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JPM Eligible Gold Plunges To New Record Low, And Why It Could Have Been Much Worse

Tyler Durden's picture


Back on April 25, in the aftermath of the latest epic precious metals takedown, we reported that something odd had happened: overnight, total Eligible gold held in the vaults of JPM dropped by 65%, or 260.8k ounces in one day, to a record low of only 141.6K ounces. Contrast that with the 2 million Eligible ounces the JPM vault at the basement of 1 CMP held when it reopened.

Since that moment, many were curious if this may not be the start of the proverbial "run on the vault", and whether JPM's COMEX holdings could actually run out, and if so what happens then. And finally: is the dramatic plunge in gold related to any of this (and certainly to the Bundesbank's repatriation of NY Fed gold for the next five years)?  In the ensuing days, JPM's Eligible gold fluctuated in a tight range, until today, when another 22,780 oz were withdrawn from Blythe Masters' metals cellar, bringing JPM's eligible gold to a fresh record low of only 137,377 troy ounces.

But this is only half the story: the details are as always behind the scenes.

Because what the chart above does not show is how, quietly, JPM managed to keep its eligible inventory constant even in light of various withdrawal demands.

The chart below looks at the relative moves in JPM Eligible and Registered gold, starting with the massive withdrawal day, April 25. What is immediately obvious is that the only reason JPM's eligible gold hasn't plunged, is due to the periodic "adjustments" out of Registered into Eligible gold, which on essentially all days in the past three weeks netting out, and for every ounce converted into eligible, one ounce was removed from registered gold.This also explains why even with the three distinct sizable withdrawal days, of 24K, 57.9K, and 22.8K on May 2, May 8 and May 14.

Incidentally, when asked about the rationale behind such seemingly arbitrary reclassifications, and warrant cancellation of registered gold into eligible gold, a market surveillance analyst at the CME replied as follows:

...the adjustment column does reflect the issuance and cancellation of warrants, but it can be used for other purposes as well. Anything that is not received or withdrawn would be reported in the adjustment column.

In other words, JPM and the Comex have full liberty to adjust what is eligible and what is registered, at will, and can thus easily replenish inventory even when it is about to run out.

And run out, it almost would have.

Because if one ignores the 100k or so ounces of Registered gold that were reclassified to replenish eligible inventory, JPM's eligible gold would, as of right now, be down to a negligible 36,931 ounces, or just over 1 ton!

At that point JPM would be down to one withdrawal request away from declaring force majeure on its eligible gold holdings, and all the unpleasant consequences that this would entail for future delivery requests.

Source: COMEX


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Tue, 05/14/2013 - 20:46 | 3562885 CitizenLame
CitizenLame's picture

Gold? What Gold?

Tue, 05/14/2013 - 20:58 | 3562922 Dr.
Dr.'s picture

That stuff without the "backing concept"..


/sarc off.


Tue, 05/14/2013 - 21:06 | 3562949 Debtonation
Debtonation's picture

Is there such thing as negative physical?

Tue, 05/14/2013 - 21:08 | 3562955 toys for tits
toys for tits's picture

Yea ... gold painted tungsten.

Tue, 05/14/2013 - 21:13 | 3562974 francis_sawyer
francis_sawyer's picture

Let's get a raffle going around here to determine which of us gets to take the last ounce off the shelf...

Tue, 05/14/2013 - 21:26 | 3563009 Pinto Currency
Pinto Currency's picture


Registered gold is that which is available for delivery on Comex contracts.

Eligible gold is that, typically, held for clients but is not registered for delivery against Comex contracts.

Clients appear to pullng their gold. 


Tue, 05/14/2013 - 21:46 | 3563019 The Thunder Child
The Thunder Child's picture

The problem is nobody has an alternative method of measuring the true physical price. TPTB dictate the price because there is no other mechanism for price discovery so people just keep looking at the fraud comex price or the LBMA daily price rigging.

What we need is a new website or new non profit start up website that samples all the largest physical dealers for gold/silver prices on 1oz coins/bars 10oz bars, 100oz bars and good delivery 400oz bars. Once a day or once every 24 hours a physical spot price is delivered at a set time. Give it a decent name (i all ready have a few in mind) and get people to contribute from across the community for pricing. I understand that there are price sampling sites all ready but this would be an average of the 10 best prices for each deliverable PM item. The site would need to have complete transparency and it would show the location every single price entry was taken from.

It is not an overnight solution, it would take community effort but it is a solution none the less. Any Takers?

Tue, 05/14/2013 - 21:56 | 3563098 DoChenRollingBearing
DoChenRollingBearing's picture




       Press Release


The central bank of DoChenRollingBearing ("CB-DCRB") announces to the world that it has run out of FIAT$, and, for the time being, will not be making any further purchases of gold.

Naturally it would be self-serving of any responsible central banker to cheer for a higher price of gold who is not actually in the market to buy any.  So, the CB-DCRB will not issue its typical "Gold, bxxxxxx!" exclamation either, at least for now.  It would be self-serving, to watch the price march up while exerting no pressure to send said metal upwards in price.

And for the sake of delicacy to a gentle reader yesterday, the CB-DCRB will refrain from using the word "bxxxxxx".

