GLD Deception Reaches a New Level

Wed, Jul 17, 2013 - 5:55pm

Just as Westley asked Fezzik, "Look. Are you just fiddling around with me, or what?".

My contempt for the GLD and its Authorized Participants is well-documented. I have no doubt that this sham vehicle was expressly created to siphon demand for actual bullion and provide a readily-accessible inventory of metal for the Bullion Banks to "flywheel" whenever and wherever conditions warranted.

Since the first of the year, the GLD "inventory" is now down over 30%, having fallen from 1,350 metric tonnes to today's 936. The shills of the sell-side firms and the dupes in the financial media proclaim that this liquidation is due to heavy investor "selling and reallocation" away from precious metal. Of course, the fact that the comparable silver ETF, the SLV, is UP in inventory by 140 tonnes matters little. The narrative must be forced down your throat in order to provide the banks the continued cover that they require.

And then you get days like today and yesterday, where the banks let their guard down. Did they mess up and accidentally show their true motives OR do they just simply not care anymore, preferring to thumb their collective noses at all of us who are screaming "fraud" and "sham"?

Why do I say this? Check this out.

Yesterday, the GLD reported another drawdown. (Even though price had risen by over $40 since last Thursday...but I digress.) Yesterday's "inventory reduction" wasn't significant compared to some of the drops we've seen this year, it was reported at just 1.50 metric tonnes. The only thing that caught my eye was the round number of 1.50. That seemed strange so I made a mental note and moved on.

Today, the GLD reported another drawdown and this one really got my attention because...drumroll, please...the amount reported was another 1.50 mts. Exactly, right on the nose. Drill down even further and it gets more hilarious:

Monday GLD: 30,192,195.27 troy ounces

Tuesday GLD: 30,143,884.76 troy ounces

This is an AP withdrawal of 48,310.51 ounces. (As an aside, how the heck do you account for the extra 0.51 ounces anyway? Doesn't that seem strange, too? But, again, I digress.) Now check this out:

Tuesday GLD: 30,143,884.76 troy ounces

Wednesday GLD: 30,095,574 troy ounces

This an an AP withdrawal of 48,310.04 ounces.

Seriously, we're supposed to believe that paper gold went up $6.90 yesterday and fell by $12.90 today, all the while the exact same number of shares were tendered each day leading to the exact same physical withdrawal. As they say, "I might have been born at night but it wasn't last night". Exactly 48,310 ounces for two days in a row? Seriously?? Give me a break! Are you just fiddling around with me or what?!?

This is all a huge sham, scam and joke. Can there be any remaining doubt that folks like Maguire, Sprott and Williams are correct? Decades of leasing and rehypothecation have left physical gold in such short supply that a crisis has developed within the fractional reserve bullion banking system. Absent available physical gold to deliver immediately to hungry Eastern buyers, The Gold Cartel Bullion Banks have been utilizing the current price weakness to raid the GLD for every possible ounce. Further proof of this extreme physical tightness is seen in the negative GOFO rates, which have now remained negative for a record-shattering eight, consecutive days.

This charade will soon end in spectacular fashion. Please continue to accumulate physical metal, as much as you deem prudent, while you still can.


About the Author

turd [at] tfmetalsreport [dot] com ()


Jul 19, 2013 - 12:52am

Financial mass destruction

Is it just me or is someone stocking up for a major event of financial mass destruction?

Gold is being drained from reserve vaults.

Crude oil is hitting new highs in price.

Gasoline at one station in Beverly Hills is at $5.40 a gallon.

Port of LA traffic is off 10% month on month.

GOFO is going more negative on the 1 month.

ALL of the above news confirmed through this board.

NONE of the above news discussed on financial TV.

And, now, I hear that one or two banks are offering 1% interest rates on savings accounts. Meanwhile, the other institutions are still offering 0.25% on savings accounts. Why the difference?

I can only assume that some of the banks are capital needy and are willing to offer higher interest rates in order to get your money. Those banks also assume that they will be getting more than 1% in some UST bonds. What does that say?

Think a sec... it means that the banks ALREADY KNOW that the higher interest rates are coming.

