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Comexodus: JPMorgan's Vault Is One Withdrawal Away From Running Out Of Deliverable Gold
One week ago, when we reported the record plunge in registered gold held by the various Comex gold warehouses in general, and JPMorgan in particular, which saw the "gold coverage" ratio, or the number of paper claims through open futures interest for every ounce of deliverable gold, soar to what we then thought was a record, and unsustainable 207x, we thought this situation would be promptly rectified as a few hundred thousand ounces of eligible gold would be "adjusted" back into the "registered" category.
Not only has this not happened, but with every passing day the situation is getting progressively worse.
According to the latest Comex vault data, not only was another 157K ounces withdrawn today, but the conversion of Registered into Eligible continues, and as a result another 10% of total deliverable gold was "adjusted away", leaving just 163,334 ounces of registered gold: the lowest in Comex history.
As a result, the ratio of Eligible to Registered gold is now a record high 41.2x in the history of the Comex.
Once again the culprit for the decline was JPM which saw not only a 122,124 ounces of Eligible gold be withdrawn, reducing the total by 13% to 750K ounces, but 8.9K ounces of registered gold was pushed into the Eligible category, in the process reducing total JPM registered gold by 45% overnight to a paltry 10,777 ounces: this amounts to only 335 kilograms of gold, or just 27 bricks of "good delivery" gold.
Finally, since aggregate gold open interest continues to remaing consistent at just about 41 million ounces of gold, today's latest ongoing reduction in deliverable Comex gold means that as of yesterday's close, there was a record 252 ounces of gold paper claims to every gold physical ounce of currently available and deliverable gold.
To summarize: last week we were confident that JPM would promptly adjust a few hundred thousands ounces of Eligible gold back into Registered status to silence growing concerns about Comex distress. A week later we are not as concerned by the relentless surge in paper gold dilution, as we are that JPM still has not even bothered to do this. Especially since with just 335 kilograms of gold, or less than 27 bricks, JPMorgan is now just one withdrawal request away from running out of deliverable physical gold.
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For the last 10 years I've waited for this fraudulant precious metals shitshow to come to an end. Could this finally be it? Sure hope so.
No I don't think so.
The banksters will just invade another country and reup.
This makes me wonder if a certain country with a big wall is upping the currency war a notch.
Anyone know how much gold Iran has?
The bankster fascists will assert Force Majeure and screw everyone, as always. The so called laws never apply to the elitists; they are used only to dominate the sheeple. This is how it is in a crony capitalist society.
In the not so distant future precious metals will replace a portion of the bond market as the prefered safe haven asset. A comex default would make it very clear that paper assets are no safe haven when compared to physical gold and silver.
I just put in my request to deliver the 84 gold bars Comex is holding for me. Sorry for any inconvenient systemic collpase this may cause the rest of you, but I was getting a little nervous.
I beseech you! Don't do it! Think of the children...
yes, yes, the children, think of the children!
hey rand! it may just be this site but when i read your question i thought, israel?
Turn your fiat into gold while it's still available.
Turn your Chrysler into to gold as well if you can...
Hard for me to believe anyone buying comex futures intends to take delivery. To that end, I'm not sure what the relevancy is of having only 27 bricks when the market is already a complete ponzi.
Whether it's 2000 bricks, or 2 bricks they have on an electronic ledger, the banksters will lie and steal with impunity.
CRIMEX
""as of yesterday's close, there was a record 252 ounces of gold paper claims to every gold physical ounce of currently available and deliverable gold.""
GOLD For Dummies, P. 03
1 Physical Ozs GOLD = 252 Paper Ozs, Or $278,000 Fed Fiats...
Nice Rise in the last few days...
hehehe, it doesnt quite work that way 1:1, as im sure you know. but it will be certainly interesting how much certain oligarchs will be keen to pay for physical when they find out that the music stopped a while ago and there's only one chair left for hundreds of players
If you're going to have a Force Majeure, best to have Gold at the lowest price possible when cashing out those contracts. This explains more than anything the drive to keep the price of Gold down.
The fascists will think of something to keep it going -- rest assured.
Peak physical gold....screw global warming
This is the big one.
JP hot pants from the fryer to the fry pan coming soon.
