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JPM Eligible Vault Gold Drops To Fresh Record
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gold vault, it not on an absolute basis, then certainly on a relative, when in one day over 260k ounces of gold were withdrawn, leaving a record low 141.6k ounces, or just over 4 tons of gold in the vault.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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They bluffed and lost it all. It was the stupid bluff of a deluded fool. They wanted to insist they run the gold market, and they don't. Like a crazy person who never questions his sanity, they never questioned their assumptions about gold.
Does the US gove dust off the Hunt playbook now, sooner rather than later?
I'll take famous bank runs for 1,000 , Alex
People holding physical in these vaults still believe in the rule of law. To most people it's inconceivable that JPM could steal their account holdings. Unfortunately, we have seen time after time banksters escape prosecution. Americans are still niave and asleep. Poor bastards.
Heck, I think all of us believe in the rule of law. It's just a question of which law? Murphy's law, law of the jungle, or perhaps the Pirate's Code?
''First, your return to shore was not part of our negotiations nor our agreement, so I must do nothing. And secondly, you must be a pirate for the Pirate's Code to apply, and you're not. And thirdly, the Code is more what you'd call guidelines than actual rules.",
Parlay?
Dammit-
Some of us are still confused. I believe 'Eligible' is the gold that is in acceptable form to deliver through the exchange, some owned by private individuals, some owned by the dealer. At this point, it is not on the market.
'Registered' is the eligible gold they have been given permission to sell off as they see fit.
People trust these sharks with their gold! Baffling. As Kelly Bundy would say, the mind wobbles.
I think you have it backwards. I thought registered belongs to someone. Eligible is for sale or delivery. ???
uhhhh I don't think so. Tyler splained it up there, but it still is fuzzy to many.
Eligible can become registered, then sold.
If you could put a hundred 1/10 oz AGEs in that bank, they can never be eligible. Wrong form.
"Good delivery bars" are the only form traded on the exchange. They are deemed eligible.
Once cleared for sale, then they are registered.
Actually, this might explain why the Bernank became the only FED chairman to EVER care about employment, even at a surface level. He knew that people saying "FU Bernank and WS whores, I am leaving the financial system forever", might have something to do with exposing a sold and rented out gold and silver store and ETF fractional lending.....
Screwtape's Warren James has been keeping tabs on gold and silver bar movements if anyone is interested. http://www.screwtapefiles.blogspot.com/2013/05/on-estimating-population-...
Your last sentence is the money shot. With banks "allowed" to hold such a paltry amount of physical gold compared to their paper outlays.....it would be bedlam.
"All that needs to be said, has been said." Pallas Athena
Food for Thought:
""So long as the people do not care to exercise their freedom, those who wish to tyrannize will do so; for tyrants are active and ardent, and will devote themselves in the name of any number of gods, religious and otherwise, to put shackles upon sleeping men" : Voltaire.
"Unthinking respect for authority is the greatest enemy of truth.": Albert EinsteinThe price of apathy towards public affairs is to be ruled by evil men: Plato
Quotations from Information Clearing House
Ho hum
Bring me the severed head of Jamie Dimon!
Viscount Admiral Nelson ( starring JD )
Timmy G ( as Hardy ) Location Trafalgar
JD is felled by a sniper.
"kiss me Hardy" Hardy replies " Fuck Off "
https://www.youtube.com/watch?v=4TlPo0yCSa4
Here's some music ... grab a chair before it stops!
And once they prove that the Morgue's boss lemon lips Dimon sold all the US Gold Reserves he's going to be bunking with Madoff.
THE FACT THAT JPM STARTED HAVING ELIGIBLE GOLD IN 2011 NEAR THE TOP COULD MEAN THAT THEY ARE TRADING THIS, SELLING NEAR WHAT THEY THINK IS THE TOP OF THE MARKET, HAVING TAKING DELIVERY IN 2011 OF THEIR CALLS IN GOLD...................
SO JPM has 4 tons (tonnes) of Gold in their vault, the Federal reserve has....? And the Germans want their ** 1800 ** tons (tonnes) back.
Not a math whiz, but somebody is in trouble.