GLD Deception Reaches a New Level

171
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.

TF

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DeaconBenjamin
Jul 17, 2013 - 6:19pm

The Mirror Cracks

The financial markets have now seen what a world without quantitative easing is going to look like, and they don’t like what they see one bit. In fact, the mere possibility of an end to the Federal Reserve’s monetary experiment sent credit markets to some of their biggest losses in recent history both in absolute and percentage terms. All of these losses were triggered by a move in the benchmark 10-year Treasury yield from a low of 1.63% on May 2 to a high of 2.66% just a few days before ending the quarter at 2.49%. ISI Group has done some great work placing this move in context. In 1994, a year generally viewed as Armageddon for bond investors, the 10-year Treasury only increased by 90 basis points during a comparable 2-month period that started a sustained increase in rates. Moreover, in percentage terms, the 1994 move was only 20% over that period while the current move was 40%.

Figure 1 – 1994 Redux … Only Worse

Conditions today are far different than those in 1994, however; today they are far more conducive to rates staying low. During that period in 1994, the Federal Reserve hiked the Federal Funds rate by 70 basis points (the first leg of a move that would see the Federal Reserve raise rates by another 175 basis points by the end of that year – with 10 year Treasury yields following by another 100 basis points). In contrast, today there is no chance that the Federal Funds rate will be increased for at least the next two years. For another, the Federal Reserve’s balance sheet has already increased by more than $400 billion this year and is expected to increase by another $450-500 billion by year end. So while the Federal Reserve tightened by 250 basis points in 1994, the Federal Reserve’s bond purchases are effectively lowering interest rates on the order of 70 basis points (ISI’s estimate) today. The comparison between the recent interest rate spike and 1994 underlines just how Fed-dependent markets have become and how incredibly difficult it is going to be for Mr. Bernanke and his colleagues to alter policy without causing serious market dislocations. What investors should learn from this is that they should be preparing their portfolios now for serious – perhaps unprecedented – volatility when the Federal Reserve finally does what it needs to do and stops propping up the markets. Some of us began doing this several months ago and avoided damage to our portfolios in May and June (while still earning decent returns in the interim).

https://www.financialsense.com/contributors/john-mauldin/the-mirror-cracks

rathocky
Jul 17, 2013 - 6:08pm

may be 4

may be 4

SilverSurfers
Jul 17, 2013 - 6:06pm

Third by a Turd

yeah man, top tenners, just happened to peek. ?? WE GOT A PEEPER!!!!

https://totalcontrol.blogtownhall.com/2013/07/17/usa_wall_street_and_201...

erewenguy
Jul 17, 2013 - 6:06pm

let it all come down

Let it all come down. Without Fed intervention, the markets would crumble.

wildstylechef
Jul 17, 2013 - 6:02pm

2nd will dooo

just because I can

Bollocks
Jul 17, 2013 - 6:00pm

FFF ???

Oh yes. FURST!



"all a huge sham, scam and joke"

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