Some Observations On Bob Pisani's Visit To GLD's Vault

Tyler Durden's picture

Earlier today, we were delighted to see that after years of ridicule and provocations, the SPDR GLD ETF finally cracked and decided to do a wholesale PR campaign to comfort the investing public it actually does own its gold, by inviting none other than Bob Pisani in its secret warehouse which allegedly contains 40 million ounces of gold, of which HSBC is custodian and the Bank of England (the same Bank of England which will soon be about 99 tons lighter in gold content once it satisfies Hugo Chavez' physical delivery request) and London Bullion Market Association (“LBMA”) are subcustodians. While the 4 minute PR campaign is enjoyable and we invite readers to watch it, what is amusing is that it is sure to set off another set of conspiracy theories. Here's the reason: amusingly the very gold bar that Pisani demonstrates so eagerly for the camera, Rand Refineries ZJ6752, is somehow, at last check, missing from the full barlist as posted daily by the GLD.Whose is it? Where did it go? When was this clip shot? Inquiring minds want to know...

As the table below shows, the full list of ZJ serial numbers goes from 6700 to 6734 (go ahead, do your own search - link here). 

ZJ6700 RAND REFINERY 404.775 402.994 9956
ZJ6701 RAND REFINERY 407 405.209 9956
ZJ6702 RAND REFINERY 405.325 403.541 9956
ZJ6703 RAND REFINERY 404.6 402.86 9957
ZJ6704 RAND REFINERY 404.825 403.084 9957
ZJ6705 RAND REFINERY 401.775 400.047 9957
ZJ6706 RAND REFINERY 406.5 404.752 9957
ZJ6707 RAND REFINERY 402.2 400.47 9957
ZJ6712 RAND REFINERY 403.55 401.814 9957
ZJ6713 RAND REFINERY 405.65 403.905 9957
ZJ6714 RAND REFINERY 403.35 401.615 9957
ZJ6715 RAND REFINERY 403.525 401.789 9957
ZJ6716 RAND REFINERY 403.4 401.665 9957
ZJ6717 RAND REFINERY 405.625 403.88 9957
ZJ6721 RAND REFINERY 405.225 404.779 9989
ZJ6723 RAND REFINERY 407 406.552 9989
ZJ6726 RAND REFINERY 407.7 407.251 9989
ZJ6727 RAND REFINERY 404.075 403.63 9989
ZJ6732 RAND REFINERY 407.45 407.001 9989
ZJ6734 RAND REFINERY 404.275 403.83 9989

... and ends there.

but this is where the conspiracy starts. Today is September 1. We assume Pisani shot the segment some time in the past week: between August 23 and August 30. Over this period the actual GLD tonnage as disclosed by GLD remained flat (fluctuated by +/- 1.51 tonnes from 1232.31 to 1230.8), so it is unlikely that any gold bars, and especially the one demonstrated by Pisani actually left the warehouse.  

Of course, Pisani may have well shot the documentary some three weeks ago, when gold peaked at 1310 tons, although we assume he would have then said 1300 tons held by the warehouse, not 1200 as he did. If that is the case, there is a small chance based purely on statistics that ZJ6752 was promptly moved out of the warehouse upon a redemption event. The chance is about 1 in 10k or so, but still...

So, as a follow up, we would kindly ask Mr Pisani to answer: when did he shoot the documentary? Does he know the fate of the bar he was holding? Did he take it with him? Is the bar currently on its way to Chavez? Or worse yet, did GLD actually lease it to someone?

And so on... And so on...

Unfortunately, Bob, as you will soon learn first hand, when it comes to such things as secret bank vaults containing the world's only remaining hard currency, which can only be seen by reporters with clearance after being driven with a blindfold through the streets of London, who have to relinquish their cell phones and "GPS devices" to confirm their existence, it, unfortunately, does not build much credibility, and it is inevitable that conspiracy theories will and do start. And unfortunately, any PR campaign always tends to backfire.

Our advice: please tell your client HSBC to open up its vault to general observation and assay: at that point, we are confident all conspiracies will end.

Until then, be prepared to be retained by HSBC on a frequent basis as more and more ask themselves: what is really in that vault?

h/t Ponzi Finance

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Id fight Gandhi's picture

That vault or storage room wasn't what I expected. It was almost like a regular stock room.

In simple terms how does this paper gold thing work. Gold is a certain spot price, the gld is reflective of this. People buy shares... So do they use contracts as new money enters and then take delivery, place it in the vault.

