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JPM Vault Gold Drops By 28.4% Overnight, Slides To Fresh Record Low As Withdrawals Accelerate
With a massive 6,208 (or 80% of the total in the entire Comex system) Customer Delivery issues outstanding against JPM so far in June alone, many have been wondering - how and when will the firm reconcile what is seemingly more demand for JPM vaulted gold than the firm has in its possession?
While we still don't have the answer, what we do know is that as of an hour ago when the Comex released its daily vault depository statistics, JPM has said goodbye to another 28.4% of all of its vaulted gold - the largest one day withdrawal since April 25, the result of the departure of 61.5% of its Eligible gold, or 218k troy oz, as hundreds of thousands of registered ounces in the bast few weeks have seen warrant detachment.
Which means that as of last night, total gold held by JPM has fallen to a new fresh all time low of just 550k ounces, down from 768K the day before, and total eligible gold of only 136,380 troy oz in inventory (just over 4 metric tonnes) - also a record low.
Whoever is "running the JPM vault" shows no sign of relenting. At this pace, the world's biggest gold vault located below 1 CMP, and just next to the Fed's own gold vault, will be empty in about 1.5-2 months.
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My stash didn't float. Does anybody have a good metal detector?? Also I lost my Zerohedge Password...and I just called the NSA (301) 688-6524.....They had it...Thanks NSA
Their worthless, barbaric gold. "Buy 'em out boys."
Everything's good.
Buy JPM.
Whistle, whistle, whistle.
I have been saying for a long time (but my timing has always been bad) that there may not be too much time left to buy physical gold. Au supplies seem to be getting a little tighter each month.
When owners of gold finally decide not to sell, then the big price reset comes, but anyone without the physical gold will be S.O.L.
no big deal
what people forget is that these accounts can always be settled in cash
or else, not settled at all
hugs,
jayjay
Duh, that sounds so HKMEX !!!!
GIT YOUR GOLD BITCHEZZ........step right up and get your hot fresh gold......GOLD ...HOT FRESH GOLD BITCHEZZ...Step right up......get it while its hot
CONSPIRACY FACT AGAIN!
Remember the prognostications here on da' Hedge about the French peacekeeping/invasion of Mali being for Gold and Uranium coinciding with the demand from someone like Germany was it, where the annual Mali production just about equaled the annual repatriation to the Krauts?
Get this shit, kids
http://www.thedailybell.com/29222/Mali-to-Ban-Native-Gold-Mining--Was-Ji...
It just never fucking stops
There already is a NWO World Government in all but the formalities
Welcome to the New Versailles
Guys, these are bankers.
Once the vault is empty, they will simply post negative holdings. For example today our vault holds -32 million ounces of gold. Negative values simply indicate a short position.
This is perfectly normal and the bankers are comfortable with these situations. For those of you on ZH who are not as smart as the bankers in the ways of finance, a short position simply means the banker promises to give you gold, or something else they say is equivalent (such as paper), at some indeterminate time in the future.
Correct...when the number goes negative expect the price of gold to follow it down until such point in time as they decide to cover the short. You wonder how they might do so? Well, they have the full faith and power of all elected officicals and bureaucratic appointees to call upon...trust me, they'll find a way.
from available info, they have covered the short. the bullion banks, especially jpm, are net long gold for the first time in over a decade. as the original jp morgan said, the prices in the financial markets will fluctuate. imo they are getting ready to make a little (or more) on gold going up.
soros thinks the miners are the leveraged bet on a rise in gold. they are certainly wildly undervalued to bullion (historically unprecedented, actually). check it out; don't believe me.
So the available physical is declining, but where is that gold going? Moving it from a comex vault to an internal vault doesn't change posessor status.
The problem is "How much, at what cost and how fast, the miners can dig out gold (in US$ or % of their production) in the future?"
Or the price go up a lot, or the miners will shut down a lot of production. They are already shutting down some lines.
The problem is "How much, at what cost and how fast, the miners can dig out gold (in US$ or % of their production) in the future?"
Or the price go up a lot, or the miners will shut down a lot of production. They are already shutting down some lines.
i know the analogy doesn't really work, but i had to say it anyway ... "sort of a bankers boating incedent"
I don't know why everyone's getting so wound-up about JPM's vault inventory. They can and will settle in cash.
Do not place your hope of a run-away Gold price on whether or not a Paper Gold Casino Table has or has not got any Physical.