Tue, 05/14/2013 - 22:27 | 3563240 Spitzer
Spitzer's picture

I phone the main branch of the bullion bank , Bank of Nova Scotia every day to ask about inventory. Since the selloff, they say they have nothing except 1 5 oz bar.I only buy from the main branch so I dont have to pay shipping to a smaller branch. So I went in to buy that 5 oz bar at a diffrent branch today and the lady said (minutes after I asked the main branch about inventory) that she had a 1 oz bar in stock. I said, are you sure ? She said yes.

I told her that the warehouse told me that they had nothing but a 5 oz bar. But she said that she had a 1 oz. So I just bought it. I have to pick it up tommorow. (if it exsists)  I wonder how that phone call to the warehouse is going to go tommorow.

Oh well. I have a contract in my hand that says they owe me an oz of gold tommorow. If they cant find one, I am going to raise some shit.

Tue, 05/14/2013 - 22:34 | 3563258 prains
prains's picture

make sure to take a video

Tue, 05/14/2013 - 23:58 | 3563542 JackT
JackT's picture

Price will drop tomorrow and they will hand you cash equivalent for your troubles. Damns

Wed, 05/15/2013 - 00:43 | 3563634 Spitzer
Spitzer's picture

I will.

The branch I bought from is like 10 minutes from the warehouse/main branch...

Wed, 05/15/2013 - 03:02 | 3563831 Deo vindice
Deo vindice's picture

If it's "like" 10 minutes, what would that be in real, measurable, historically-definable 60-second minutes then?

Just askin'.

Tue, 05/14/2013 - 23:18 | 3563410 Spider55
Spider55's picture

Don't forget to use toilet paper, maybe they can spray paint it gold color and sell it as a 10oz bar!

Tue, 05/14/2013 - 22:06 | 3563152 Room 101
Room 101's picture

Nucleo exchange already exists. 

Tue, 05/14/2013 - 22:08 | 3563164 The Thunder Child
The Thunder Child's picture

Looking to better that, and not sell or exchange on the site(whole new can of worms). Only daily price averages of the direct physical market.

Wed, 05/15/2013 - 08:20 | 3564152 Its_the_economy...
Its_the_economy_stupid's picture

Tue, 05/14/2013 - 22:54 | 3563323 Professorlocknload
Professorlocknload's picture

Doesn't look like gold to me. Looks more like statistics released by questionable financial institutions. Anyone audit JPM on this? Are they more credible than the Fed?


Tue, 05/14/2013 - 23:20 | 3563388 Spider55
Spider55's picture

Sounds like good old voodoo accounting -

Tue, 05/14/2013 - 21:30 | 3563017 espirit
espirit's picture

In my neck of the woods, they've already sold the shelves...

Tue, 05/14/2013 - 22:18 | 3563211 The Thunder Child
The Thunder Child's picture

Best walk in bullion dealer / LCS in the GTA (my turf) is fully stocked up.

Tue, 05/14/2013 - 21:30 | 3563018 Al Gorerhythm
Al Gorerhythm's picture

Oh yeah. 100:1 fractional reserve sales slips or 128 trillion of unfunded US liabilities (promises to pay) or 17 Trillion fed government debt or 60 trillion national governments debts Oh yeah, I do believe there is. Another example is ABN  Amro's admission of negative allocated gold in vault for delivery on demand. I do believe that's negative. But then, that's bullish, right?

Tue, 05/14/2013 - 22:08 | 3563160 Monedas
Monedas's picture

Bitcoin ?

Tue, 05/14/2013 - 23:04 | 3563358 FreedomGuy
FreedomGuy's picture

Or how about "notional gold"? That is gold that is on paper that you own but may or may not exist in real life.

I can see how they might actually reclassify instantly and as necessary. I suspect it involves simply taking allocated gold and making it available while creating some sort of paper debt to the owner of the allocated gold...based on placing a order to a real mine to obtain real gold...someday. It is based on "You can trust us." accounting methods.

I suspect these financial behemoths like JPM are beyond the reach of mere mortals with accepted accounting methods, laws and established procedures.

Wed, 05/15/2013 - 00:01 | 3563540 ForWhomTheTollBuilds
ForWhomTheTollBuilds's picture

I still say there will be a moment where physical gold (which could be fake) will trade at a discount while gold certificates (which are a claim to gold gauranteed to be real) trade at a premium.


Only in the west of course.  Jon Stewart will do a rant about a guy who bought a stupid yellow brick from another paranoid nut when he could have bought a geniuine gold certificate backed by a trusted institution.


I just don't think people understand just how crazy its gonna get before reality finally smashes us in our collective face.

Wed, 05/15/2013 - 08:21 | 3564153 Chuck Walla
Chuck Walla's picture

Is there such thing as negative physical?

Its called tungsten.


Tue, 05/14/2013 - 21:21 | 3562994 Al Gorerhythm
Al Gorerhythm's picture

1 ton of gold: A cube measuring 14.16 inches. That's a big vault you have there for such a tiny block, Blythe.

Tue, 05/14/2013 - 22:48 | 3563303 Temporalist
Temporalist's picture

The better to cheat you with my pretty! -The Wicked Witch

Tue, 05/14/2013 - 21:56 | 3563118 DoChenRollingBearing
DoChenRollingBearing's picture

@ CitizenLame


The central bank of DoChenRollingBearing ("CB-DCRB") would like to reassure the public that it indeed does have all the gold in its vaults that it claims to.