What happens when gld is sold, the price dips and funds flow out of the fund?

redpill's picture

Obviously no relation to the author, but need I point out the irony of it being "Rand" Refinery?

Since it is from Africa, does this make it blood gold? lol

AnAnonymous's picture

US citizens sub set code named as gold bugs do not care about this kind of details.

As US citizens, they do not acknowledge property rights. Blood is smeared with blood from people who tried to steal their gold. US citizens gold bugs already own all the world gold by god given right.

Snidley Whipsnae's picture

GATA's latest comments regarding GLD...

http://www.gata.org/node/10366

Not complimentary.

GetZeeGold's picture

 

Not taking questions bitchez.

 

Bicycle Repairman's picture

You assume that there is a great deal of homogenity amongst the American people and their thinking.  Don't you know that our greatest strength is our diversity?

AnAnonymous's picture

US citizens are monolithic in terms of culture and philosophy. The US is alien to diversity.

US citizens society is articulated around monetization of conflicts (among other things) and can not do without it.

Diversity in the US is just propaganda. Manufactured perception to engineer conflicts to monetize.

If the following happens: a population with certain members having one single negro ancestor from 10th generation backwards, US citizens would still claim they are diverse.

US citizenism conveys unity by homogenization and conformization (standardization)

Their call for diversity is just cheap propaganda to try to hide the very fact the US is a very efficient diversity killer. Huge human beings selection project, that is, that US citizenism.

MachoMan's picture

This guy has mako like fanaticism towards a single topic...  the difference between the two being this guy is patently incorrect.

trav7777's picture

gold, like a diamond, is also best polished by the blood of a bleck men

Libertarians for Prosperity's picture

 

 

So hilarious to see Bob Pisani do a segment about gold and the growing demand for gold exposure.

"It looks like gold is crossing over $300 this week, but trust me folks, gold is going nowhere."  -   Bob Pisani, CNBC February 2000

disfiguredskating's picture

It is the old switcheroo!  I've seen that somewhere before...

http://www.youtube.com/watch?v=JFDk4CGFXvw&feature=colike

Right when they weren't lookin.  haha

A Nanny Moose's picture

The first one was still pretty damned funny. A metaphor for divide and conquer, perhaps.

disfiguredskating's picture

Thanks.  I like that one the best, but the pinata is more applicable.

I think I need to buy a gun's picture

i watch cnbc all day everyday while working...never have i ever seen pisani talk about gold before and he usually makes up some bullshit reason for market movements on a daily basis

this piece by zhedge is priceless

LongBalls's picture

Some dumbass just pushed unemployment up.

beastie's picture

Full searchable database of Silver and Gold bars here

http://screwtapefiles.blogspot.com/

bernorange's picture

I got a screen capture from the video showing some bars with numbers:

http://i56.tinypic.com/2i7a87d.png

Anonymouse's picture

And that fund (MSL) does use HSBC as custodian.

Bay of Pigs's picture

Funny to see Kid Dynamite over there posting congrats on the good find.

He is something else...

russki standart's picture

GLD is not a substitute for physical gold; it is simply another variant of paper gold.  GLD, for example, reserves the right to redeem your shares not in gold, but in currency. Also, we will never know to what degree each bar is encumbered by third party claims.  I use GLD for trading purposes, only.

trav7777's picture

I find it inconceivable that ANYONE associated with the securities industry would be honest enough nor possess sufficient integrity to not cheat when you have this massive pile of assets just SITTING THERE and not making any money.

Throughout the middle ages, goldsmiths issued paper for gold they didn't have; why the hell wouldn't these guys?  If the CEO needs a bigger bonus, he would order all the execs down the line to find a way to make the profit numbers and that could include leasing out all this useless metal because gold is going to crash soon, everyone says so.

CrazyCooter's picture

Hah, exactly what I was thinking. As soon as he started the intro for the executive, I thought to myself, "Oh man, everything this guy says is going to be a lie." What did he say?

  • The quality of the bars is assured (talks about good bar delivery list)
  • The auditor has the right (talks about auditing process)
  • "That would be complete illegal. At no time is there a risk to the trust" (response to an unknown question - haha - pin that one on him)

So, in my mind, this reinforces that (1) quality is an issue, (2) quantity is an issue, (3) they are doing illegal shit, and (4) the trust is at risk.

Oh, and if 1 ton has ~32000/oz, then 40 million ounces is 1200 tons. Hugo wants his ~100 tons in physical back. Its just 10% for a country with ~30 million people.

Plenty to go around folks, plenty to go around.

