Paper Gold Dilution Hits 294x As Comex Registered Gold Drops To New All-Time Low

Tyler Durden's picture

One week ago, gold market observers were surprised when in the span of four days, gold held in the JPM Comex vault declined by nearly 50%, starting on November 16 when the 668,498 ounces held in the vault below 1 Chase Manhattan Plaza declined precipitously to just 347,899 ounces, a new all time low.

Furthermore, as of the latest Comex activity update, on Friday the Registered gold held by JPM dropped another 2,802 ounces to a record low and virtually negligible 7,975 ounces, essentially equivalent to zero as shown in the chart below, even as JPM's eligible gold has also been seeing a substantial decline in recent months.

 

But while the decline of JPM gold has long been noted, it was the latest drop in total Comex registered gold which has again raised eyebrows, and which contrary to expectations it would be replenished either from external inflows or by conversion from Eligible both of which have not happened, has instead continued to decline. According to the latest data, total Registered gold dropped by another 11% overnight to just 134,877 ounces, just over 4 tonnes and another all time low...

 

... and since the gold open interest remains largely unchanged, the physical gold coverage ratio, or the ratio of gold claims to Registered gold, has just hit an all time high of 294 ounces of paper for every ounces of physical.

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funthea's picture

What could possibly go wrong?

Cognitive Dissonance's picture

The Gold is long gone. All that's left are some Gold dust wisps here and there.

thesonandheir's picture

FFS  give us a chance, we're still melting down the stuff from Libya.

SWRichmond's picture

quick, somebody launch a nuke, or sink a submarine, or something!

mvsjcl's picture

A mere 3,478 100 oz gold bars supports the whole fradulent gold complex! Amazing!

coinhead's picture
coinhead (not verified) mvsjcl Nov 30, 2015 7:10 PM

Since your pea-sized brains are only big enough to own one thing at one time, we want you to sell all your g0ldcoin and buh Bitcoin!

https://localbitcoins.com

Tallest Skil's picture

I can't wait for you to starve to death when all of your "assets" are deleted with a single button press.

SILVERGEDDON's picture

I would rather he hung himself with his block chain.

Fakest hipster dip shit I ever saw trolling, ever.

Like he is wired on Captagon, steroids, and Cheetos.

coinhead's picture
coinhead (not verified) SILVERGEDDON Nov 30, 2015 7:30 PM

hipster wha?  You doofus...

Squid-puppets a-go-go's picture

k everyone, 134k oz at $1065 means we only need $144 million to clean out the comex and kill the kraaken

pass the hat around and put your seatbelts on

coinhead's picture

Nah, best you SLA and Gold Liberation Army guys stand back like teh n00bs you are and let a virtual man handle this...

Bunghole's picture

Just like your virtual boyfriend and virtual wealth.

You're such a shitty troll.

coinhead's picture
coinhead (not verified) Bunghole Nov 30, 2015 11:34 PM

coinhead stars in "UnconTrololololable"

MauritiusGold's picture

It really isn't a lot.... the lower it gets the bigger the rush to get it before it is GONE.

beemasters's picture

"k everyone, 134k oz at $1065 means we only need $144 million to clean out the comex and kill the kraaken"

If it was that simple, many would have done it...including the billionaire gold pusher Eric Sprott.

This isn't gonna end unless there is a class action lawsuit against COMEX. It's not so much about winning the case, but to shine spotlight on the situation.

beaker's picture

So why are gold coins still trading at about the same premium over paper as they were years ago?

lasvegaspersona's picture

Slow down cowboy...there is still 654 tonnes in the GLD. The slow drip will continue until it stops.

          BEWARE...THIS ECONOMY MAKES SUDDEN STOPS!!

lasvegaspersona's picture

Slow down cowboy...there is still 654 tonnes in the GLD. The slow drip will continue until it stops.

          BEWARE...THIS ECONOMY MAKES SUDDEN STOPS!!

Squid-puppets a-go-go's picture

update, another withdrawal - only need $130 million

coinhead's picture
coinhead (not verified) Tallest Skil Nov 30, 2015 7:29 PM

Not gonna happen.  Teh we lives off Satoshi white light.