Wed, 05/15/2013 - 00:03 | 3563557 Al Gorerhythm
Al Gorerhythm's picture

Would you care to let me audit that?

Tue, 05/14/2013 - 21:02 | 3562895 Wakanda
Wakanda's picture

"Just one ton of gold left

And what do you get?

Another day older and deeper in debt

Saint Peter don't ya call me 'cause I can't go!

I owe my soul to the company store"

Goin' out to Blythe Masters over at the Morgue

Tue, 05/14/2013 - 21:14 | 3562979 lickspitler
lickspitler's picture

I don't care if Paper Gold goes to zero.

In my eyes my stack won't be worthless.

Tue, 05/14/2013 - 20:52 | 3562902 EscapeKey
EscapeKey's picture

As long as there remains bankrupt Mediterranean nations, there's gold to be stolen.

Wed, 05/15/2013 - 00:53 | 3563656 PontifexMaximus
PontifexMaximus's picture

Because they have gold they are not bankrupt.

Tue, 05/14/2013 - 20:52 | 3562903 Bastiat
Bastiat's picture

It's nothing short of barbaric to bring attention to such things.

Tue, 05/14/2013 - 20:57 | 3562923 Theta_Burn
Theta_Burn's picture

Your right, fuck it, i'm getting rid of any gold/silver I have and buying a BMW...

Wed, 05/15/2013 - 11:54 | 3565065 SILVERGEDDON

That works only in Brazil as a hedge against the peso. Maybe if you get a Brazillian to deal with unwanted hair along with the car, you'll be stylin'.

Tue, 05/14/2013 - 22:03 | 3563145 Cdad
Cdad's picture

Over and over, issue after issue, it is JP Morgan at the heart of it all.  One day, people in this country will recognize that this particular TBTF bank needs to go.  And at that time, folks could readily withdraw all funds from the bank, and short the shares.

And a grateful nation would rejoice...

Tue, 05/14/2013 - 23:23 | 3563431 Spider55
Spider55's picture

Don't forget Goldman too!

Tue, 05/14/2013 - 20:53 | 3562909 texas goldfinger
texas goldfinger's picture

The whole point of this latest "discovery" is that the numbers are meaningless and there is really no useful information to be gleaned from them.  Nothing to see here, move along.

Tue, 05/14/2013 - 21:42 | 3563069 espirit
espirit's picture

You're missing the point.  This is a reorganization and restructure of Gold on loan.  Paybacks happening all around the globe.

Everybody owes.

Wed, 05/15/2013 - 11:28 | 3564915 texas goldfinger
texas goldfinger's picture

So I guess the $33 (and counting) drop today is the result of JPM having to go out into the market and buy some gold bars?  Wouldn't prices be going up, not down?  And please don't tell me that they are shaking gold bars out of GLD.  Those numbers are also a complete fiction (in case you never bothered to read the prospectus or understand the mechanics of how the market makers operate).

Tue, 05/14/2013 - 20:54 | 3562910 Thisson
Thisson's picture

For anyone that cares, here's a good description of the difference between Eligible comex metal and Registered comex metal:

The registered gold is what's available for delivery.  The eligible gold is relevant insofar as it can be converted to registered gold if the owner wants to make it available for delivery.


Tue, 05/14/2013 - 21:00 | 3562928 fonzannoon
fonzannoon's picture

Is there an unlimited amount of eligible gold?

Tue, 05/14/2013 - 21:10 | 3562962 toys for tits
toys for tits's picture

Of course ... if it's made out of little sheets of paper.

Tue, 05/14/2013 - 21:16 | 3562982 fonzannoon
fonzannoon's picture

I hear you toys. But that presents a problem at some point. ZH worded it in a way that made it seem like default never comes into the equation.

Wed, 05/15/2013 - 05:12 | 3563916 ParkAveFlasher
ParkAveFlasher's picture

If the umpire will not call strikes, nobody will strike out.

Wed, 05/15/2013 - 01:22 | 3563444 Spider55
Spider55's picture

So if you the combined the two that would give you the true valve of there physical gold on hand - right?



Tue, 05/14/2013 - 20:55 | 3562912 fonzannoon
fonzannoon's picture

"In other words, JPM and the Comex have full liberty to adjust what is eligible and what is registered, at will, and can thus easily replenish inventory even when it is about to run out."

So that's a wrap for the JPM vault story?

Tue, 05/14/2013 - 21:24 | 3563002 Bay of Pigs
Bay of Pigs's picture

Maybe Bart Chilton can look into this story after he's done with the silver investigation?

Tue, 05/14/2013 - 21:34 | 3563034 Al Gorerhythm
Al Gorerhythm's picture

M..... F...... Global..... Account Holders  = Eligible....... gold....... holders.

Silly sausages.

Tue, 05/14/2013 - 21:36 | 3563041 andrewp111
andrewp111's picture

What if the registered runs to zero? Then they are stuck.

Tue, 05/14/2013 - 21:45 | 3563082 kito
kito's picture

fonz you have a new neighbor in l.i.....................


looks like the real asset grab is on.............

Tue, 05/14/2013 - 21:50 | 3563097 fonzannoon
fonzannoon's picture

I drove out there a few weekends ago. Was in hampton bays and southampton. The whole place was for sale. Every street was littered with for sale signs. Those are not the big money areas, but it seems the upper middle and lower upper class is getting weeded out.

