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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Friday, that "other" depository, Brink's, saw 24% of its entire registered gold holdings, or 133k ounces, quietly get withdrawn.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Someone more inquisitive than us may wonder: just where is all this gold being "withdrawn" to...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:

http://www.communitysynergy.com/subscribe/silver_pledge_site.html

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...

http://www.planbeconomics.com/2013/06/chris-martenson-and-nick-barisheff...

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!

 

http://tinyurl.com/lwcmwoy

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.

DaddyO

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

Gitty,

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

Shmancy?

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

Oy.

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.

regards

 

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!!! http://youtu.be/TwM4VLTk6bs

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 @

http://zysites.com/silververitas/

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

Alchemy

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

Silver bullets for werewolf attacks on Wall Street.

Sun, 07/07/2013 - 07:45 | 3727905 kill switch
kill switch's picture

I wonder where they got 7.4 m oz in just a few days?? I truly couldn't tell you. My scottsdale order 5.5 weeks.

Sun, 07/07/2013 - 10:55 | 3728093 eclectic syncretist
eclectic syncretist's picture

They haven't gotten it yet, but they have give notification that they are standing for delivery of 7.4M oz. silver for the month of July so far. The accounts that did the sell are published daily. Nova Scotia house and Jefferies customer accounts did most of the selling.
What's really interesting is that JPM is suddenly acquiring silver for their house account after all the gold selling that they have been doing over the past year or so.

Sat, 07/06/2013 - 20:04 | 3727187 Bear
Bear's picture

'Same' gold in all three places?

Sat, 07/06/2013 - 20:05 | 3727188 surf0766
surf0766's picture

"reported gold holdings"  they are not that stupid.

Sat, 07/06/2013 - 20:06 | 3727193 Seasmoke
Seasmoke's picture

forget about prices . if you dont touch it , you dont own it ..and you are running out of time to touch it !

Sat, 07/06/2013 - 20:29 | 3727228 LetThemEatRand
LetThemEatRand's picture

Tried that line last night.  Didn't work.

Sun, 07/07/2013 - 00:18 | 3727645 Dr. Sandi
Dr. Sandi's picture

Don't touch that. You'll go blind.

Sun, 07/07/2013 - 01:38 | 3727752 Manic by Proxy
Manic by Proxy's picture

Can I touch it until I need glasses?

Sun, 07/07/2013 - 02:11 | 3727782 h0oS
Sat, 07/06/2013 - 20:30 | 3727230 El Oregonian
El Oregonian's picture

Gosh! Now I wish I really had gotten boat insurance last week. It was terribly upsetting, now I know how those gold vault owners feel.

Sat, 07/06/2013 - 21:08 | 3727308 Touch_It
Touch_It's picture

+1

Sat, 07/06/2013 - 20:08 | 3727194 q99x2
q99x2's picture

If I were to guess I'd say the new island that Jamie Dimon bought. It is the target that will become the number one vacation spot for Somolian pirates during the upcoming global revolution against banksters.

And where did Jamie Dimon get all the gold to cart off there? From skimming operations during the Morgue's sell off of the United States of America's Gold Reserves.

Sat, 07/06/2013 - 20:45 | 3727263 Croesus
Croesus's picture

@ q99x2:

Yeah, Lord Acton had it right.

I'm filing a patent for a new children's game, called "Bankster".

It's a game set, and includes (1) genuine Bankster action figure, (1) Printing press action set, (2) Strategy card sets, (1) Angry mob figurine set (pitchforks and torches sold separately), (1) tar-and-feathers action set, and (1) piece of rope.

The game play is easy:

One child gets to be Bankster, and using the bankster action figure, he (or she) prints and distributes the worthless paper to the other players, (which can be played by 1-5 people. It's the bankster's job to add interest onto the worthless paper, so the other players have no way to repay all of the paper + the interest.

Players take turns picking up strategy cards (one set for the players, and one set for the Bankster), which determine their outcomes. When there are no strategy cards left, players decide amongst themselves, whether to use the tar-and-feather set, or the rope, on the Bankster action figure.

The game ends, when the players bury the Bankster underneath his pile of paper.

--------------------------

I also have another game in the works, called "Traitor". You see, the way it works is....you get a Politician action figure.....

:)

 

 

Sat, 07/06/2013 - 21:19 | 3727334 noless
noless's picture

It would be like a mixture of "life" and "monopoly", except the bankster gets to choose your life cards for you, determining your income as you continuously go in circles around a monopoly board.

There would be an added position of bureaucrat, who doesn't even have a piece on the board, but gets to arbitrarily remove or add to peoples holdings, adjust sale prices, or outright seize property for a fair market value of their sole determination.

