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 18, 2013 - 3:26pm

Sales tax on PM's

or in a goofy state like NV, where bullion isn't taxed, but money (coins) like AGE's, ASE's and Pandas are taxed. Go figure.

Jul 18, 2013 - 3:25pm

@ Mr Guboci

You say those that say PM's are insurance are wrong........Why? Is it because we have not needed to use it yet?........"A waste of time and resourses"....Hardly, I pay much fiat to protect myself and my family from liability in the hope that I never need it........the difference in that and PM's ...I can hold it at any minute, it has not disappeared down the rabbit hole , never to be seen again, it is an asset with insurance as the primary, and at any given time , I can sell it 24/7 365 1/4 days per year to most anyone in the world.

Maybe the pumpers and dumpers have done you in, if that is so, then you are to blame for non/DD..........this game being played out could go on and on, or it could end overnight, no crystal ball some point the fat bitch will sing, just make sure you got your's covered the best you can when that day comes.

Jul 18, 2013 - 2:42pm

@Triton from a financial plnning perspective

Though there were some excellent responses, none of them seemed to be from a financial planning perspective.

First, are they in taxable (non-qualified) or non taxable (qualified account like an IRA)?

How much of your portfolio is in the ETF's?

If its in a non-qualified account I would recommend taking the loss and reporting the $3K allowable each year on your taxes until you've used up all your loss.

Its its in a qualified account you won't be able to benefit from the loss. In that case I would begin a systematic selling. Maybe 1/3 per month with the hope it goes a little higher for some of the sells.

Either way, replace the ETF gold/silver with REAL, PHYSICAL gold or silver. You can buy on line from a company like APMEX and NOT PAY SALES TAX on top of your purchase. If you buy at a coin store you'll likely have to pay the sales tax unless you live some place like Oregon with no sales tax

Jul 18, 2013 - 2:33pm


Yep, there it is. Why? Was waldo last seen in the canal back stroking? I love find waldo cartoons, so do the boys! Just Saying. Just Asking. Please dont tell me he is going to throat slitting school?

Question. Why would a totalitarian in the white support rebels trying to defeat a Totalitarian in the ME? That dont square up on bit. Ours must have been distracted by the Library Cost Spread Sheets.

Jul 18, 2013 - 2:05pm

Oh yes

It is all certainly most unusual. All sorts of unusualalities all over the place. Which is of course perfectly normal and not a cause for excess analysis, unusual concern or other rockings of the boat. SNAFU, n'est-ce pas?

Jul 18, 2013 - 1:39pm

And now we have this

Batten down the hatches!

Comment below from ZH:

"The ultimate decision will come not from Congress but from the Fed.

So what may have spooked Bernanke and the sudden reappearance of the Syrian war as a real and credible possibility?

Why, the economy of course. Only not its "improvement" but its recent (and ongoing) deterioration.

And since the taper is largely priced in, Bernanke is already contemplating how to reengage in the subsequent untapering should all hell break loose following a September tapering announcement prompting the Fed to reengage once more. However, for that to happen, US deficits would need to flow once more, as only then will there be the much needed copious primary issuance of debt that the Fed will need in order to resume monetizing at a fervent pace without impairing the liquidity characteristics of the bond market.

As for the downside? What are some irrelevant Syrian lives in the grand scheme of things, when the status quo's wealth must be preserved at all costs. Costs including the death of thousands of innocent civilian Syrians and/or other nationalities should the conflict just happen to spill outside the Syrian borders."

Key Economic Events Week of 8/3

8/3 9:45 ET Markit Manu PMI July
8/3 10:00 ET ISM Manu PMI July
8/3 10:00 ET Construction Spending
8/4 10:00 ET Factory Orders
8/5 8:15 ET ADP employment July
8/5 9:45 ET Markit Service PMI
8/5 10:00 ET ISM Service PMI
8/6 8:30 ET Initial jobless claims
8/7 8:30 ET BLSBS for July
8/7 10:00 ET Wholesale Inventories

Charles S. Hamlin
Jul 18, 2013 - 1:37pm

GOFO (Gold Forward Offered

GOFO (Gold Forward Offered Rates) - 2013

DATE 1 Month 2 Months 3 Months 6 Months 12 Months
08-Jul-13 -0.06500 -0.04333 -0.03000 0.03500 0.18167
09-Jul-13 -0.10600 -0.08400 -0.07000 -0.01000 0.13800
10-Jul-13 -0.11167 -0.08000 -0.05833 -0.00167 0.14000
11-Jul-13 -0.05167 -0.02833 -0.01500 0.04667 0.15833
12-Jul-13 -0.04167 -0.02333 -0.01333 0.06167 0.17000
15-Jul-13 -0.05500 -0.04000 -0.02333 0.06167 0.18500
16-Jul-13 -0.05667 -0.04333 -0.02500 0.06333 0.18833
17-Jul-13 -0.06500 -0.04667 -0.03000 0.05833 0.17667
18-Jul-13 -0.08167 -0.06833 -0.05500 0.04167 0.16000

negative rates, 9 days and counting (and starting to increase)...


Jul 18, 2013 - 1:35pm

Watching the Nikkei

Anyone who went long based upon this should be looking to book profits pretty soon.

Jul 18, 2013 - 1:34pm


Yeah ;-))) this is perfectly normal for "unusual assets"...

