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 ()


Howard Roark
Jul 18, 2013 - 8:20am

Excellent Contributions

@Kingboo - your description of the trip to the diamond district is enlightening; it looks that there is no real market, an average citizen´s market (not the Dark side market of EE) and that´s scary. I just loved the way You described the experience with your kid. A great reality check to him, no doubt.

@PMBull - "diamond bullion"??? WTF??? Divergence tatics???

@Katie Rose - beeing a european I wonder: where does a person sell the amount of gold to pay a property? Is that a physical stack? Where do a person take the gold? A bank?

@achmachat - It looks like the capital controls are here! We haven´t seen nothing yet, right?

@Xty - Nice vans shoes! Did You take your sk8board? ;)



Jul 18, 2013 - 8:19am


"We will crave digital currency just to avoid our new cash."

Speaking of tptb's desire to eventually remove cashfrom the system and make us use digital only, I had to take a London Underground train (THE HORROR) journey last week. I needed to go just 4 stops (about 5 miles in total).

The last time I'd been on a train was about four years ago. I went to buy the ticket and was told it was £4.50. I said that's quite a lot for such a short a distance and the chap at ticket window asked if I had an Oyster card. I remembered I did - it was in my wallet and I'd forgotten about it. He said that it's £1.50 if I use that.

An Oyster card has to be registered to a person, at an address. When you use it, it tracks all your movements on the buses and trains in London (and beyond perhaps, I don't know).

The 4-stop journey costs £1.50, it's not that there's a discount if you use an Oyster card, it's that there's a huge surcharge if you use cash.

Tracking people's movements is obviously very important to the Orwellian state, and using cash is anonymous, so they're clearly making sure that you are heavily penalised if you use it.

A 300% increase in cost if you use cash! It wasn't like that 4 years ago.

Jul 18, 2013 - 8:14am

renewed interest in managing the Australian friendship network.

Thus the South Asian pivot, and placement of US Marines in Oz?

DeaconBenjaminSpartacus Rex
Jul 18, 2013 - 8:09am

Will Rogers

famously said he had never met Herbert Hoover.

Jul 18, 2013 - 8:07am

achmachat - re bills

Just an anecdotal story, but last week when I was in Toronto I took currency (almost said money but didn't want a smack upside the head) from an ATM and it was all those horrible new Canadian bills. So I went inside and waited for a teller and asked her to exchange it for old bills and $20 dollars in loonies and twonies. Well, it took her a moment to understand, and then she had to go to the back. And she took forever. Like 5 minutes, which is forever when you need the change so you can get the streetcar and get to the cool Vans store at Queen and Spadina so you can photo text with Mikey and get him new shoes* because he was going to New York with his girlfriend (don't think about it) and you only have an hour before you need to meet your mum for lunch who will have completely forgotten because of her Alzheimers so you could just bail but that would be actually evil. About that long. And when she comes back she tells me that, a) she didn't have any change in her drawer (plausible?) and b) that she had to get something unlocked to access the old bills. I asked her if they were withdrawing them from circulation and she said not yet, they "just had too many of them".

Anyway, a pointless story, except it was super weird and they haven't apparently started to destroy the old Canadian bills. I want to hoard them but don't know why. It is a stupid instinct as if the old bills were somehow more valuable than the new ones. They just feel so much more real than these new ones that you cannot count. They were clearly designed for machines to sort and handle, not humans. Loathsome to the touch ... maybe that is the point. We will crave digital currency just to avoid our new cash.


(just in case you wanted to know how the shoe thing went)

Jul 18, 2013 - 8:06am


I swear... I have been waiting for your answer to my Gold/Silver statement.

You wrote exactly what I was expecting

Jul 18, 2013 - 7:58am


Just checked the gofo rate. She's really gathering steam to the downside.

Jul 18, 2013 - 7:55am

Waiting,, Waiting..

Can't wait to see what happens in the crimex for deliveries this month.. July 25 should clean house where the crooks will be scrambling to obtain physical they will probably slam the metals again soon to shake out weak hands.

I wish I had more paper to convert,, what bargain prices we have right now.

Jul 18, 2013 - 7:53am



I sent you many personal messages wanting to meet a fellow turdite, shake your hand, have dinner a few beers and discuss metals. I'm here in Bali on business, I gave you my local phone number, please call me, I would love to meet you. Look forward to hearing from you. Cheers

Motley Fool
Jul 18, 2013 - 7:51am



"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."

You are aware that the gold bars are not exactly 400 ounces, yes? They range between 390 and 410 if memory serves.

Sure it is curious, but it's not that much of a statistical anomaly.


"Does this data mean that our next purchases should be gold and not silver?"

Yes, though you won't likely hear it here.

Let's say the idea is correct that the banks are using GLD as slush fund to supply demand because they can't otherwise, what does the uptick in SLV stock tell you about silver demand.


"where gold goes, silver will go... just more brutally, almost leveraged"

That will remain true until it doesn't (until the system breaks), a day which will suck for the silver permabulls.


"Does GLD even really have the 936 tons of gold as it claims?"


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