• Tim Knight from...
    04/28/2016 - 00:27
    I was expecting a few boring candidate statements of the U.S. Senate - AKA the World's Most Exclusive Club - but, boy, was I wrong. Just take a look at some of these gems.
  • Tim Knight from...
    04/28/2016 - 00:27
    I was expecting a few boring candidate statements of the U.S. Senate - AKA the World's Most Exclusive Club - but, boy, was I wrong. Just take a look at some of these gems.

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gold vault, it not on an absolute basis, then certainly on a relative, when in one day over 260k ounces of gold were withdrawn, leaving a record low 141.6k ounces, or just over 4 tons of gold in the vault.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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Wed, 05/08/2013 - 19:18 | 3542932 mayhem_korner
mayhem_korner's picture

 

 

Ruh roh, Ramie!

Wed, 05/08/2013 - 19:23 | 3542942 AllThatGlitters
AllThatGlitters's picture

trending higher

Wed, 05/08/2013 - 19:26 | 3542956 TwoShortPlanks
TwoShortPlanks's picture

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

Wed, 05/08/2013 - 19:28 | 3542960 AllThatGlitters
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.

 

Wed, 05/08/2013 - 20:19 | 3543109 fourchan
fourchan's picture

cnbc headline

 

"MASSIVE BUYING DRIVES GOLD PRICES LOWER"

 

This "market" is a joke

 

Wed, 05/08/2013 - 20:41 | 3543169 Manthong
Manthong's picture

137K ounces ???

who knew how impotent they were/are  ?

Wed, 05/08/2013 - 21:51 | 3543342 strannick
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...

Wed, 05/08/2013 - 23:10 | 3543393 TwoShortPlanks
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???

Thu, 05/09/2013 - 07:14 | 3543878 imaginalis
imaginalis's picture

Registered to Eligible

=

MFGlobal to JPM

Wed, 05/08/2013 - 19:40 | 3543002 CheapBastard
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.

Wed, 05/08/2013 - 19:52 | 3543034 Rustysilver
Rustysilver's picture

CheapBastard,

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

Wed, 05/08/2013 - 20:23 | 3543119 StarTedStackin'
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!

Thu, 05/09/2013 - 01:20 | 3543698 Manthong
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?

Wed, 05/08/2013 - 20:38 | 3543156 Bullionaire
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.

Wed, 05/08/2013 - 21:07 | 3543240 Midas
Midas's picture

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

Wed, 05/08/2013 - 21:18 | 3543271 Antifederalist
Antifederalist's picture

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

NOT

Dumb fuckers running the show

Wed, 05/08/2013 - 21:43 | 3543327 RaceToTheBottom
RaceToTheBottom's picture

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

Wed, 05/08/2013 - 20:45 | 3543175 BidnessMan
BidnessMan's picture

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

Wed, 05/08/2013 - 21:20 | 3543275 Croesus
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.

 

 

Wed, 05/08/2013 - 21:38 | 3543318 Blano
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.

Wed, 05/08/2013 - 23:38 | 3543567 whatsinaname
whatsinaname's picture

Dear Rusty - You are getting crusty !!

Thu, 05/09/2013 - 00:21 | 3543638 Libertarian777
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?

Thu, 05/09/2013 - 07:53 | 3543922 americhinaman
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%.

Wed, 05/08/2013 - 20:12 | 3543091 fourchan
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.

Wed, 05/08/2013 - 20:25 | 3543123 StarTedStackin'
StarTedStackin&#039;'s picture

Downe arroe four pour spellin!

Wed, 05/08/2013 - 20:40 | 3543164 Bullionaire
Bullionaire's picture

NO, WAIT!  HE MAY BE ONTO SUMPTIN HERE!

 

The perfect meme for the largest wealth transfer in history:

 

ConfisGate!

 

;-)

Thu, 05/09/2013 - 09:26 | 3544215 Carmagnole
Carmagnole's picture

AWESOME !

Tue, 05/14/2013 - 09:50 | 3560162 Ctrl_P
Ctrl_P's picture

Dibs on "ConfisGate" for my troll handle.

Wed, 05/08/2013 - 20:17 | 3543104 StarTedStackin'
StarTedStackin&#039;'s picture

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

Wed, 05/08/2013 - 20:48 | 3543183 asteroids
asteroids's picture

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

Wed, 05/08/2013 - 22:02 | 3543368 philipat
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!!

Wed, 05/08/2013 - 19:48 | 3543020 Room 101
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. 

Wed, 05/08/2013 - 20:32 | 3543129 StarTedStackin'
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!

Wed, 05/08/2013 - 19:45 | 3543013 seek
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.

Thu, 05/09/2013 - 04:34 | 3543796 anonum
Wed, 05/08/2013 - 23:28 | 3543548 Futures trader
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.

Wed, 05/08/2013 - 19:23 | 3542948 kliguy38
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.....

Wed, 05/08/2013 - 19:31 | 3542961 TwoShortPlanks
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.

Wed, 05/08/2013 - 19:47 | 3543017 Sudden Debt
Sudden Debt's picture

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

Wed, 05/08/2013 - 20:19 | 3543108 ziggy59
ziggy59's picture

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

Wed, 05/08/2013 - 19:39 | 3542997 Aeternus
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

Wed, 05/08/2013 - 21:11 | 3543254 Luxy
Luxy's picture

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

Wed, 05/08/2013 - 19:19 | 3542933 Yellowhoard
Yellowhoard's picture

Aaaaaand it's gone.

Wed, 05/08/2013 - 19:33 | 3542974 TwoShortPlanks
TwoShortPlanks's picture

Banking at JPM: http://vimeo.com/60134728

Wed, 05/08/2013 - 20:11 | 3543085 I think I need ...
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,,,,,,,,,,,,,

Wed, 05/08/2013 - 20:58 | 3543219 espirit
espirit's picture

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

Wed, 05/08/2013 - 22:48 | 3543457 GoldForCash
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....

Wed, 05/08/2013 - 20:53 | 3543202 jcpicks
jcpicks's picture

<poof>

Do NOT follow this link or you will be banned from the site!