Wed, 05/15/2013 - 05:52 | 3563945 malikai
malikai's picture

I'd totally grab her assets.

Tue, 05/14/2013 - 23:57 | 3563541 jerry_theking_lawler
jerry_theking_lawler's picture

eventually JPM will be Krugerranded.....when all actual physical gold is turned into gold coins and sold....then they can shift, eligible, registered, allocated, unallocated PAPER wherever they want to....

Tue, 05/14/2013 - 20:57 | 3562917 AL_SWEARENGEN

Gold confers power.  Power comes to anyone who has the color.

Tue, 05/14/2013 - 21:09 | 3562919 nmewn
nmewn's picture

Just demand the physical in what they have pledged they have in their possession by their "paper ticket" issuances and promise (pinky swear) that they do.

Game over.


Wow, the statist pukes are out in full force tonight.

Call out the Palace Guards!!!...ROTFL!!!

Tue, 05/14/2013 - 20:58 | 3562924 gimli
gimli's picture

Jaime is just shifting his gold retirement holdings to his South African fortress before he retires, about 137,000 ounces to go.

Tue, 05/14/2013 - 21:05 | 3562931 Bloody Chiclitz
Bloody Chiclitz's picture

This shit is starting to get real.

When it gets real I think there is going to be a short term spike. Only short term cause the the gubmnts will move to balance things out.

They are getting to the point where they can't paper over this no mo. So watch the skies.

Tue, 05/14/2013 - 23:54 | 3563532 Missiondweller
Missiondweller's picture

Problem is the govs have leased it out to bullion banks that can't buy it back because its been shipped to China....and they aint sellin.

Tue, 05/14/2013 - 21:05 | 3562940 kito
kito's picture

JPM Eligible Gold Plunges To New Record Low, And Why It Could Have Been Much Worse.....


Tue, 05/14/2013 - 21:21 | 3562995 Dr. Engali
Dr. Engali's picture

I hope you started dipping your toe into precious metals Kito. If you wait until the paper price hammers it down to the level you're waiting for there may not be any left for you to get.

Tue, 05/14/2013 - 21:25 | 3563006 kito
kito's picture

im on it on it................almost.......................dr fekete has really opened my eyes......the idea that no matter which way the endgame is a haven..................

Tue, 05/14/2013 - 21:36 | 3563043 espirit
espirit's picture

What have you done with the real kito?

Tue, 05/14/2013 - 21:43 | 3563071 kito
kito's picture

still here....and wavering..................................

Tue, 05/14/2013 - 22:01 | 3563138 Bay of Pigs
Bay of Pigs's picture

kito reading Fekete? Holy Shit...  

Tue, 05/14/2013 - 22:05 | 3563150 kito
kito's picture

Well bay...he is a flat earth deflationista...

Tue, 05/14/2013 - 22:26 | 3563237 IridiumRebel
IridiumRebel's picture

I think we have our "sign".

Tue, 05/14/2013 - 22:46 | 3563300 Yen Cross
Yen Cross's picture


Wed, 05/15/2013 - 10:16 | 3564524 phalfa5
phalfa5's picture

OUCH ...   hit me right on the head...


Tue, 05/14/2013 - 21:26 | 3563008 espirit
espirit's picture

+1 You're absolutely right Doc.

Tue, 05/14/2013 - 21:06 | 3562943 The Fonz...befo...
The Fonz...before shark jump's picture

Yeah but they have that tunnel that connects to the fed....the fed would spot em

Tue, 05/14/2013 - 21:24 | 3562999 francis_sawyer
francis_sawyer's picture

@kito ^^^^^


Damn kito ~ Are you some kind of FONZ magnet or something?

Edit: ooops... looks like <doc> broke the force field

Tue, 05/14/2013 - 21:27 | 3563012 kito
kito's picture

haha...ive had no conversation with this other "fonz"......perhaps i should break the ice.............what topic do you recommend????

Tue, 05/14/2013 - 22:08 | 3563163 nmewn
nmewn's picture


Tue, 05/14/2013 - 22:17 | 3563196 francis_sawyer
francis_sawyer's picture

sharkjumping in the Yemen...

Tue, 05/14/2013 - 22:48 | 3563307 Yen Cross
Yen Cross's picture

 F_S I did a screen shot, for the Great Barrier Reef Z(H) Reunion.

Wed, 05/15/2013 - 07:26 | 3564064 Urban Redneck
Urban Redneck's picture

Anyone from ZH going to be London June 1st for the goldbug gathering?

Tue, 05/14/2013 - 21:40 | 3563059 THX 1178
THX 1178's picture

> Fed prints money out of thin air to buy gold.

> JPM prints money via Fractional Reserve out of thin air.

> Both buy gold from each other. High traffic vault under NY street.


> Gold supply goes to 1 gajillion ounces and climbing.

> Everybuddy rich.

> Utopia.

> Scientists/Mathematicians finally understand infinity.

Tue, 05/14/2013 - 21:06 | 3562945 booboo
booboo's picture

Hear that? the door squeak? shuffling feet? chairs being rearranged? shhhh! muffled voices! no, not a AA meeting, the sound of JET ENGINES!!! TPTB moving their shit outta the land of the freep and home of the slaves. Nothing says goodby like the clanking of ingots on pallets.

