Fun with the GLD

77
Wed, Jan 15, 2014 - 1:07pm

As we close the books on 2013, I thought it would be fun to put the record-breaking plunder of the GLD "inventory" into perspective.

We spent a lot of time documenting the pillage of the GLD in 2013. Here are links to just a few of the biggest hits:

https://www.tfmetalsreport.com/blog/4633/enencumbered-gold

https://www.tfmetalsreport.com/blog/5167/pillaging-gld

https://www.tfmetalsreport.com/blog/5220/tale-three-etfs

Let's begin with the math. The GLD began 2013 with an "inventory" of 1,349.92 metric tonnes of gold. It finished the year with an "inventory" of 798.22 metric tonnes of gold. This brings the total 2013 plunder to 551.70 metric tonnes or 40.87%, roughly 17,737,567 troy ounces of gold. As Ruprecht would say: "That's a lot".

But...how much is it, really? 17MM+ ounces is a big number and difficult to comprehend for all of us with just a handful of ounces stashed away at the bottom of a lake. So, let's have some fun, shall we?

There are approximately 400 troy ounces in each London Good Delivery bar so 17,737,567 ounces gives us 44,344 bars:

There are 192 LGD bars on this pallet:

If we had to stack all 44,344 LGD bars onto pallets holding 192 bars each, it'd take a while as we'd have to load about 231 of them:

OK, now we're getting somewhere. But, I recognize that the visual above can be a bit overwhelming. Let's look at it another way. A standard LGD bar is about 200mm long by 80mm deep by 45mm tall. If you were able to take your 44,344 LGD bars and stack them on top of each other, you'd have a stack that reaches nearly 2,000 meters into the sky! For my American friends who never quite got a handle on this whole metric system thingee, that's roughly the height of FIVE Empire State Buildings.

But, you know, stacking LGD bars more than a mile into the sky would present a bit of a engineering problem. Let's say, instead, you took your 44,344 LGD bars and moved to Oz to be with your new girlfriend, Glinda. Once there, you find that The Great and Powerful Woody has recently signed the "Oz Recovery and Reinvestment Act", authorizing an extension of the famous Yellow Brick Road, all in a Keynesian promise to provide shovel-ready jobs for out-of-work Munchkins.

You and your little crew begin laying your LGD bars end-to-end. Ten of them make a row two meters wide, matching the width of the original YBR. You lay ten more in front of those and continue to do so until you've paved an extension that employs your entire stack of 44,344 bars. By the time you're done, you will have extended the YBR by a whopping 355 meters. Maybe not far enough to get you back to Kansas but at least you would be putting your barbarous relics to good, public use.

Anyway, that's all well and good but, by now, most everyone knows that most of the gold withdrawn from the GLD "inventory" is gone for good. It has been shipped to Switzerland where it has been recast into one kilogram bars with official Chinese insignia.

With the help of my pal, Andrew Maguire, we first broke this story back in June of 2012 and it has since become well-known throughout the blogosphere:

https://www.tfmetalsreport.com/blog/3924/gonefor-good

https://www.ibtimes.com/golds-journey-west-east-switzerland-1393831

And these Swiss refiners are now so busy that they can barely keep up:

https://www.ingoldwetrust.ch/alex-stanczyk-physical-supply-never-been-ti...

So finally today, let's try to visualize how much 17MM+ ounces of gold is after it's been converted into Chinese bars.

According to the Shanghai Gold Exchange website (https://www.sge.sh/publish/sge/hyfw/jyzn/5748.htm), a standard SGE bar is approximately 115mm long, 52.5mm wide and about 9.5mm thick. (Again, for Americans, that's about 4.5" x 2" x 3/8") I can't seem to find an image anywhere, though, so you'll have to picture it in your head.

Now, just for fun, let's do some of the same math...

551.70 metric tonnes of gold is equal to 551,700 kilograms. As the Chinese convert the LGD bars into kilobars this, of course, yields 551,700 bars. That was easy. What's not so easy is stacking them on top of each other again. If we were to manage to pull this off, our stack would be 5,241 meters high or about 17,240 feet. Wow!

And if we laid these bars end to end, they would stretch out into the distance for 63,445 meters or almost 40 miles! Put another way...It's about 17 miles from Victoria Harbour in Hong Kong to the Shenzhen coastline. If the bars could float, The Chinese could make pretty handy, little land-bridge out of them and use it to walk their bars into permanent custody in China.