Get WotC on this immediately, top seller.

Sat, 07/06/2013 - 23:31 | 3727533 Schmuck Raker
Schmuck Raker's picture

q99x2, I hadn't heard about that.

If you know details i suggest you forward them to Somalis of means that they may profit from the information.

Sat, 07/06/2013 - 20:10 | 3727199 h0oS
h0oS's picture

All I know is that I'm stacking PMs on the cheap now. At these prices I'll soon have more than the funking COMEX and ETFs...

At that point I will issue my own gold backed currency, the "hoos backed!"

Sat, 07/06/2013 - 20:13 | 3727208 Croesus
Croesus's picture

A time will come, when anyone with a gold ring will have more gold than the CRIMEX.

Sat, 07/06/2013 - 20:18 | 3727211 buzzsaw99
buzzsaw99's picture

They probably sold it all to raise cash for executive bonuses.

Sat, 07/06/2013 - 21:10 | 3727314 Tijuana Donkey Show
Tijuana Donkey Show's picture

They are clearing it out to a safe balance sheet before the crash. When they explode, they don't want to loose the gold as a REAL asset. It's in the Fed for safe keeping.....

Sat, 07/06/2013 - 22:47 | 3727482 RockyRacoon
RockyRacoon's picture

You may not be that far off.  If the price can be juiced, now that the notorious shorts are now quite long gold, then the balance sheets would look great with gold as a tier 1 asset.

See this:

http://www.zerohedge.com/news/2013-07-05/margin-calls-coming-us-too-big-...

If those margins have to be improved then gold would make a nice asset to have -- even nicer at higher prices.

 

Sun, 07/07/2013 - 00:17 | 3727642 Dr. Sandi
Dr. Sandi's picture

Gee Rocky, do you think they managed to pick some up CHEEEEP?

Sun, 07/07/2013 - 04:54 | 3727846 bunnyswanson
bunnyswanson's picture

Margin Call.  It's an excuse at least. 

http://www.gcg-commodities.com/index.php/35/market-news.html

FROM ARTICLE:

Conclusion "Central banks continue to buy up, and hold in their vaults, the world’s gold, countries are buying up their domestic gold production, even the IMF is buying gold to reduce their risk exposure, all of this gold buying is drastically reducing the number of gold ounces/grams available to the world’s citizens."

"The World Gold Council has recently released their 2012 Q1 Gold Demand report. Gold demand grew 16 percent over the past 12 months to 1,098 tons. Global demand was boosted by China posting a quarterly record of 98.6 tons of investment demand, up 13 percent from Q1 2011."

 "Total inflows, over the past 12 months, into exchange traded gold products (*ETPs) have been close to €6.3 billion - year to date, precious metals gathered the largest net new inflows of all commodities at $3.4 billion globally."

 *Exchange Traded Products are exchange traded funds (ETFs), closed end funds (CEFs), and exchange traded notes (ETNs – usually derivative backed), that aim to track the price of gold. Some such instruments do not necessarily hold physical gold, the physically backed ones do."

Consider these two facts:

  • The world’s governments, central banks and the IMF are buying gold, a lot of gold
  • The supply of fiat paper money is infinite while the supply of gold is finite

These facts should be on all our radar screens. Are they on yours?  If not, maybe they should be.

Major purchases include:

  • Mexico 16.81 tonnes
  • Russia 16.55 tonnes
  • Turkey 11.48 tonnes
  • Argentina 7 tonnes
  • Bolivia 7 tonnes
  • Kazakhstan 4.3 tonnes
  • Ukraine 1.18 tonnes

Other names on the list of recent central bank buyers include Colombia, Venezuela, Thailand, Turkey, Belarus, Sri Lanka, Mauritius and Bangladesh.  In 2009 China purchased four tonnes of gold bullion from Hong Kong. In 2011 China purchased 46 tonnes of gold bullion.

“In the first two months of 2012, Hong Kong is reporting that China’s purchase of gold bullion has jumped 600% from last year. At this pace, China will easily surpass the 46 tonne....

http://www.youtube.com/watch?v=gH2efAcmBQM Evolnation - Blame It On My ADD (Sailing Away and not knowing it). (A tune)

Sat, 07/06/2013 - 20:20 | 3727213 tao400
tao400's picture

Remember, these guys aren't dumb. They wouldn't just sit there and let the gold be drawn down if they didn't want to. They have more tricks than Houdini. Something is obviously going on but I suspect it is different than the simple statement that there is a run on the Comex. Eventually, it will come out. I wish Zero Hedge, with its contacts, would find out and let us know. I remember a statement FDR made, "nothing happens in politics that is not planned". I would argue the same in this case. They are planning something, what, I have no idea. they certainly aren't stopping people from buying physical when they drive down the price of gold. So that can't be it. They know that driving the price down now causes more buying. So what is it really? Any ideas?

