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JPMorgan Accounts For 99.3% Of The COMEX Gold Sales In The Last Three Months
Submitted by Mark McHugh from Across The Street
Jamie Dimon Has Issues
When just one firm accounts for 99.3% of the physical gold sales at the COMEX in the last three months it’s not what most of us on this side of the rainbow would consider “broad-based” selling. Of course discovering this kind of relevant information requires an internet connection, 2nd grade math and reading skills, and the desire to do a teeny-weeny bit of reporting. Sadly they’ve wandered so far down the rabbit hole that the concept of “physical demand” (i.e. people actually wanting to take possession of the stuff) is puzzling to them because the vast majority of the world’s so-called “gold-trading” takes place in the realm of make believe (which is their natural habitat). It’s all fun and games until somebody loses their metal and “somebody” has lost one hell of a lot of metal in the last 90 days.
This is the CME Group’s COMEX metals issues and stops year-to-date report, which can be found here everyday for free. It chronicles the physical delivery notices of various metals, including gold. Let’s have a look:
“I” is for “Idiot”
That’s how I remember it, anyway. “I” actually stands for “issues,” meaning the firm parted with its metal (@ 100 troy ounces a shot), and “S” stands for “stops,” meaning the firm took delivery of gold. “C” is for customer accounts, “H” is house accounts. The first thing you should notice is that most transaction net out to zero in a given month (blue boxes), meaning the firm’s gold holdings didn’t change. What they delivered one day they got back the next, or vice versa. The green boxes show firms who received more than they delivered and the red boxes indicate firms who coughed up gold for Bernanke bucks (aka idiots). Note that Deutsche Bank’s massive take in February more than offsets its deliveries in December and April.
Notice one more thing before we move on: Despite Goldman’s much ballyhooed “Gold Sucks!” call a few weeks ago, the squid has not parted with any yellow metal whatsoever in 2013. Hmmm.
Now for the main event:
J P Morgan has fumbled ownership of 1,966,000 Troy ounces of gold since February 1. That’s 74% more gold than the US mint delivered through the US mint’s American Eagle program in all of 2012. I mention this because there’s little doubt in my mind that the US government is one of JPM’s gold “customers.” So (if I am correct) the same US government who just let the Morgue dump its gold on the COMEX floor will once again be suspending gold sales to peasants.
Maybe Jamie Dimon figures he’ll buy back all that gold on the cheap when the rest of the world realizes how smart he is. Or maybe he’s once again displaying that his firm doesn’t have the slightest idea what “hedging” is and is teetering on the brink of collapse. That would explain the April 11th meeting between President Obama and the Pig 5 bank CEOs, wouldn’t it? And you just have to get a little misty that Lloyd Blankfein was nice enough to provide some hot-air cover for his competitor, don’t you?
One thing’s very clear: When it comes to selling physical gold, J P Morgan is acting alone. The 130 contracts NOT delivered by JPM in the last three months (of which 110 were fromABN AMRO) are but a footnote. If Jamie’s right, he’ll look like a genius in a few months, if not he should be able to recycle his quote regarding the infamous “London Whale” losses: “Just because we’re stupid, doesn’t mean everybody else was.” Time will tell.
100 years ago John Pierpont Morgan famously testified to Congress, “Money is gold, and nothing else.” (Note: That is the exact quote, the full testimony can be found here). One has to wonder what the big guy would think of his legacy’s disregard for sound money, $70 Trillion derivatives book, and "House of Cards" "Fortress" balance sheet.
One more very, very important thing.
Anybody who says there’s been gold selling in the GLD is a freaking moron (Bob Pistrami, I’m looking in your direction). The GLD works much like a coat check. Unless you think checking your coat constitutes a real transaction of some kind you shouldn’t think of changes in the GLD’s gold holdings as sales. They’re not. When you check your gold into the GLD you get shares (like a claim check). Where it gets wierd is you can sell these claim checks to nimrods who seem to think they’ve bought your coat, but aren’t actually allowed to wear it.
What nobody seems to appreciate is that every share of GLD is allowed to be sold TWICE (long and short, and it’s really important to understand that). If you’re foolish enough to doubt me (and foolish enough to short gold), go short GLD shares and see if anyone knocks on your door demanding gold. Saying the GLD is 100% backed by gold is a bold face lie because they’re can be twice as many shares in play as gold backing them, which means GLD shares may be only 50% backed by gold before any rules are broken.