Bunghole's picture

Do you enjoy crying yourself to sleep at night knowing tomorrow will be the same shitty routine of trolling the internet for enough fiat so you can get a blow job from the guy on the corner with the pretty mouth?

philipat's picture

Just by way of perspective, the SGE (Shanghai Gold Exchange) delivers 10 Tonnes of physical Gold EVERY business day. The Comex and LBMA have become complete shams, manipulated at will and existing ONLY for the nefarious purposes of the CB/BIS/BB Complex.

PS. There is no Gold left in the West, it's long gone. But you can have as much paper as you want...

coinhead's picture
coinhead (not verified) philipat Nov 30, 2015 7:41 PM

Registered BTC at Comex must be like 1 vs. 1000.  Reckon so....

philipat's picture

"Since your pea-sized brains are only big enough to own one thing at one time"

Actually, I don't see a single comment advocating an all-Gold portfolio, so your comment reflects back upon you. Gold is insurance and should comprise a PART of an investment protfolio. At present, that proprtion should probably be higher than usual.

coinhead's picture
coinhead (not verified) philipat Nov 30, 2015 7:33 PM

no, no, no.... just ask anyone here.  You can only own A or you can own B.  You cannot own both (it would be waaay too complicated).

philipat's picture

So, by extension, that also refers to you then? Stick to your BTC, it will be fine until it starts to threaten Fiat, at which time Gubmin will step in and end the party, including all necessary internet controls. Gubmin is a thief and doesn't like competition...Jamie Dimon already warned that will happen and, whilst a complete cunt, he is a well-connected cunt who is close enough to Gubmin to understand the thinking. It won't end well....

coinhead's picture
coinhead (not verified) philipat Nov 30, 2015 7:57 PM

If teh we has learned one tihgn on Zerohedge it is tish... if a person owned $20,000 worth of g0ldcoin and $1 worth of Bitcoin, tehy would be considered a "Bitcoin owner".  So it is simpler if they only own $20,001 worth of g0ldcoin.

It sounds like you think those gubmin guys are pretty tough eh?

bamawatson's picture

was an early adopter in bitcoin.  did read satoshi papers. do enjoy andreas antonopoulos. yes bitcoin is fundamentally sound. but, to quote antonopoulos "bitcoin is the currency of the internet"

he is correct. therein is the flaw. (and i do understand paper wallets;) as a practical matter, net goes down, bitcoin goes down. also, of course, ALL transactions are eternally logged.

mr coinhead sir, gold and bitcoin are not mutually exclusive. one thing they have in common, is, existing outside the iron grip of the deep state. 

might i suggest there be an effort to build on the shared positives of bitcoin and gold.

((also sir, there is an essay by marcuse called "the one dimensional man". i see bitcoin leaders getting sucked in to that trap))

hairball48's picture

12 weeks and 6 days explains a lot. What a fucking moron.

Bunghole's picture

He might get 15 weeks out of this nick before the Tylers ban his trolling ass again.

Sockpuppet du jour.

coinhead's picture
coinhead (not verified) Bunghole Nov 30, 2015 10:25 PM

Got a problem with we you dumb shill?

Gold Eyed Cat's picture

Coinhead, you repeatedly sabotage your own arguments time and time again.  You are a man attempting to sell a bottle of Clive Christian 1872 while dressed in a Raiders hoodie covered in dog crap.  But surely, you must already know this. (And no, I did not call you Shirley.)

seek's picture

Pretty sure the Libyan stuff was already used to cover something, like the German gold repatriation.

I bet we see a 500X dilution within six months. Shit, at this rate, probably three months or less.

No wonder there's so much downward pressure on the gold price. There's a whole lot of force majeure waiting in the wings here.

Yen Cross's picture

 I bought 6 one toz bars from Perth Mint, via a seller in Texas about 10 days ago. I'm already in green after the premium.

 I love those little buggars... I was going to do rounds, but one ounce bars made more sense. :-)

coinhead's picture
coinhead (not verified) Yen Cross Nov 30, 2015 8:01 PM

You probably didn't.  You are probably just a major liar.

Yen Cross's picture

Says the village idiot! lol. You want some, and I don't take USB sticks full off cyber shit for payment!

 I just arbitrarily made up the name made up the name of the Mint, and amount of my purchase.

 Then I went as far as to say I was in the green, after the premium over spot.

 You need to lay off the Kanukistan Kook-Aid.

coinhead's picture
coinhead (not verified) Yen Cross Nov 30, 2015 8:13 PM

Yeah see, you did arbitrarily make up those names and now you are feeling guilty about being such a liar.  Trying to pretend you are really well off and stuff?  It was actually six war nickels you ordered off eBay wasn't it?

