JPM Sees 28% Withdrawal From Gold Vault In One Day As Another 10 Tons Depart

Tyler Durden's picture


On Friday, when we remarked on the biggest recorded withdrawal from the JPM gold vault, we said: "Something tells us the next few days will see matching withdrawals from JPM's gold vault, which at last check was officially owned by the Chinese." As it turns out we were absolutely correct: according to the just released update from Comex, on Monday the infamous gold vault located below 1 C(hina)MP saw an identical withdrawal of 321,500 ounces, matching the record withdrawal, and amounting to 28% of all JPM gold in storage. Adding to Friday's drop, this means that a record 47% of JPM's gold has been withdrawan in a few short days: a trend we are certain will continue until the total holdings of the vault drop to new record lows.


This withdrawal means total JPM gold slides from 1.128 million ounces to 816,027 ounces, down from 1.459 million ounces a week ago.

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Tue, 01/28/2014 - 17:33 | 4376886 Cacete de Ouro
Cacete de Ouro's picture

that's why I'm richer than you

Tue, 01/28/2014 - 17:37 | 4376905 fonestar
fonestar's picture

full faith and credit

Tue, 01/28/2014 - 17:39 | 4376910 JoeSexPack
JoeSexPack's picture

Bring it, JPM, waiting too long...

Tue, 01/28/2014 - 17:52 | 4376959 nope-1004
nope-1004's picture

Since supply is dwindling, the logical conclusion is that price is going to fall.  At least, that's what I remember from Econ lol.


Tue, 01/28/2014 - 17:56 | 4376979 James_Cole
James_Cole's picture

Supply hasn't dwindled.. yet.

There's also this to consider:


Tue, 01/28/2014 - 18:00 | 4376997 camaro68ss
camaro68ss's picture

Got some barbaric relics shipping to me as we speak

Tue, 01/28/2014 - 18:28 | 4377100 Dead Canary
Dead Canary's picture

Ooo... Me too!  Shun-sine mining. (Burp, sussxcuse me. I've been drinking a little)

Tue, 01/28/2014 - 18:43 | 4377147 kaiserhoff
kaiserhoff's picture

The really fun part, is that there is no obvious way out for the Morgue.

The ETF's are bull shit, settled in cash, don't track the underlying and marketed to fools.  But phys is phys.  You got it, or you ain't.  It's been a long time since traders took on a major bank, or any specialist, for that matter, but this has a certain eau de toilet about it;)

Tue, 01/28/2014 - 19:04 | 4377240 OutLookingIn
OutLookingIn's picture

To: JPM 

Thank you.


China. Message ends.

Tue, 01/28/2014 - 19:07 | 4377255 DoChenRollingBearing
DoChenRollingBearing's picture

Mmm, physical gold...  I can hardly wait to get back to buy more.  Not much here...

"Quepos, Costa Rica"

Tue, 01/28/2014 - 20:49 | 4377638 SoberOne
SoberOne's picture

Im broke, so I just backed up the truck on a cc.

Tue, 01/28/2014 - 20:49 | 4377632 XitSam
XitSam's picture

No obvious way out?  With the government and fed on their side?

Tue, 01/28/2014 - 21:01 | 4377677 kaiserhoff
kaiserhoff's picture

Can Yellen print gold?

Wed, 01/29/2014 - 01:25 | 4378681 Squid-puppets a...
Squid-puppets a-go-go's picture

james_cole, i wouldnt put any store by that news item at all. If they didnt have the balls, clout or inclination to reintate glass-steagall , they sure as shit aint gonna pull something like this

Tue, 01/28/2014 - 18:25 | 4377090 JuliaS
JuliaS's picture

Gold didn't disappear. One holder's supply became someone else's supply. It's not fiat that can be retracted or injected, shredded or printed. Gold doesn't go anywhere and the only time supply increases or decreases is when a new mine goes into operation or a galleon sinks perhaps.

Supply unchanged and this news is nothing but static. JPM has gold, JPM has no gold. JPM long silver, JPM short silver. JPM vaults empty, then all of the sudden 300K ounces are withdrawn from it.

Everybody's pulling numbers out of their asses.

Likewise with Chinese demand stories. China's broke, China's rich, Chinese buying gold, Chinese commit suicides, unable to pay bills, China grows, China shrinks, China is the new US, China's the new USSR and so on.

Gold possession is often anonymous. That's why people like it. It can change hands without anyone finding out. Published audits, I'm sure, are outright lies more than half the time. In reality, nobody knows who holds what.

Press releases regarding JPM transactions are just as credible as Icahn's pumpty-dumpty fairy tales.