I could go on and on and have fun with this all day but I think I'll stop here and leave you with The Biggest Question to ponder:

Now that the GLD has disgorged itself of all this gold...and now that so much of this gold is "gone for good"...from where will the Authorised Particpants of GLD source new gold to replenish the fund if demand for their paper product returns when paper price inevitably resumes it's bull market?

Hmmm. Maybe they don't have to worry about this at all? So far in January, the paper price of gold has rallied over 3% from $1202 to $1240. However, as of yesterday, this hasn't mattered much to the GLD. In 2014, it has already shed another 8.66 metric tonnes of gold from its "inventory", leaving it at just 789.56 metric tonnes and down over 1% for the year...and January isn't even half over.

As Sir Walter taught us nearly two centuries ago, "oh, what a tangled web we weave"...

TF

About the Author

Founder
tfmetalsreport [at] gmail [dot] com ()

  77 Comments

  Refresh
AGAUphilipat
Jan 16, 2014 - 9:25am

Gld

Thanks for the headsup Phil, I am still a little confused here, so an AP redeems his shares for a ton of gold , GLD now has his shares what are these backed up with? does gld have to replace gold to match the shares outstanding? Or do these shares now cease to exist If the Latter is true is the GLD share base shrinking to match the reduced inventory?

ivars
Jan 16, 2014 - 3:25am

Quote:China’s holdings of

Quote:
China’s holdings of U.S. Treasuries increased $12.2 billion to a record $1.317 trillion in November, data released on the Treasury Department’s website showed.

The figures, scheduled for release at 9 a.m. tomorrow in Washington, were inadvertently posted on the Treasury’s website. Japan’sholdings rose $12 billion to $1.186 trillion, the figures showed.

https://www.bloomberg.com/news/2014-01-15/china-s-treasury-holdings-rose-to-record-in-november-data-show.html

So much for the many stories of China selling of USD. Reality denial does not help PMs in no way.

Largest creditors with exports to the USA will be the last to shun US debt. That should be obvious. Japan is of course a bit different as its printing money for this purpose to stop gap UST and US stocks while pushing own currency into oblivion, but that is part of the plan, which must have some endgame in mind as well where Japan survives. We shall see within 6-8 years.

mac
Jan 16, 2014 - 1:18am

Media Mendacity

Life in America/Canada is a MSM prison.

Lies 24/7, but these lies are to enable the elite groups further power thru stock market manipulations, their servicing of the armaments industry, and social planning objectives (creating and controlling the "zombies". And The Walking Dead comes to mind...as you get used to the sadism here portryed, relaxing into the horror, and then accepting the results of our war against the Iraqi people, eh, more horror to accept.)

Hollywood in CIA, is Mossad, get real.

Fox is mossad and NSA and cia - their programs are "high level" manipulations of your consciousness. They are so good at it, you cannot resist...if you watch the stuff on TV. They know how to get you interested, but believe me, these manipulators have us totally beat on MSM.

The internet is invaded by NSA agents all trying to screw with our perceptions.

This is our life today.

DeaconBenjamin
Jan 15, 2014 - 10:23pm

Ruby Slippers

in the movie were silver slippers in Frank Baum's book.

Occasnltrvlr
Jan 15, 2014 - 10:22pm

Chinese Take-Out

Yes, I know it's not very big, but I'm well-adjusted, and perfectly secure in my goldhood.

buzlightening
Jan 15, 2014 - 9:22pm

Earlier talking about JFK as the real deal

as gold and silver are real money now and forever: Dave Hodges the common sense show. AMERICA'S TROJAN HORSE https://thecommonsenseshow.com/2014/01/15/americas-trojan-horse/ When I was coaching college basketball, I used to teach my players how to properly defend the player in front of them. The instructions included that if a defender wants to stay in front of a swift ball handler, they should keep their eyes on his midsection because he can go nowhere else without his midsection. Most defenders can stay in front of their opponent by watching the midsection. Today, the American people have a midsection to follow, it is the Russians. If you want to know what dangers are coming, and in what form, simply watch the Russians because they are the key to what lies ahead.

JFK Predicts Our Future

Even though America runs the risk of being taken over by the Russians under the control of the Department of Homeland Security, this is not a pure communist takeover of this country. Putin is controlled by the same banksters who JFK spoke so eloquently about before they assassinated him. Here are the key excerpts of this historic speech given on April 27, 1961, which adequately describes and foretells what we are up against today.