So, we should assume an environment of increasing interest rates over the next few years.

Jakarta ExpatSE
Jul 19, 2013 - 12:37am

@SE and your business plan for Philipat in Bali

It could work but Phil would have to cut all of the Balinese in for a percentage thus creating an Indonesian joint venture. And most expatriates living in Indonesia know what eventually happens to joint venture partners in Indonesia.

The Story of the Indonesian Chicken and the American Pig

One day an Indonesian Chicken decides to take a vacation or as some call it a holiday. He decides to go to New York City. He arrives in Times Square in NYC and meets an American Pig, the American pig is hospitable and over the next two weeks takes time to show the Indonesian Chicken the sights and sound of New York. After two weeks the holiday is over and the Indonesian Chicken says he needs to go back home. He then invites the American Pig to accompany him back and join him there.

The American pig agrees that he would like too but expresses his doubts to the Indonesian Chicken that he would not know what he would do in Indonesia. The conversation goes like this:

Indonesian Chicken: We could go back and start a business together.

American Pig: That sounds good tell me more, tell me more?

Indonesian Chicken: We could go back and start a “Joint Venture Company” together.

American Pig: That sounds good, tell me more, tell me more.

Indonesian Chicken: We could open a restaurant together and share the profits.

American Pig: That sounds good tell me more, tell me more?

Indonesian Chicken: Well it could be a Ham and Eggs restaurant, a sort of Breakfast 24 hour type of restaurant.

American Pig: That sounds good tell me more, tell me more?

Indonesian Chicken: Well, I would lay the eggs that we need and when we needed any ham then we could just cut a little bit off of you.

American Pig: That sounds ok for you because you can lay eggs and no harm comes to you but if you cut so much off of me then after a time, I will die.

Indonesian Chicken: But that is what happens to most Joint Venture partners in Indonesia anyhow.

This realistic joke was told me my 2nd night in Jakarta in 1989 by an Austrian who had already been living here in Indonesia since the mid 60’s and we remained good friends until he died in Denpasar Indonesia in 2006. His advice, in his joke form, was found to be quite true and I still miss that wise man to this day.

Motley Fool
Jul 18, 2013 - 5:16pm


I do not propose to continue the topic. It is futile when others ignore inconvenient truths (inconvenient to their perspective).

Jul 18, 2013 - 5:14pm

that is just wonderful ...

see it really does not matter if you do all those things... it is over is math "politics do not matter anymore ... just algebra ... nothing ... can stop this nothing ... it has to all go... it all will go ... and soon ... maybe 36 months ... then on the other side... may be if we are wise enough ... we can rebuild and be a new constitutional America ... as it was meant to be ... no CB, "FED" no FRB ...using sound money ... I hope ...that is - all it can be... if we are wise... and smart! if not ...more of the same, or worse... I just do not know... I tell you this is all over... it is MATH ... for gods sake understand that!

Get ready and prepare take care of your self and family... no else in the world can or will ... it is math we have gone too far there is no return now ... no plan ... it is the math... if we had acted a few years ago ... 2008 maybe then ... all over now .


Jul 18, 2013 - 4:46pm

New thread

Sorry, wrong thread

SESpartacus Rex
Jul 18, 2013 - 4:44pm

@ philipat & Spartacus

Keep stacking those seashells and t-shirts for the tourists, Phil.


Actually, that might not be a bad idea... Set up a deal with the banks on the island; have them issue "Island Money" in the form of gold and silver (or just silver unless a customer wants to buy the whole lot of shells and shirts) and require all visitors to exchange their currency (including dollars) for the gold and silver to be spent at your stand. You'll be stacking shells, shirts, AND real money! Win-win all the way around!

Jul 18, 2013 - 4:21pm

@ philipat

My concern, therefore, in view of all of the above, is that it might be a VERY long time before Gold can break out. These "Bear" economic cycles tend to last for an average of 18 years and this one began in 2000.

IMHO, it is going to take a MAJOR event, either economically or geo-politically, to break the above reality, so that there are far bigger things (A Collapsing Banking System for instance) that they have to worry about.

Sorry if this appears to be negative, it actually isn't intended to be that way. But I do think that these matters are worthy of serious discussion.