Tue, 05/14/2013 - 21:35 | 3563039 Possible Impact
Possible Impact's picture

"Nothing says goodby like the clanking of ingots on pallets."

+1   I'm copying that one.

Tue, 05/14/2013 - 22:15 | 3563193 SamAdams
SamAdams's picture

You will find this interesting:

Look for article regarding "Gangster State America".  Discusses who can naked short, stop-loss, margin calls, China and India dumping dollars for gold, Comex stores relative to futures.  

Tue, 05/14/2013 - 21:06 | 3562947 Bobportlandor
Bobportlandor's picture

Not to go to waste I propose it be used as a burial vault for all the bankers

Tue, 05/14/2013 - 21:12 | 3562968 toys for tits
toys for tits's picture

I like that - modern day pyramids.

Ben B. Tut does have a nice ring to it.

Tue, 05/14/2013 - 21:14 | 3562978 The Fonz...befo...
The Fonz...before shark jump's picture

Bobportlandor I agree but let's take it a step further....condem the bankers to work deep in an underground mine....first honest days work ever for them...and it would finally teach them to appreciate the labour and effort it takes to mine a small amount of gold....

Wed, 05/15/2013 - 07:14 | 3564040 FreeNewEnergy
FreeNewEnergy's picture

...and pay them the going rate of $5 an ounce.

Tue, 05/14/2013 - 21:30 | 3563014 Fuku Ben
Fuku Ben's picture

Seems like a waste of a good vault

Tue, 05/14/2013 - 21:07 | 3562952 CheapBastard
CheapBastard's picture

They'll need to Rehypothecate OPG (Other People's Gold) at a faster rate.

Tue, 05/14/2013 - 22:16 | 3563199 e_goldstein
e_goldstein's picture

Where the fuck is J. Corzine when you need him?


Tue, 05/14/2013 - 21:09 | 3562956 Cognitive Dissonance
Cognitive Dissonance's picture

When The Crimex and JPM can no longer play the game by the rules they will change the rules. Cus he who owns the Gold makes the rulez. And he who possesses the Gold owns the Gold.

Tue, 05/14/2013 - 21:20 | 3562991 espirit
espirit's picture

There is a much higher power that perhaps reclaimed what was rightfully theirs.

Do I need mention the "V" word?

Tue, 05/14/2013 - 21:12 | 3562971 They Tried to S...
They Tried to Steal My Gold's picture

"The registered gold is what's available for delivery.  The eligible gold is relevant insofar as it can be converted to registered gold if the owner wants to make it available for delivery."

So if a number of large banks and central banks are in on the ponzi scheme they basically 
"lend" gold to the Comex and Comex delivers. Then at some point - Comex will need to pay back that gold to the said large bank or central bank.




Tue, 05/14/2013 - 21:49 | 3563079 Cognitive Dissonance
Cognitive Dissonance's picture

Maybe......maybe not. The central banks have been playing the Gold leasing game for decades. I suspect they are closer to the end game than we think. And that game doesn't end when they run out of Gold. Since ultimately it is a (Gold) confidence game they are playing once confidence begins to falter that the central banks might not be able to kick the can down the road much further there will be a massive rush for the exit. Then it is game over.

Tue, 05/14/2013 - 22:20 | 3563217 SAT 800
SAT 800's picture

Ignorant fool. You imagine that peopel who are genetically three times smarter than you are and have been studying this subject all their lives understand less thean you do? Ah, egotism; what a balm for the broken and bankrupt make believe investor.

Tue, 05/14/2013 - 22:29 | 3563244 Dr. Engali
Dr. Engali's picture

CD may be an ignorant fool, but I'm pretty sure he knows how to spell people and then.

Tue, 05/14/2013 - 22:33 | 3563253 fonzannoon
fonzannoon's picture

it's always interesting to watch someone who normally has intelligent posts fly off the handle. WTF?

Tue, 05/14/2013 - 22:35 | 3563262 Dr. Engali
Dr. Engali's picture

Big gulps full of wine coolers.

Tue, 05/14/2013 - 22:41 | 3563277 MissCellany
MissCellany's picture

Er um...and it's not egotism to invent a handle like "SAT 800"??? Snort.

Wed, 05/15/2013 - 22:41 | 3567710 MeelionDollerBogus
MeelionDollerBogus's picture

You're an idiot. Those who are that much smarter are controlling the vaults without names on them, they are changing the laws while breaking any that exist. You can't get anything right. You have no idea who they even are. The only one clear truth is those holding gold now - all of us - are free & clear.

Tue, 05/14/2013 - 21:13 | 3562972 Xploregon
Xploregon's picture

OK. So this is what we've been waiting for right? They're running out and very soon phyz will totally separate from paper, we'll have true price discovery and liftoff right? Or have I missed something?

Wed, 05/15/2013 - 05:58 | 3563952 AE911Truth
AE911Truth's picture

There has been conjecture that gold stolen by Japan from China prior and during WWII is the source of the supply of gold coming onto the market. In 2012, GATA's Chris Powell discounted that possibility in his post, If U.S. had 'Yamashita's Gold', they'd put it in Cracker Jack boxes.

While I concur with Powell that if the US had access to such gold in 1968, they would have employed it to prevent the collapse of the London Gold Pool. It is my belief, however, that such gold did exist but, in 1968, "Yamashita's gold", i.e. China's stolen gold, was still a tightly held secret of the US government privy to only the top echelons of the CIA and a few others.

