Pillaging the GLD

167
Fri, Oct 18, 2013 - 5:31pm

While cobbling together some data for today's podcast, I found some interesting information that I thought I'd share with everyone. Some food for thought over the weekend.

Every day the CME publishes delivery notices and warehouse stocks. It is through these updates that I'm able to track the delivery notices for each delivery month and monitor whether or not JPMorgan is issuing or stopping (taking delivery) contracts. The warehouse stocks are usually updated by mid-afternoon each day and the delivery notices get updated by late evening. If you want to follow along yourself, the page can be found here:

https://www.cmegroup.com/trading/energy/nymex-delivery-notices.html

As you know, I've been tracking the almost-daily pillaging of the GLD this week, this month and this year and doing so has helped me considerably in projecting price, particularly since I noticed the obvious correlations back in July. This has continued to be helpful this month since, as soon as I noticed JPM being the major issuer of October Comex deliveries, I projected that the GLD would soon be hit for about 20-25 metric tonnes of gold and that price weakness through the first half of the month would be an attendant factor.

For those keeping score at home...The GLD is now down 23.76 mts MTD and price, after declining more than $76, looks to have bottomed and reversed into an UPtrend as of Tuesday-Wednesday.

Anyway, that's not the point of this post. Here's what I want you to consider this time:

On Wednesday of this week, even though price rose $9 on the Comex, the GLD was plundered for 3.6 metric tonnes of gold or 115,742 troy ounces.

On Thursday, 2.582 metric tonnes or 83,024 troy ounces of gold magically appeared in HSBC's Comex vault in the eligible, or sometimes considered "unallocated", category. (Recall that HSBC is the custodian for the GLD.) On the CME Gold Stocks report, it looked like this:

Later on Thursday, even though price rose by another $41 on the Comex, the GLD reported that another 3.3 metric tonnes of gold or 106,097 troy ounces had left its "inventory". This dropped the total "inventory" to just 882.23 metric tonnes, now down 467.69 metric tonnes or 34.65% year-to-date.

Your Wed-Thu totals are: Price UP $50. GLD "inventory" down 6.9 mts or about 222,000 ounces.

This afternoon, the latest CME Gold Stocks report shows two important things:

  1. Of the 83,024 eligible ounces that HSBC took in yesterday, 72,162 went right back out the door today.
  2. And JPMorgan showed an increase of an incredible 192,900.000 ounces in their eligible vault.
  • Note first that it's exactly 192,900 ounces. Given the variances of weights and measures, there's a 1 in 1000 chance of showing nothing to the right of the decimal point.
  • Then note that 192,900 troy ounces is almost exactly 6 metric tonnes. The exact number is 5.99986 metric tonnes. Basically they were just 4 troy ounces short of a perfect and exact 6 metric tonnes.
  • Maybe the two bullet points above are simple coincidences. Maybe not. You decide.

Below is today's CME Gold Stocks report:

Your Wed-Thu Comex Vault totals are: An increase of 197,307 ounces, all in the eligible category.

Putting it together, I have no remaining doubts. "Quod Erat Demonstrandum".

The bullion banks are desperate for gold to settle in both London and New York. We see it in the declining Comex stocks and the occasional London Forward Rate backwardation. In order to settle their current obligations and replenish their vaults for future delivery requirements, the bullion banks now regularly orchestrate predictable raids on paper price in order to create the selling conditions which give them cover to raid the "inventory" of the GLD for their own use.

Lastly, as further evidence, I also submit this:

Again, to me it is abundantly clear. The GLD is being consistently and regularly pillaged by the bullion banks as they desperately search for gold to settle their obligations. The question you need to ask yourself is:

As physical gold becomes increasingly scarce right before your eyes, do you have enough??

Probably not.

Prepare accordingly.

TF

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  167 Comments

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I Run Bartertown
Oct 21, 2013 - 4:37pm

abguy4

I agree. It seems that it is something of the human condition that we will follow 'leaders' into violence, but it is exceedingly rare to direct that violence against them. Pity, as most every soldier, in the modern era at least, has had more to lose from his 'leaders' than his 'enemies'.

There are portions of the American populace 'primed' for violence, but nothing revolutionary. We have a segment that is naturally more disposed to senseless violence, and TPTB have saturated them in grievance and victim mentality to hone those natural predispositions. But all that will get you is 60's style riots or LA riots at most...riots motivated by looting...and more typically just a steady flow of victimizing other poor people. That crowd is not capable of more than that. Even with hunger, they wouldn't be.