Sat, 07/06/2013 - 20:38 | 3727250 Poor Grogman
Poor Grogman's picture

Some form of Freegold could be on the cards?

This is where the PTB partially and conditionally remonetize gold but retain the power of issuing fiat out of thin air.

This new paper scam is being peddled by some seemingly savvy bloggers who may be just gullible, or may in fact be useful idiots.

anyhow the freegold idea will not work as it Is simply another centrally planned abortion, so who cares.

Sat, 07/06/2013 - 20:43 | 3727264 tao400
tao400's picture

In that scenario, they would want to keep their gold not get rid of it so that does not make sense to me. I believe that if we can really figure out what is going on with this JPM gold, we can know what the immediate to middle future holds.

Sat, 07/06/2013 - 20:51 | 3727275 Poor Grogman
Poor Grogman's picture

The thing with Freegold is that it would not be allowed as a medium of exchange, but only savings vehicle. So by restricting it in those terms the PTB would simply be able to reaccumulate it later through fiat issuance out of thin air. In the meantime they have "saved the system" plus had a "soft reset" that keeps the hard money crowd plus the free shit crowd, on side.

I admit this is just a flimsy hypothesis, I'm just as perplexed as the next person???

Sat, 07/06/2013 - 22:49 | 3727485 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

3 card monty. They always work in pairs of 3s. Watch silver not gold. Gold is the misdirection. There is plenty more silver out there than gold and it is easier to get. See which big boys are loading up on the sly on silver since once they have enough, blammo the paper silver market prices are going to shoot through the roof and it is profit time and it should also count as HQC to adhere to the FED and Basel standards for capitalization.

Sun, 07/07/2013 - 09:35 | 3728007 Agstacker
Agstacker's picture

Actually, there is MUCH more gold available in the world than silver...

 

http://www.dnaindia.com/money/1235602/interview-world-has-5-times-more-gold-than-silver

 

 

Sun, 07/07/2013 - 13:11 | 3728243 BidnessMan
BidnessMan's picture

Plus silver has a lot of industrial and medical uses, so a lot of annual silver production gets "used up" and not available for investment purposes.

Sun, 07/07/2013 - 00:05 | 3727606 nope-1004
nope-1004's picture

Who says they're getting rid of their gold?  Oh ya - forgot.  JPM and COMEX issued a press release saying something to that effect.  OK, I believe them.  Carry on.....

 

Sun, 07/07/2013 - 07:13 | 3727887 trader1
Sat, 07/06/2013 - 20:59 | 3727290 h0oS
h0oS's picture

Gold is being transferred from debtor nations to creditor nations to settle debts in a manner that is accptable to both parties without causing even more disruption to the world economy. Obviously this isn't good news for the debtor nations, but its only the poor that will suffer and no one gives a shit about them.

Sat, 07/06/2013 - 21:18 | 3727316 lakecity55
lakecity55's picture

No reason .gov cannot pull another FDR and outlaw Au. They let you buy it, then they take it (for the chilren).

And, they have an awesome, evil domestic military force to seize it with.

PM is the new Illegal Drug.

to wit:

Cops Seize Two Ounces of Gold From Elderly Hoarder

"Turn It In, America," Says Holder

USG Says Gold Mines Used to Manufacture Amphetemines

USG Seizes Gold Mines

Surgeon General Says "Gold Moar Dangerous Than CoCaine"

Former Congressman Ron Paul Arrested with Gold and Handgun

Coin Collectors Rounded Up, Face Detention Camp

President Says Gold Threatens US Economy

Sun, 07/07/2013 - 09:47 | 3728020 Tinky
Tinky's picture

Ain't gonna happen.

 

  • Logistical nightmare
  • No chance of confiscating foreign-stored gold, of which there is plenty
  • Immeasurably easier to tax the piss out of profits from sales
  • High concentration of ownership amongst patrons of the very same politicians who make the rules: Cui bono?

 

Sat, 07/06/2013 - 21:23 | 3727337 bluskyes
bluskyes's picture

Fed printing dollars, and buying gold?

Maybe some of the links in the chain of title have broken, leaving the Brinks & JPM in the lurch for the physical that they leased out.

Sat, 07/06/2013 - 22:43 | 3727471 IllusionOfChoice
IllusionOfChoice's picture

+100 I'm with you. This whole this has got to be orchestrated. Perhaps the price is really going to get kicked in the pants before the banks buy it all back up.

