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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turd [at] tfmetalsreport [dot] com ()

  171 Comments

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SilveryBlue
Jul 18, 2013 - 7:50am

Got Oil?

https://moneymorning.com/ob-article/arckaringa-saudi.php?code=131883

""It's represents a bona fide redrawing of the global energy map as we know it," Moors says, "and the mainstream media is completely ignoring it."

Where the Hell is Coober Pedy?

But to people who call this place home, the oncoming oil boom means nothing will ever be the same ($20 trillion worth of oil can do that to a town).

It's centered around a place called Coober Pedy, an inhospitable speck on the map in Southern Australia."

If this is correct there could well be a bit of a cough in the oil price and renewed interest in managing the Australian friendship network.

Jul 18, 2013 - 7:25am

re page 3

I noticed 19 posts by Sparticus to 11 posts by everyone else, giving us an everyone else to Spart ratio of 11:19.

Sometimes you need to turn off the hose.

achmachat
Jul 18, 2013 - 7:04am

IMPORTANT, please read.

I just got back from a off-the-record discussion with my banker and I have to share something important.

Capital controls and bail-ins do not only exist for "electronic" funds at your bank. Let's say that one 500€ bill is not worth as much as ten 50€ bills.

The important advice for people who do have a lot of cash is this: start converting your 500€ bills into 50€ bills; there's going to be a point where you won't be able to do anything with your 500€ bills except returning them to the banks where they will be subject to capital controls and bail-ins.

Urban Roman
Jul 18, 2013 - 6:44am

Remember Blythe? Remember Enron? Before U$A jumped the shark?

Blythe Masters' "Get-Out-Of-FERC-Jail-Free" Card May Cost JPMorgan $500mm

Submitted by Tyler Durden on 07/17/2013 - 19:26

Following Barclays' fine of 3 million by FERC for manipulating electric energy prices in California (and other other Western markets), it seems the price of infamy is weighing heavy on Blythe Masters' overlords at JPMorgan in yet another derivative debacle for the "I invented CDS" queen. As we discussed in great detail here, FERC's investigations into JPMorgan's actions saw them pursuing actions against the firm and Ms. Masters. In recent weeks settlement rumors have been heard and now as the NYTimes reports, it appears - in light of last year's PR and P&L 'London Whale' disaster - the best-CEO-in-the-entire-world-so-there is preparing to settle to the tune of $500 million to keep Blythe out of jail. To settle Ms. Masters' alleged “manipulative schemes” that transformed “money-losing power plants into powerful profit centers,” and then her giving “false and misleading statements” under oath, must mean she has some serious dirt on Jamie (and his fortress balance sheet and best-in-class risk management).

phils6
Jul 18, 2013 - 6:41am

bernanke's speak

@ what time will Ben open his mouth today ?

just to prepare myself for today's smackdown ...

philipatSpartacus Rex
Jul 18, 2013 - 6:10am

@Kingness

The only thing I'm stacking is PM's, but in Hong Kong and Singapore. But I do have some legitimate concerns that I wanted to discuss. No problem, I'll find another place to discuss them.

And, incidentally, I think it is fairly obvious to any reasonable reader that I am most definitely NOT a Troll. In fact, I was the first one to call out "Nonoverlapping" and rename him as "Overcrapping".

But, fine, think what you will. But I think the points I raised should be considered. Good night.

alan2102
Jul 18, 2013 - 6:04am

between zero and pigs flying

https://www.marketoracle.co.uk/Article41421.html

Signs That the Silver Price Has Bottomed

Commodities / Gold and Silver 2013 Jul 16, 2013 - 10:44 AM GMT

By: Jason_Hamlin

[...snip...]

The technical chart suggests there is support around $18.50 and silver has bounced off this level in the past week. I take technical analysis with a grain of salt, especially considering the degree of manipulation in this sector. However, this level around $18-$19 was strong resistance on four separate occasions from 2008 to 2010. Resistance often turns into support. The stronger the initial resistance, the stronger the future support. Furthermore, if you look at the long-term trend channel outlined in blue, you can see that silver has remained within this channel for 90% or more of this entire bull market. The only times when it made a significant move outside of the channel was during the financial crisis of 2008 and during the exponential move towards $50, which proved to be a very short-lived spike. Silver is now at levels as severely oversold as it was during the depths of the 2008 crisis, which makes little sense given the current absence of any full-blown crisis. Either the precious metals bull market is really over or silver is due for a bounce back above $30 and into the long-term trend channel charted above. You will have to make that call for yourself, but I personally assign the probability of this bull market being over somewhere between zero and pigs flying.

added:

I believe both the fundamentals and technicals are suggesting that silver is at or near a bottom for the current corrective wave. While the June 27 low of $18.50 is most likely the bottom, I am not so naive as to state that the price cannot move lower. Investors are an emotional bunch, easily swayed by comments from politicians and bearded men. And I fully realize that if Western governments and their banking partners masters want lower gold and silver prices, they have the paper mechanisms to do as they please in the short term. In the long term, supply/demand fundamentals always tend to re-assert themselves. [emphasis added -- alan2102]

Spartacus Rex
Jul 18, 2013 - 5:58am

@philitroll

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

philipat
Jul 18, 2013 - 5:54am

@Your Royal Highness

Incidentally, by "gulliblr", I assume that you meant "Gullible". But when drunk or stoned, I do understand that it is very difficult to be precise with those keys. I rest my case. No intelligent debate here. Off out now for a nice Indonesian beach BBQ.

PS Your spelling correction noted after the event.

Spartacus Rex
Jul 18, 2013 - 5:48am

@philucidated

If your negativity & B.S. were actually true, B.S. Bernanke would have talked gold down to 750FRNs/Oz by now. Oh but wait! All of Asia and the M.E. aren't as gullible as YOU, are they? Wait until you finally see the actual BILL finally coming due for all of the MOPE used to manipulate the PMs down, Einstein!

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