JPM Continues To Hoard Gold

114
Tue, Aug 13, 2013 - 12:10pm

The gift that keeps on giving. This is so unusual that I had to write about it again.

Recall that back in July, JPM suddenly had an interest in acquiring silver through the Comex. (I say "suddenly" because, prior to July, JPM had not been nearly this active in taking Comex deliveries. See for yourself here: https://www.cmegroup.com/delivery_reports/MetalsIssuesAndStopsYTDReport.pdf)

For the July silver delivery month, JPM stopped 2,824 contracts into their house account. This represented 82% of the total for all of July. If you add in the 216 additional contracts they stopped into customer account, they took down 88.3% of all July silver deliveries.

Again and for perspective, for the prior three silver delivery months, the JPM house account stopped a total of 1,250 contracts. This was just 12.7% of the total Dec12, Mar13 and May13 deliveries of 9,864 contracts.

In gold, for Dec12, Feb13, Apr13 and Jun13, the Comex delivered a total of 37,824 contracts. During those past four delivery months, JPM stopped into their house account 2,162 contracts or 5.7%. If you add in the contracts stopped into the JPM customer account, the number rises to 4,230 or 11.2%.

Yesterday, there were 58 deliveries of the August Comex gold.

The JPM house account took 53 of them.

53!

Over the past six days, there have been 874 August deliveries made for 87,400 ounces or 2.718 metric tonnes. The JPM house account has stopped 827 of them for 82,700 ounces or 2.572 metric tonnes. Stated another way, over the past six days, JPM has absorbed for itself 94.62% of all August Comex gold deliveries.

For the month, 2836 contracts have been delivered.

The JPM house account has stopped 2,033 and JPM has also stopped 263 for their customers.

Thus, for the entire month, between its house account and its customer account, JPM has stopped 2,296 of the 2,836 deliveries. That's 81%.

So, let's put all of this back together....

  • For the prior three silver delivery months, the JPM house account had accounted for just 12.7% of all Comex deliveries. In July, that number skyrocketed to 82%.
  • For the prior four gold delivery months, the JPM house account had accounted for just 5.7% of all Comex deliveries. So far for August, that number has skyrocketed to 71.7%.

And finally today, chew on this for a moment. The total amount of Comex contracts delivered last December was just 3,253. In February, we all sat up and paid attention when the number soared to 13,070. This trend continued into April when the Comex delivered 11,632 and persisted into June when the Comex delivered 9,869. Yesterday was the 12th of August. After an initial surge of deliveries in the first two days of the month when over 2,000 contracts were delivered, as noted above only 874 contracts have been delivered over the past six days.

  • Is August simply reverting back to a slow delivery month like December? The August contract still shows 1,577 in open interest (https://www.cmegroup.com/trading/metals/precious/gold_quotes_settlements_futures.html) though it's still possible for those seeking immediate delivery to "jump the queue", put up 100% margin, buy a contract and take delivery this month.
  • Jumping the queue is not unprecedented, in fact it's a normal occurrence. For example, back in April 6,601 contracts initially stood for delivery. Yet the final delivery total was 11,632 (nearly a double). And in June we saw 4,946 standing on First Notice Day yet the delivered contract total reached 9,869 (again, nearly a double). August initially had 3,960 standing. The Comex has settled 2,836 and open interest is still 1,577 meaning 400 or so have jumped the queue so far this month and bought August gold for delivery after FND.
  • What happens if, over the next few days, another 4,000-5,000 contracts suddenly appear for delivery? This would simply bring total August delivereis into line with Feb, April and June. What in the world would happen if this occurs again over the next two weeks?
  • And if it does, what percentage of the total will JPM stop into their own accounts?
  • And from where will all this gold come given that total Comex stocks are already dwindling?

We'll have our answers soon, I suppose. Rest assured, I'll be right here keeping track of everything and keeping you updated.

TF

About the Author

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turd [at] tfmetalsreport [dot] com ()

  114 Comments

SilverTree
Aug 13, 2013 - 12:13pm

I continue to hoard gold too.

I continue to hoard gold too.

ReachWest
Aug 13, 2013 - 12:15pm

Interesting

Thanks Turd. So is JPM acquiring all this physical for themselves or for the Fed or some other inside player? What on earth is driving this behaviour? I believe the answer to that question is the lynchpin to everything that is about to unfold moving forward.

Aug 13, 2013 - 12:16pm

Posted into Pining's thread

And I'm reposting it here.

Koos is a nice guy and well-connected into the Asian markets. Please be sure to read: https://koosjansen.blogspot.nl/2013/08/chinese-state-press-on-how-fed-has-been.html

Also, please be sure to read this from JS Kim: https://www.smartknowledgeu.com/blog/2013/08/the-incredible-shrinking-comex-gold-warehouse-inventories/

القراع عصفور
Aug 13, 2013 - 12:18pm

first

i never before got to be first. i will now go to the end of the line.

but secondly, i agree with TF that the game has changed, and there is significance to JPM being the big stopper. another poster believes that the western bankers have made a deal with China, and that is what i believe too.

ReachWest
Aug 13, 2013 - 12:19pm

I believe you are 100%

I believe you are 100% correct, my friend.

Lots and lots of smoke. Is there a fire anywhere other than the JPM basement?

SRSrocco
Aug 13, 2013 - 12:20pm

SOMETHING INTERESTING IS GOING TO UNFOLD AT THE COMEX

I have been watching the strange 8-9 million oz movement of silver from other registered vaults in JP MORGAN over the past 3 weeks.... something odd is going on.

Furthermore, I just watched one of the best damn videos on the history of money as well as the SEVEN STAGES OF EMPIRE. Even though I have been investing and researching GOLD & SILVER for over a decade, I still learned something new from this video. I highly recommend it:

MUST WATCH: Hidden Secrets of Money – Episode 2

https://srsroccoreport.com/must-watch-hidden-secrets-of-money-episode-2/must-watch-hidden-secrets-of-money-episode-2/

Aug 13, 2013 - 12:20pm

All who listened to yesterday's podcast...

...were warned that today would not be a Happy Tuesday and that the price of gold would likely retreat to $1320 or so.

Hmmm. The Blind Squirrel is having a good day...

SRSrocco
Aug 13, 2013 - 12:21pm

Thanks, Steve

Yes, everyone should watch that!

SRSrocco TF
Aug 13, 2013 - 12:32pm

TURD...BY THE WAY....

Turd... have you noticed that strange 7-8 million oz shuffle of silver in and out of the registered category every since QE3? Here is the chart showing this strange trend:

What on earth is going on here?

steve

Aug 13, 2013 - 12:34pm

There's been a lot of talk about backwardation

Maybe...maybe...too much talk. This song is not a rebel song. This song is Sunday Bloody Sunday.

Contract Last Change Open High Low Volume Prev. Stl. Time Links
Cash (GCY00) 1320.63 -17.32 1337.51 1341.15 1318.84 0 1337.95 11:21 C / O / T
Aug '13 (GCQ13) 1320.7 -14.0 1331.9 1339.1 1320.2 196 1334.7 11:19 C / O / T
Sep '13 (GCU13) 1320.0 -14.9 1337.1 1340.6 1318.7 444 1334.9 11:19 C / O / T
Oct '13 (GCV13) 1320.3 -14.0 1335.6 1340.9 1318.0 3535 1334.3 11:21 C / O / T
Dec '13 (GCZ13) 1320.1 -14.1 1336.0 1341.0 1317.8 128634 1334.2 11:21 C / O / T

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