Sun, 07/07/2013 - 08:37 | 3727948 BidnessMan
BidnessMan's picture

Since 99%+ of the general public does not own gold or care about gold, can imagine the Movers and Shakers might accept the possibility that a very small Lunatic Fringe (ZH Readers and Stackers) might benefit when gold is revalued upward by orders of magnitude to restart the financial system.  Plus these people tend to be very well armed, and would be unpleasant to deal with.  Economic Darwinism - the insanity of the current financial system is obvious to those who choose to see.  

Just need to lay very low and not flash your Bling after the restart.....   The nail that sticks up gets hammered down.

Sat, 07/06/2013 - 20:24 | 3727217 AL_SWEARENGEN
AL_SWEARENGEN's picture

And while the outflows of bullion continue unabated, the price continues to drop.  So as long as Gold and Silver remain legal to buy, do it! 

Sat, 07/06/2013 - 20:25 | 3727220 tao400
tao400's picture

Maybe that is it, they are going to confiscate peoples' gold. then they can fill the comex right back up.

Sat, 07/06/2013 - 22:58 | 3727500 augustusgloop
augustusgloop's picture

no need to confiscate when you can tax transactions. c.f. india.

Sat, 07/06/2013 - 22:56 | 3727491 RockyRacoon
RockyRacoon's picture

It's all about the mind-set.  This article is worth the read.  When one is dealing with seemingly irrational markets, or it seems that greed is the only motivator, it's nice to step back and look at it all from another perspective:

http://epsilontheory.com/how-gold-lost-its-luster-how-the-all-weather-fu...

"The Narrative of Gold was relevant 100 years ago and, unlike the Narrative of Imperialism, it remains relevant today. But like the Imperialism Narrative in 1965, it has morphed from a centerpiece of Common Knowledge orthodoxy into the foil or antithesis for a more modern, ascendant Narrative. Just as the Narrative of Imperialism was supplanted by the Narrative of Self-Determination, so has the Narrative of Gold been supplanted by the Narrative of Central Banker Omnipotence."

There are many who subscribe to the Central Bank power play, and those people move markets, and they appear on CNBC and trash gold.  It's all rational -- perhaps wrong and feeble minded, but rational.   I subscribe less and less to the taking over of the world by wealthy, inbred families conspiracy theories, and more to the rational reasons of why markets move.

Sat, 07/06/2013 - 20:30 | 3727231 seek
seek's picture

I think the key point to all of this is that gold has been, and continues to be, exiting the COMEX system. This includes gold that's simply being warehoused but isn't available for sale.

To quote good ol' Darth Vader, I find their lack of faith [in the COMEX system]... disturbing.

Sat, 07/06/2013 - 23:43 | 3727548 Schmuck Raker
Schmuck Raker's picture

I agree. To follow Occam's lead, in this instance can there be a simpler explanation than "Depositors of gold are pulling their deposits because they don't trust JPM/Comex at this juncture(?)."

Sun, 07/07/2013 - 00:13 | 3727630 DoChenRollingBearing
DoChenRollingBearing's picture

We are presuming that we are getting the truth from JPM and the COMEX, however.........

Sun, 07/07/2013 - 01:28 | 3727741 Schmuck Raker
Schmuck Raker's picture

But of course, DoChen, in much the same way we more or less take comments/opinions here at something close to face value, pinch of salt and all that.

Your comment is an important reminder, but I think you'll agree that any given discussion just becomes irrelevant if you only allow "provable" data, especially these days, and particularly when the subject is gold.

Sat, 07/06/2013 - 20:34 | 3727237 steelrules
steelrules's picture

The criminals at JPM are hard at work, driving down the price of physical gold with their paper, so they can clean out the vaults and take possession before the muppets realize their paper gold is worthless.

Sat, 07/06/2013 - 20:41 | 3727259 tao400
tao400's picture

what do you mean "clean their vaults and take possession". A blogger below made a point that they could just buy it back wiht their own money, but i don't think it is that easy to get. so what did you mean. thanks.

Sat, 07/06/2013 - 23:47 | 3727553 steelrules
steelrules's picture

JPM insiders are taking delivery at the supressed price and the muppets will be left with worthless paper.

Sat, 07/06/2013 - 20:37 | 3727248 GrinandBearit
GrinandBearit's picture

How long can this paper game continue?...  Fuck!