-- and it was -- quite an unusual request from such a serious country like Germany, to return its unusual asset from an unusual storage place on the other side of the globe, guarded by so many U.S. troops and tanks, right? Nobody understands the price of gold, or what it really is, that's why nobody have seen it for quite some time already. They say that gold comes from some distant planets, meteors, and maybe with aliens... However, if we have to return some of this unusual asset we probably don't have, we have to buy it at first, stamp it with some Deutsche insignia a letters, and in this case, paying less is better than paying more.

Jul 18, 2013 - 1:26pm


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 . The problem is each and everyone of us comes on this planet with a limited time to live and explore this reality . For my regret I am not immortal and cannot afford to wait a decade or two for a shitty investment to become a good one . No matter what you hold , if you hold it long enough it will get a good investment one day... Yes , I know , some say that metals are not an investment , it is insurance bla bla BUT THEY ARE WRONG . When you hold metals - your resources and time are invested in metals , if you hold cash - you are invested in cash , if you hold apples - you are invested in apples , if the value of the apples go down compared to oranges you lose your resources and time , which is the case with metals for the past years .

Subscribe or login to read all comments.


Donate Shop

Get Your Subscriber Benefits

Private iTunes feed for all TF Metals Report podcasts, and access to Vault member forum discussions!

Key Economic Events Week of 8/3

8/3 9:45 ET Markit Manu PMI July
8/3 10:00 ET ISM Manu PMI July
8/3 10:00 ET Construction Spending
8/4 10:00 ET Factory Orders
8/5 8:15 ET ADP employment July
8/5 9:45 ET Markit Service PMI
8/5 10:00 ET ISM Service PMI
8/6 8:30 ET Initial jobless claims
8/7 8:30 ET BLSBS for July
8/7 10:00 ET Wholesale Inventories

Key Economic Events Week of 7/27

7/27 8:30 ET Durable Goods
7/28 9:00 ET Case-Shiller home prices
7/29 8:30 ET Advance trade in goods
7/29 2:00 ET FOMC Fedlines
7/29 2:30 ET CGP presser
7/30 8:30 ET Q2 GDP first guess
7/31 8:30 ET Personal Income and Spending
7/31 8:30 ET Core inflation
7/31 9:45 ET Chicago PMI

Key Economic Events Week of 7/20

7/21 8:30 ET Chicago Fed
7/21 2:00 ET Senate vote on Judy Shelton
7/22 10:00 ET Existing home sales
7/23 8:30 ET Jobless claims
7/23 10:00 ET Leading Economic Indicators
7/24 9:45 ET Markit flash PMIs for July

Key Economic Events Week of 7/13

7/13 11:30 ET Goon Williams speech
7/13 1:00 ET Goon Kaplan speech
7/14 8:30 ET CPI for June
7/14 2:30 ET Goon Bullard speech
7/15 8:30 ET Empire State and Import Price Idx
7/15 9:15 ET Cap Ute and Ind Prod
7/16 8:30 ET Retail Sales and Philly Fed
7/16 11:00 ET Goon Williams again
7/17 8:30 ET Housing Starts and Permits

Key Economic Events Week of 7/6

7/6 9:45 ET Markit Service PMI
7/6 10:00 ET ISM Service PMI
7/7 10:00 ET Job openings
7/9 8:30 ET Initial jobless claims
7/9 10:00 ET Wholesale inventories
7/10 8:30 ET PPI for June

Key Economic Events Week of 6/29

6/30 9:00 ET Case-Shiller home prices
6/30 9:45 ET Chicago PMI
6/30 10:00 ET Consumer Confidence
6/30 12:30 ET CGP and SSHW to Capitol Hill
7/1 8:15 ET ADP Employment
7/1 9:45 ET Markit Manu PMI
7/1 10:00 ET ISM Manu PMI
7/1 2:00 ET June FOMC minutes
7/2 8:30 ET BLSBS
7/2 10:00 ET Factory Orders

Key Economic Events Week of 6/22

6/22 8:30 ET Chicago Fed
6/22 10:00 ET Existing home sales
6/23 9:45 ET Markit flash PMIs for June
6/23 10:00 ET New home sales
6/25 8:30 ET Q1 GDP final guess
6/25 8:30 ET Durable Goods
6/26 8:30 ET Pers Inc and Spending
6/26 8:30 ET Core inflation

Key Economic Events Week of 6/15

6/16 8:30 ET Retail Sales
6/16 8:30 ET Cap Ute and Ind Prod
6/16 10:00 ET Chief Goon Powell US Senate
6/16 4:00 pm ET Goon Chlamydia speech
6/17 8:30 ET Housing Starts
6/17 12:00 ET Chief Goon Powell US House
6/18 8:30 ET Initial Jobless Claims
6/18 8:30 ET Philly Fed
6/19 8:30 ET Current Account Deficit
6/19 1:00 pm ET CGP and Mester conference

Key Economic Events Week of 6/8

6/9 10:00 ET Job openings
6/9 10:00 ET Wholesale inventories
6/10 8:30 ET CPI for May
6/10 2:00 ET FOMC Fedlines
6/10 2:30 ET CGP presser
6/11 8:30 ET Initial jobless claims
6/11 8:30 ET PPI for May
6/12 8:30 ET Import price index
6/12 10:00 ET Consumer sentiment

Key Economic Events Week of 5/25

5/26 8:30 ET Chicago Fed
5/26 10:00 ET Consumer Confidence
5/27 2:00 ET Fed Beige Book
5/28 8:30 ET Q2 GDP 2nd guess
5/28 8:30 ET Durable Goods
5/29 8:30 ET Pers Inc and Cons Spend
5/29 8:30 ET Core Inflation
5/29 9:45 ET Chicago PMI

Forum Discussion