“Tonight, I want to talk about our common responsibilities in the face of a common danger. The events of recent weeks may have helped to ILLUMINATE (ed. note-Illuminati reference) that challenge for some; but the dimensions of its threat have loomed large on the horizon for many years. Whatever our hopes may be for the future — for reducing this threat or living with it — there is no escaping either the gravity or the totality of its challenge to our survival and to our security — a challenge that confronts us in unaccustomed ways in every sphere of human activity…

For we are opposed around the world by a monolithic and ruthless conspiracy that relies primarily on covert means for expanding its sphere of influence — on infiltration instead of invasion, on subversion instead of elections, on intimidation instead of free choice, on guerrillas by night instead of armies by day. It is a system which has conscripted vast human and material resources into the building of a tightly knit, highly efficient machine that combines military, diplomatic, intelligence, economic, scientific and political operations…

For we are opposed around the world by a monolithic and ruthless conspiracy that relies primarily on covert means for expanding its sphere of influence-on infiltration instead of invasion, on subversion instead of elections, on intimidation instead of free choice, guerrillas by night instead of armies by day. It is a system which conscripted vast human and material resources into the building of a tightly knit, high effective machine that combines military, diplomatic, intelligence, economic scientific and political operations…

Its preparations are concealed, not published. Its mistakes are buried, not headlined. Its dissenters are silenced, not praised. No expenditure is questioned, no rumor is printed, no secret is revealed. It conducts the Cold War, in short, with a war-time discipline no democracy would ever hope or wish to match…”

Doesn’t this match exactly what we are facing today? JFK is speaking about what he called the “Gnomes of Zurich”. He is specifically referring to the banksters, the NWO and the enemy of humanity as a whole. These gnomes are going to use the Russians to enforce a brutal martial law which will complete the destruction of the United States.

No Rest for the Weary

Sometimes, it feels like I will never get a moment of peace. There is no shortage of EPA abuses, ICLEI related corruption and general danger which is besieging the American public due to the existence of such tyrannical governmental abuses such as the NDAA and Executive Order 13603.

However, I was interrupted by a phone call from one of my most trusted insider military sources in which I was told that the situation involving the EPA’s and DOJ’s stealing of Riverton, WY., has to do with two things: (1) Fulfillment of the United Nations Biodiversity and Wildlands Projects in which they intend to eventually drive out local residents; (2) Create a large base of operations from which Russian troops will prepare to enforce martial law that is coming on the heels of a major false flag attack. I was also told that I better pay closer attention to the Russians because they were the key to what is going transpire. After what I was told by my source, I strongly suggest that readers also review what Doug Hagmann’s DHS insider source is saying, because it is eerily similar.

The source which contacted me is one in the same that put me on the story that AFRICOM commander, General Hamm, and the attempted a rescue of Ambassador Stevens. This rescue was thwarted by Hamm’s executive officer, Colonel Rodriguez of the CIA. I came out with this information months before most would touch these facts, connected to Benghazi, which suggested that elements of US military were willing to disobey Obama’s orders to stand down at Benghazi and which ultimately allow Ambassador Stevens to be murdered in order to cover up the CIA’s gun-running to al-Qaeda in which they were also supplied 20,000 hand-held stinger missiles.

Six months after I reported these facts, which we now know are true, Glenn Beck tiptoed into this arena ever so delicately. And as many have pointed out, in conjunction with the information that I have released in the past 16 months regarding the likelihood of America experiencing a major false flag event, this event will be followed by martial law which will be largely enforced by Russians under the auspices of the Department of Homeland Security. I have also come to believe that this is why Napolitano vacated her position as DHS director because she does not have the stomach for what’s coming (e.g. massive false flag event, brutal martial law and genocide).

You say that you don’t believe that there will be genocide in the days ahead? Please allow me to remind everyone of what the late Larry Grathwohl uncovered when he penetrated the Weathermen Underground headed by Bill Ayers. Ayers told Grathwohl that after the communists took over the government, over 50 million Americans would have to be put into re-education camps. And out of those 50 million, over half would have to be put to death. Well, we have our communist in the White House and he is succeeding in dismantling this country at breakneck speed.

The Centerpiece of the Plot

buzlightening
Jan 15, 2014 - 9:11pm

Appears Hoffman on turdites side

Exposing the cartel; the EEE. I listen and read and keep a level head. Remember I've been stacking since before the '08 crash. I do have some experience and have not paid more than 25 for any silver eagle stacked the last many years. I've only sold some at the highs when I needed a new equalizer. 20 silver eagles for 1000 benron bux. I know when to hold and fold and it's a long time coming before the fold.

