JPM Eligible Vault Gold Drops To Fresh Record

Tyler Durden's picture

Two weeks ago we reported about one of the biggest daily withdrawals of eligible gold from the JPM gold vault, it not on an absolute basis, then certainly on a relative, when in one day over 260k ounces of gold were withdrawn, leaving a record low 141.6k ounces, or just over 4 tons of gold in the vault. Subsequently, we tracked the daily additions and withdrawals of gold from the vault to see if any other major withdrawal request would come, instead discovering instance after instance of JPM reclassifying Registered gold into Eligible, which is how the vault saw its eligible inventory rish back to 195K ounces as of yesterday, without any actual net additions or more importantly withdrawals. It seems the pause of withdrawals has ended, and as of yesterday, another delivery led to a withdrawal of 53,658 ounces, or 28.5% of the total, leaving a fresh record low inventory of only 137,377 eligible ounces in the vault.

As a result, total Eligible in the Comex system is now at a level of 6.13 million oz, or roughly the lowest since since 2009.

And since much of the Eligible gold "additions" have come as a result of the reclassification of Registered gold into Eligible, the combined total of Eligible and Registered has also declined to levels last seen in 2008, at just under 8 million total ounces.

But here's the real punchline: if JPM had not been allowed to arbitrarily convert registered gold into eligible in the past two weeks, the firm's current inventory of eligible gold would be just 83,718 troy oz, or a little over one and a half metric tons: an amount that is laughable and is about 3% of the maximum eligible gold (2.8 million oz) held at the JPM vault, shortly after its commercial reopening in October 2010.

Earlier today, when reporting about the insatiable demand for physical out of China, following the report that "The jump in Chinese physical demand also prompted some banks to ship in more supplies from London and Swiss vaults, traders said." we asked "What about New York vaults? And specifically the biggest gold vault in the world, located 90 feet below 1 Chase Manhattan Plaza?" It appears the Chinese may have gotten just a little more gold out of New York today after all.

Finally with gold at record low levels, pay attention to how much more registered gold is converted into eligible in the coming days. Because if one day the registered gold holders realize the "run on the vault" that is going on, and they too ask to have their gold moved elsewhere, then things will really get entertaining.

Source: COMEX

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mayhem_korner's picture

 

 

Ruh roh, Ramie!

TwoShortPlanks's picture

"Following Withdrawal Of 28% Of Holdings"....yeah, that would be the JPM Executive Life Boats departing.

AllThatGlitters's picture

Someone knew. Today's move suggests it.

It looks like it is getting ready to start another leg higher on the daily too:

Live: http://www.pmbull.com/gold-price/

If it does continue to jump, it puts it back into the channel on the daily.

This whole recent episode over the last month was nothing more than a big fat head-fake, and despite some early demand for retail physical, I think new potential retail buyers were scared away. Strong hand stackers that stuck to their guns and added will be rewarded soon enough.

 

fourchan's picture

cnbc headline

 

"MASSIVE BUYING DRIVES GOLD PRICES LOWER"

 

This "market" is a joke

 

Manthong's picture

137K ounces ???

who knew how impotent they were/are  ?

strannick's picture

GLD inventories are at an all time low

COMEX inventories are at an all time low.

Therefore everyone's dumping gold? Or everyone's dumping paper...

"Gold doesnt generate interest'', amoungst buffoons...

TwoShortPlanks's picture

Ya know, with above ground Gold supply now predominantly in strong hands (sell to buy reversal confirms this notion), annual mining production already spoken for at 2,200Tons/yr, and the possibility that the Muppet masters (JPM, GS, HSBC executives, not necessarily their clients) are offloading their shorts to run their newly acquired asset to the high side, we could be fast approaching a time where Institutional Money comes in, followed by Mum & Dad.

We may well see a day, not too far away, where ZH thread posts are back slapping JPM and GS for driving Gold and Silver up.

Did they buy the[ir] dip???

CheapBastard's picture

<< Someone knew>>

 

Yeah, about 1.3 billin Chinese and 1.3 bill Indians crowding the gold stores in the PRC, HK and Bombay know.

Rustysilver's picture

CheapBastard,

Please help me with the math. Of 1.3 B Chinese and Indians how many live on $1 per day.

StarTedStackin&#039;'s picture

RustyBraincells.........

 

 

 

I guess "the Chinese" does not include the Chinese government, which is most likely holding more $$$$ thAN (NOT THEN) the FED!

Manthong's picture

um.. try something a little closer to to 3B Indians and Chinese.. 

but how much real metal could be held by BILLIONS of simple people with a traditional mindset, anyway?

Bullionaire's picture

Ohhhhhh, I'm sorry, Rusty.  The correct question was, "Which Chinese and Indians are not buying gold?"

You're consolation prize is a fat sack of post-1964 US dimes, and thanks for playing.

Midas's picture

I was led to believe "price will solve everything".

Antifederalist's picture

Yeah, and markets are continuous and "Gaussian " in their distribution.

NOT

Dumb fuckers running the show

RaceToTheBottom's picture

Yeah, I had a "Gaussian Distribution" all over the house.  There was nothing Normal about it....

BidnessMan's picture

My math says that 50% would still leave 650,000,000 potential gold buyers.