Ha hahahahah.

Regards,

Cooter

zorba THE GREEK's picture

One small step for gold, one giant leap for tungsten. 

DaBernank's picture

Man, I thought tungsten would get a mention in the 1st post. Try harder next time!

spiral_eyes's picture

Anyone buying GLD must be smoking some serious shit.

Captain Planet's picture

Smoking the hopium....

Not the grasses of knowledge.

Long-John-Silver's picture

And there you have it. That bar in the video is Gold pressed tungsten.

Hearst's picture

Gold bars?  Yeah we know they're around somewhere.  But when do we get the special on SLV?  I'd love to see the 313 MILLION ounces of physical allegedly held.

DoChenRollingBearing's picture

Whoops, whoops, whoops if true!

godzila's picture

Ideed that would be a blunder of epic proportions !

catch edge ghost's picture

I would like to watch Bob weep.

HUGE_Gamma's picture

when i saw this live on TV my first reaction was to write down the serial number and check if it was on the barlist!

Conrad Murray's picture

PissAnt was too busy getting his complimentary ZJ at the stooge bar to take time to do due diligence on the ZJ bar.

kito's picture

tyler, when is that invitation coming from fort knox!?!?

thunderchief's picture

Possesion is 90% of ownership, and most gold in the USA is held at Fort Knox and West Point.  The military has all the gold.  That is why I put a permanent buy reccomendation on gold.

GoldmanSux's picture

In this case, the phrase "It's a victory for the bulls" is appropriate.

TruthInSunshine's picture

Piss-ant-i stuck that gold bar down his pants and acted all sly, as he quietly demurred further comments, once the segment was filmed, and he's stroking it now, every night in his bed, before he closes his eyes and dreams of fields of gold.

Myzery's picture

Review the  bar list again. ZJ6752 is there on page 8

 

ZH6752 RAND REFINERY 406.325 405.39 9977

 

edit: oh wait thats ZH

 

 

janus's picture

Myzery,

bitch, go find the cutest pair of pink panties in your closet and sinch em up nice and tight

mary, your ass belongs to janus...and i ain't gonna stop until i'm good and ready.

i just went through every single page (1700 plus) on that list; and i checked EVERY single bar, bitch.  'why?', your weak wittle mind may be wondern, would someone go to all the trouble?  TD does not make mistakes like that.  I ran down everything even slightly dubious for four months before joining this place.  sure, he makes a few careless errors; but that would have been a lazy error -- and i would have said something myself.  but, unlike you, i'd have been more careful.

do not ever come back again. 

i fucking dare you to talk back to me, bitch, i'm holdin back now.  take my mercy and leave; or stay and gird thyself.  ask anybody, i ain't no nice guy -- look what i do to friends.  and the difference is, i don't like you.

i will crush you,

janus

LasVegasDave's picture

Hey Janus, fuck off.

No one wants to see you thumping your chest b/c some blog poster made a mistake and you caught 'em.

You're so fuckin' smart, aint ya

janus's picture

i am.

an ass.

and am

contrite.

PaperBugsBurn's picture

janus,  you?e a real freaking idiot but funny as hell (not in a good way towards you though)

Captain Planet's picture

junked for being agro....german slang for an aggressive dipshit!

janus's picture

since nobody can do it like janus...here goes:

janus,

i've been watchin you, and, son, you've got an itchy trigger finger; but i wouldn't waste my time with you if that was your one, lonely flaw -- hell, you're the fuckin swiss cheese of ZH posters.  you don't have a fuckin clue what you're talkin about; pretending you can hang aroung with pros and steal their trade secrets...you're a simple-minded rube from the sticks in ala-fuckin-bama who don't know an spx from a vix, which is why you'll likely end all this with your sorry dick in the dirt. 

you strut around here like you've got something meaningful to say, and, well, honestly, you're your biggest fan -- which ain't really sayin much.  another thing, you seem to have a wicked-bad case of vertigo -- you think you're all the way up, and, really, you're somewhere off to the side of some reference point no one is ever gonna map.  yep, it's lonely out in space -- enjoy that echo chamber, redneck!!!

love,

janus

hope that help a lil, mysery (i mean every word).

again, sincerely,

janus

janus's picture

oh my goodness, Mysery.

 

please, please, please accept my apology.

i misread your post.

i thought you were saying that ZH wouldn't edit because they make so many mistakes...i am so sorry.  i see now that you were saying the serial designation starts with ZH.

i'll delete all that i can.

sincerely,

janus