Sat, 07/06/2013 - 21:01 | 3727294 Al Huxley
Al Huxley's picture

For as long as

1) GLD has gold that the bullion banks can access (via GLD redemptions by the general public and funds, I suppose) to arbitrage (pay Comex, sell in Shanghai for a $30 premium)

2) Comex isn't required to follow its own rules, and settle delivery requests in delivery months by the end of the month.  I'm sure there's some loophole that those closer to the real system will drag out to explain what's happening, but basically, of the non-allocated available for delivery gold in the Comex vaults in June, pretty much all of it was supposed to be delivered at the end of the month.  JPM appeared to have a shortfall of about 80,000 - 90,000 oz in the amount they were supposedly obligated to deliver.

 

The reality is that the whole market's so fucking opaque that trying to do any real analysis on it is impossible.  All you can really do is trust common sense that says

- there's a limited amount of gold in the world

- countries and people that have money are buying it as fast as they can (not even denied in the idiotic MSM and propagandizing financial media)

- miners can't mine it profitably at the current price (or probably at any price, given their broad incompetence, but I digress)

- our western banking elite have proven themselves to be criminal, deceitful, prone to lying and acting in ways that line their personal pockets at the expense of the rest of society

- the banking elite is aggressively pushing an 'anti-gold' message on the muppet audience

- sovereign debt around the world is reaching (or far beyond crisis levels)

- unbacked fiat currencies have around 0% success rate over periods much beyond 40 years

- gold price correlates to the FED money supply and US Debt, both of which are going straight up

 

Based on the above, fuck the paper games and analyzing Comex inventories and GLD inventories all of which are highly suspect and go with common sense.

Sat, 07/06/2013 - 23:03 | 3727504 RockyRacoon
RockyRacoon's picture

I like your approach.  And, I wonder, did the CFTC just sit down with some folks one day and say, "Look, you guys have to fix this massive short problem.  It's too obvious and important people are noticing.  We'll look the other way on a massive drive-down of the price so's youse guys can sneak out the back door.  Git 'er done."

...and POOF. It got done.  All the rest is collateral damage.

Sun, 07/07/2013 - 00:48 | 3727681 honestann
honestann's picture

Yes, but that is almost certainly only part of their plans.

Sun, 07/07/2013 - 17:07 | 3728877 Ted K
Ted K's picture

Roughly the same amount of time toothless illiterates & Tea Party members keep believing that ZH, Harvey Organ, and Eric Sprott thoughts on gold are the words of Moses. And not one day before.

Sat, 07/06/2013 - 20:51 | 3727252 WallowaMountainMan
WallowaMountainMan's picture

so does this mean these guys that are losing their stock of gold can't use their 'other' money to buy new gold at these lower prices?

Sat, 07/06/2013 - 20:46 | 3727268 joego1
joego1's picture

They are standing in line in Asia for the stuff. Maybe they dug a hole to china in JPM vaults?

Sat, 07/06/2013 - 20:49 | 3727271 SqueekyFromm
SqueekyFromm's picture

Well, I am certainly confused. Hmmm. Maybe we should all play Mystery Asset Theatre!!! Here are some clues!

Clues:

1. The  "Mystery Asset" is rapidly decreasing in market price;

2. Many analysts say the "Mystery Asset" will continue to plummet in price;

3. The "Mystery Asset" pays no dividend or interest;

4.  The "Mystery Asset" has little or no intrinsic value;

5.  A clever Big Bank owned a bunch of said "Mystery Asset";

6. When the price began to fall, the "Mystery Asset" began to disappear from the vaults of the Clever Bank;

NOW, the game's afoot! What in the world happened to the Mystery Asset???

 

Squeeky Fromm, Girl Detective

 

[SPOILERS!!! My guess is that the Clever Bank is SELLING the Mystery Asset to lock in whatever gains they have made, and if they want any Mystery Asset in the future, they will just buy it back at a much lower price.]

 

Sat, 07/06/2013 - 21:05 | 3727303 Al Huxley
Al Huxley's picture

Ohh wow, thanks for the astute insight!  You're blowing my mind!  Any idea why the clever big bank tends to dump massive amounts into the thinnest markets, virtually guaranteeing a terrible price, and painting the ugliest technical picture possible, when IN EVERY OTHER FUCKING TRADING ARENA SAID CLEVER BANK ROUTINELY GOES MONTHS OR QUARTERS WITH A 100% WINNING TRADE RECORD?

 

You're deep insights into the matter would be much appreciated.

Sat, 07/06/2013 - 21:14 | 3727326 SqueekyFromm
SqueekyFromm's picture

Sure AlH!

They don't want to get caught holding the crap when hits $700 or whatever. I don't think we know what their average cost per ounce WAS. It's probable they are making a profit, and are kicking themselves for not dumping it sooner. If they wait, they will make less money because the price will be lower.

