JP Morgan Vault Gold Drops To New Record Low; Brinks Gold Plunges By 24% In One Day

Tyler Durden's picture


Last week we defined the golden sentiment rule as "anything that isn't off the chart soon will be." This will happen in a "perfectly sustainable" fashion, where increasingly more paper gold is shorted to record levels even as actual physical holdings held by official Comex vaults continues to drop. For one particular reason why the price of paper gold may be at 3 year lows, we will provide some formerly classified perspective shortly in a post. But in the meantime, and while we await the weekly CFTC commitment of traders report (delayed until Monday due to the July 4 holiday), we are happy to report that the JPM disconnect between the epic delivery requests and its reported gold holdings (for which the "Commodity Exchange, Inc. disclaims all liability whatsoever with regard to its accuracy or completeness") reconnected modestly, and as per the latest Comex update, another 6.8k ounces of gold was pulled from JPM's 1 CMP world's biggest gold vault, dropping its total gold inventory to a fresh record low.

Perhaps even more notable is that on Friday, that "other" depository, Brink's, saw 24% of its entire registered gold holdings, or 133k ounces, quietly get withdrawn. This, together with the moves in JPM and HSBC inventory, meant that total Comex gold holdings dropped by 116K ounces to a new low not seen for the first time since 2006.

Finally, for that all important marginal source of paper gold supply or demand, ETFs,the two largest ones (GLD and IAU) have now retraced 50% of their "holdings" gain since the fall of Lehman.


Someone more inquisitive than us may wonder: just where is all this gold being "withdrawn" to...

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Sat, 07/06/2013 - 19:49 | 3727159 mickeyman
mickeyman's picture

My vault.

Sat, 07/06/2013 - 19:54 | 3727168 Spider
Spider's picture

COMEX registered gold at all-time lows - sounds like someone is buying all the physical while paper gold fools play with prices.

On that note, us common folks can help the cause and break the banks by taking control of the silver market - an interesting concept and much needed today for silver investors:

Sat, 07/06/2013 - 20:08 | 3727195 Jam Akin
Jam Akin's picture

Movin' on up to the East side...they finally got a piece of the pie....

Sat, 07/06/2013 - 20:52 | 3727276 n8dawg84
n8dawg84's picture

I agree that the East is the main recipient of these withdraws, but where does Germany stand in all this? Maybe they have resorted to buying on the open market since the Fed cannot deliver?

Sat, 07/06/2013 - 21:15 | 3727327 Jam Akin
Jam Akin's picture

Germany shouldn't have to buy anything if they are owed what they own.

Sat, 07/06/2013 - 23:25 | 3727525 markmotive
markmotive's picture

Gold $10,000 - Nick Barisheff on the possibility...

Sun, 07/07/2013 - 00:05 | 3727592 DoChenRollingBearing
DoChenRollingBearing's picture

He wrote a book too: $10,000 Gold, maybe he should have thought bigger: $55,000 Gold!

Sun, 07/07/2013 - 06:04 | 3727867 malikai
malikai's picture

Silly americans. The answer is easy.

If you'd just stop pussyfooting around and do infinite rehypo like we do here in London, you wouldn't be having this problem.

Sun, 07/07/2013 - 08:58 | 3727968 DaddyO
DaddyO's picture

Silly americans. The answer is easy.

Just put as much into tangible assets as you can afford and hold them personally. Use them to insulate against the rising tide of CB manipulation as the velocity of the rising waters escalates.


Sun, 07/07/2013 - 06:38 | 3727876 Cacete de Ouro
Cacete de Ouro's picture

The easiest way to make $10,000 on gold, or even $55,000, or $155,000 is to write a book about gold. Barisheff has the right idea.

But there is NOTHING new in any of these books, either Barisheff's book, Mike Moloney's, Jonathan Spall's ....nothing new...and that particularly misleadingly marketed hodge-podge of topics by John Butler called the Golden Revolution...

Better off doing your own research...

Hmmm, I might even write a book on gold, theres an idea...

Sun, 07/07/2013 - 08:58 | 3727967 giggler123
giggler123's picture

I was gonna suggest that or listen to Max Keiser but my in-box was flooded with make $10,000 a day by working at home from some asia lass who does Utube online stuff, copying amazone adverts onto farm sites.  Well let's just say these scams are getting so clever as now I'm being told $10,000oz gold, all I do is buy a book.


Sat, 07/06/2013 - 21:19 | 3727335 Skid Marks
Skid Marks's picture



I read an analysis somewhere (can't find the link or I would post it) that a similar thing happened several years ago, maybe 2008, not sure.  Anyway, the jist of the story was that the draw down was not a liquidation but just moving from one account to another, from one bank to another.