What you really want is to scare the sheeple, and especially the investor money into the Gold space. China knows this and in now finalizing its own Gold Casino, which they really will back.
This alley is getting really narrow now, and my shoulders are touching brick. It's now single file through the Gold Alley...watch what happens when someone fires a shot.
The Banksters, who are Long Gold now, are looking for a plausible and deniable trigger to fire-off that shot.
@ TwoShortPlanks:
I'm dying to know what China and Russia's actual holdings are at this point. Years of aggressive buying + domestic production (being kept out of the market) = A lot more Gold than people think.
Wound you like me to run out the back and add it up?
Yes, that's something which only the most ardent of Gold Bugs have the courage to ask, but to fathom,,,when you 'game-out' its future potential.
I can assure you, there will come day in my lifetime where the average person will never see 1oz of Gold in one piece, and where the average person will have access (possibility to buy) 1oz every 25-50 years.
The math doesn't lie, and invading Russia, China, or India is the only way of undoing that reality.
And people laughed at my $134k/oz 'Price Of Gold' figure.
BRICs of gold. Word.
"It's now single file through the Gold Alley...watch what happens when someone fires a shot."
So what you are asking is is it best to shoot a bankster in the back or in the front? Hmmm, I don't think it matters to the bankster or me as long as you don't miss....
2 months is a long time.......
Not if that's how much time you've got left to live. . .
No doubt GLD will soon see "unprecedented selling pressure" - which is also the headline Marketwatch will go for - ignoring speculation that the sellers are those who have to provide physical in the spot market.
It's time for JPM to seriously look into Spiderman towels.
Buy what out ?
All that's left has been double triple quadruple re-re-re-re-re-re-re-re-re-re-re- hypothecated.
3,998,073 people own that one ounce left in the vault. All that other stuff belongs to the important people.
No worries. We can just settle everyone in cash -- that we create as needed. No need for the barbaric relic.
cash settlement is a tell. you can fool all the people some of the time ....
All my life I've been waiting for...
http://www.youtube.com/watch?v=--gQSbItPkE
One day...
One day...
Wave goodbye, it ain't coming back.
" Also I lost my Zerohedge Password...and I just called the NSA (301) 688-6524.....They had it...Thanks NSA"
Lol, silver linings!
Great idea, Thanks! Need to call them to recover the last 2 years of Palm Desktop data, that vanished into thin air while online in a hotel room. So much for having Norton + VPN!
Useless Norton, what a scam... it crashed while doing a backup, and then crashed the whole computer.
NSA is the new password recovery go to agency.......Thanks NSA!
Shit, my hard drive just crashed and I don't have a backup - oh wait, I can just call the NSA. Thanks NSA!
Who needs the cloud? Shit, who needs to remember anything? Go-go NSAtube!
We lose our freedoms, sure. But it damn well beats having to think.
Oh Hell, that erased line I just typed....
glub-glub
glub-glub
did my best, keep on looking (somewhere else)
Nice one!
Me : Uh, hi, Mr NSA guy. Look I got the phone number for this really hot chick the other night and I accidentally deleted it from my phone. Can you let me know what is was?
NSA: 555-757-8289, and "her" name is Steve.
Me: Arrrgghhhhhh!!!
Physical gold, bitchez!
The great theft continues. I'm not convinced ALL of this is headed to Asia. Can't believe they'd let it all go without hiding some for themselves.
Yeah one bar for Asia, seven for them.
I've had the feeling that this is the precursor to something very bad happeing. The crooks that have advance knowledge of .gov plans are plundering the little real wealth left in the system before either a huge market crash or 'kinetic action' in asia/middle east. Or a combination of both.
JP is selling to insiders, most likely the Goldman crowd. Is there some bad new ahead…well yea. When there is uncertainty in the currency markets companies price the risk into their products, they tend to err on the high side, raising prices, resulting in less sales, other follow, inflation, when the public realizes there is inflation, and that their money is worthless there will be a “crack up boom” aka TSHTF or something to that effect.
Stock up and good luck.
Well the COT et al reports have the biggies net long a buncha the shiny again.
Seems like the olde smack down worked for the big guy shorts to get covered, leaving who must it be net short now...
Lemme guess here....
Wouldn't be Satan would it?
Nah, he covered and's gonna run it....
Gosh
Sorta all fits with the New Revelations, no?
