Low

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