Time to Re-Visit a Recent Thought Experiment

Recent Comex gold vault activity causes us to re-examine an issue first discussed last autumn.

Rather than lengthen this new post, I'll save you the full c&p of the two posts that preceded it. If you'd like to re-acquaint yourself with the entire "controversy", here are the links:

http://www.tfmetalsreport.com/blog/5182/more-deception-comex

http://www.tfmetalsreport.com/blog/5322/another-thought-experiment

For the sake of this post, however, I do think that the following c&p is necessary. Below are the bullet points and concluding paragraphs of the second post. Ponder this and then we'll get to the point of this new post:

Just for fun, let's explore one other option....and this is pure speculation and conjecture.

So the question (thought experiment) becomes...Is China planning a takeover/buyout of The Comex? It would seem that The Chinese are readying themselves to dominate metals trading in the 21st Century...They own the LME already and Shanghai is supplanting London as the world's largest volume precious metal delivery hub. Why not take global control of precious metal futures, too?

IF that were to happen, what would this mean for price? With "control" of precious metals futures pricing and trading, would The Chinese perpetuate the manipulation or would they eliminate it? If The Chinese are moving toward the eventual backing of the yuan/renminbi with gold and/or silver, would it benefit them to have higher prices or lower, once they have physically taken control of the majority of the world's gold?

Whoa. That's some heavy stuff. I've been mentally compiling this post for about a week and then physically typing it for the past three hours. Can you now see why it has taken so long? Anyway, welcome to my world! Please roll this information and these ideas around in your head for a while. Let me know what you think. Once again, maybe old William of Ockham provides the best answer....Newly-minted, American-made Kilobars, temporarily stored in JPM's New York vault, on their way to wherever. Then again, maybe not...

OK, the reason that I bring this up once more is that The CME and JPM are at it again.

Just this week, the eligible account of JPM's Comex vault has seen another three, round-number additions. The first came on Monday and it was for a perfect and precise, five metric tonnes:

Wednesday saw a perfect and precise, one half metric ton "deposit":

And on Thursday JPM booked in another perfect and precise, five metric tonnes:

So, once again, what in the name of Inspector Clouseau is going on here? Adding these perfect and precise deposits together yields a net addition of 337,575 troy ounces or the physical settlement equivalent of 3,375 Comex contracts. But, wait a second. According to other CME-produced data, during the February Comex delivery month, JPM was actually a net issuer of deliveries. They actually lost/delivered/issued 1,750 contracts. In fact, year-to-date if you combine ALL of the JPM settlement activity...the NET issuance and stoppage from both the customer AND house accounts...JPMorgan is a NET deliverer to the tune of 1,623 contracts.

And now, suddenly, in three days time, they take in 10.5 metric tonnes? The delivery data above certainly suggests that this new gold isn't from the settlement of Comex contracts.

So, once again, we are left grasping for answers and trying to draw some logical conclusions. I'll give you two possibilities:

  1. My original supposition from October was correct. It's all bullshit. Just paper transactions made to cover up the massive Comex registered withdrawals since early 2013, giving the appearance that all is well and that the eligible vaults are literally bursting with gold that is ready to be registered and sold if the price is right. Why would the CME suddenly start putting that disclaimer at the bottom of all their daily "stocks" reports if the information was instead accurate and reliable?
  2. Go back up and read the bolded c&p above. This week's additions bring the total of perfect and precise eligible deposits up to over thirty metric tonnes over the past five months. Thirty metric tonnes. Of perfect and precise, brand spanking new kilobars. Deposited into JPM's Comex vault. Note that, aside from the occasional and rare deposits at the other depositories, no other bank sees this type of tonnage and certainly not of the "perfect and precise" type. Note the additions at HSBC on Monday and The Scoshe on Wednesday. They weren't perfect and precise. Instead, they looked like actual, measured deposits. Only JPM sees these regular perfect and precise deposits in tonnage size.

Look, I recognize that it's a pretty long walk from these possibly-worthless CME reports to an assumption that The Chinese are planning to buy out The Comex along the way to global precious metals domination. You've got to admit, though, that while there may not be "fire" here, there certainly is at least a little bit of "smoke".

TF

105 Comments

Turd Ferguson's picture

Recorded Wednesday evening

MODERATOR

(The picture Elijah used cracks me up. It's from about five years ago. I had much of my original hair color then and A LOT less wrinkles. Stress. Ugh...)

silver66's picture

First

The monkeys have put money on sale. When thinking in terms of fiat, very frustrating. When thinking in terms of ounces very exciting.