Now that the banks (including JPM) are net long on the Comex, the next step is, when JPM has to settle their remaining short obligations, suddenly the Comex rules change and cash settlement ceases to be an option. So now it's not JPM on the hook for these missing ozs, its those clever hedge funds who've been so smartly 'following the trend'. Just watch, these fuckers at the Bullion Banks wrote the rulebook, there's no way they're going to lose.
When that happens Al I would like to buy you a beer, somehow, because that is one hell of a call.
Sounds good, I'll meet you after the rioting subsides.
We gotta meet mid riot. You need to bask in the moment. We can both watch Kito navigate the crowd to bring me my sandwich.
Now THAT is funny, you guys made me cry and laugh at the same time! Will it be a Reuben or Sailor sadwich!!! yes the mis-spelling is intentional...
This is not likely to be as simple as it seems but I can't figure it out <yet>.
Possibilities:
-JPM knows about the confiscation order coming soon
-JPM is the designated target in the game of "Which primary dealer will go under in this economics crisis" game [My favorite]
-They have found a way to profit from a Comex default and they're making it happen
Subpossibilities for the last one:
--The rumor is that they are now net long in their gold positions
--They have contractual positions with the gold mining companies such as they are rumored to have with silver mining companies that essentially say "If the Comex blows up we own you"
And as always the most likely reason is something I haven't thought of.
Well, with our largest copper-silver-gold mine in rubble, you make me go hmmmmmmmm
Methinks the mine went to rubble on purpose!
Is is not quite obvious, that the manipulations of PM's was to get the price to a nice low level in order to buy buy buy, for when the papers go up in flames? Which goes up in flames first, the world or paper, a conundrum of epic proportions!!!
Gotta love the evil plan the spin, problem for them is they will have nowhere to hide if the maelstrom ensues.
I treat it as a Countdown clock, hiding in plain sight. For those with eyes to see. The rest are... hamburger, lamb stew and pig roast.
Tick, tock.
Five before midnight anyone?
Who cares? Let the Asians have the tungsten.. http://tinyurl.com/lq63ahd
I suspect the Asians are doing some serious assaying before they take delivery.
Last night I saw a US Tungsten ad at the top of the ZH page. I LOLed.
http://www.ustungsten.com/home
Do let us know if they ever start offering tungsten disks about 32 mm in diameter and 1.5 mm thick... For future testing purposes.
Oh yes my friend. I would bet my stash, a lot of big players in this country are talking up stocks and bonds on CNBS and squirreling away some shiny stuff.
Let's sell more paper again and "borrow" more phyzz from across the street! That should solve the problem isn't?
mr paulson I presume?
JPM are pikers... I regularly lose 100% of my stash on any given "safe boating" day...
Germany said 7 years.... they really meant 7 months.... gimme my gold bitchez...
NO! And fuck you.
When they have run out and the next Muppet asks for delivery they will have to settlw in fiat or go to court. Good luck Muppets
Sure to be timed with a monumental, last-ditch, price supression effort.
That happened 5-13.
When JPM runs out of physical, that will mark the beginning of the confiscation period. They will have nothing to loose at that point.
Great news! Thanks!
Die, JPM scum, die!
From what I understand JPM covered a whole lot of thier short positions and started going long gold. How did they do that in a declining market?
they must be taking delivery of gold but off the books.
a secret fizz stash, as it were.
"Volume."
From Ed Steer today:
I would ask you to consider that it would be impossible for any entity to buy 10 or 20 or 30 million ounces of gold in a matter of months on the deepest price decline in years. It would be like someone buying all the commercial office space in New York City in a few months 20% below market rates. Or someone buying all the stocks in the S&P in a short time frame at a big discount. That would be impossible. Just like it is impossible for JPMorgan to have bought as much gold (and silver) as they have over the past few months at such steep markdowns in price. The Bank Participation Reportof June 2013 shows that the big short crook has positioned itself massively on the long side of gold in a manner that would be impossible in a market that wasn’t manipulated. - Silver analyst Ted Butler...08 June 2013
CFTC Gold and Silver Bank Participation Report - Ted Butler's Comments"Since the BPR of February 5, the US bank category position (in effect, almost exclusively JPMorgan) has swung by a net 100,000 contracts, from net short 70,000 contracts to net long 30,000 contracts (all rounded). There has never been a move of such magnitude before. Over that same time, the total net commercial short position (in the COT) declined by 113,000 contracts, meaning that JPMorgan accounted for almost 90% of the entire commercial decline. It is not possible for that extreme degree of concentration and market share not to be manipulation, pure and simple.