Does it really matter to anyone if Germany's gold is in NY or Berlin? The spin is that it's rehypothicated 10x so the business of taking posession has a multiplier affect on actual supply.  Maybe so. No evidence of that yet even with such huge draws. Has anyone made demand on Comex for delivery of several thousand ounces and been refused? Or is it just little guys who get cashed out against their will?



Sat, 07/06/2013 - 22:26 | 3727454 IllusionOfChoice
IllusionOfChoice's picture

I think the point is that if it's in Berlin it can't be a part of someone else's rehypothecation chain, and at the end of the day, Germans know where their bars live.

Sun, 07/07/2013 - 12:59 | 3728231 ATM
ATM's picture

Fractional reserve gold.

When the banks get called for delivery there isn't enough gold. So, as a banker will tell you, price will solve all problems. The price will simply be raised to clear all parties. Some will hold actual gold and others will take cash.

In such a scenario gold will need to be priced between 35-50k in today's dollars. Who knows how much in a few years or even a decade or two if it takes that long?

For the saem reason I don't want to have cash sitting in a bankrupt bannk, I don't want to have gold sitting in paper form. There is a serious imbalance between claims and physical. That cannot be argued. In such a world he who holds the actual asset is the winner.

Sat, 07/06/2013 - 22:53 | 3727492 GittyUP
GittyUP's picture

Eligible gold is owned by someone and stored at jpm. All that means is someone is oulling gold out of storage with Jpm and storing it somewhere else.

Or it simply could be GLD'S gold they were storing at JPM. Now they are selling to rebalance holdings. So both charts show the same thing.

If when registered gold starts to fall fast then it means JPM won't have inventory to meet delivery. That would be worthy of an article.

Until then another misleading article on ZH.

Sat, 07/06/2013 - 23:25 | 3727528 Schmuck Raker
Schmuck Raker's picture

-1 for "Until then another misleading article on ZH."

Prevalent are they?

Sure that this one is?

Sun, 07/07/2013 - 00:00 | 3727587 nope-1004
nope-1004's picture


Ya, it's that simple.  "someone" is just pulling out their gold.  lol

It's been shown and admitted, even by that little fag jeffery christian, that the amount of paper derivatives in gold is 100x physical.  The point you are completely missing is that the price setting mechanism for gold and silver is a paper napkin with numbers thrown on it, and has no bearing on the real physical metal in circulation.  And I'm also convinced that, in light of LIBOR rigging and oil futures rigging admissions by the banks, that the COMEX gold reports are 100% bullshit, fraud, and totally inaccurate.

I appreciate the work that Harvey Organ is doing by tracking daily and monthly deliveries, but part of me can't help but think that he's also being fed bogus numbers by COMEX.  JPM and the Comex are totally full of shit and liars.


Sun, 07/07/2013 - 00:03 | 3727602 DoChenRollingBearing
DoChenRollingBearing's picture

Since everything about gold, the Fed and the Treasury are so opaque, it makes me feel better about having my little pile of physical gold.

Sun, 07/07/2013 - 04:34 | 3727840 0z
0z's picture

No collusion can manipulate the price of anything.

They can overpromise buying, or overpromise selling.

But we all know where that ends.

It rhymes with fancy.

Sun, 07/07/2013 - 07:32 | 3727900 ParkAveFlasher
ParkAveFlasher's picture


Sun, 07/07/2013 - 13:01 | 3728235 ATM
ATM's picture


Sat, 07/06/2013 - 23:05 | 3727510 nevket240
nevket240's picture

As noted by someone in a previous article, not this site i think, the price of paper has been declining since the Germany announcement. Which is 180 degrees from where you would think it would go. So,

Basically the Dogfuckers of Wall Street have been shorting the paper market to allow the Krauts access to cheap gold as a thank you for not requesting immediate repatriation of the supposedly stored gold. You scratch my scrotum and not suck to hard on the vault and I'll help you get more for less.



Sun, 07/07/2013 - 00:10 | 3727621 Dr. Sandi
Dr. Sandi's picture

I've said it before:

The price of paper gold is moving down to its real value of ZERO. No reason to expect it to start rising other than more manipulation.

Sun, 07/07/2013 - 02:11 | 3727781 Kirk2NCC1701
Kirk2NCC1701's picture

It's going 'East' as in the Middle East.

Needed for new CB and rebuilding of Solomon's temple for the 666.

Sun, 07/07/2013 - 09:21 | 3727993 Agstacker
Agstacker's picture

I've told family members about the drop in silver price and they are seeing it as a bargain as well, stack as much as you can and tell friends and family!  A lot of them have no clue unless you tell them.

Sat, 07/06/2013 - 20:06 | 3727192 Monedas
Monedas's picture

It's not your vault .... panics just happen .... don't blame yourself !

Sat, 07/06/2013 - 20:34 | 3727238 Ag Tex
Ag Tex's picture

Res ipsa loquitur.

