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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  171 Comments

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Magpie
Jul 18, 2013 - 11:27am

Mandatory HIV testing

per Zero's EO: That little swab will also produce a nice DNA sample for the government databases. Are you ready to get parted out?

Willy
Jul 18, 2013 - 11:18am

Crude $107.70

How long till this becomes an actual concern to Dow/SP Bulls? I know it's bullish cause it shows the economy is improving (bahhh haaa) but really that is quite a jump from $95 a few weeks back. Add to it the jump in 10 year rates from May first at 1.61% (now at 2.52%) on the 10 year and you've got a couple of really bullish things going on for the economy (more sarc).

¤
Jul 18, 2013 - 11:15am

Abortion?

Please take it to a forum before this place entirely derails.

Last week it was race...now abortion issue's? C'mon...nip it in the bud.

¤
Jul 18, 2013 - 11:11am

metal shortages?

Is there actually one?

I recall 4-5 years ago all the talk about the shortage of physical silver and how JPM would be crushed if it reached a certain price (didn't happen at $48) and now here we are (at $19) and they're hoarding it in massive amounts into SLV.

Where are they getting this much physical silver that was supposed to be in short supply with an "imminent' phyz squeeze or delivery failure etc. around the corner that we continually heard about back then?

Was it nothing more then a phyz shell/vault game being played out that gave the illusion of a shortage? And what about Wynter Benton? It's now laughable even though I put no stock in 'her' back then.

JPM didn't go under and in fact we're let off the criminal hook, if such a real threat ever existed. It apparently didn't because they're still conducting business as usual just like they have for over a hundred years.

The same (albeit slightly different) scenario seems to be playing out with gold right now.

All the same rhetoric exists except this time it has to do with GLD and CB involvement with gold buying/selling. The one difference being that silver didn't appear to be under an obvious CB influence at that time like gold appears to be right now. But is it really?

Or is it contrived and nothing more then another CB shell/vault game this time involving gold? No one knows for sure right now what's going on.

At one time the belief system was that a USD crash and QE and the subsequent hyperinflation would keep propelling gold/silver to new highs. It happened for a little while but now that momentum and talk is gone and QE tapering talk has entered the mainstream dialog. Now what?

What is it we didn't see then or what is it we aren't seeing right now that isnt what it appears to be or what some hoped or believed that would occur?

I believe it's healthy to periodically challenge your own strongly held belief systems and ask yourself why you believe with certainty what you believe to be true with no real facts to support them (if you have some, spit them out for everyone) except for the popular innuendo or meme that's been going on for years now regarding PM's.

A solid 10 year bull run in gold has been nice to witness and I'm not saying it's over, far from it. But what I'm questioning within myself is the certainty that some seem to have about physical metal shortages when in fact some of the price action appearsto indicate otherwise.

For the record...I still hold and haven't sold any PM's and have no plans to do so in the near future (hopefully). I have hopes to soon buy more while this bottoming (or trending? ) price action is in place. I haven't turned anti-PM's at all. But I have questioned the certainty or facts that seem to have supported the basis for my (or your own) biases.

I naturally wonder what took place back then regarding silver shortages and squeezes/low supply, new Chinese PM exchanges that were supposed to reveal "true" price discovery, and large entities that were standing for delivery proclamations etc. that obviously did not pan out at all...to this point.

So at this point it seems like a no-brainer to ask if the same thing is going on with gold albeit in a different manner by different mechanisms. To not consider some alternatives while this is going on seems short-sighted or possibly even a blind righteousness bias against paper money and debt etc. that necessitates an "all in" mentality regardless of the huge gyrations going on in PM's overall. What took place that seemed to catch many by surprise that we probably should've seen?

None of that means I'm anti-PM's at all. What it means to me is that I clearly bought into a train of thought or indignation about fiat creation and govt debt at that time (2008/9) that seemed unsustainable and headed towards a pinnacle of an outcome that has now seemed to reverse course as far as PM prices go in a relatively short window (18+ months and counting). I don't see a USD collapse as being imminent but maybe I should and it depends on someone's definition of imminent I suppose.

I also don't see this current 40 year fiat cycle being broken this time around like it's been referenced and historically been compared to as a sure thing as far as failure goes. We're obviously in a vastly different market and monetary position then anyone in history before us so I see this imminent USD collapse as not being imminent at all.

Has anyone considered how strong the Yuan night be perceived (or be capable of) if they're debt or real estate bubble collapses and they follow a susbsequent pattern of low growth and diminishing export led revenue for years afterward? Is it possible the USD actually strengthens for some time vs. the yuan (and other massively indebted currencies) at some point because one of China's (or the EU's) bubble's has collapsed? Of course it's possible

So my original question overall that I didn't ask or hesitate to believe in long ago is this...is there or was there ever a physical silver shortage...and is there an actual physical gold shortage right now?

The answer one way or another won't stop me from purchasing some gold/silver when I can do so...but the urgency I feel has admittedly declined while I watch the Fed and other CB's intervene like no one here has previously witnessed.

I guess time will tell what the deal was then and now and how this unfolds but I'm a bit suspect of these inventory numbers and phyz shortage claims while many of us openly for a long time have been suspicious of simple (yet complex) vault/shell games that we know tha BB"s are capable of and have full control over with no fear of legal repercussions as of now (and forever).

Is there actually a physical metal shortage or is it just bullion bank created vault shortages that give the impression of real shortages while huge inventories sit in private vaults around the world out of public circulation?

You can't fight the Fed or other CB's (or their banking minions) when they're determined to control assets or they're availability. Disregarding their enormous potential comes at a a cost that we may have just witnessed from May 2011 (regarding silver) and April 2013 (regarding gold) to this point in time.

I'm sensing some parallels I can't fully dissect right as this current phyz shortage saga unfolds that's being portrayed. My personal opinion with no substantiation is that there is a lot more physical metal on the market (in some fashion) then what currently seems to be the case.

Time will tell, but I'm asking myself the hard questions right now because some or many of the events we thought would happen for sure didn't pan out and in fact quite the opposite occurred.

It's ok to ask why at this point and still be a 'bug". Blind faith based on righteousness against "evil" banks/CB's has been a costly (on paper) faith/hope based lesson...so far.

You can try but you can't fight Fed policy or disregard the power of their words or market mechanisms at their disposal. You do so at your own peril or personal investment timeline.

Rui
Jul 18, 2013 - 11:03am

Gold been fine so far today

Let's see if EE can lay off the rest of the day while Bernanke speaks in front of Senate.

agNau
Jul 18, 2013 - 10:59am
phils6Mantis
Jul 18, 2013 - 10:54am

a bit more then a year ago

a bit more then a year ago the tax on sivercoins went from 6% to 21% in the netherlands ...

same thing will happen soon in Germany (1 jan 2014)

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