Physical silver seems to be in short supply as well. I see many "Alertime" & "Out of stock" notices on APMEX & other sites.
Anyone heard anything about this yet???? Sure seems to have gone under the radar.
http://www.cbc.ca/news/canada/montreal/silver-heist-montreal-shipping-co...
16 tons of silver stolen in Montreal.
They caught 4 suspects but recovered only 30% of the silver so far.
Someone just said to me that if word gets out that JP Morgan can't deliver the gold it has sold then the price of gold will go DOWN.
Yes, DOWN, because all the buyers of paper gold will panic and vanish from the market. All sellers and no buyers means the price goes DOWN.
....isn't that what Syria, Ukraine and Alien invasions are all about??
good point. illiquid hour slamdown in 3...2...
That you, Natty???
If you're going to have a Force Majeure, best to have Gold at the lowest price possible when cashing out those contracts. This explains more than anything the drive to keep the price of Gold down.
Rest assured... tons of gold are being secretly alchemized in Dimona every day... so all is well.
I acquired a sample of Rumpelstiltskin DNA and am close to reanimating.
Go long straw.
Did you acquire the real thing? That can easily be confused with a piece of rumpled foreskin.
LENR transmutation.
True; it is not the first time and it shows there is going to be a last time and it approaches fast but rememebr, that last time is going to happen only once :)
so don't be thar sucker when it will be over, no more physical gold in the bunkers ...
yes, articles like this must absolutely speed up the inevitable at this point: blood, meet water, and like with the CDS shitshow in 2008 capitalist cronies are sharks. They will feed on each other rather than save 'the system', and JPM took the derivative options to magnify its cornering of the market
... but do it in a way that they do not know who has it. I do not know how people on here buy gold, but I always just visit a shop and pay cash, it seems wrong to let the Gov know you have the stuff.
If you're not first in line for the Gold, you might as well be last in line.
I don't know if this is "IT" or not, but I do know one thing:
Silver bullion premiums have never been higher. The cheapest ASE's available are going for nearly $5.00/oz. over spot:
https://comparesilverprices.com/
You do know that site is all but worthless these days right? Try to find a 1 oz silver buffalo. That site has prices from several vendors but if you actually try to buy them, none there amigo.
That said, Silver Phillies are 2.59 over spot at JMBullion.
But yes, ASEs are almost a fiver over.
The end just may be nigh. Or it could be a blip.
In a certain country with a big wall, I cannot find silver for less than about $35 per ounce equivalent, even in 100-oz bar sizes.
Okay, in the "antique" market, I can find "silver" coins at below spot.
So silver in Israel is really exspensive ?
"You do know that site is all but worthless these days right? Try to find a 1 oz silver buffalo. "
Yikes, you are correct, all the sub $17 rounds are stock delayed... So buy an Incuse Indian instead. It's only .10 more per ounce.
All, notice that despite that site showing Silver.com is the cheapest, you'll note that Provident offers free shipping over $100, which makes them cheaper than silver.com. Go look at the difference for just one roll. The shipping cost matters....
One thing is for sure, there be be plenty of paper for everyone
This together with what now seems to be permanent backwardation in London does, despite assertions to the contrary by sister Christian and Bron Suckeki (The usual suspects) suggest real physical tightness. However, any "Break" is unlikely to occur on COMEX because, as Craig Hemke pointed out in his recent article, there is virtually NO physical delivery on COMEX. So the ratio might even go much higher. The only thing that could change that is if some of the managed Money players who have been consistently screwed by the Commercials finally see the light and establish substantial long positions and then stand for delivery. That would probably result in a Force Majeur declaration and settlement in cash but at a premium. That would either be the end of COMEX or volumes would decline to such low levels as to become irrelevant as the move of trading to the physical markets in Asia accelerates.