And here’s the manipulative icing on the cake – JPMorgan was able to flip a net short position in COMEX gold of 50,000 contracts in February to a net long position of 50,000 contracts on a gold price decline of as much as $350. I would submit that the singular purchase of 10 million ounces of gold (worth the equivalent of $15 billion) within four months on a greater than 20% price decline could only be accomplished if the price was manipulated lower by the purchaser. No other explanation would be possible...
...posted on the jessescrossroadscafe.ca Internet site on Saturday.
Read more...
+ a big number
Rocky wrote from Ed Steer's quotation:
I would ask you to consider that it would be impossible for any entity to buy 10 or 20 or 30 million ounces of gold in a matter of months on the deepest price decline in years. It would be like someone buying all the commercial office space in New York City in a few months 20% below market rates. Or someone buying all the stocks in the S&P in a short time frame at a big discount. That would be impossible.
***
FOFOA has said similar things about huge buyers of gold (say, the Saudis). They show up in London one day looking to buy 400 tonnes, they then would be invited into an office at the LBMA and politely instructed in the realities (limitations) of the physical gold market.
JP Morgan just sold the last of the gold bar from the days of Andrew Jackson. Time for Dimon to make his getaway to his new island.
Old Hickory would have cleaned up this mess a long time ago. And he did! The cocksuckers are back at it again stealing with impunity. Imagine that, the only US President to successfully pay off the national debt also shut down the Second Bank Of The United States. Coincidence? Think again. But alas while we're talking coincidences, I doubt this is another one http://tinyurl.com/koco4ln
Something smells fishy here.. goldfish! Physical!
Fishy ? ......like London Whale margin calls fishy ?
Fishy ? ......like the toilet door on a japanese squid boat fishy?
Why is it all specifically coming out of JPM vaults? I thought one vault was as good as another in the COMEX system.
I SUSPECT, but don't know for a fact, that the gold is actually coming from the Fed vaults, and that is why so much is leaving through JPM.
I'd imagine that the fed would recommend anyone trying to withdraw to knock over a cash for gold store instead. I can't believe they would let it go.
Not so many of those C for G places in my part of the UK now, big reduction in last 3 months. The needy and foolish have been parted from their metal already.
I firmly believe that the current generation of central bankers bought their forefather's bullshit hook, line, and sinker, and genuinely just don't know any better. They have never studied history (at least nothing prior to 1929, and nothing outside of the West), and thus they think that their "experimentation" is somehow new. They think they are smarter than anyone who ever came before. Of course, they are doing exactly what those guys before did, and will get what those guys got as a result, and they will be genuinely surprised when it happens.
I am watching this with muted interest at this point. I called my lcs today and they, amazingly, had plenty of ASE for around $25. I realize the premium is still high compared to spot. But it's there if I want it.
$25 is a steal for ASE's. Grab some of them.
Plenty of silver bars on APMEX cheap(24 and change)...don't know what to think myself.
I almost owe it to myself to bring my cost basis down from $35 lol.
I know I shouldn't try to bait you into buying into this mess of a market, but I couldn't help myself.
I'd rather you bait me here than 2 years ago at $49.
Wait Fonz, and you will get it for even less. It looks to me that both gold and silver are set to have a big dump, imo. So average in even lower. I get the feeling that silver wants to be priced somewheres around the cost of a pack of Canadian ciggarettes - $13 so that with a premium of 40% you might get it for $20 or $19. Important to note that there is no analytical basis for my guess. Just a gut feeling is all. Gold, fuck who knows.
If Silver hits $15 and I can get it, it's all in time.
and I will max out credit to boot.
Same here.
It's extremely unlikely that it'll drop below 16-17.
I'm buying now, in my book anything below $26 is cheap; who cares about the exact timing and whether it'll drop another 10-20%..
I would imagine that silver is getting very near the total cost of extraction. The all-in cost of gold mining is around $1200 or so. Can't get very much lower, I would think. But in this manipulated market, who the hell knows.
Aydin has 10 oz priced with free shipping:
10 oz Sunshine Mint Silver Bullion Bar & Decoder Lens Combo The Sunshine Mint Silver Bars contains 10 troy ounces of pure .999 silver each. The Bars are hallmark stamped by the manufacturer and measure 3.5...$286.38
Ships in 1 - 3 Business Days NOTE! Always figure in your shipping costs when pricing an offering!In Stock
Provident has 10 ozt. NTR silver bar for about 230 and it might also be free shipping. Much better deal IMO, unless one really wants that decoder thing with the Sunshine ones.