More importantly, however, in the 1960s China's stolen gold, i.e. 'Yamashita's gold', had not yet been laundered into the international banking system. The laundering of the illicit horde of gold was not to happen until the 1980s, the decade when, not coincidentally, American Barrick, a junior oil and gas producer, was to become Barrick Gold.

No less than the esteemed Professor Antal E. Fekete recognized the possibility of gold laundering by Barrick when he questioned Barrick's inexplicable and self-defeating strategy of unhedged forward selling of gold at prices far below the market.

In his August 2006 article, To Barrick Or To Be Barricked, That Is The Question, Professor Fekete suggested Barricks strategy could, in fact, be an operation to cover up the laundering of gold. The professor wrote:

Is Barrick a front to cover up gold laundering?

..unless Barrick was a front to cover up gold laundering by governments, in which case unilateral forward selling was not a mistake but a deliberate policy...The suspicion that Barrick is a front to cover up a gigantic gold-laundering operation, presumably on behalf of a government (or governments) that need more time to complete a gold acquisition program in the order of thousands of tons of gold, is hard to escape.

In my book, Light In A Dark Place, I quote from EP Heidner's Collateral Damagewhich confirms what Professor Fekete had surmised-but Barrick wasn't laundering gold to complete a gold acquisition program as believed by Professor Fekete-Barrick was, in fact, laundering China's stolen gold to bring it into the international banking system.

US Intelligence operations had been siphoning off the gold [China's stolen gold] for three decades. However in 1986 Vice President George Bush took over the gold from Marcos and the gold was removed to a series of banks, notably Citibank, Chase Manhattan, Hong Kong Shanghai Banking Corporation, UBS and Banker's Trust, and held in a depository in Kloten, Switzerland.

In 1992, George Bush [former Director of the CIA] served on the Advisory Board of Barrick Gold. The Barrick operation would create billions of dollars of paper gold by creating 'gold derivatives' ...[and] would become an investment for nearly every gold bullion bank associated with the Marcos gold recovery [China's stolen gold]. These banks would loan gold to Barrick, which would then sell the borrowed gold as derivatives, with the promise of replacing the borrowed gold with their gold mining operation.

Barrick, which has no mining operations in Europe, used two refineries in Switzerland: MKS Finance S.A. and Argor-Heraeus S.A. - both on the Italian border near Milan, a few hours away from the gold depository in Zurich...The question that Barrick and other banks needed to avoid answering is: what gold was Barrick refining in Switzerland, as they have no mines in that region?

Barrick would become a quiet gold-producing partner for a number of major banks, and its activities became subject to an FBI investigation into gold-price-fixing. The records on this investigation were kept in the FBI office on the 23rd floor of the North Tower, which was destroyed by bomb blasts shortly before the Tower collapsed.

p. 11, Collateral Damage: US Covert Operations and the Terrorist Attacks on September 11, 2001, EP Heidner (2008)

Tue, 05/14/2013 - 21:14 | 3562977 Mike in GA
Mike in GA's picture

Gee, Germany should have asked for its gold 8 years ago, not 1 since it's gonna take 7 years to fill the order.  Remember Hugo Chavez?  He was the first one to repatriate his country's gold.  Bet Angela Merkel wishes the Bundesbank had followed suit.

Tue, 05/14/2013 - 21:47 | 3563086 Pure Evil
Pure Evil's picture

Do we have any real substantiated proof that they got their gold? I'm just wondering since it seems everything we're told by the MSM/.gov is practically a lie.

That's right you cocksucking assholes, I'm a doubting Thomas.

Tue, 05/14/2013 - 22:17 | 3563205 SAT 800
SAT 800's picture

What you missed; owing to "educating" yourself on internet blogs; is reality. the mines and refiners are still delivering to the bullion banks.

Wed, 05/15/2013 - 02:01 | 3563760 Arius
Arius's picture

mines are losing money, and many are in the process of closing down ...

Wed, 05/15/2013 - 06:09 | 3563959 BidnessMan
BidnessMan's picture

China is now the world's largest miner of gold, and not one ounce is going to bullion banks.  The Chinese are now also the world's largest importer of gold. 

Wed, 05/15/2013 - 07:37 | 3564084 Urban Redneck
Urban Redneck's picture

The Chinese aren't just mining gold in China...

Has anyone done an analysis on the share of total production that can be attributed to majority Chinese-owned mining companies worldwide?  

Or better yet, whether that gold is still flowing through traditional conduits or being off-taken to somewhere else?

Tue, 05/14/2013 - 21:16 | 3562985 Rusty Shorts
Tue, 05/14/2013 - 21:18 | 3562988 billwilson
billwilson's picture


Tue, 05/14/2013 - 21:28 | 3563013 Yen Cross
Yen Cross's picture

    Where do the Japs stack their gold?   Don't tell me... JPM?

Tue, 05/14/2013 - 21:30 | 3563015 Danielvr
Danielvr's picture

Does JPM's supply even matter?  Futures traders (including physical buyers) trade against Comex right, not directly against JPM. So, what really matters is the registered gold held by ALL bullion banks who trade at Comex, not just JPM. There are several more and from what I recall they all had much more registered gold on hand than JPM. So, it will be a while before Comex runs out.