That would marrk the end of the short Yen/Long Dollar/Short Gold trade which the algo are all programmed to deploy.
i disagree - these metrix very much incentivise buyers to ask delivery for the final stores, and as you suggest, it very much pushes those that have ownership (or leseeship) of some registered gold to push it into the eligible category (i.e. to withdraw it from the market until a significantly higher price is available)
a break in the comex would now appear to be baked in. The incentive is there for anyone (or a small collusion of wealthy folk) with about $190 million to trigger the force majeur
hell, at that price, a reasonably small nation with existing PMs could divest themselves of $200 mill US bonds, crack the comex, and ride the higher pm price back to solvency
EVERYONE must be sharpening their knives on these developments
I have it on good faith from my broker that there are millions of ounces of gold in storage in the same warehouse in China that holds all that copper.
Would that be in Tianjin, perchance?
We will never run out of gold bars as long as the tungsten mines still have supply. Just go ask some the Russian banks. <sarc>
Problem solved.. You can thank me later for saving the entire financial market.
Sorry, your 84 1-gram bars aren't going to make a pissload of difference.
Come back when you are a real player.
There is power in the multitudes.
Hilariously, my wife bought me a gift the other day because I'm a stacker.
A one gram silver "bar". Fuckin thing is cute as hell, and I dutifully sank it to the bottom of a lake with all due deference.
NoDebt, could interest you in some boating insurance?
Meh... I was born in 73. Right about the time Nixon started this shit show. I grew up next door to Mission Control and watched the computer get invented, the cell phone, the internet... ect. There is something much different going on that has overwhelmed the old school boys. The CIA can't even instigate a decent coup without it getting tweeted about.
What happens in a land where there are no more secrets?
We wouldn't know. When you can no longer hide the truth, simply bury it with infinite misinformation and conspiracy theories so that the truth just looks too simple to be true.
Very poetic Oldwood...and you are Viagra free I assume?
What happens in a land where there are no more secrets?
well SOMETHING sure happened in the second week of September a dozen years ago... though I have yet to hear a satisfactory explanation
The computer was invented before I was born,but I wish I had been born in 73.
The mechanical computer is even older.
Too many secrets.
https://www.youtube.com/watch?v=GutJf9umD9c
Flush the toilet already this is making a ballpark bathroom look good
Kudlow and the word toilet go so well together
Agreed
I miss Kudlow too.
But, my aim is improving...
"Anyone know how much gold Iran has?"
Or Syria?
If Assad has any gold, I'm sure it's been in Russia for a while now.
cnmcdee
That is an interesting question. I checked the "World Official Gold Holdings" (as of June, 2015) from the World Gold Council. They did not even list Iran... Iran must be keeping their holdings a secret. If I had to guess I would think that their holdings would be substantial (they have gotten gold from large holders India and Turkey (both holding over 500 tonnes each) in recent years).
For perspective, here are some holdings of some peers:
-- Iraq: 89.8 tonnes (no. 37)
-- Pakistan: 64.5 tonnes (no. 44)
-- Syria: 25.8 tonnes (no. 56)
France : 2000 tonnes, they'll deliver
You may want to save this - http://www.pbs.org/americarebuilds/engineering/engineering_property_02.h...
oh shit! Here's some trivia: Who were the tenants of Tower 7? DOD, CIA, IRS, and ... which bank was the largest tenant???
In fear of imminent invasion and in the face of hyperinflation the Central Bank of Iran divested ALL HOLDINGS of its Gold to their population back in 2011 if my memory serves me correct.
It is much more difficult to seize when it is not centralized.
Thanks, Tall Tom. I'll look into that.
Iranian gold would be difficult to seize even if it were centralized.
EDIT:
A few Google searches yielded up contradictory information about Iranian gold reserves. The links clustered around 100 tonnes, a few mentioned that indeed private citizens likely held more than 100 tonnes. Nothing about the Iranian CB distributing the gold to its citizens, I have not heard that before.
Well I just spent the last half hour searching out the Kitco Forum threads looking for the pictures of the lines.
They were experiencing inflation due to the imposed sanctions of the USA.
At times I believe that it would have been better to have bookmarked this.
But then my bookmarks would be as unsearchable as the Kitco Forum threads.
Damn!!!
GetZeeGold has a thread over on Kitco that states that Iran held as much as the USA in 2012.
....ummmmm .....zero??
I found these two older links that put the number at ~300 tons.
http://gata.org/node/9244
http://www.zerohedge.com/article/secret-iran-gold-holdings-leaked-tehran...
