JPM Vault Gold Drops By 28.4% Overnight, Slides To Fresh Record Low As Withdrawals Accelerate

Tyler Durden's picture


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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Tue, 06/11/2013 - 17:48 | 3647903 takeaction
takeaction's picture

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


Tue, 06/11/2013 - 17:49 | 3647914 The Shootist
The Shootist's picture

Their worthless, barbaric gold. "Buy 'em out boys."

Tue, 06/11/2013 - 18:03 | 3647953 Pinto Currency
Pinto Currency's picture


Everything's good.

Buy JPM.

Whistle, whistle, whistle.

Tue, 06/11/2013 - 18:12 | 3648002 DoChenRollingBearing
DoChenRollingBearing's picture

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.

Tue, 06/11/2013 - 18:15 | 3648018 SafelyGraze
SafelyGraze's picture

no big deal

what people forget is that these accounts can always be settled in cash

or else, not settled at all



Tue, 06/11/2013 - 18:19 | 3648038 Super Broccoli
Super Broccoli's picture

Duh, that sounds so HKMEX !!!!

Tue, 06/11/2013 - 18:22 | 3648047 kliguy38
kliguy38's picture

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

Tue, 06/11/2013 - 18:49 | 3648182 knukles
knukles's picture


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

It just never fucking stops
There already is a NWO World Government in all but the formalities

Welcome to the New Versailles

Tue, 06/11/2013 - 19:38 | 3648370 zaphod
zaphod's picture

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. 

Tue, 06/11/2013 - 20:14 | 3648496 rosiescenario
rosiescenario's picture

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 me, they'll find a way.

Tue, 06/11/2013 - 22:56 | 3648995 jeff montanye
jeff montanye's picture

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.

Wed, 06/12/2013 - 05:54 | 3649388 malikai
malikai's picture

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.

Wed, 06/12/2013 - 06:12 | 3649405 painlord-2k
painlord-2k's picture

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.  

Wed, 06/12/2013 - 06:12 | 3649406 painlord-2k
painlord-2k's picture

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.  

Wed, 06/12/2013 - 00:47 | 3649205 putaipan
putaipan's picture

i know the analogy doesn't really work, but i had to say it anyway ... "sort of a bankers boating incedent"

Tue, 06/11/2013 - 20:25 | 3648527 TwoShortPlanks
TwoShortPlanks's picture

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 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.

Tue, 06/11/2013 - 20:36 | 3648573 Croesus
Croesus's picture

@ 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.

Tue, 06/11/2013 - 21:20 | 3648676 TwoShortPlanks
TwoShortPlanks's picture

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.

Tue, 06/11/2013 - 22:49 | 3648974 strannick
strannick's picture

BRICs of gold. Word.

Tue, 06/11/2013 - 23:56 | 3649142 RaceToTheBottom
RaceToTheBottom's picture

"It's now single file through the Gold 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....

Tue, 06/11/2013 - 18:22 | 3648049 cifo
cifo's picture

2 months is a long time.......

Tue, 06/11/2013 - 18:35 | 3648119 Citxmech
Citxmech's picture

Not if that's how much time you've got left to live. . .

Tue, 06/11/2013 - 18:28 | 3648077 EscapeKey
EscapeKey's picture

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.

Tue, 06/11/2013 - 18:04 | 3647958 Martial
Martial's picture

It's time for JPM to seriously look into Spiderman towels.

Tue, 06/11/2013 - 18:50 | 3648184 SILVERGEDDON

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.

Tue, 06/11/2013 - 20:56 | 3648621 Beatscape
Beatscape's picture

No worries. We can just settle everyone in cash -- that we create as needed.  No need for the barbaric relic.

Tue, 06/11/2013 - 22:59 | 3649008 jeff montanye
jeff montanye's picture

cash settlement is a tell.  you can fool all the people some of the time ....

Tue, 06/11/2013 - 17:50 | 3647918 jcia
jcia's picture

All my life I've been waiting for...

Tue, 06/11/2013 - 17:51 | 3647919 jcia
jcia's picture

One day...
One day...

Tue, 06/11/2013 - 17:54 | 3647930 zorba THE GREEK
zorba THE GREEK's picture

Wave goodbye, it ain't coming back.

Tue, 06/11/2013 - 18:01 | 3647951 James_Cole
James_Cole's picture

" Also I lost my Zerohedge Password...and I just called the NSA (301) 688-6524.....They had it...Thanks NSA"

Lol, silver linings!

Tue, 06/11/2013 - 19:38 | 3648369 Kirk2NCC1701
Kirk2NCC1701's picture

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.

Tue, 06/11/2013 - 18:18 | 3648033 SgtSchultz
SgtSchultz's picture

NSA is the new password recovery go to agency.......Thanks NSA!

Tue, 06/11/2013 - 19:02 | 3648238 Al Huxley
Al Huxley's picture

Shit, my hard drive just crashed and I don't have a backup - oh wait, I can just call the NSA.  Thanks NSA!

Tue, 06/11/2013 - 19:35 | 3648362 This just in
This just in's picture

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....

Tue, 06/11/2013 - 18:39 | 3648135 MeelionDollerBogus
Tue, 06/11/2013 - 19:14 | 3648288 OneTinSoldier66
OneTinSoldier66's picture

Nice one!

Tue, 06/11/2013 - 18:44 | 3648156 Relentless
Relentless's picture

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!!!

Tue, 06/11/2013 - 17:46 | 3647904 larry david
larry david's picture

Physical gold, bitchez!

Tue, 06/11/2013 - 17:47 | 3647905 nope-1004
nope-1004's picture

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.


Tue, 06/11/2013 - 17:49 | 3647911 Frastric
Frastric's picture

Yeah one bar for Asia, seven for them.

Tue, 06/11/2013 - 17:51 | 3647922 Freedom In Your...
Freedom In Your Lifetime's picture

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.

Tue, 06/11/2013 - 18:16 | 3648026 economics9698
economics9698's picture

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.

Tue, 06/11/2013 - 18:52 | 3648195 knukles
knukles's picture

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....

Sorta all fits with the New Revelations, no?

Tue, 06/11/2013 - 19:06 | 3648260 Al Huxley
Al Huxley's picture

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.

Tue, 06/11/2013 - 19:20 | 3648315 fonzannoon
fonzannoon's picture

When that happens Al I would like to buy you a beer, somehow, because that is one hell of a call.

Tue, 06/11/2013 - 20:24 | 3648532 Al Huxley
Al Huxley's picture

Sounds good, I'll meet you after the rioting subsides.

Tue, 06/11/2013 - 20:26 | 3648540 fonzannoon
fonzannoon's picture

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.

Tue, 06/11/2013 - 21:45 | 3648764 Abi Normal
Abi Normal's picture

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...

Tue, 06/11/2013 - 19:39 | 3648374 DeadFred
DeadFred's picture

This is not likely to be as simple as it seems but I can't figure it out <yet>.


-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.

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