When GLD (or any ETF for that matter) shares sold exceed the existing shares PLUS all the shortable (double-sold) shares, legitimate shares can not be found for settlement and that must be reported to the SEC’s “Fails to Deliver” list, which is published twice a month with about a four-week delay (here).
April 15, 2013 was this biggest volume day ever for GLD (93.7mm) and I’ll guarantee you right now that record fails to deliver will be reported on or around that date, which should have required more gold to be deposited with the GLD (but that didn’t happen). So instead of the half-assed explanation Pistrami offered (here) of how he thinks the GLD works, he should have raised the question of whether or not there were enough legitimate shares of GLD to facilitate trading (I say no way in hell).
Gold continues to be pulled from the GLD (which really means people want their coats back) and still no one’s concerned about the number doubled-owned shares. Worse yet, the responsibility for sorting this unholy mess out falls to SEC chief Mary Jo White who is celebrating her 16th day in office.
I can’t wait to see what happens next….
Notes for Nerds: This piece is not intended to describe the inner workings of the COMEX or GLD in detail, so don’t bust my balls with minutiae, unless it is relevant to the discussion of JPM’s massive gold sales or the double-ownership of ETF shares. Double-owned ETF shares are huge problem with ETFs in general, but the misrepresentation (by omission) of this fact by ETFs supposedly backed by tangible assets like gold and silver seems more egregious to me.
In addition to the YTD CME Group metals report, you can track the hilarity on a day-by-day basis here.
The February 1 to April 25 delivered gold contracts info referenced included only transactions between firms. For that reason Morgan Stanley’s 307 contracts transferred from house account to customer account was excluded from the calculations.
Total Net gold deliveries Feb 1 to April 25:
Vision Financial – 1 contract
R J O’Brien – 2
ADM Investor Services INC – 2
Marex – 5
Citigroup Global Markets – 10
ABN AMRO – 110
JP Morgan – 19,660
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WHY WHY WHY is the official price of PM based on the most manipulated market in the history of the universe.
do miners sell at these prices? There needs to be an official trading platform for on the spot delivery of sizable amounts. Does anyone get physical delivery by playing on the most corrupt market. Didn't think so.
Hope solar companies and high tech are stock piling all available cheap silver. I'm sure USA/UK are counting on Iran's gold and oil
http://armstrongeconomics.com/2013/04/23/failure-to-understand-the-commo...
armstrong is very sharp but maybe he was in jail too long. there are no more free markets. the US manipulates Crude Oil in a number of different ways, but since we are ripping off arabs no one really cares. the bond market is the most distorted, the FED sets the bid buying its own product. if you sent your brother in law around to bid up your crops selling price at the corn auction they would put you in jail. in the PMs the spread between real gold and paper gold is what the US mint charges. and once a few states get on the gold money thing and start adverstising the spread between physical and paper, (and spot) then the gloves are off. in the end CBs will have to buy gold to stop the bleeding, and thats like a heroin seller buying up all the pot. they don't want you using the other guys product. hey thats the way bill gates ran microsoft.
not sure how Martin sees it (you'll have to ask him), but i choose to read his material as if the corruption is baked into the cake of the turn of the Cycle of Imperial History. we happen to be in the part of the cycle where corruption runs rampant. anyone who has read the history of empires should understand clearly what is coming next. see England for the slow burn version.
miners are nationalized already. The facade that they are private profitable companies is an illusion. Smart money knows this and thus the cheap price. Controling interest and production goes to who else. They have contracts with big bullion banks( when I say banks I mean the FED or central government) at FIXED future prices to obtain operating stability for its workers.
Your assertions make sense in light of the fact, ongoing for many years, that NO mining company executive of any note or importance will speak out against, or even acknowledge, the decades-long official manipulation and suppression of the prices of the precious metals, and the tiny handful who have done so seem to shortly end up being marginalized or pushed-out of the mining industry.
Just read the editorials of the Northern Miner --- NEVER a peep about governmental or central bank involvement in the PM markets. And this is from those who are MOST directly involved, and impacted, by such official surreptitious involvement! Something simply stinks in the mining industry --- their suspicious silence is deafening.