Making a exchange today. A friend from Toronto is coming down today for lunch. We are going to a restaurant near the LCS. We will be stopping by there after lunch and he will see ole Silver66 put his money where his mouth is. I have encouraged him to stack and hopefully when he sees the behaviour in action today he dips a toe in.

Silver66

pm_newbie's picture

2nd

time for coffee and a great read!

SilverSurfers's picture

Thurd

MY FIRST THRUD!!!!!!  GOOD MORNING TURD!!!! PRAISE GOD IN THE HIGHEST for another day of pure love!!! Had 2 comment regarding that interview, and yes, very handsome pic. No doubt a kappa crapa faceman, on point visiting the tri-delts, in mass, in those younger days. ;)

And ONLY because Turd reposted the interview video, I will repost my comments to it, and dont even try to complain, YOU ALL CANT ROCK OUR WORLDS. LOL

From last evening

This was a very good listen. In this format, you get a better feel for turd's perspective. You dont get this perspective as clear when turd focuses on the metals, and one should want to hear more of turd getting interviewed, in a free wheeling response time. It is very telling, actually. Interestingly, you can put the two together, interviews and posts here, and see how they intertwine for understanding of his total perspective. Two comments.

The underlying cause of the mess is leftist political pandering, raising social spending, leading to triple deficits and debt, and the need to thus control interest rates, by Zirp and QE, and thus, the bullion manipulation to sustain the FRN to prevent lost of confidence in the FRN, thereby requiring more printing of fiat and more manipulation, until FRN confidence is lost, and the system collapses and reboots. Thus, the starting point of the logic stems from "leftist political pandering", the root cause. I guess it politically incorrect to come right out an say it.

Agreed that interest rates will be politically impossible to raise that would implode the economy forthwith, a political no no. But, when interest rise, it wont be because the FED wants them to or lets them to, but because they will be forced to by foreigners no longer wanted FRNs or US debt, as the con, and thats when the FED USG loses control, prior to which, the felon squirm is to try to use various means to control interest rates outside of free markets. Turd should be right, that interest rates will be keep down for some time, but when reset time comes, it should be proceeded by a substantial up tic in rates, indicating loss of control, and economic implosion.  Just Saying

====

Bill Holter (Miles Franklin):  snip .... By pushing Mr. Putin we are accelerating the game's outcome, it is like we on our own are accelerating the clock. We are daring our foes to go off of the dollar standard.

PUSH!!!!!!!!!!!!!!!

KOOS ... Turd posted Koos' lastest (PART I) showing audits of gold by treasury, at least some numbers. So, we now have treasury officials testifying 8000 tons are there, and Koos had posted some hard numbers. Gata has been claiming for years, ITS ALL GONE, and as in the video above, Turd subscribes to that THEORY. CP of Gata comes back, indicates the audit is bogus, does not address encumbrances, what about leasing custodial gold, etc. A stalwart doubting thomas may suggest that the 8000 tons is really there, necessary for any reboot, thanks to TrickyDick. Cant wait for PART II.

By popular demand below,

Marchas45's picture

4th

and listened already. Lol

Patriot Family's picture

Turd... Turd, Is that you in that picture?

I didn't even recognize you.  I keep expecting some guy with a big yellow hat.

PS - hello from India.  Here for two weeks, and going to try to visit a couple of gold/jewelry stores in Hyderabad and Bangalore to see what things are like.  People here are super concerned about their currency valuation and upcoming elections. Politicians have no issues making outrageous promises to buy a few votes.  Or making crazy claims about corruption on he part of their opponents.  Very much like a circus.

Keg's picture

Will 1280 hold?

Looks like it will at least get a test today.

wildstylechef's picture

THOUGHTS

This past return of gold I thought finally after all this time the price is reflecting real value, but that would be like the US realizing that guns are just not the answer. It is never going to happen until an absolute collapse occurs. I think the same is going to happen with gold. The people controlling the price of gold in US dollars, which really is the control of the US dollar price, will never relinquish the control until they no longer have control and the US dollar and the US has collapsed. Canada that has the economy that the US claims and the price of gold in Can $ is 1420 and breached 1500 not that long ago. That is a real price and un-manipulated and in reality the US dollar should be far less than the Canadian dollar. So sad to say the only way I see the price of gold in US dollar terms will be the collapse of the US economy.

ancientmoney's picture

Turd, you look a little like Scott Walker, governor . . .

of Wisconsin.