Personally, I just hope its Chinese Gold Bugs who are buying the stuff, and not any of the American Gold Bugs here at ZH. Because I am patriotic and stuff.

Squeeky Fromm, Girl Reporter

Sat, 07/06/2013 - 21:22 | 3727341 fonzannoon
fonzannoon's picture

It's good to know you are a Snowden supporter Squeeky. Just be careful, some people out there don't appreciate true patriots anymore.

Sat, 07/06/2013 - 21:42 | 3727380 Angus McHugepenis
Angus McHugepenis's picture

Tsk, tsk, Squeak...

My last cost per oz of gold was $2,000 total cost... but that was for the acres of LAND it comes from, right next door to my friends 100 acre LAND claim (150 acres total).

Yes... $2000 will buy you a shitload of LAND in the middle of nowhere that you can actually mine gold from, grow a garden, and LIVE ON if you're so inclined. Or... you could go into debt for a mortgage on a house and property that you "think" you own for $500,000 while keeping up with the Jone's... and be ever indebted to a bankster.

The gold is not the game... IT'S the LAND. Most goldbugs miss that point as they make their weekly trip to the LCS.

Sun, 07/07/2013 - 01:31 | 3727743 RafterManFMJ
RafterManFMJ's picture

Where is this land.

Sat, 07/06/2013 - 21:48 | 3727386 Al Huxley
Al Huxley's picture

Yeah, you kind of missed my point Squeeky - I wasn't asking WHY you thought they were selling, I asked you to explain why they, who are oh-so clever, would decide to sell it at the worst possible time, guaranteeing a terrible price, when they have proven themselves more than capable of selling just about everything else at just the RIGHT time.  But don't feel obliged to answer, the question's rhetorical.

Sat, 07/06/2013 - 22:55 | 3727497 joego1
joego1's picture

So Sqeeky, What do you think about the fact that gold costs about what it's selling for now to produce it and that there is still demand for physical metal? i.e. empty vaults at JPM. Do you think that the market is correctly reflecting the value? Another question is why is the premium for physical so much higher than the paper price? Another question is why do central banks list gold as a "monetary asset" and not a liability.

Sun, 07/07/2013 - 08:18 | 3727934 gatorengineer
gatorengineer's picture

Care to define massive amounts? 1000 oz os 1.2 million dollars or basically an average bonus for a squid trader....  let me know when we start talking 100s of millions of ounces here...

 

Maybe just maybe someone has figured out there isnt enough gold to take the world back to the gold standard.  Instead its going to the next level which is energy unit based...  graph firewood oil or nat gas against the printing and you will understand.

 

 

 

Sun, 07/07/2013 - 17:31 | 3728940 kill switch
kill switch's picture

Huxley,

 

Your on a fucking roll,,,

 

Keep it up fella your bustin the fake consensus trance..

Sat, 07/06/2013 - 21:07 | 3727306 SmallerGovNow2
SmallerGovNow2's picture

Sorry, you lose, bad guess...

Sat, 07/06/2013 - 21:18 | 3727331 joego1
joego1's picture

Mystery asset held by every central bank in the world. Case closed.

Sat, 07/06/2013 - 21:26 | 3727346 WallowaMountainMan
WallowaMountainMan's picture

alternatively, the massive flows had to go get some returns and they decided to crush the longs in gold by going short, kinda like the inverse of bond vigilantes.

seems strange to me that zh'ers oft underplay the importance of that macro.

the huge entity that long ago tyler identified as the flow, has been finding solace in the once vast expanse of the financial markets. as time exponentially passes, these flows have found their space diminished by their own growth. where and what the flow can due shrinks the fatter the flow grows.

their footprint is the dichotomy of price lower than demand.

 

Sat, 07/06/2013 - 21:27 | 3727350 joego1
joego1's picture

I chew my food with mystery asset. Mystery asset is best conductor of electricity and is listed in periodic table of elements. Mystery asset has been considered highly prized for over 6000 years. I can hold mystery asset with zero degradation forever. Now lets take fiat currency;

- Most manipulated "idea" known to man kind.

- Has a perfect record of failure throughout the ages

- Can be destroyed by termites

- Based on debt (otherwise know has enslavement)

- Can be further manipulated to appear on computer screens (the monkeys/sheep at screens like that!)

- Can be wiped from face of earth with burp from sun or cyber wars from pissed off countries

 

 

Sat, 07/06/2013 - 20:57 | 3727285 LiquidityandLunacy
LiquidityandLunacy's picture

This is so silly. You think thats air youre breathing? You think thats all the gold? hahahahahahahahaha

Sat, 07/06/2013 - 20:59 | 3727289 LiquidityandLunacy
LiquidityandLunacy's picture

What if I told you that Gold cannot protect you from a deflationary collapse after hyperinflation due to government controls and the lack of transparency in a SHTF scenario to purchase "all the assets of value" without someone noticing. Like a mob. 