Very good, Sherlock: "The Dog That Did Not Bark.". :-)
the opening of etfs to accepted short sale practises opens up this liquidity, good point, because a short sale means that there are two buyers for every seller. the short sale rule is part of the all bull all the time market, whose purpose is to inflate asset prices. the efts further streamline the process by avoiding most of the borrowing requirements, and the uptick rule but these rules only put more momentum on the up side, so that's no help to the bulls. if i wanted to make a lot of money on the GLD i could [borrow] a million phantom shares of GLD [and go long some multiple of that number in call options].
if JPM had a million shares of its own company, on loan for short sales, and it wanted to protect its stock, it could call some or all of the available float, rendering it closely held. no reason they don't think of their gold the same way. since gold is [probably more] over leveraged when your closely held starts getting monkey hammered, you pull it back from the market. just guessing JPM still has most of that gold, and they don't want to lose it to redemptions and end up with Bernanke bucks, as you say (idiots) great point there.
I'm suprised the Morgue delivered real gold. How can anyone take gold from such a seriously demented greedy banker? If anyone received gold from the Morgue they better have it assayed. They got fucking tungsten and Dimon carted the missing stuff off to his new Island. I don't believe anyone could get Dimon to give any gold up. It is beyond belief. If he did the story would be on unsolved mysteries. Plus he would have to have somehow got the booty past blythe star-eyed-stella-bitch masters and that is not possible either.
The banksters can't suspend gold in China and India can they?
We're all pretty smug here on ZH but I just can't drive away that nagging thought that JPM has quite a few more tricks up their sleeve.
A GOLDEN WHALE!!!!
This wasn't the greatest article to read after a couple cocktails. It help me get dizzy faster thoh. More crazy ass bullshit imagine that. I can't believe JPM is involved. lol. Time for another drink.
Market forces will shove the yellow metal back up over $2k/oz I suspect.....
Well if the manipulators had any physical gold they would have certainly flooded the physical market with it by now. They'll just keep playing the paper game until they can't.
This needs to go viral, otherwise nobody will care except those of us who already know.
It will only go viral if it's infectious (a lot of people care).
If mainstream sites reported it, people would care. It's a catch-22.
Yep, exactly.
Maybe the reason is very simple: They are desperate for cash. Black Swan? Lehman 2?
I think it's more likely that they are disparate for good collateral.
Our dollars are back by toxic MBS and US Treasury which the Chinese are trying to rid of. They need sufficient amount of good collateral to back the dollar when TSHTF.
I protest. The squid must be more involved than just trying to crash the market for future purchases....
"Of course discovering this kind of relevant information requires an internet connection, 2nd grade math and reading skills, and the desire to do a teeny-weeny bit of reporting"
Kudos, Tyler. Not to draw a picture, but you've crawled up their asses with a flashlight this week. Tweet these revelations, Fight Club!
Could it be that the Fed has told JPM that they are not going to continue with more QE? Ever since that April meeting the markets have been very volatile. From a market perspective that's what the charts are starting to indicate. Gold, Silver, Bonds, and the US Dollar especially are indicating at least this is a possibility coming with the next FOMC. Who knows. But I find it a possibility especially when the general public is not playing the stock market because we all think it's rigged. The way these guys think they may be planning to take down gold by discontinuing QE and steal your money that way. Again who knows for sure.
JPM tells the fed what to do. but this looks like a family feud with GS. Dimon was doing ok on his own - but GS has it's tentacles in every western central bank. So - guess who wins. Dimon won the bear stearns deal and it gave him great legs. legs get tired.
If that’s the case then everyone ought to be short the market, buy bullion and hedge with GLD puts. SLV puts have little room to move but are very cheap. Personally I’d still (also) use slv calls which have as much to move in the year to 18 months as gld calls but are far cheaper for that time window.
Do not use me middle nombre in vain! Chumba JP Cruz, Senor
Aunque el oro y la plata son simbolos justos, nada mas, que quiere mas! AU and AG are just symbols me ZeroLuchadores. Recuerde que en COMEX, ahora soy el comprador y el vendedor.