Tue, 05/14/2013 - 21:32 | 3563024 andrewp111
andrewp111's picture

I'd love to see them run out completely and be forced to default on delivery orders, or to have to acquire the metal elsewhere at whatever premium price they need to pay. This is just like a "short squeeze", but in metal instead of Volkswagen..

Tue, 05/14/2013 - 21:55 | 3563120 seek
seek's picture

If you believe Andrew Macguire, this has already happened and the LBMA is paying above market for the real stuff behind the scenes.

Tue, 05/14/2013 - 21:42 | 3563070 drbill
drbill's picture

I still don't see why the Morgue would be honest about reporting their gold inventory...

Tue, 05/14/2013 - 22:16 | 3563198 SAT 800
SAT 800's picture

Because, unlike you; they know it signifies nothing. it is merely a spasm of ignorant buying. Did you forget about mines and refiners; they deliver every month. Duh!

Wed, 05/15/2013 - 02:03 | 3563767 Arius
Arius's picture

forget mines, their business is damaging the environment

Tue, 05/14/2013 - 21:43 | 3563074 WTFUD
WTFUD's picture

HRH QE11 was in (her counting house) the vault and exclaimed "where the fucks my gold?"

Tue, 05/14/2013 - 21:44 | 3563077 JJ McApe
JJ McApe's picture

Pushing US/EU/JAP/XXX debt into equities will not increase their value.

These markets are doomed.

Tue, 05/14/2013 - 21:50 | 3563099 Hulk
Hulk's picture

I went from eligible to registered and let me tell you, it was a real bummer ...

Wed, 05/15/2013 - 00:29 | 3563613 Jam Akin
Jam Akin's picture

That can be a costly transition both in $ and fun!

Wed, 05/15/2013 - 05:01 | 3563905 Cacete de Ouro
Cacete de Ouro's picture

Looks like JP Morgan could help you out there buddy. They specialise in revoking might call it annulments

Tue, 05/14/2013 - 21:52 | 3563111 Legolas
Legolas's picture

Removal of assets before the great financial meltdown (takedown) ?

One could hope so, anyway.


Tue, 05/14/2013 - 21:54 | 3563116 WTFUD
WTFUD's picture

Sorry Edit she said "don't give me all that your majesty bollocks, where's my fucking gold?"

Tue, 05/14/2013 - 21:55 | 3563121 PlasmoMatic76
PlasmoMatic76's picture

It's perfectly reasonable for registered to be converted to eligible.  This is what happens when someone buys gold from the house at spot so they can deliver on the short they sold.  Eligible represents warrants outstanding.  A warrant holder can ask for his eligible gold to be removed from the vault, which seems to be what's happening.  JPM won't default as long as they don't sell more warrants than they have physical stock to back them up.

Tue, 05/14/2013 - 22:14 | 3563187 SAT 800
SAT 800's picture

You are lecturing sub-normal morons who have never spent an hour in their lives doing research; and couldn't think logically if their life depended on it.

Tue, 05/14/2013 - 23:02 | 3563352 Dr. Engali
Dr. Engali's picture

You are busy calling everybody here a "sub- normal moron" while your posts are all full of grammar and spelling errors, and you have yet to use a semicolon in a proper fashion. I'd say instead of SAT 800 it's more like SAT 80.

Tue, 05/14/2013 - 22:16 | 3563201 Cognitive Dissonance
Cognitive Dissonance's picture

And you know JPM hasn't already sold more warrants than they have physical to back them up because...................they would never do that?

Tue, 05/14/2013 - 22:25 | 3563233 PlasmoMatic76
PlasmoMatic76's picture

I have no way of knowing one way or the other.  Looks like we might find out soon.  I'm just saying the absolute level of physical in their vault is not so important, as long as it's not over-subscribed.  There are more COMEX members than just JPM and they can continue making a market even if JPM inventory goes to zero.

Tue, 05/14/2013 - 21:59 | 3563129 Antifederalist
Antifederalist's picture

Paper fraudmeisters are about to have their bluff called.

Paper claims are not metal.

Cosmic justice. Couldn't happen to a nicer bunch.

Wouldn't want to be Rubin, Blankfein, Dimon, et. al.

Reaction of the people will not be pretty.

Tue, 05/14/2013 - 22:02 | 3563140 rosiescenario
rosiescenario's picture

Eligble...Registered....under which shell is th pea? Is there a pea? We saw one when the game began, but who knows where it has gone.


Who knows what JPM has or has not in its vaults. I'd trust them to be giving accurate numbers about as far as I'd trust Holder to conduct an impartial inquiry into the IRS.....

Tue, 05/14/2013 - 22:03 | 3563144 Diablo
Diablo's picture

dont get your panties in a bunch goldbugs and chicken littles:

Tue, 05/14/2013 - 22:07 | 3563155 SAT 800
SAT 800's picture

What yoy missed is that there is no "phyz' versus paper price. what you pay for like the chumpt you are; is fabrication and fantasy falue. gold is avaiable by the Metric Tonne at Bulolion at todays quoted Comex price; which is the real price. The Mines and refiners are continually restocking the warehouses; did you "forget this" somehow. What infantile fantasies. The Market is in the hands of the Bears; Maybe this will change; maybe ity won't. Of course, it's very seductive to believe that you :"know" amazing things that "guarantee" higher gold prices. We await reality to find out.