Sun, 07/07/2013 - 11:24 | 3728130 moondog
moondog's picture

SEASON 8 of Trailer Park Boys!!!

Sun, 07/07/2013 - 17:43 | 3728962 TheFourthStooge-ing
TheFourthStooge-ing's picture

Fucken A. That's at least one positive thing the future holds.

I hope they bring back Corey and Trevor. The casting for the first six seasons was perfect, and with their departure the show lost something greater than the sum of the two characters.

I think they should have taken a hiatus after the sixth season. Season 6 was strong, and season 7 showed that the writers needed a break.

Sun, 07/07/2013 - 16:25 | 3728756 Silveramada
Silveramada's picture

When on one side of the rope you have an expanding paper supply, and on the other side a shrinking physical supply...sooner or later something will snap...!


daily physical updates @

Sat, 07/06/2013 - 19:53 | 3727167 knukles
knukles's picture

Sorta like all the molten gold that should have never been found under the WTC scorching rubble that was handily recovered within a couple of days and never heard from again.
Say what again, mother fucker?

Sat, 07/06/2013 - 20:35 | 3727242 WP45
WP45's picture

They say ALL the gold in the world would not fill 2 olympic sized swimming pools. The gold in that pic would go a LONG way in filling one of them. Was that much of the worlds gold there?

Sun, 07/07/2013 - 11:20 | 3728124 malikai
malikai's picture

The BIG Question is, was there any gold in the vaults or had it been stolen before the FALSE FLAG/INSIDE JOB of 9/11? Did the gold wind up in Israel's Negev Desert, where it was cast into a giant, golden calf?:) Picture of the purloined gold that is now in Israel, being worshiped by the Zionist thieves in 'StolenLand.'

No, obviously it was aliens who used holographic antimatter coated weapons. Once inside WTC, they stole the gold and then when it collapsed they left in the cloud. Just look at the video, it's all there.

Sun, 07/07/2013 - 09:04 | 3727975 giggler123
giggler123's picture

Ofcourse that would be easy to prove since they used a small nuke to collapse the buildings with said yellow, it'll all be radioactive.  So you guys buy it in rounds or bars and drop dead from radiation poisoning and the government completes its objectives, war and bye, bye gold bugs.


Thumbs up to the russian federation geiger counters on ebay...

Sun, 07/07/2013 - 00:12 | 3727625 Dr. Sandi
Dr. Sandi's picture

First they shipped all the WTC steel to China. Now they're shipping all the WTC gold there.

Sun, 07/07/2013 - 04:19 | 3727836 JimmyRainbow
JimmyRainbow's picture

heard, a ~week after 9-11, that there were a few servers for a trading system unter wtc.

(there were lots of different systems, could only speak for the system i was familiar with)

they stopped wworking/responding a few day after the collapse.

my idea about it: gold not molten.

Sat, 07/06/2013 - 19:58 | 3727177 h0oS
h0oS's picture

Looking at the raw data HSBC USA are widening the gap in holdings. I wonder if that's a clue to where all the gold will finally end up...

Sat, 07/06/2013 - 20:00 | 3727182 Bear
Bear's picture

Maybe Obama promised that all future foreign aid will be given out in gold and everyone lining up to get their share

Sat, 07/06/2013 - 20:42 | 3727247 LetThemEatRand
LetThemEatRand's picture

Everybody in Cleveland has got their Obama gold.  Keep him in President.  You know?

Sun, 07/07/2013 - 16:58 | 3728854 Ted K
Ted K's picture

Strange, I was under the impression that was a NATIONAL election. This AND the gold info of Harvey Organ. Wow I just keep "learning" new stuff from Durden and ZH readers everyday....

Sun, 07/07/2013 - 00:13 | 3727629 Dr. Sandi
Dr. Sandi's picture

No reason BO can't both promise and deliver lots of gold. Gold certificates to everybody!!! One promise is about as good as the next at the lofty levels of international politics.

Sat, 07/06/2013 - 20:01 | 3727183 Divine Wind
Divine Wind's picture




Gaymen Islands, followed by Singapore.

Sat, 07/06/2013 - 23:29 | 3727530 TeamDepends
TeamDepends's picture

You mean the Cayman Islands, right?

Sun, 07/07/2013 - 00:08 | 3727618 Jam Akin
Jam Akin's picture

Frontin' Frontman feels more at home in the Gaymens....

Sat, 07/06/2013 - 20:03 | 3727186 eclectic syncretist
eclectic syncretist's picture

And while JPM continues to see gold outflows, it has bought 7.4 MILLION ounces of silver for it's house account in just the first few days of July!

Sat, 07/06/2013 - 20:05 | 3727191 Bear
Bear's picture


Sun, 07/07/2013 - 00:18 | 3727631 Dr. Sandi
Dr. Sandi's picture

Silver bullets for werewolf attacks on Wall Street.

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