Si ZH amigos, I AM NOW THE BUYER AND SELLER AT COMEX.
El juego... the game can go on a long time if the audience gets mouthy. Recuerdo, my machine prints el dinero, YOURS does not.
Callate! This can be over quickly if the upstart luchadors and audience (países y ciudadanos) continue to root for my team. Either way, I have always had the gold, and will always have the gold. All is perception, and since time means nothing to me (no significa), I've got more time than you will ever have money.
Me recomendación:
Viva El Luchador!
www.askchumba.com
Danger!
Warning, Will Robinson!
When all the creatures disappear, be nervous.
Cyprus.
China held roughly 10% of JPM last time I checked.
I'm ignorant of the insider take on this, but is this a hidden buy-back? (i.e. Gold > US gov; US Gov swaps x$ treasuries <> Gold China). This doesn't make much sense given the relative tiny $ worth of the actual metals however.
Frankly, I don't have enough information to make guesses at the why's, or even if it's actually important.
Central banks are a creation of Nazionists. China has a central bank. Central banks are privately owned. JP Morgue is an agent of Rothschilds, the most notorious international financiers from Europe...then infesting Britain, and creating the un-Federal no-Reserve Board in the U.S. after bribing politicians in the U.S.
However, some people like a tidy bedtime story, a fantasy, and want to think Big Brother loves them, and central banks are cuddly cosy nice guys.
Own physical gold, silver, land and stay close to family and genuine community - or become a victim; an ignorant victim or a knowing fool. No matter. A victim, just the same.
Your article was excellent, and the only reason I'm bringing this up is my general confusion on the topic and I thought you may have some insight.
I'm still unclear how the LBMA and the Mining Companies associated with it, works. Do they have to participate with them, and to what degree?
Their, the Mining Companies shares/equity has been decimated, wouldn't they want to correct this situation since many insiders have been suffering for years. Why would they continue to participate in the LBMA, when they know they are in some way involved in screwing them in the equity markets?
Those are good questions CM. Regretfully I don't have any answers. The LBMA doesn't provide much info about anything as far as I can tell.
I've wondered why the miners couldn't issue shares that could be redeemed for metals. I'd think seriously about investing in them if they did, and I would think that would make them far less dependant on "official" prices set by the cartels.
Royal Silver DID have a bond paying dividends in silver rounds plus your cash back in 24 months. Miners can do this but choose not to. That’s their fault & for this I punish them by holding NONE of their stock.
Ace honest discovery, and well done ZH for publishing it. GATA has been right all along, and these figures add accelerant to the fire.
More than that or perhaps allied to that, JP Morgue issues most food stamps, and there is evidence in their fraud there too:
http://www.dailymail.co.uk/news/article-2315115/Shocking-US-government-l...
JP Morgue is owned by Nazionists, globalists who want a jackboot on the face of mankind, and the U.S. in particular is its last hurdle.
Health warning: The Daily Mail is toxic in most of its online topics, eg typical sleaze, soft porn and freak show. But the Daily Mail has owners who want to embarrass the USA. Hey ho. Facts are facts when it comes to JP Morgue's treachery in all matters, helped by CONgress shills.
Gold Crash 2013 - Deliberately Engineered?
On April 13, there were big sell orders of 400 tonnes that moved the futures market lower. Once the futures market makes a big move like that, stops can be triggered, causing it to move even more on its own. It can become a panic, where markets react more to fear than fundamentals.
http://homment.com/gold-crash2
I pity the 'stops' who were the target of the takedown, but they were warned beforehand, and ignored the warnings.
JP Morgue buries its paper foes and fans. Same as it ever did. JP Morgue, the agent of Rothschilds et al.
26 April 2013, by Donal Griffin (Bloomberg)
http://www.bloomberg.com/news/2013-04-26/stripping-dimon-of-chairman-title-is-nuts-langone-says.html
I say, why not? Let’s get Nuts! http://www.youtube.com/watch?v=I3_GPqwkGco
The BIS is aware, and going to punish every wrong in its system, imo. Good.
Don't be that sure,."The BIS in Basel Must Survive At Any Cost" they said during WOII.
Banking with Hitler http://www.youtube.com/watch?v=YauM5dHLn1s
Yep. However, my enemy's enemy is my friend, even if temporarily .