Wed, 01/29/2014 - 10:06 | 4379391 eclectic syncretist
eclectic syncretist's picture

You seem to be unaware of the simple fact that COMEX gold is (ostensibly) available for anyone to buy and have delivered at current market price, but the buyer is under no obligation to sell at any price but the one he/she chooses to hold out for.  Since gold and China appears to be on a ten-lane, one-way highway it's only reasonable to assume they are going to hold their gold, and all the gold they are buying from around the world and within China, for the forseeable future, and that means the supply is effectively diminishing.

Tue, 01/28/2014 - 18:41 | 4377151 Diablo
Diablo's picture

guess no one pays attention when JPM nearly tripled their holdings in the 2nd half of last year (hint: look at the pretty graph above).

"supply dwindling'???? yeah keep thinking that.


Tue, 01/28/2014 - 17:52 | 4376960 AL_SWEARENGEN

These are eligible withdraws correct?  Clients withdrawing their bullion?

Tue, 01/28/2014 - 18:19 | 4377089 Race Car Driver
Race Car Driver's picture

> full faith and credit

I junked ya for just being a plague.

Maybe some of the other junkers would like to share why they junked you?

Tue, 01/28/2014 - 18:31 | 4377111 fonestar
fonestar's picture

Most likely because fonestar is fanatically pro-Bitcoin and that doesn't fit in with their doomer bullets, beans and bullion fantasies.

Tue, 01/28/2014 - 19:02 | 4377239 dogbreath
dogbreath's picture

don't delude yourself,  its because you have no credibility

Tue, 01/28/2014 - 19:26 | 4377350 fonestar
fonestar's picture

What's a credibility and why would I want one?  I already got my Bitcoins.

Wed, 01/29/2014 - 02:18 | 4378763 matrix2012
matrix2012's picture

"full faith and credit"


JPM is losing out the the barbarous antique phys gold... but have no worry, JPM can accumulate many other forms of wealth, among other JPM can stack BTC ...its mining is getting tougher, its value is ever increasing... have peace in mind, stawks baounds BTC all are of high quality assets

Tue, 01/28/2014 - 17:48 | 4376942 Stoploss
Stoploss's picture

" a trend we are certain will continue until the total holdings of the vault drop to new record lows."

After that, the firetrucks show back up right? 

Tue, 01/28/2014 - 22:25 | 4378041 SAT 800
SAT 800's picture

and then a piper cub will run into the building and it will turn into dust?

Tue, 01/28/2014 - 17:50 | 4376950 whatsinaname
whatsinaname's picture

Only means one thing to me - bring on more Taper PRONTO..

Tue, 01/28/2014 - 17:34 | 4376889 PaperBear
PaperBear's picture

No one is wanting the paper, JPM ?

Tue, 01/28/2014 - 17:33 | 4376891 Fix It Again Timmy
Fix It Again Timmy's picture


Tue, 01/28/2014 - 17:35 | 4376897 Greenskeeper_Carl
Greenskeeper_Carl's picture

Que the paper shorts. The show must go on...

Tue, 01/28/2014 - 18:00 | 4376992 Keyser
Keyser's picture

Every day, right on queue. 


Tue, 01/28/2014 - 17:35 | 4376898 666
666's picture

I wish those massive withdrawls end up in my bedroom.

Tue, 01/28/2014 - 17:35 | 4376900 Bay of Pigs
Bay of Pigs's picture

What a fucking farce this is.

Blow up already...

Tue, 01/28/2014 - 17:55 | 4376971 Levadiakos
Levadiakos's picture

They flogging that dead horse of a story. This will make gold go up why?

Tue, 01/28/2014 - 20:28 | 4377563 Tall Tom
Tall Tom's picture

Actually it will have little affect on the short term price of Gold as the Gold Price has little to do with Physical Gold...(It is about 1/112th considering Comex Inventories at this point)


They did not claim a direction for the price of Gold in the report.


I will forecast that the price of Gold, as reported, will realize its true value of ZERO in the near future. That is because what is priced is not Gold but CONTRACTS to buy Physical Gold.


And when DEMAND for those contracts diminish, as COMEX, JPM, and the GLD ETF inventories are totally depleted, as the Gold is not available for Delivery, then the contracts will become WORTHLESS. The contract's value becomes ZERO. 


At that time there will be an unprecedented DEMAND for the Physical Metal and just who knows what Prices for Physical Gold will be commanded.


The fraud will be EXPOSED and there will be little to nothing that your weak Government Officials can do in order to stop it.


That is the reason the report is important.


If you do not hold it then you do not own it.

