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According to the latest Comex vault data, not only was another 157K ounces withdrawn today, but the conversion of Registered into Eligible continues, and as a result another 10% of total deliverable gold was "adjusted away", leaving just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Once again the culprit for the decline was JPM which saw not only a 122,124 ounces of Eligible gold be withdrawn, reducing the total by 13% to 750K ounces, but 8.9K ounces of registered gold was pushed into the Eligible category, in the process reducing total JPM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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Tue, 09/15/2015 - 21:15 | 6553513 SMG
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.

Tue, 09/15/2015 - 21:16 | 6553517 90's Child
90's Child's picture

No I don't think so.

The banksters will just invade another country and reup.

Tue, 09/15/2015 - 21:18 | 6553529 LetThemEatRand
LetThemEatRand's picture

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

Tue, 09/15/2015 - 21:23 | 6553557 cnmcdee
cnmcdee's picture

Anyone know how much gold Iran has?

Tue, 09/15/2015 - 21:30 | 6553588 Latina Lover
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.

Tue, 09/15/2015 - 21:49 | 6553655 Captain Debtcrash
Captain Debtcrash's picture

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. 

Tue, 09/15/2015 - 22:10 | 6553725 NoDebt
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.

Tue, 09/15/2015 - 22:22 | 6553765 scaleindependent
scaleindependent's picture

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

Tue, 09/15/2015 - 22:34 | 6553807 xrxs
xrxs's picture

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

Tue, 09/15/2015 - 22:44 | 6553838 jeff montanye
jeff montanye's picture

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

Tue, 09/15/2015 - 22:47 | 6553844 Soul Glow
Soul Glow's picture

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

Tue, 09/15/2015 - 23:00 | 6553870 ZerOhead
ZerOhead's picture

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

Tue, 09/15/2015 - 23:59 | 6553982 nope-1004
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.

 

Wed, 09/16/2015 - 00:04 | 6554005 Soul Glow
Soul Glow's picture

CRIMEX

Wed, 09/16/2015 - 00:40 | 6554051 BaBaBouy
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...

Wed, 09/16/2015 - 01:24 | 6554110 Squid-puppets a...
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

Wed, 09/16/2015 - 02:17 | 6554152 Bumpo
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.

Wed, 09/16/2015 - 05:21 | 6554269 Haus-Targaryen
Haus-Targaryen's picture

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

Wed, 09/16/2015 - 05:50 | 6554299 VinceFostersGhost
VinceFostersGhost's picture

 

 

 

Peak physical gold....screw global warming

 

This is the big one.

Wed, 09/16/2015 - 08:19 | 6554549 Took Red Pill
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.

Wed, 09/16/2015 - 08:39 | 6554608 Save_America1st
Save_America1st's picture

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.

Wed, 09/16/2015 - 09:19 | 6554780 Not My Real Name
Not My Real Name's picture

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

Wed, 09/16/2015 - 09:52 | 6554941 HenryHall
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.

Wed, 09/16/2015 - 07:46 | 6554482 Rakshas
Rakshas's picture

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

Wed, 09/16/2015 - 05:35 | 6554286 Squid-puppets a...
Squid-puppets a-go-go's picture

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

Wed, 09/16/2015 - 09:36 | 6554850 Jonas Parker
Jonas Parker's picture

That you, Natty???

Wed, 09/16/2015 - 02:17 | 6554153 Bumpo
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.

Wed, 09/16/2015 - 00:12 | 6554018 J S Bach
J S Bach's picture

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

Wed, 09/16/2015 - 01:24 | 6554109 813kml
813kml's picture

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

Go long straw.

Wed, 09/16/2015 - 15:50 | 6557032 Fahque Imuhnutjahb
Fahque Imuhnutjahb's picture

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

Wed, 09/16/2015 - 01:58 | 6554139 The Other Cheek
The Other Cheek's picture

LENR transmutation.

Tue, 09/15/2015 - 23:07 | 6553889 Luc X. Ifer
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 ...

Wed, 09/16/2015 - 01:27 | 6554111 Squid-puppets a...
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

Wed, 09/16/2015 - 07:22 | 6554437 RockySpears
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.

Wed, 09/16/2015 - 09:15 | 6554765 Slomotrainwreck
Slomotrainwreck's picture

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

Tue, 09/15/2015 - 22:36 | 6553811 Pool Shark
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:

 https://comparesilverprices.com/

 

Wed, 09/16/2015 - 00:02 | 6553999 TheReplacement
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.

Wed, 09/16/2015 - 05:48 | 6554300 mickeyman
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.

Wed, 09/16/2015 - 06:07 | 6554318 justdues
justdues's picture

So silver in Israel is really exspensive ?

Wed, 09/16/2015 - 09:53 | 6554945 Pickleton
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 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....

 

 

Tue, 09/15/2015 - 23:07 | 6553891 Mr. Magoo
Mr. Magoo's picture

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

Tue, 09/15/2015 - 22:35 | 6553799 philipat
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.

Wed, 09/16/2015 - 05:43 | 6554296 Squid-puppets a...
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

Tue, 09/15/2015 - 22:48 | 6553845 Stuck on Zero
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.

Wed, 09/16/2015 - 07:39 | 6554470 StychoKiller
StychoKiller's picture

Would that be in Tianjin, perchance?

Wed, 09/16/2015 - 09:39 | 6554871 HungryPorkChop
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. 

 

Tue, 09/15/2015 - 23:06 | 6553887 Crisismode
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.

 

 

Wed, 09/16/2015 - 01:10 | 6554092 Memedada
Memedada's picture

There is power in the multitudes.

Wed, 09/16/2015 - 02:41 | 6554168 Zero Point
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.

Wed, 09/16/2015 - 05:34 | 6554285 Hobbleknee
Hobbleknee's picture

NoDebt, could interest you in some boating insurance?

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