Pattaya7's picture

Just a dirty white boy!

I always love to hear that song.......

ancientmoney's picture

Speaking of gold in dollar-price terms . . .

means we think that the western financial system will survive this debt debacle we own today.  I don't think it will survive intact.

I don't know what the system that comes next will look like, but it appears that China, Russia, etc. think it will include gold.

Turd's connections between China and JPM are more dots to be connected in the overall picture.  Ted Butler and Antal Fekete both surmised long ago that China was the big short in the silver market, and we here discussed that JPM may be doing China's dirty-work in silver. 

Maybe the hedge funds that supply the COMEX bids are controlled by Chinese interests, so as to continue the appearance that COMEX gold and silver are markets, and to continue to hold down price so they can hoover up all the cheap gold and silver possible.

They KNOW what's coming, and therefore, they are stacking.

Groaner's picture

So the IRS, Gestopo, wants to tax your gold?

If you sell some gold how will they determine what you owe if there is no record of the buys for capital gains?

I think if the Mafia ran things it would be fairer. These guys are much worse on a grander scale. 

Turd Ferguson's picture

Final plunge

MODERATOR

The Bad Guys may have overplayed their hand this morning as we see a building FUBM.

I suspect that, like the end of Q2 and Q4 2013, the low for this current scheme will be today or Monday.

Mr. Fix's picture

It's an endgame scenario, as I had envisioned.

Turd,

As you know I've been going on the premise that all CME data is bogus, and I expect the paper price of metals to drop precipitously as the system collapses. (There will be no profit made in trading).

With everything else going on in the world, it is conceivable that many wagons will lose their wheels simultaneously.

This might be the final plunge, and until a system is rebooted, it could very well be permanent.

I'm still calling for a systemic collapse before we see any significant rise in price.

abguy4's picture

The details boggle the mind.

The details boggle the mind. Usually I like to dig down to the bottom and work my way back up --- ala Turd. But, in this case with so much supposition to wade thru on every data point, I have to just step back and take the Global view from 35,000 feet.That brings me to - Wheres the Gold? . Forget ''ownership, or Title or Leasing rights'', or any paper entanglements - that's just a smoke screen. ''He who has the Gold makes da Rules.''

When Iraq supposedly 'bought' 30 - 40 tons, did anyone see a fleet of 747's, loading or off-loading to a train of Brinks trucks? Nope, never happened. It was  simply Iraq transferring a pile of greenbacks to JPM/US Gov for some possible paper title rights -- at best. I have stated previously; That 'transaction' was simply the payment of homage by a conquered Principality, to the King, to avoid further devastation of the Principality and its newly installed puppets, who BTW are still sitting amongst the stinking pile of dead bodies of previous puppets who got a little out-of-hand, and paid the price for it. And OBTW, whatever happened to the 40 (?) ton pile of Au that Iraq held before we bombed them to hell? Is Iraq now in fact paying for paper entitlements to their own Gold which was stolen and transferred to JPM vaults? And where did Libya's huge Au pile go???????

Here's how I think it works troops. Your little fiefdom sells US your black gold for some green fiat that we print-up out of thin air and ad infinitum. Then you go out and buy some bullion to store your wealth. Then at some point we usurp your little fiefdom and you either pay-up (in bullion) in order for US granting you having some peace in yur little fiefdom, or we come in ( you horrible human right infringing despot ) and take  all the bullion that you stored your fiat value in. What? - you say you don't buy that scenario? Just take a look at every country in the M.E. that was at one time or another our great buddy and ally and trading partner. Let me help your short memory here --- Like Iraq and Iran! Yah, they were both our buddies at one time, now they're on the Evil Axis list. I digress - as is my tendency.

Back to the point. Possession is everything. Where's the Bullion? And are we, (the US military), just acting as the strong arm and bagmen for the Asians? We go out and steal all the Gold, and then the Chinese funnel back some green fiat and we ship (or title) all the Gold to them. And maybe now that they own the huge vault below JPM's old building, the Chinese are storing their Gold there. The gold we just stole from Libya and Iraq and so forth. Maybe that flt 370 disappearance was a message to the Chinese that it's not a good idea to fly your Au back to China, as we can make 777's 'disappear'. What was that mystery cargo it held anyhow? Notice how Turkey is suddenly mentioned as having a nice stash of Bullion. Notice how fast they get in-line with ANY BS political posturing by the US administration. Notice how they are always mentioned as our 'great ally' in the M.E. Learn to see that word 'ally' as code for; "You little shit, you only exist by the granting of our good graces - so keep your sorry ass aligned to our every BS statement and your get to keep your head on your shoulders."

