Comexodus: JPMorgan's Vault Is One Withdrawal Away From Running Out Of Deliverable Gold

Tyler Durden's picture

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According to the latest Comex vault data, not only was another 157K ounces withdrawn today, but the conversion of Registered into Eligible continues, and as a result another 10% of total deliverable gold was "adjusted away", leaving just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Once again the culprit for the decline was JPM which saw not only a 122,124 ounces of Eligible gold be withdrawn, reducing the total by 13% to 750K ounces, but 8.9K ounces of registered gold was pushed into the Eligible category, in the process reducing total JPM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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SMG's picture

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.

90's Child's picture

No I don't think so.

The banksters will just invade another country and reup.

LetThemEatRand's picture

This makes me wonder if a certain country with a big wall is upping the currency war a notch. 

cnmcdee's picture

Anyone know how much gold Iran has?

Latina Lover's picture

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.

Captain Debtcrash's picture
Captain Debtcrash (not verified) Latina Lover Sep 15, 2015 8:49 PM

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. 

NoDebt's picture

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.

scaleindependent's picture

I beseech you!   Don't do it!  Think of the children...

xrxs's picture

yes, yes, the children, think of the children!

jeff montanye's picture

hey rand! it may just be this site but when i read your question i thought, israel?

Soul Glow's picture

Turn your fiat into gold while it's still available.

ZerOhead's picture

Turn your Chrysler into to gold as well if you can...

nope-1004's picture

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.


BaBaBouy's picture

""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...

Squid-puppets a-go-go's picture

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

Bumpo's picture

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.

Haus-Targaryen's picture

The fascists will think of something to keep it going -- rest assured.

VinceFostersGhost's picture




Peak physical gold....screw global warming


This is the big one.

Took Red Pill's picture

Physical silver seems to be in short supply as well. I see many "Alertime" & "Out of stock" notices on APMEX & other sites.

Save_America1st's picture

Anyone heard anything about this yet????  Sure seems to have gone under the radar.

16 tons of silver stolen in Montreal.

Not My Real Name's picture

They caught 4 suspects but recovered only 30% of the silver so far.

HenryHall's picture

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.

Rakshas's picture

....isn't that what Syria, Ukraine and Alien invasions are all about??

Squid-puppets a-go-go's picture

good point. illiquid hour slamdown in 3...2...

Bumpo's picture

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.

J S Bach's picture

Rest assured... tons of gold are being secretly alchemized in Dimona every day... so all is well.

813kml's picture

I acquired a sample of Rumpelstiltskin DNA and am close to reanimating.

Go long straw.

Fahque Imuhnutjahb's picture

Did you acquire the real thing?  That can easily be confused with a piece of rumpled foreskin.

Luc X. Ifer's picture

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 ...

Squid-puppets a-go-go's picture

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

RockySpears's picture

  ... 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.

Slomotrainwreck's picture

If you're not first in line for the Gold, you might as well be last in line.

Pool Shark's picture



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:


TheReplacement's picture

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.

mickeyman's picture

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.

justdues's picture

So silver in Israel is really exspensive ?

Pickleton's picture

"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 is the cheapest, you'll note that Provident offers free shipping over $100, which makes them cheaper than  Go look at the difference for just one roll.  The shipping cost matters....



Mr. Magoo's picture

One thing is for sure, there be be plenty of paper for everyone

philipat's picture

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.

Squid-puppets a-go-go's picture

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

Stuck on Zero's picture

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.

StychoKiller's picture

Would that be in Tianjin, perchance?

HungryPorkChop's picture

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. 


Crisismode's picture



Sorry, your 84 1-gram bars aren't going to make a pissload of difference.

Come back when you are a real player.



Memedada's picture

There is power in the multitudes.

Zero Point's picture

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.

Hobbleknee's picture

NoDebt, could interest you in some boating insurance?