I believe that you are right. The only way to short-circuit this game is to mount up a posse and shut down the financial sector attachment to the metals in the way they are attached now. But you know, a more realistic possibility would be to send to the outside world (outside the US), to the Indians and Chinese that if they want American imperialism to end, they have to help us shut the American government's ability to function through buying every ounce of gold and silver there is and repudiating the US dollar (AFTER getting rid of their FX reserves in the US dollar) and go ahead and just take all the losses that come from dumping these dollars as part of a plan to do a reset on the petrodollar's dominance (and end it right then and there). At that point, start demanding gold and silver in exchange for goods and services with the US. Now, this means that the countries involved with the takedown will have to arm themselves even more and possibly even have to conduct an invasion of Washington, DC, just like the Allies had to do on Nazi Germany because the German citizens who had lost control of the government to the likes of Hitler could do nothing without risking death, torture, imprisonment, disappearance - exactly the situation we are in RIGHT NOW. The odd thing is, and it scares me because it changes everything and makes it an unknown, unlike Hitler's "Final Solution" regarding disabled people, LGBT people, etc., Obama supports them. It makes me wonder, "Well, hell, who will be the victims of the "American Solution"?" Is it you? Me? Her? Him? Who?? It looks like this time, it's not about eugenics, but about "anyone who simply opposes the statist government."

SEKatie Rose
Jul 18, 2013 - 4:00pm


None of us knows when everything will collapse. We are aware that Congress has a committee investigating requiring investors to "convert" their IRA's and 401K's into "safe" Treasury Bonds. The handwriting is on the wall. It is clear they intend to steal all your retirement money. And...they will exempt themselves from this new law.

The question for you is whether you trust the government to leave your retirement money alone. If you do, fine.

If you don't, take the tax hit and take physical possession of your $ in the form of PM's.


Not always true! I had discovered upon nearing my last day at work in April that I was going to have to wait until the company running the program had received notice from my former employer that I was now inactive as of my last day of work before I could go ahead and cash out the 401K. Apparently, had I decided that I was going to cash out and continue to work for the company, it would have been impossible to cash out. Good thing I found out under exactly my circumstances, which was bailing out of the company when it became clear what they were doing to the older workers who were more expensive per hour on the payroll.

Damnest thing is that I will be house-sitting for a former coworker who left the company right before he leaves for Alaska to do some sight-seeing up there. He left for the same damn reason. I went by there recently, and there were even more new people I didn't know, and they didn't have anywhere near the personality of the people who were hired years and years ago. Just as well that I got out when I did. Never will go back to work there.

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Jul 18, 2013 - 3:49pm

Gold's ridiculous tax..

and of course there's the IRS taxing it on the back end at 28% as a "collectible" with no differentiation of short Vs long term capital gains.

One might get the idea gold ownership is discouraged!

Jul 18, 2013 - 3:28pm

"If you see 2-3 years

"If you see 2-3 years bottoming out time as a good base for a future rally , I see it as a waste of valuable time and resources."

You asked how I would feel if silver went nowhere for a couple years. I told you. That does not mean that if I had a perfect crystal ball, and I knew that it was going nowhere, that I would allocate resources to it. I don't think it likely that silver will stay down that long; but if it DOES, (which is what you asked about), that's how I would feel about it. No regrets, since I made the best decision I could at the time (now).

"some say that metals are not an investment , it is insurance bla bla BUT THEY ARE WRONG ."

They're not wrong FOR THEM. If you hold it only as insurance, then that's what it is FOR YOU. Insurance is insurance; not an investment. For others (like you and me), it is different. For me, the "insurance" aspect is perhaps 25% of my interest. It is an appreciable thing, but not the whole show. What is cool about physical metal, IMHO, is that it offers a highly unique opportunity to gain purchasing power (i.e. be a good investment) while at the same time providing that insurance function, which again is (for me) appreciable. Others may view it differently. YMMV, and all that.

I wish we would all stop speaking (and thinking) in sweeping terms about what PMs ARE -- as though they can only be one thing for everyone. Truth is, they can be different things for different people with different objectives and priorities. Different strokes....

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