Tue, 01/28/2014 - 23:17 | 4378256 BringOnTheAsteroid
BringOnTheAsteroid's picture

"I will forecast that the price of Gold, as reported, will realize its true value of ZERO in the near future. That is because what is priced is not Gold but CONTRACTS to buy Physical Gold".

One of the best comments I've ever seen regarding the price of gold.

Tue, 01/28/2014 - 17:38 | 4376907 Hughing
Hughing's picture

And, the German gold is where? 

Tue, 01/28/2014 - 17:40 | 4376914 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

In China.

Tue, 01/28/2014 - 18:28 | 4377103 Race Car Driver
Race Car Driver's picture

On the X-37, somewhere on the dark side of the moon awaiting the BTC block chain download to clear the transaction. Should only be another coupla months.

Tue, 01/28/2014 - 17:44 | 4376926 Sudden Debt
Sudden Debt's picture

all there... and shipping it grain by grain...

Tue, 01/28/2014 - 17:43 | 4376930 GVB
GVB's picture

Still to be mined, I guess.

Tue, 01/28/2014 - 18:28 | 4377106 Canadian Dirtlump
Canadian Dirtlump's picture

When I inquired as to the whereabouts of the German gold I was told it was located up my ass, around the corner, down mainstreet and out the other end.


The reality is, is that the old gold has been melted down in to kilo bars, and the new gold is located in "deep storage" aka it is dispersed around nevada to the tune of a few grams per tonne.

Tue, 01/28/2014 - 19:00 | 4377229 Greenskeeper_Carl
Greenskeeper_Carl's picture

it was probably all melted down and sold off many years ago to satisfy demand and keep the price under control. It has been documented about the CBs doing this. SO, you or I could very well own some of 'germany's gold' in the form of an ounce or fractional coin. Hate to say it, but it serves them right for trusting the fed with their soveriegn gold. Although to be fair, after WWII i doubt we gave them much choice

Tue, 01/28/2014 - 17:40 | 4376909 fonzannoon
fonzannoon's picture

for real....? we are still doin this....?

Tue, 01/28/2014 - 17:44 | 4376925 seek
seek's picture


I'm convinced in a year when CME has all of 10 ounces in the warehouse that the TBTF banks will be leveraged 1000:1 and doing HFT on it, just so they can claim the price is X. (Where X, of course, is a giveaway to Asia and well below a free market price.)

We have a long wait ahead for a free gold market. Not until the Fed implodes.

Tue, 01/28/2014 - 18:18 | 4377038 Ham-bone
Ham-bone's picture

mystery indeed…why the paper price falls as demand soars and supply is being slowly cut down (exploration and capex completely cutoff)…physical held in COMEX, LBMA, and SGE is being drawn down rapidly...ETF holdings shrinking day after day.

The system ever more vulnerable to an ever smaller demand for delivery requested...The Fed assumed to be tapering again tomorrow down another $10 B /mo…down to $65 B /mo in purchases. Typically when there is record leverage and cash all in (as we have now) then something has to be sold in order to buy these additional $10 B T’s and $10 B MBS. But any selling with this sort of record leverage begets more selling and on and on. And Japan insinuating no growth to their QE???

So, why is the Fed tapering and what is the linkage w/ PM’s and the run on physical metal and rundown in prices???  And is the event horizon here and now or is this simply the removal of an asset class from the public never to be repriced or traded again???

Tue, 01/28/2014 - 18:35 | 4377125 SoilMyselfRotten
SoilMyselfRotten's picture

You may be able to buy PM's but you're going to pay thru both nostrils

Tue, 01/28/2014 - 23:21 | 4378273 BringOnTheAsteroid
BringOnTheAsteroid's picture

Anyone consider that the Fed says they are tapering from here on in but still just print the same amount, maybe even more than 85 billion a month. what a great con that would be. They'll eventually end QE as broadcast but secretly just print and then tell everyone, "See, ending QE didn't crash the system, we told you". does anyone know how to detect such a happenstance. The Fed will never be audited so they can doing whatever the fuck they want but where would you look for evidence of this in the market?

Wed, 01/29/2014 - 01:39 | 4378706 Squid-puppets a...
Squid-puppets a-go-go's picture

i dont know te specifics but by some reckonings there were another $10 billion per month here and there bringing it to $95b in recent months- so its feasible i spose

Tue, 01/28/2014 - 17:40 | 4376911 Winston Churchill
Winston Churchill's picture

Somebody still reads the FT it seems.

Tue, 01/28/2014 - 17:41 | 4376912 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

Wow one little hiccup last friday in the fiat markets and Gold became the goto again. Society is very fragile. Thanks Feds.

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