But then I remembered that Iran was selling Turkey energy (gas) in exchange for gold circa 2012/2013:
http://www.zerohedge.com/news/2013-12-31/iranian-billionaire-promoting-p...
So the real number is probably a closely guarded secret.
Iran's large gold hodings are partly the result of trade outside the USD.
Sanctions? Schmanctions.
What difference does it make?
Since they are so far into debt to the holders of those contracts the solution is rather simple...
PRINT MOAR CONTRACTS...fast.
Hugs,
Paul Krugman
Wanna bet it is a good deal more than USG or FR?
Anyone know how much gold Iran has?
I'm guessing more than there is in Fort Knox.
I've wondered about that. I was thinking they might be cashing in their treasuries and rotating their reserves into gold rather than using the proceeds to defend the remnibi.
I started to wonder the same a week or two ago. This move in COMEX coincides with large confirmed sales of USTs by China. I think they may have moved on to phase two and part of that is a "fuck it" attitude towards keeping the gold price down. Good news, price may go up, bad news, I think it signals they're done with external market based accumulations.
This is not looking good.
seek- good catch recognizing physical inventory depletion coinciding with China's TSY dumping. Remember, they bought their gold using a complex series of paper derivatives to hold the spot price down as they bought. Not sure how selling TSYs would unwind that and cause a draw on physical (not smart enough to follow the linkages) but I think it's a good observation nonetheless
Sell the bonds, and buy gold with the USDs - at this point maybe there's no need for anything more complex. But I doubt this is the end - 680 tons of inventory to clear out of GLD before the game ends. Just as likely that there's a final catastrophic crash in the paper price, let the commercials get net long as the hedge funds chase paper profits shorting the futures and the last diehard instititutions and retailers dump their GLD.
After that, then the paper market goes away. But I can't see it happening before GLD is closer to 0.
LTER is back, remember build credibility first then attack, remember your training soldier... Batt44
Let's look to the MSN to see the analysis.
some 'folks' are about to get Corzined...
or 9/11'd I'm afraid.
Time for Treasury Secretary Jack Lew to issue a new series of bonds based on the "Brady Bonds" of 9/11 notoriety. These bonds can also be backed by gold plated tungsten bars.
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&add...
When it comes time to pay off the new "Lew Bonds," do like the 9/11 planners did, retrofit two jets at the Marana, Arizona boneyard with missiles, fill them to the brim with jet fuel (making them more air tankers than passenger jets) and send these big cruise missiles to convenient tall targets.
http://www.serendipity.li/wot/aa11.html
SMG.....me too...but as you have learned over the past 10 years...the shower of a shit show just keeps spraying us all. So...they will fix those numbers by morning...here...let me help.
Load "*",8,1
If you know what that means...then you are old....and were a geek in the 80's
I still fool around with a C64 emulator from time to time.
Load from a particular sector and track? Old CP/M and DOS user myself. Life was so simple back then.
Load the first (or last-accessed) disk file on a Commodore computer.
Not only do I remember, I can also still write autobooting 6510 assembler. :)
Taught myself programming in between ambulance runs, on a TRS-80 and a reel to reel tape recorder. Bitch of it was that itty bitty keyboard. A simple yes/no game that ballooned beyond my expectations at the time. (One grain on the first square, two on the second, four on the third, etc.) That and bulding 'grapics', at least my older son, four or five at the time, liked the look (He's 36 now). On that basis I lied my ass into an office job and ultimately became an actual, college edumacated, Corporate Controller for fifty entities.
Weird how that shit worked out.
Why you want longtime metal sale come to close so soon?
I love it! "Comexodus"! The Tyler's have a great sense of humor and are very creative, har, har. This is the first article at ZH that I've gotten a laugh out of. Keep 'em coming.
https://www.youtube.com/watch?v=QCM7rMIqxmk
Everybody has to do his homework! We will win!!
The only thing I want to know is Gartman short Gold? If so we are going to the $%@#%#$@% moon!
I can always provide an equalent made of Wolfram and neither you or anybody else can tell the difference.
Where's fonestar with his bitcoin spiel about now?
WITHDRAW IT. Shemitah in your pants!!!!!!!!