I always compute the cost of shipping in my average cost of Au and Ag.
How can this be?
It works out considerably cheaper to buy the ten oz as 10 individual oz bars!
Go on then, tell me how many of you spotted that, eh?
Had a broker I dealt with in the past cold call me last week when metals were getting killed, virtually pleading for me to pick up some inventory. Think these guys went in big on the May swoon and are shit scared of it dropping further.
Sounds like blood is hitting the streets. Now would be a good time to start cost averaging into PMs, if you haven't started already.
Agree that it's probably closer to a bottom, however, this selling may go on for a while, so if one is starting, might want to start small.
"
We can see from the chart that even though the [sentiment] score has dipped well into extreme territory several times in the past year, gold hasn't reacted immediately, like it had for much of the past 10 years. Even the recent score of 0%, showing maximum pessimism, has only halted the selling and not led to a rally, so far.
This is very similar to the last [1996-1998] bear market. The chart below shows the same kind of behavior that we're seeing now. Despite several forays well into extreme pessimism, traders just kept right on dumping gold. Every time the score touched extreme optimism territory, gold peaked almost immediately.
-- Jason Goepfert, sentimentrader, 06/12
"
Wot?! Who'd even want that shit, it's like the 21st century and stuff!? WTF? ... people will be buying fiat bonds next!
Me: I got 50 fiat for 50,000 Fiat bonds sir
Trade Floor: here ya go
Me: ok I've double my investment I'd like to cash out now
Trade Floor: Sorry we don't have enough fiat we will pay you in turd balls as agreed upon in your original prospectus, you can find it in the printed so small you need a x1000 power mag glass to read, yes it looks like a turd smudge, right... there.
Yeah, I see, kinda circular buyin fiat bonds with fiat ... ok, gimme some gold then, I'm hungry.
You forgot to get a tunneling microscope and review the print contained in what looks like a period right here.
Oh yes there is plenty of gold give me your fiat and I'll be back with your gold...
Here's your gold plated turd, I mean Tungsten I mean its just gold, pure good old gold go weight it I swear its all there... (drops of sweat all over his shoes)
hmm ... maybe you and my .270 Remington need to go over the terms of this transaction ... we're happy to make a further deposit if you prefer? ...
THE LARGE PRINT GIVETH....
the small print taketh away.
Assuming the data is correct (I think it's way worse), this is a good example to explain a pyramid scheme or what happened to MF Global or Lehman or Bear Stearns.
Let's imagine JPM runs out of gold.
Let's assume that claim to physical gold ration is 1 x 100.
Hence, JPM runs out of gold = 1% of gold "owners" got physical = 99% have paper gold in their hands = JPM would give them cash instead of gold.
Question: Where would JPM find the cash?
Answer: They'd sell something to the FED or firesale to the open market.
That's where SOLVENCY vs LIQUIDITY concepts are discerned. JPM could sell stuff to cover hypothetically 9% of papergold in cash, but can't cover the other hypothetical 90%. Hence, bankruptsy. That's what happened to MF Global, Lehman, Bear Stearns.
Only one problem: MFG, Lehman, and BS were not working in collusion with the FED on IRS derivatives and gold document forgery. JPM today is technically bankrupt, but will remain solvent in all appearance as long as the FED is involved and an active partner.
It was hypothetical.
If JPM goes down, do does US Gov. They're one.
MFG and Lehman went down in order to save JPM. Somebody else will be sacrificed on JPM's altar, soon.
There is nothing new under the sun
Morgan Stanley has been looking very ripe.
Then I guess you dont believe their vault locations are purely coincidental?
By now everybody should know that nothing is coincidential about JPM
Consider JPM as a branch of the US Treasury, practically
US treasury - a branch of GS, more likely.
That is exactly the situation. GS also has deep hooks into the UST, Wash DC, and other CB's around the world (Carney, Draghi, etc...).
I thought the "purely" would negate the need for a "sarc" tag.
I was in a serious mood :)
that is the way i heard it simply put around here a long time ago when i first started lurking- jpm=the treasury. the squid=the state dept. been a good maxim to be able to follow the news that has unfolded in the last four years. stick around these parts and ya end up learnin' sumpin'. even if it is by late night osmosis.
Weren't JPM acting on behalf of the US Gov or the FED?