Sat, 07/06/2013 - 22:18 | 3727441 NidStyles
NidStyles's picture

I can't believe they let idiots like you out of the crib.

Sat, 07/06/2013 - 22:49 | 3727486 LiquidityandLunacy
LiquidityandLunacy's picture

Ok. Junky junk. Who cares. You cannot preserve your wealth in the kind of collapse you predict. But no one will faily you for trying.

Sun, 07/07/2013 - 01:19 | 3727725 Dr. Sandi
Dr. Sandi's picture

There's always some poor dumb bastard with a bunch of guys and even more guns who will be 'protecting' things of value after a monetary collapse. He and his friends are so stupid that they will trade you a little of their stuff for some of your gold or silver.

Maybe they just like shiny stuff. Or maybe they know something that we brilliant types have missed.

Sun, 07/07/2013 - 09:50 | 3728026 debtandtaxes
debtandtaxes's picture

"...you cannot preserve your wealth in the kind of collapse you predict."

 

1. Hmm. And yet people did protect their wealth during the collapse fo the Depression.

2. We can therefore assume you agree that a collapse is coming.

Sat, 07/06/2013 - 21:08 | 3727309 FranSix
FranSix's picture

They want that the gold bull be finished off because they've grown tired of it and the only way to fight it is a last resort of dumping whatever physical gold is available to hand.

Sat, 07/06/2013 - 21:38 | 3727368 lakecity55
lakecity55's picture

There is a certain group of people who like to make golden calfs and worship them.

I would start looking there.

Sat, 07/06/2013 - 21:41 | 3727377 Jim in MN
Jim in MN's picture

Right under the golden knees, and above the golden ankles?

Sun, 07/07/2013 - 01:20 | 3727730 Dr. Sandi
Dr. Sandi's picture

Just massage my golden calf until I see God.

Sat, 07/06/2013 - 21:52 | 3727398 tip e. canoe
tip e. canoe's picture

not a problem in my book, until they eat them and then go off killing other tribes in a crazed frenzy of superiority.

live and let live, it's really that simple.

Sat, 07/06/2013 - 22:22 | 3727447 casfoto
casfoto's picture

The bank is making some room for the gold that they confiscate from us in the next few months.....they are going to pull a Roosevelt.

Sat, 07/06/2013 - 22:22 | 3727448 casfoto
casfoto's picture

The bank is making some room for the gold that they confiscate from us in the next few months.....they are going to pull a Roosevelt.

Sun, 07/07/2013 - 01:33 | 3727746 Northern Lights
Northern Lights's picture

If gold confiscation in the USA is true, thank God I'm not an American.

Sun, 07/07/2013 - 04:08 | 3727832 bunnyswanson
bunnyswanson's picture

Canadian? 

http://www.youtube.com/watch?v=5Kai5Goto2w

Canada sells all it's gold at bottom dollar.

 

Sun, 07/07/2013 - 09:54 | 3728028 debtandtaxes
debtandtaxes's picture

Canada, and Canadians, are good little slaves.

We believe in sitting down and negotiating with our owners because physical confrontation is risky and inconvenient and so rude. My countrymen are no† stupid. Bu† they are lazy and scared shitless.

Sun, 07/07/2013 - 15:00 | 3728539 Northern Lights
Northern Lights's picture

You have any idea how much of the stuff is in the ground up here?  Lots! Lots and lots and lots!  Much like the oil in the tar sands.  Enough to serve the entire planet for the next 100 years.

Sat, 07/06/2013 - 22:30 | 3727461 kchrisc
kchrisc's picture

Hey Liza, there's a hole in the bucket. Yup, I'm telling you Liza, there's a hole in the bucket.

Sat, 07/06/2013 - 23:03 | 3727505 Godisanhftbot
Godisanhftbot's picture

It's being used to plate the White house toilets.

Sun, 07/07/2013 - 04:36 | 3727842 bunnyswanson
bunnyswanson's picture

It's on its way to the IMF who will then form the North American Union Central Bank.