We hope it feels better now that you have that off your chest.  We don't think much less of you because you are really poor.

Yen Cross's picture

 You're such a fucking hack... Phoney Star.

  ad homimems, and make believe bullshit, are all you have.

 How many times have you changed your handle? You're like a beggar looking for crumbs.

coinhead's picture
coinhead (not verified) Yen Cross Nov 30, 2015 8:26 PM

Like your make believe "1 oz bars" lol?  They were really halloween candy chocolate coins weren't they?  Sorry we don't sell BTC for your chocolate coins.

Yen Cross's picture

 How's your internet connection in that Coffee Shop in Kanukistan? [free refills, and I'll bet they take BTC.]

 Did you get your new VPN set up yet? lol.

 I love messing with you... You're too easy :-D

 At least Tyler provides charts , and structural ideas for BTC [virtual currency]future. You just blabber on like rabbid squirrel, looking for a few nuts.

seek's picture

I've been waffling, I have quite a bit of dry powder ready, but I can't shake the feeling we go into the 900s (actually I think 800s, but I have doubts about availability at that point). At this point it's just adding to the already substantial losses from falling overboard, so I'm not too stressed.

We both know one day we're going to wake up and they're going to have to invent a new name for the ultra-green we see on the USD exchange rate v. AU. That spring is getting wound very, very tight.

Yen Cross's picture

 I have butt-load of silver, along with  some platinum and palladium.. I needed to add a little more gold to my holdings.

 I don't have any interest in selling,my metals inside of 3 years,

 I just find some of the dynamics in gold favorable, over the next year.

  I look at charts all day, and even as heavily leveraged as gold is, it seems to be searching for a base. Additionally, some of the gold miner equities are starting to go bid.

 Everyone has their own risk tolerance levels, and I respect that.

coinhead's picture
coinhead (not verified) Yen Cross Nov 30, 2015 8:51 PM

You have a "butt-load" of dicks in your ass and that's about it.

Yen Cross's picture

 

 Are you feeling "butt~hurt" because you used your monthly dole to buy more BTC during the first week of November?

 Bitcoin Charts / Charts

lasvegaspersona's picture

The day one can't get physical may be near. That has been true for years. Even so I don't regret holding for years and buying at a higher price. It is just the cost of insurance. To complain would be like wishing you bought insurance the day before your house burned.

Those without will never out live their regret...especially those who were going to buy 'tomorrow'.

ForWhomTheTollBuilds's picture

Quick, someone educate me!

 

If a situation should develop (like say a month ago) where the leverage is such that only 1/3% of contracts can get their gold in a month where 10 to 40 tons of gold is historically delivered, what would it take to stop that from happening?  

 

Like hypothetically, if the price was jammed down, down down, until every long was substantially "out of the money" and could only take possession by ponying up much more cash than the gold was now worth.  Could that person be said to be acting out of spite or malice if he tried to take delivery anyway?  Maybe even branded a manipulator?

 

I enjoy Turds site and cannot help but notice that each time he or someone else starts writing about "almost no available gold heading into a delivery month", the price is annihilated before anyone has a chance to take delivery.  Not most times either.  Every time.

 

If Goldman had a sense of humor they would introduce an ETF allowing us to bet on the comex leverage each month.

Squid-puppets a-go-go's picture

price annihalation incentivises people to take delivery, for those who understand it is undervalued and the manipulation only works until the barrel is scraped empty. its only those buying on leverage that are subject to your theory, and the chinese can use the capital from their balance of trade surplusses

when you understand that a breakout of the gold price in such a tight phyz market, with an impending recession globally and the inevitable additional swing of momo chasers, you know gold has the propensity to rise well more than 200%, 500% even. The late 70's spike 3000% in a decade after the london pool manipulation broke.

That kind of metric means you can get rich without the use - and jepoardy - of leveraging yourself. Buy outright, take delivery. keep it away from the system.

 

ForWhomTheTollBuilds's picture

I do recall, I think 2 years ago, the longs were staying in the silver market despite an absolute mauling.  

 

Ive watched Comex scrape through tight Decembers before, so I fear we will be talking again at 600:1 leverage with gold under $1000, but whatever will be will be I suppose.