The world is a contest of ideas. I dislike corporatism, communism, socialism, collectivism.
The BIS is pragmatist, better than all the lying politicians and some lying commericial banks, and a worthy adversary in the contest of ideas, imo.
Alpha and Omega, same as it ever was.
NEVER EVER trust that your enemy’s enemy is your friend for even ONE second. Many strategies have failed on this for good reason. Most resource-wars are free-for-all and that means zero friends but those who depend on you and aren’t stupid. They aren't your "friends" - they are your family or they are just waiting a chance to take. (sometimes they're both and that's very disappointing)
My guess: Obama told the banks that QE is over shortly and interest rates must rise.
And yet Cramer was promoting the very opposite tonight. Interesting, entertaining, that guy.
Wrong. Banks tell Obama.
Obama: Ending QE and low interest rates would be racist!
"It's only a flesh wound!"
With the London Whale out of commission...where is this Whale located? Isle of Man, Cayman Island...what tax shelter scam did they hide this through. Time to round up a posse to put and end this the rampant Wall Street fraud!
I'm seeing GS doing one thing and JPM doing the opposite, correct?
I could be missing something here but all it seems to be to me is that they're just playing this thing back and forth between the two of them and making a fortune in the process. You go long, I'll go short, and we'll be in on this together and make a ton of money.
If I'm wrong, I'll stand corrected, but does anyone else see it like this?
I noticed the same thing: GS shorts gold, JPM sells it. WTF!?
So whose Gold have they been selling?
And whose gold are they not returning?
And whose gold are they squaring up at these lower prices?
And why is JP Morgan still in existence- Eric Holder tells the Senate they are too big to prosecute, the treasonous Attorney general of the US of A. !!!!!!!
Interesting, but that's only 62 metric tonnes of gold ~$3b depending when. Which would be a goodly amount for one firm to sell, but not actually enough to crash the global market. Monthly supply from mining and jewelry scrapping are about 370 tonnes a month. There's many other ways to buy or sell gold than through Comex. The LBMA for example trades more than 600 tonnes a month.
With GLD, you're missing what matters: when GLD is sold faster than the rest of the market, aribitrage appears and the authorized participants redeem their shares for gold and sell elsewhere. Certainly that has been happening on a large scale this year. The amounts of gold taken out of GLD this year are about 7 times this selling by JPM on Comex.
Hey Shithead,
You really should consider spending more time reading, comprehending, and thinking and a whole lot less time slapping the keyboard.
Next time you attack my work, you should really put out the effort to understand it. I spend a lot of time boiling points down so they can't be misconstrued. And then a fucktard like you comes along.....
Sorry, but that's all the response you get from me. I wouldn't wipe my ass with your "work."
(Quote from Mark McHugh: http://www.zerohedge.com/article/fofoa-golds-focal-point-or-silver-money-too#comment-816663)
When a store runs out of bread... does the bread price go higher?? No.
When you go to buy a oz of gold. Or sell it. What does the buyer or seller look at prior to telling you what they will pay or you will pay for it? They look at live spot prices.
No place on earth uses gold as a 'currency' because it is not a currency, its only convertible to local currency.
There are basically only 2 uses for gold that are semi necessary, one jewelry, which actually is not necessary, at all. The second of course is in Semiconductors/Microchips/Electronics etc.
If gold went to 5-10K/oz... do you really think the electronics manufacturers of the world would allow you to hold technology hostage?? WHO would NEED to buy gold at those levels??? NO ONE.
If wheat went up 10X its current price, the breadmakers would not buy it, there would not be any bread for a little while, and then the price would come down, and there would be bread again. And that is if they didn't find something better to put in bread than your product.
With gold, this only happens once they run through what they have lying around, and what they are getting from reclamation centers.
The price of gold is not set by what YOU think its work, ie $1459, or $1600, or $1910 or $3000 or $15,000 or $134,000/oz. It is set by what the spot price says it is worth, period.
Go ahead, try me, go walk into a buy gold store and try to sell your 1oz for 1800 because that is what you paid for it. Youll be lucky to not have a gun drawn on you.
Spot vs real price of gold is decoupling as we sit here.