The author of the Financial Post article which mentioned the amero, Herbert Grubel, wrote a paper for the Fraser Institute in 1999, entitled, “The Case for the Amero: The Economic and Politics of a North American Monetary Union”, in which he laid out the case for the creation of a regional currency for North America.6

"In this paper, Grubel wrote that, “The plan for a North American Monetary Union presented in this study is designed to include Canada, the United States, and Mexcio,” and that, “The North American Central Bank, like the European Central Bank, will have a constitution making it responsible only for the maintenance of price stability and not for full employment.”7

In discussing the issue of sovereignty related to a monetary union, Grubel stated that he thinks that, “sovereignty is not infinitely valuable. The merit of giving up some aspects of sovereignty should be determined by the gains brought by such a sacrifice.”8

He continued in saying, “It is important to note that in practice Canada has given up its economic sovereignty in many areas, the most important of which involve the World Trade Organization (formerly the GATT), the North American Free Trade Agreement,” as well as the International Monetary Fund and World Bank.9

Despite admitting to several agreements and organizations of which strip Canadian sovereignty, Grubel suggests that losing sovereignty in these areas is still worth the benefits.

http://www.youtube.com/watch?v=PUk2a1YpGiM  Hello Amero  -- Good bye America

http://www.prisonplanet.com/articles/january2008/220108_b_Amero.htm

This is the new world order.  Everything that is happening is being orchestrated to create the NWO - centralized banking system and a centralized industrial complex.  They've been talking about it for a century, 100 years, plenty of time to cross their t's and dot their i's.  Add it up. 

Middle class global wealth is financing the pipe dream.  And when they've completed the last withdrawal...look out.

Sat, 07/06/2013 - 23:19 | 3727523 Jim in MN
Jim in MN's picture

"I contradict myself?  Very well, then I contradict myself.  I am large.  I contain multitudes."

--Vault Whitman

Sun, 07/07/2013 - 01:21 | 3727733 Dr. Sandi
Dr. Sandi's picture

Isn't that Vitman?

Sat, 07/06/2013 - 23:38 | 3727541 jonjon831983
jonjon831983's picture

"we will provide some formerly classified perspective shortly in a post" - neat

Sun, 07/07/2013 - 00:08 | 3727569 Schmuck Raker
Schmuck Raker's picture

+1 Jon, first to comment on that.

I too look forward to the John le Carré version of this story.

 

Edit: Meh, said story is out already - mostly just a rehash... http://www.zerohedge.com/news/2013-07-06/china-radio-us-and-europe-have-...

Sun, 07/07/2013 - 01:03 | 3727704 WTFUD
WTFUD's picture

Come on Z/H'ers listen to the whispers from the friendly folks who care about your welfare!
They have seen the light and gone are the days when they might have sold toxic exotic instruments to small businesses and homeowners.
Fool me once in slow motion shame on you, wont be fooled again or for another 75 years or which comes first.
Bless their hearts they love us now. Am almost chocking back the puke tears.

Sun, 07/07/2013 - 01:52 | 3727767 Cacete de Ouro
Cacete de Ouro's picture

Rothschild vault Singapore, Raffles...

Sun, 07/07/2013 - 02:09 | 3727779 xxxxx
xxxxx's picture

I noticed Barrick Gold (one of the largest miners) closed Friday at $13.76

At the start of the Gold bull market in 2000 the low was $11.26. It"t like the whole bull market in Gold has been wiped out for Barrick.

It had reached a high of $53.36 in 2011. Either the Bull market in Gold is over, or it"s ridiculously cheap, or as someone recently said, Gold mining companies are best at mining investors.

Sun, 07/07/2013 - 03:41 | 3727818 dojufitz
dojufitz's picture

This system is fucked........

That can't raise rates now due to the massive debt.....

errr....thats what happens when you disconnect Gold and print the xerox machine 24/7......

So just recapitalise this cunt of a system with $100,000oz Gold and reboot......

Sponge all that fuckin debt into those Gold bars.....& tell the world to suck my balls.....

 

Sun, 07/07/2013 - 06:07 | 3727869 Fix It Again Timmy
Fix It Again Timmy's picture

I love "our" rehypothecated gold more than you do.............

Sun, 07/07/2013 - 06:28 | 3727875 Mr. Hudson
Mr. Hudson's picture

The gold mine in Helena Montana shut down. I was shocked to learn this, because you could drive to the mine and pay spot price. The jewelry store where I live buys gold and pays a little under spot price. Yet, I see physical selling for $200-$400 over spot on the net. Is there a money making opportunity here? People are selling their jewelry on Craigslist for under spot. I was thinking of buying some and melting it. Would I be wasting my time?

Sun, 07/07/2013 - 10:21 | 3728054 Car 54 Where Are U
Car 54 Where Are U's picture

Still buying physical 5% below spot from a US miner. Delivered from his US refinery. 1-10 Troy oz bars or 1 kilo. Assay certified and shipped anywhere in the world. Deal direct. Greg@logigold.com

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