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

About the Author

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turd [at] tfmetalsreport [dot] com ()

  167 Comments

abguy4
Oct 18, 2013 - 7:05pm

these forever mysterious massive gold hoards --- I call BS~!

As to these forever mysterious massive gold hoards - I don't believe it for one bloody second - not a single one of them. Not the two trillion billion in the Philippines, or the Bazillion in Hawaii. Is there anyone who has ever seen any of these piles? Nope~! I believe all these stories (and I've followed them all) are cleverly planted misinformation. Yup, pure counter espionage devised by the Cartel to throw the dog (us) off the scent. Karen doesn't claim to have seen that pile - she says she just, "heard about it". From who exactly Karen? Some of your prior Cartel insider sociopath buddies who know you have gone rogue, and who now see you as a perfect agent to spread misinformation? And why did this story appear out of the blue from an angel's mouth, just as the EE is concocting their latest smash-down?

Look, every known pile of gold in History has been plundered. Think about that. They now want you to voluntarily give-up your hoard into their eagerly waiting filthy mitts. Do you really think that such massive hoards sit safe secure idle while a world full of thieves circles? You think the hundreds or thousands of laborers, shippers, truckers et al - who would have been required to transport that Philippine gold hoard - just quietly went to their grave, dirt poor with starving children, while they knew where a Bazillion oz. was sitting, just awaiting a new owner?

Hitler's gold is loooooong gone and so is every other fantasy hoard.

Let's. Get. Real.

Be careful out there troops. Step back and analyze everything you hear. If it doesn't wash - don't wear it.

Mr. Fix
Oct 18, 2013 - 7:17pm
abguy4
Oct 18, 2013 - 7:20pm

Can you help - YUP~!!

I have a friend down south who got a phone call from his Financial Advisor, just two months ago. The FA and my friend were buddies in Nam. The FA is actually not a FA but a regional Pres for UBS Paine Webber. He personally handles my friend's account as a favor between ole army buddies. Now here is the gist of the story;

Pres (FA) tells my friend that he has pulled his entire account out of all bonds, stocks, whatever. He has him sitting in CASH. He tells my friend, "You will thank me someday - this ship is headed for the rocks! We need to bail-out NOW"

So.....is UBS moving all their client's accounts to safe havens? Hell NO. Nor is any other investment house, because they would go out of business. Got that?

"Financial experts" are secretly very worried, but they are keeping that quiet amongst themselves.

That's as much insider info as I have to share

csquared13 TF
Oct 18, 2013 - 7:21pm

RE: Again and with meaning

This is what I was looking for earlier. Thanks Turd. Good stuff.

Mr. Fix
Oct 18, 2013 - 7:24pm

A massive hoard of gold:

Let's not forget that Jim Willie has stated that he believes the market is currently being supplied by ancient reserves in the “Roman catacombs” which is definitely his sneaky way of referring to the Vatican.

I do not doubt for a second that there is lots of gold stashed under the Vatican, and for a “good enough reason”

I'm sure it can be made available to help the Western elite run their endgame scam.

And by its very nature, I would consider it both massive, and unaccounted for.

zman
Oct 18, 2013 - 7:26pm

Question?

Since the gold price is just slightly off the lows, it's not too surprising that GLD is still puking up gold.

If gold were to trade up to $1500 oz, wouldn't it be pretty safe to assume that GLD would be gaining investors, thus adding gold to the GLD?

Or are the bankers that hold GLD shares selling so much that it would off set the buyers even if the price moves higher?

My guess is, if gold moves higher than $1500 oz, the puking of GLD would be over, and most likely they would be adding gold.

Spartacus Rex jackstar
Oct 18, 2013 - 7:29pm

@ jackstar- Help

Simple. Who pays these so-called "experts"; What are they paid in; And what will their paychecks buy /be actually worth if the Sheople finally snap out of their semantics induced stupor & servitude and stampede out of fiat IOUs into real, honest Money Gold & Silver Coin?

Spartacus Rex
Oct 18, 2013 - 7:32pm

@ zman- The Question IS...

Who is really that stupid enough to still continue buying "paper" gold?

Bongo Jim
Oct 18, 2013 - 7:33pm

Mackenna found it

Mackenna's Gold: Canyon of Gold
¤
Oct 18, 2013 - 7:41pm

More Sprott

This was probably been posted 2 weeks ago but I'm not sure. It's interesting nonetheless.

China, Gold And M&A: Sprott Launches New Offshore Fund With Zijin Mining Group
Sep 30, 2013 12:19 PM |

Eric Sprott not only does the talk, but is doing the work as well - the target size of the fund is 500 mil and it shows that China is not only interested in Gold, but in the Gold and Silver mining companies as well. This is the sign where the money will be coming from in the resource sector. China knows when to sell and when it is time to buy.

Zijin Mining Group is the largest Gold and the second largest Copper producer in China and this move shows that smart money are already shopping for the projects to feed their pipeline.

We hope that Rob McEwen is keeping his phone line open and has translated Los Azules Copper presentation in Chinese as well...

McEwen Mining & TNR Gold: CIBC Reiterates "Outperform" Rating for Lumina Copper MUX, TNR.v, LCC.v Gold, Silver, Copper, Lithium and Market Emotions Cycle GDX, MUX, TNR.v, LIT, ILC.v

(click to enlarge)

Find yourself in the picture. It is all about emotions and our ability to control it. We listen to those who has been there and did it already: stay discipline, stay focused."

Eric Sprott: "China Bought 60% of Gold Production Last Month, I Am Buying Gold And Silver Stocks Now." MUX, TNR.v

"Price of Gold and Silver will be the main driving forces for all survived companies. Eric has very bold prediction for Gold going to $2400 by next year: "The most important thing in the precious metals business - the price of precious metals. They all go up if the price of Gold will go up. The question is which one will go up 200% or 500%. If the Gold will go up to $2400, I can bet that the Gold miners index goes up 200%. What we are trying to do: where is the one which will go up 1000%."

Sprott:

SPROTT LAUNCHES NEW OFFSHORE FUND WITH ZIJIN MINING GROUP

TORONTO, Sept. 27, 2013 /CNW/ - Sprott Inc. (TSX: SII) ("Sprott" or the "Company") today announced that it has launched a new offshore global mining fund (the "Fund") with Zijin Mining Group Company Limited ("Zijin"). All relevant regulatory approvals have been received in Canada and the People's Republic of China and the Fund has been initially seeded with US$100 million from Zijin and US$10 million from Sprott.

"We are very pleased to launch this new fund which will allow us to open a new market for our investment products," said Peter Grosskopf, CEO of Sprott. "Zijin is the largest gold producer and the second largest mined copper producer in China and is listed on both theHong Kong and Shanghai stock exchanges. We believe the combination of Zijin's technical strengths and Sprott's resource investment expertise will prove to be an attractive option for investors looking to invest in the mining sector with a focus on gold."

The Fund management company is a joint venture between Sprott and Zijin and will invest primarily in the publically-listed equity and debt instruments of gold, other precious metals and copper mining companies. The Fund will be co-managed by affiliates of Sprott and Zijin. Under the joint venture agreement, Americas Now Resources Investment Management Corp. has agreed to provide technical and marketing services to the Fund.

The target size of the Fund is US$500 million and the Company anticipates receiving additional commitments from onshore Chinese investors beginning in the fourth quarter of 2013.

https://seekingalpha.com/instablog/21153-sufiy/2271522-china-gold-and-m-a-sprott-launches-new-offshore-fund-with-zijin-mining-group-gdx-mux-tnr-v

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