Croesus's picture

You boys think you're seeing heavy demand? You ain't seen nothin' yet: 

As the "bail-in model" goes dancing from country to country, just wait until the "potential buyers" in the West start trying to crash the party, while demand in the East continues to climb.

This party is just getting started. Guests are still showing up, but the food and drink is going quick.

 

 

Blano's picture

More like 2 billion between the two.

And even if 75% live on a buck a day, that still leaves 500 million potential buyers.

whatsinaname's picture

Dear Rusty - You are getting crusty !!

Libertarian777's picture

1m Chinese are (USD) millionaires. That's $1 trn in wealth right there of people who traditionally know about gold. Sure its smaller than the 9 million millionaires in the USA, but the 'tradition' here in the US is long gone.

Indians buy gold/silver in grams (not entire oz) at a time, making it accessible to those who are poor.

Wonder why gold and silver is flowing from west to east?

americhinaman's picture

i can speak for chinese (don't know about indians).  while a very large proportion lives on <$5 per day (all inclusive rent, food, clothing, etc.  $1 doesn't happen anymore; anyone that poor will have family who supports them).  but even those  in poverty save at least half their earnings.   virtually all their savings are in cash and gold.  when gold prices dip, they buy what they can... bullion units can be as small as a gram, and jewelry can be fractions of a gram.  the markup is high for small units, but it is a price they are willing to pay.

keep in mind that there are also more people in china who live on $1000+ per day than in the USA.  these people typically save well over 80% of their net earnings (unlike the typical American who lives on $1000+ per day, probably does so by taking out credit card loans / mortgages / car loans / student loans / etc. and has a negative savings rate).  these people put a smaller proportion of wealth into gold, "only" around 10-25%.

fourchan's picture

the creation of the federal reserve was to confisgate we the peoples gold and enslave us to debt.

 

their system is treason.

StarTedStackin&#039;'s picture

Downe arroe four pour spellin!

Bullionaire's picture

NO, WAIT!  HE MAY BE ONTO SUMPTIN HERE!

 

The perfect meme for the largest wealth transfer in history:

 

ConfisGate!

 

;-)

Ctrl_P's picture

Dibs on "ConfisGate" for my troll handle.

StarTedStackin&#039;'s picture

Everyone knew, with the exception of those who listen to the Obowel Movement.

asteroids's picture

What happens when the Chinese dump all their US bonds on the market eh? Think gold might skyrocket?

philipat's picture

Incidentally, the combined population of China and India is 2.5 Billion, or about 40% of the total world population. The US has about 4%. Of the population that is, although it might very well now apply to the Gold as well!!

Room 101's picture

Naaah.  One thing that strikes me about the Ides of April is that  the price of Au and Ag has not yet returned to where it was on April 11th.  Not even close.  Notwithstanding lots of stories about phyzz purchase rushes early on. In my view it was a successful smackdown.  No reason to believe the next one won't be as successful. 

StarTedStackin&#039;'s picture

Up arrow to ya, and megga shittoes if you listen to ex-Treasury Sec Paul Craig Roberts!

 

 

He was the first to call the gold/silver shakedown for what it was, and the first to say there would be a GS/SD Par Deux!

seek's picture

I seriously believe this is part -- perhaps a major part -- of what's going on. Especially with Scotia, if you saw their moves in the CME report a week ago, they were putting (new) hundreds of thousands of ounces on the books one day and it was going out the door the next.

All this happens after the mystery white house meeting: the gold takedown, and then shortly thereafter not smart money, but insider money, is walking out the door with the real stuff.

Futures trader's picture

Totally agree.  There are a ton of shorts, and everyone is calling for gold to drop to 1400, or even 1250.  This thing is looking and acting bullish.  Plus, there's short fuel above... COT report shows specs are very short.  Am long GCM13 (June futures) -- will look to add as we move higher.  If the bottom is in this will be an amazing trade over the next few years into the final, parabolic move.

kliguy38's picture

It is truly amazing that so called "the best and brightest" would allow their physical to be held by these criminals......just goes to show you.....

TwoShortPlanks's picture

Intelligence and Common Sense are two totally unrelated things...just ask any Jew still alive from the 1930's.

In affluent times the bias is towards intelligence, in austere times common sense prevails.

We’ve just had 20-30 years of affluence and postponed austerity for a while….but it’s coming.

Sudden Debt's picture

9 billion dollars in gold left.... about the interest of the chinese holdings for about 1 month....

ziggy59's picture

I got approx 205 million from rate of 1500/oz x 138000

Aeternus's picture

Hope Jamie Dimon has a big enough safe to put all of that phyzz in.

 

http://www.youtube.com/watch?v=deuC8GPr31A

Luxy's picture

Warch for yatchs pulling low draft heading south out of NY harbor. Likely headed to a valley in Pategonia. 

Yellowhoard's picture

Aaaaaand it's gone.

I think I need to buy a gun's picture

while you people are worried about pirates taking some treasure my 401k is wayyyyyy up in the last 6 months i will be retired sooooon,,,,,,,,,,,,,

espirit's picture

Heh heh.  The more you play, the more you pay.

GoldForCash's picture

Feds are getting ready to sell you their worthless bonds for all 401 k plans. Even if you don't want to buy them. Best to cash out for a loss and buy silver....