All in all, I think you're right. For most of the traditional American populace (read "good White folk") to revolt would probably take hunger, not anger. It's to our detriment, really. Look at the trillions in 'Great Society' benefits 'earned' by the simple threat of a 'long, hot summer' of violence. Think of what we could extort, or inflict, if we adopted the same approach.

SilverSurfers
Oct 21, 2013 - 12:18pm

El slammo

22.26 to 22.16, and back at ya. LOL! maybe someone's powder is running low?

abguy4
Oct 21, 2013 - 10:11am

@ IRB

Thanks for the tune-up. No offense taken. I'm a student of Russian History. I was well aware that I was crossing and mixing details and time frames (slightly) in my comment. My point was simple; that many of us see History repeating, or at least rhyming at this time, with the horrific experience of Russia approximately 100 or so years ago. At that time in Russia the elite were living in unbelievable splendor, like royalty does, the poor were eating dirt - when it wasn't too frozen to dig up. And then they revolted. Like Gerry Celente says, "When you have nothing to loose, you loose it." But that brings up another thought................................

Since I have your attention-- care to toy with this thought? I have been harboring the notion that the EEE, (Evil Empire Elitists), learned a thing or two about ruling the masses from the Russian and French revolutions. And principally amongst what they learned was that the peasantry won't actually riot or hit the streets or come for your head---Unless they are hungry. Yup. Food is the deciding factor and none else. You can take all their money. You can take all their rights and freedoms. You can take their most beloved children, send them to obscure hell-holes to fight your sport of war and send them back dead, dismembered or insane. And those mindless zombies will sing the praises of their great noble leader that saved them from blah blah blah. BUT when they get hungry - they come for your head.

So.....my question is: Is that why we have NO uprisings here? We have 54 million on food stamps, and I submit that is not because of the kind graces of a kind loving ruling elite, who want to keep the poor fed, but rather the EEE knows that if you keep 'em fat, drugged, and dumbed-down, you can do any damn thing you want, and do it without a whimper of reprisal. Am I the only one who has noticed that the 'poor' in this country are now nearly too fat to walk - let alone riot???????

SilverSurfers
Oct 21, 2013 - 9:33am

Ag Volume

3x comex open, 22.30 dukacopy, kitco showing 22.34, GO BABY, whip that pony

The Babys - Isn't It Time

JPM said go long, GS said slam dunk going short. hhmmmmm ... So, JPM might cover all its silver shorts, vicariously pushing gold up, for the Dec ching-ching, for the year end bonuses, while an in your face block of GS, buying in-house longs screwing their own clients going short as told, as Silver leads gold higher? Crazier stuff has happened. Silver up 1%, gold languishing 1318 .... little cup-handle forming at Silver 22.30.

SilverSurfers
Oct 21, 2013 - 8:58am

22.28 Ag

22.28, China high, with retest of 22.04. Looks good for a Comex open. Come on, Whip that pony! Friday comex high was about 22.04 as well. Current 22.17. Could see a retest to 22.04, at COMEX open and then launch. Keeping legs crossed. $Index, up, 0.06 to 79.75, the positive correlation in play, as of late. :o

Video unavailable

8:20 NY, burst of sells, going into COMEX to 22.10, then in your face to up 22.19. GAME ON. 4-5:30am NY, six down taps to 22.10, pivotal level forming, 22.04 next support, 22.02 gap closer, with 22.20 overhead resistance, 22.28 after that, on last 12 hours. Looks good.

pop 22.25

Karankawa
Oct 21, 2013 - 2:01am

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SilverSurfers
Oct 20, 2013 - 11:16pm

22Ag

22.09 Silver in China. Looks good for the start of week. Meh, 2 weeks left in the Race, Nov 1st, and 26 handle OR BUST!!! Going into the Wire, the fans in the stands are cheering, TF has gone to the Whip, driving hard for the wire.

22.14 come on TF, whip that pony!!

Nick Elwayopticsguy
Oct 20, 2013 - 10:04pm

Wall Steet and the Bolsheviks

@optics, ab

Anthony Sutton documented Wall Steet's support of the Bolsheviks and sabotage of Kerentsky:

https://www.voltairenet.org/IMG/pdf/Sutton_Wall_Street_and_the_bolshevik...

JP Morgan was a key then too.

W. Cleon Skousen started "The Naked Capitalist" after discovering that, in World War II, the American Communist Party took directions from prominent American "Capitalists" when they couldn't get their directions from Moscow.

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