The Sunday Smargarita did not happen. I almost picked-up a Lexus Saturday in anticipation. Whew!
Schmegma!!! Ok vei!!!
PANTS...FILLED
I have something in my pants that STARTS with "Sh"...
Don't fart after fifty, people, it's depressing and messy.
"JPMorgan is now just one withdrawal request away from running out of deliverable physical gold."
Come on fat Goldfinger, where are you now?!
They laughed when we got gold teeth.
I'd cut way back on smiling in bad neighborhoods, if I were you.
the tribes transfer of we the people's confiscated gold to china is almost complete.
and wait for the phony paper selloff that will commence at 2 am this morning and continuing into the London and New York opens.....its alreading starting on the Globex...
http://www.livecharts.co.uk/MarketCharts/silver.php
aint a damn thang changed...not their fraud or my stacking...
DEATH TO THE MONEYCHANGERS
And then near the NY open the price starts to rise. Maybe the paper scheme is being manipulated UP to keep the paper price from dropping to zero, its true value.
I'll be buying tomorrow so TANK IT BIATCHES.....
Yes, you can bet it is like it - a significant sudden drop in paper price would signal passing the threshold and the start of the chaos ...
I like the 10 oz eagles because they are not too expensive to worry much about trading for goods and services. I guess you could mint your own gold coins out of bullion. The spot price of gold will go to zero once there is no more.
The spot price of gold is going to zero when the physical runs out??! ...how do you figure?
'The spot price of gold is going to zero when the physical runs out??! ...how do you figure?"
Because, the Comex and their associated Banker crooks will take the "price" down super low (probably not zero)... then claim a "force majure" and cash settle. The bankers will, at that point, have most of the physical, then make obscene profits as the true (non-supressed) price for physical skyrockets...
Fair question...
If you held a note that promised you a payment (in Dollars, Cattle, Bales of Hay Sugar, Orange Juice...et al.) and the payment was not made, because the party that had agreed to deliver upon that said note did not have what he promised, then the price of that note is ZERO.
Nobody in their right mind would buy that note.
A non performing contract is not worth the paper it is printed upon. It has NO VALUE, NO UTILITY, thus it has NO PRICE.
It is likewise with the Gold Future Contract. When they cannot deliver, because they have none to deliver, the value of their issued notes will decline to ZERO.
Of course, because they can "Cash Settle", then they have every incentive in the World to depress that price of that note.
Buying into the Paper Gold Market is like running a collections company chasing down people that wrote bad checks.
The checks are valueless as there is no money in the account and the account has been closed. That is how you can make a small fortune. Take a large fortune and invest it into a collections company that specializes in collecting this type of unsecured debt. You will end up with a small fortune.
The price of Gold will decline to ZERO when the Comex supplies are depleted. That will happen...very, very soon.
It's damned hard to make change for a ten ounce Eagle. I'm going to have to give you a shitload of fiat representing gold that I don't have. You fine with that?
Couldn't happen to a nicer bank.
Couldn't bank on a nicer happening.
'Banking' a pile of red hot coals...
for when it's necessary.
Oh Jamie...where do keep your personal stash, we need some more gold.
Gold $5000 here we go once and for good? This time is different too for gold, if not, when?
Why theres nobody blowing up gold mines?
Once and for good? No.
You might see $5k gold. But not for long. Gold is the constant (store of value, medium of exchange)... ,fiats come and go. They go 'poof' or they waste away, but they all go.
$5k gold would signal the demise of the $ and, likely, the rise of some other fiat(s) but gold abides - as does the Dude.
Got Gold!
Got boating accidents?
Got a mortgage these days(college kids still living with you.)? Who can afford gold? I stack as much silver as I can and pray. A lot.
I lost mine in an unfortunate Yodeling accident. Very unfortunate. I never would have seen that coming.
But wait. Isn't the Comex just a tiny fraction of the paper gold market? Yes. And are holders of "paper gold" actually interested in getting their gold paid out? No. So what's the problem? None. That's what the paper gold defenders always say. Correct me if I'm wrong. Thanks.
Wait, maybe that story about a space ship made of gold is true. It needs to be in gold so it can travel the speed of light.
I hope China donkey punches the market tonight and then sells a bunch more UST.