If so don't they have a get out of Jail free card that Lehman didn't....
See below.
JPM's case was hypothetical.
Isn't it that whoever is short the contract is obligated to deliver? Didn't Jamie D just say earlier today that they don't do prop trading? So who's short? Some hedgies as proxy for the Fed? The Fed itself? PPT?
The Government
JPM = US Government
Conspiracy theory to fact is just one ethical decision away...
It is self evident.
All primary dealers are factually owned by US Gov since the overt bailout.
JPM is simply more equal than others. It's like the preferred bank of USA that handles EBT cards etc. It's become one with USA. It's infrastructure is US Gov's infrastructure.
The other way around, actually.
Ekm, I may be off on this one, but I thought ZH has explained in the past that the gold in JPM's vault is not theirs. They are storing for someone else. So your example still holds, but as to who won't have a chair when the music stops, could be anyone.
I wonder if this same gold vault being emptied stuff played out during MFG.
Nobody but few people know who's what.
Anything we hear is simply PROPAGANDA
How about a pension fund? Your favorite scenario.
I think the pension funds/ insurance companies are more tied to interest rates. But it could be anyone.
4.9 billion ion high yield debt was dumped last Friday. More redemptions are coming. I don't see how we get through this without a few people going belly up eventually.
Fresh example
https://twitter.com/CMCMFIN/status/344582914454978560
JAPAN TO ADOPT 'BAIL-INS,' FORCE BANK LOSSES ON INVESTORS IF NEEDED, NIKKEI SAYS”
That's their reward for being good savers.
There is no such thing as "savings".
That is the core of Wall street and city of london theft and propaganda.
Let the whole f@@king thing Collapse!! Every day we learn of somthing new this Corrupt Fascist Government has perpetrated on us. We all know that this is going to be US vs them real soon. Yes I know, I am on the list but real FREEDOM is worth dying for. Well that is how my father brought me up. Not to sure about the rest of you?
Thanks for the lol. @ your username. Can I ask the NSA to reveal your real name?
You are naive, Mr. Nutts. Or... visa versa. We agree so I must be nutts as well.
If the thing collapses, as you advocate, then gold will seek its market level (unmanipulated) which will pull the curtain back on 1. the dollar, 2. the Fed, 3. the Banksters, and 4. the Handlers, the Gov't.
We can't have all this turmoil since they are not done looting yet. Doncha see?
I think they call this eating your seed corn
Better get a taste for cobs.
Cornbread
If a major player ever does decide to force a settlement in fiat, you can bet there will be a huge smackdown in the paper markets before they announce it too.
They don't just run the Muppets over, they back up over them afterwards a few times too, just for good measure.
....and, it's gone!
ahhhh....WHAT? (:D )
One of the best South Park bits ever. Ever.
Nothing beats physical possession...http://goo.gl/XINXT
I just read an article yesterday that said bullion banks (which I assume include JPM) are net long:
http://bullmarketthinking.com/us-bank-long-positions-in-gold-explode-at-...
How can JPM be going long when its vault is rapidly emptying? Can anyone explain?
This is just gold that JPM has in the COMEX system. They could hold gold outside of the system if they wanted.
More likely other, different banks are long.
Seek I thought JPM owns a few mines, no?
See my post above. The JPM vault (I think) holds other's gold. Not theirs.
it's a custodian vault for customer gold, or deliverable gold sold by previous customers never moved out of the vault for delivery to another location.
Net long Comex futures and options, which is different than the gold they hold in the vault (regardless of who it belongs to). So either
1) They're net long because the demand to sell is so high, so they have no choice but to take the long side of the trade, and being neutral in the market (as they claim) they've sold physical gold against their net long futures position to remain neutral (since they'll get it all back in the futures market, worst case)
2) They're net long because they know that the demand out of Asia and Russia has risen to the point that it can no longer be met, and they're planning on making the hedge funds the fall guys (those evil fucking speculators, selling gold they don't have - fucking traitors) when the shit hits the fan.
So 1 if the gold market is an honest game, and JPM are trustworthy, 2 if the gold market is at least as rigged as - Libor, elections, the rest of the stock market, etc....
commitment of traders data is propaganda.
"How can JPM be going long when its vault is rapidly emptying? Can anyone explain?"
It's their customer account side that's emptying rapidly right now. The house account activity has been very low since April. I suspect that they turned their position from short to long around early April, before the great meltdown. In the process, they may well have screwed their customers royally.