Tue, 05/14/2013 - 22:08 | 3563165 SAT 800
SAT 800's picture

As long as the serious professionals can make more money on dividend paying major industrial stocks than they can on Gold; you are doomed. No one knows the final outcome; there is no "long term".

Wed, 05/15/2013 - 06:47 | 3564009 auric1234
auric1234's picture

So we're doomed only as long as the equities-derivatives-bonds mega-bubble created by the Fed doesn't burst?

I feel much better now.


Tue, 05/14/2013 - 22:11 | 3563175 russwinter
russwinter's picture

Orders for Gold Go Unfilled in Asia


Tue, 05/14/2013 - 22:11 | 3563176 SAT 800
SAT 800's picture

Basically, the reduction in warehouse stocks is due to "useful idiots" as Lenin called them; the mines and refiners will replenish the stocks; is this not obvious enough for you.?

Wed, 05/15/2013 - 22:08 | 3567606 MeelionDollerBogus
MeelionDollerBogus's picture

You might want to wait until that replenishment before making the claim. The purpose of the futures contracts is to match time of delivery to become inventory to the expiry on the contracts. We'll see. There's a reason LME doesn't handle nickel anymore: they sold contracts and NEVER replenished.

Tue, 05/14/2013 - 22:13 | 3563185 MFLTucson
MFLTucson's picture

So the all American crime syndication run by Don Dimon continue with the fraud till all the tricks run out then they will steal Gold from the ETF, if not already done.

Tue, 05/14/2013 - 22:21 | 3563224 SAT 800
SAT 800's picture

the aritcle is meanignless drivel; but of course; it excites the ignorant masses; the function of successful journalism.

Tue, 05/14/2013 - 22:38 | 3563270 jomama
jomama's picture

oh, i didn't read your last article for comparison.  where can i find it?

Wed, 05/15/2013 - 00:56 | 3563660 A. Magnus
A. Magnus's picture

Somebody called for Palace Guards earlier, sorry I'm late but I'll make up for lost time.

SAT 800:

Ummmm, who the fuck died and made you the God of Journalism, you little sanctimonious douche nozzle? All you've been doing tonight besides violating your bound and quadraplegic stepsister in your mother's basement has been a colossal waste of everybody's fucking precious time. Including your quadraplegic sister - she's had MUCH better.

If we wanted to hear a bunch of JP Morgan love spunk felching, Goldman Sachs diarrhetic teabagging bullshit we'd be posting on OTHER FUCKING WEBSITES, you little prick sucking man-whore! Tell your bitch bosses that their bullshit is STILL not appreciated in these parts...

Tue, 05/14/2013 - 22:42 | 3563283 Me_Myself_and_I
Me_Myself_and_I's picture

When the default happens there will be lots of wailing in the mainstream media about how 'no one saw this coming' and 'where were the regulators' and 'it's Obama's fault because he's from Kenya' and similar nonsense.

Others will ridicule the role of gold generally.. perhaps calling it a quaint relic whose vanishing presence in the vaults is not really a big deal.  After all, we're the richest, bestest nation on earth!


Tue, 05/14/2013 - 22:48 | 3563305 Lmo Mutton
Lmo Mutton's picture

Eligible smelligible.  What could possibly go wrong?

Tue, 05/14/2013 - 22:55 | 3563322 Judge Crater
Judge Crater's picture

Too bad JPM doesn't have the juice of NYC Mayor Bloomberg.  JPM can't call in a favor to AG Eric Hoolder at the US Department of Justice and ask him to hoover up all of Tyler Durden's phone calls and e-mails on the pretext that Durden is not violating national  security. the lead targets of the USDOJ investigation were AP reporters Matt Apuzzo and Adam Goldman, the same two reporters whose story on the illegal MYPD surveillance of New Jersey Muslims embarrassed Bloomberg and NYPD Commissioner Kelly, as well as revealing how the NYPD became a well paid retirement home/employer for former CIA spooks.  The CIA high command got rid of Petraeus as director when he planned to send many Washington-based agents into the field, far away from their families for lengthy periods of time.  The AP story on the CIA link to the NYPD put the careers of former CIA agents on the NYC payroll in jeopardy.  The CIA believes in payback, so they found a bogus "national security" excuse to jam the AP and its reporters. To appease Bloomberg, Kelly and the double dipping former CIA agents, AG Holder approved the AP blanket search warrant, which almost certainly also included physical surveillance of the reporters, shadowed by FBI agents. 

Tue, 05/14/2013 - 23:29 | 3563450 Inbetween is pain
Inbetween is pain's picture

That is one of the silliest conspiracy theories I've heard in a long time.  Ha ha!!!  It takes some very creative minds to think these things up, though!

Wed, 05/15/2013 - 09:15 | 3564302 Bullionaire
Bullionaire's picture

Insert head in sand; do not pass Go; do not collect bullion.

Wed, 05/15/2013 - 22:04 | 3567591 MeelionDollerBogus
MeelionDollerBogus's picture

It's not a conspiracy theory because it's not a theory. It's evidence & based on claims by COMEX of what is normal operations. That's why we value this skill called "reading comprehension"

Tue, 05/14/2013 - 23:01 | 3563346 muleskinner
muleskinner's picture

When the vault doors are opened, it will be filled with IOUs and there will be no gold.


And... it's gone.

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