OBTW-- where did that 40 tons of Ukraine gold go just last month???????

And, never forget, no one's interested in that barbarous relic. Look some wheres else. Do what you're told. Stay distracted while we rob you blind. Beyonce has a new "album" with a great new crotch shot in the video, and how about the Bill's new QB?

Isn't this an amazing time to be alive?

Pining 4 the Fjords's picture

You need a more recent and appropriate pic TF

This looks MUCH better.

I can photoshop a bottle of Jack into the frame too, if needed. Or maybe a prison shank.  As always, I am happy to help burnish the image of TFMR.

Patriot Family's picture

Great buy points..

Let's all keep in mind these are still decent prices for buying... Even my wife gets it.  "Don't wish for the price to rise too soon.  We're not done buying yet."

I am very tempted to sell my old Ford truck and buy more. Gotta have at least one toy to play with, though.

SilverSurfers's picture

Gestopo

Gestopo? More like enslavers and political henchmen. The IRS will take the position that all money (tracked through banks, and 10K$ is the reporting trigger), is earned income, tax accordingly, and make you prove date of purchase and amount to get capital gain. Just Guessing, of course of course of course. And because GOLD is an FRN counter, they want all receipts from LCS and Brokers gold sells/buys, reported to the IRS regular like, as least they tried it.

So, who all here have their own personal runner? :o

Mr Fix discounts average intelligence by the masses to run into bullion, AS the system collapses.

TOO MUCH PINNING!!!!

1150? what a call, eh?

abguy4's picture

@Ancient

IF that isn't the face and eyes of a bona fide sociopath - then I've never seen one

YIKES~!!!!!

MountainMan's picture

Gold Headed to 1150

They will smoke this now. One final flush out. Just look at your weekly chart. UGLY!

wildstylechef's picture

Also these Israel embassies ALL closing

This stinks of an orchestrated move with the excuse of a strike? Sounds more like Israel is preparing for a military strike and wants all of its ambassadorial staff home and safe from retaliatory  retribution and also closes its borders ahead of the strike. When was the last time a country closed ALL  of its embassies????????????????

Something stinks here, big time.

metalsbyamile's picture

All normal

Gold down, usd down, oil up....yes, every thing is normal??!

opticsguy's picture

Just ordered 5 AGEs from Provident. Free shipping

$1340 ea

Gamble's picture

Miners turning green

Hint

sierra skier's picture

Just where the gold is and

Just where the gold is and just who possess it is just like the shell game on the street. Does the US really have the 8000+ tonnes that is claimed or is that claimed gold just tungsten covered blanks that were ordered during the Clinton Admin. (I believe it was). China is smart to be reformatting their new holdings into Kilo bars so they can weed out any of the bogus bars and assure purity.

There is no way they will ever let us know exactly what is happening with the yellow metal as it would blow their fraud. When the time is right we will all be pleased we hold PMs, real money. Western bankers deserve whatever fate comes their way because of their continues fraud and greed.

metalsbyamile's picture

Wow

Great turn around in gold and the HUI. Green green green

Groaner's picture

the take down this morning was planned.

They knew bad numbers were coming out. If they didnt where would the metals be trading now?  Much higher.

This is done for your security and protection.. Please keep in line and don't let that dead body disturb you,, just continue to take DEEP breathes. 

And when the Gestopo comes after me, it will be in the bottom of the ocean rather than give it those scum bags

AlienEyes's picture

RE : Just ordered 5 AGEs from Provident. Free shipping

I'm glad you did and I don't think you'll regret it.  yes

.

(now they can't blame me if it all goes to hell, just because I bought 100 ozt of la plata and 1.5 ozt of oro.)  wink

Preparing My Position's picture

Gold trying to break a week long 1-hour down trend line

tmosley's picture

Clearly, we need a US

Clearly, we need a US equivalent of the NHS:

http://www.telegraph.co.uk/health/healthnews/10728189/Fears-that-hospitals-are-covering-up-death-rates.html

Hospitals have been accused of “fiddling” their death rate figures by claiming patients were terminally ill, after new figures showing dramatic changes in the way mortality is recorded.

The NHS data shows a five-fold rise in the proportion of deaths being “coded” so that they barely count towards hospital mortality statistics - with some trusts now recording one in three deaths as a “palliative” case.

Syndicate contentComments for "Time to Re-Visit a Recent Thought Experiment"