The spot price has now been revealed as a fake price by the mainstream so the cash delivery price is becoming the real price. Some Japanese are paying $500 over the spot price. BTW, Malaysia uses gold coins as currency.
Gold was transitioned out of the monetary system, and it can be transitioned back into the system.
.
pig ignorance at best.
In Zimbawe one spec of Gold gets you a loaf of bread, it buys stuff as the most preferred Money.
So the Jews were sowing gold into their clothes using it to buy and trade because itwasn't money and not worth as much as paper currency?
You wont get gold at spot unless from Some Granny you con.
Spot is the manipulated price of Paper mostly unbacked gold, and the Parting has now happened.
Your American back yard is not the world, there are many places where you can use gold in exchange for goods and services.
Gold must have butt hurt you bad.
And now its up to the bureaucrata who are the protectors of the free markets to step in and deal tp JPMorgan....mmmm....not very likely.
Q: Which is bigger? Jamie Bigger's paper gold monopoly, or the paper gold monopoly of Jamie Bigger's baby?
A: Jamie Biggers baby, because he's a little Bigger.
JPMorgan is well in tune with the government and if tightening or easing is at hand. I don't think Jamie ever makes a guess. He probably knows that QE is ending and fiat is about to get scarce for a while.
The house always wins.
... Too funny, need to round those numbers just a bit. JPM sold 100% of a HUGE PILE OF gold they never had in the first place, and after years of "investigation" by the CFTC Bart and the boys "see no evidence" of the FRAUD.
Fraud by design, Bitchez.
Maybe JPM is selling off other valuable assets too.
If you are about to lehman then you would try to move your good stuff elsewhere although this is generally called fraudulent conveyance.
On the other hand Jamie could have joined the ranks of Deflationists. If he wins this round the guys in the Deflationists Lounge will have to put his picture up and nominate him for Deflationist of the Year.
http://www.goldbarsworldwide.com/
Maybe it's the refiners controlling the price. Who owns the refiners???? That is where all the mined gold goes..........it is all sold to the refiners.
gold is a coat check???
This mchugh fag is copying off of FOFOA.
3 years ago he tore into fofoa, now he rips him off. faggot.
THEY JUST "MAKE BELIEVE" ME RIGHT OUT OF A CHUNK OF FIAT. THESE DAYS DECEPTION REIGNS SUPREME. DAMN YOU APES!( CFTC ,COMEX JP DIMON LIBOR ,MONEX ETC ETC
Mark
in December of 2010 you called fofoa a shithead when you had an issue with one of his essays. Now you use his analogy of the coat check room (for the way GLD works) without giving credit. He has come under much criticism for this as everyone else on the planet argues that the GLD ETF is actively managed.
It would be proper and honorable to credit fofoa if he is your source for the coat check room meme.
If there is another source I would appreciate it if you would let me know.
If you simultaneously arrived at the comparison independently then perhaps you should review your thoughts about fofoa as that would make you two rare birds on the same side of a very lopsided discussion.
An apology might be in order.
thanks
Mark
in December of 2010 you called fofoa a shithead when you had an issue with one of his essays. Now you use his analogy of the coat check room (for the way GLD works) without giving credit. He has come under much criticism for this as everyone else on the planet argues that the GLD ETF is actively managed.
It would be proper and honorable to credit fofoa if he is your source for the coat check room meme.
If there is another source I would appreciate it if you would let me know.
If you simultaneously arrived at the comparison independently then perhaps you should review your thoughts about fofoa as that would make you two rare birds on the same side of a very lopsided discussion.
An apology might be in order.
thanks
http://1.bp.blogspot.com/_cvdgPlEKW9k/TRBAScH1w5I/AAAAAAAABkw/ziqC5DlZqG...
excellent read
TARP for this? Just market making.
A basic question: is this gold on JPM's balance sheet or is it held in custody for its clients? Tyler is basically alleging a massive naked short, right? So we could see the mother of all short squeezes in physical and a collapse in JPM's stock as people realise this makes the London whale look like a Liliputian goldfish. Will the ETFs / paper now start being led by physical? ie, in order to play the short squeeze can we still buy gold futures? Plus: what happens to gold options in all of this? Long gold, long Vix, short JPM - the trade of the century?