Demand physical delivery now!
Is it there or not?
Plenty of eligible on the books. If it exists or even if it doesn't, they'll just move some over to registered. I wouldn't get too excited yet. These frauds will pull another rabbit out of the hat.
Stop thinking like that; if you own paper gold demand delivery.
Anyone buying paper gold is an asshat, step up to the plate, physical delivery NOW.
You have to ask with all the bullshit is this all just manipulation.
I mean are they creating this situation on purpose get sites like this to run these stories to get people to buy before crushing the price and and morale of its readers? Breaking any hope of evading the grasps of TPTB?
Oh, you want a gold-backed currency? Well we ain't got none so you'll be using our fiat by default! Evil laugh...
OOoff...your Meat is made of Sledge.
"In monetry theory, we can actually have a negative physical gold to paper claims ratio without the slightest bit of negative economic effect at all!" - Paul "Madhatter" Krugman
Genuinely LMMFAO!
Time for a Blue Light Special
on
JPM
My financial advisor makes sense.he says b/c of the serious deflationary forces gold may drop another 10% or so but then will rebound very very high, above its last high of somewhere near $2,000/oz.
He also said the Chinese are buying gold like crazy suddenly b/c: 1) house prices are too high/overvalued; and 2) everyone expect the RMB to drop significantly and fewer and fewer there want to hold cash and no one trusts the stawk market.
Pricing the real thing with the fake thing does have it's advantages ;-)
He said the Chinese are the #1 buyers of Perth Mint gold and Germans #2. I guess both for many similar reasons ....
Well the real proof is counting all the unreported boating accidents.
Or an audit, independent of government oversight, whichever comes first ;-)
The price of gold has been aggressively manipulated by the US FED and associated banks (to strengthen the US dollar) using uncovered shorts. (See: www.paulcraigroberts.org/2015/07/27/supply-demand-gold-silver-futures-markets-paul-craig-roberts-dave-kranzler/). At the same time, demand for physical gold is at an all time high (c above link). Hence, it is plausible to assume that JP Morgan’s gold stocks are a little thin.
For your entertainment here is India's proposed gold bond scheme.
http://www.dnaindia.com/money/report-gold-bond-scheme-comes-with-attenda...
The buyer never actually ever buys, sees or takes delivery of gold. I expect the Indians will laugh this bankster scheme off for the fraud that it is. Smells like desperation to me.
I hope this is the end of this charade...I have been waiting for $5,000 gold for a long time..to long...if Alibaba is worth what it is..then gold is for sure $5,000
You can always work harder, save more and buy a cheese sandwich truck for $1 million.
$5000 Gold? I would be pretty happy to see that, but honestly, we can't even rally to $1200 these days. $5000/oz. is likely 20 - 30 years away in my opinion. I have been accumulating for over 20 years, and have been an avid promoter of Gold as true money for much longer than that. The ptb can and do manipulate the PM market, and keep coming up with new schemes to convince the muppets that Gold is the worst asset a person could possibly accumulate. Just when you think they have run out of bullets, they pull another crate of ammo out of their asses and the cherade is continued. And on the other side of the coin (no pun intended) we have entities like Goldcore and countless "advisors" that have never seen a Gold price that was set to drop. Don't put any faith in these charlatans - they are no better than the scammers denigrating Gold and Silver. Perhaps some day Gold will return to it's rightfull place in commerce, but don't hold your breath, because that day is a long way off.
There is no turning this around, outside of free energy. They didn't have 20-30-years. I don't think they have 20-30 months. Buy, buy, buy
Up until the 70s they had Bretton Woods scam. then they lost control for a few years until they had the Barrick leasing scam, then they lost control for a few more years, then they had the endless free money comex shorting scam. They may lose control of the comex scam, but rest assured they will congure up a new scam to keep Gold from regaining it's rightful place. TPTB have been running these scams for over 100 years, and I am sure they will do their level best to keep the scam going for quite awhile yet.
Doesn't anyone wonder why China doesn't hack into the Comex? Because they are the money manipulating it. While the US banks profit and the US goverment looks the other way since China can ruin them in a minute.
Be happy to lease them some, I'll get back to you on price, in the mean time dig out the big account check book.