Cartel Update

blog.milesfranklin.com / Andrew Hoffman / January 15th, 2014

On a day when – not surprisingly – the “Dow Jones Propaganda Average” is surging amidst the year’s largest “POMO,” or Permanent Open Market Operation (i.e., the Fed injecting money into the markets at 10:00 AM EST), the day’s only major news is a lower than expected 4Q GDP growth report from Germany – coming in at a measly 0.25%. On the Precious Metals front, it was reported that the Chinese government issued its first two gold importation licenses to foreign banks; which in our view, is yet another reminder to “beware the dragon” acquiring the world’s gold, as it prepares to take the mantle of global economic superpower.

Under such circumstances, we wanted to show you just how terrified TPTB are of losing gold and silver to the inevitable short squeezes that will ultimately doom their ill-fated scheme. Below, you can see that on each of the past three days, nearly identical chart patterns highlight the Cartel’s typical “key attack times”; in each case, met by fierce buying that took prices back up mid-morning.

In fact, in the paper gold market, the only difference between the three days is yesterday’s “flash crash” attack at 11:20 AM EST; yet again, orchestrated just as prices dared cross the Cartel’s two month “line in the sand” at $1,250/oz.

READ MORE

..........................................................................

No one rubbing anyones nose in one voice for there are many and turd rose from the dust to be a unique voice. I remember when he was posting on zerohedge and many flipped him off in that venue. Too bad so sad as a strong voice for the metals left the dozers on zero hedge who couldn't and can't see the vision. The EEE is the enemy and not turdites. Giving up the sand box slingin for tonight. May be another time another place but no more on turds site. Only positive upward good bye cartel and EEE blatant theft be gone now and forever.

SaratogaPrepper
Jan 15, 2014 - 8:58pm

DPH

That's the Australian Lunar Gilded Series 1 set, in a beautiful Australian Jarrah Hardwood case. Bought them a year at a time when I was into Numismatics.

Last time I checked on eBay, there was one complete set up for bid and he was asking $1900.

Visit the FAQ page to learn how to track your last read comment, add images, embed videos, tweets, and animated gifs, and more.

PaPaSpeed
Jan 15, 2014 - 8:54pm

Comex December Delivery Update.

https://harveyorgan.blogspot.com Here's what Harvey says tonight: "We had 20.19 tonnes of gold standing for the December contract month and therefore 3.880 tonnes is left to be settled upon (20.19 tonnes - 16.310 tones)" "Since JPMorgan has stopped 97% of all issuance, if you remove them from the big three, then we have HSBC and Scotia having an inventory of only 6.173 tonnes of gold which must settle upon 3.880 tonnes of gold still outstanding." Physical gold seems to be getting in tight supply at the Comex. Keep the popcorn popping.

philipat
Jan 15, 2014 - 8:27pm

AGAU

I think you are not fully understanding how GLD works. For every share sold, there is a buyer, so the number of shares outstanding remains the same and the amount of Gold to back the shares is also unchanged. As the price of Gold goes up or down, the value of a GLD share mirrors the moves and, again this does NOT impact either the number of shares outstanding OR the amount of Gold to back them.

ONLY the Authorised Participants (AP's), basically the BB's and other large Banks, are able to actually remove Gold from GLD, and they must do so in units of 100K shares, meaning that if they buy 100K shares from sellers, as above the number of shares outstanding does not change until they have acquired 100K shares and exchange the shares for Gold. At that time, the total number of shares outstanding is reduced by 100K and Gold to back the 100K shares is removed from GLD inventory by the AP.

The issue of whether GLD actually has the correct amount of physical Gold in inventory to back the actual number of shares outstanding is a different matter entirely.

Subscribe or login to read all comments.

Become member and subscribe to Turd's Vault

Contribute

Donate Shop

Get Your Subscriber Benefits

Private iTunes feed for all TF Metals Report podcasts, and access to Vault member forum discussions!

Key Economic Events Week of 1/18

1/19 10:00 ET Mother for SecTreas hearing
1/20 12:00 ET POTUS Inauguration
1/21 ECB meeting and rate decision
1/21 8:30 ET Housing Starts
1/21 8:30 ET Philly Fed
1/22 9:45 ET Markit flash PMIs (Jan)

Key Economic Events Week of 1/11

1/11 12:00 ET Goon Bostic speech
1/12 10:00 ET JOLTS job openings
1/13 8:30 ET CPI
1/13 1:00 ET Goon Brainard speech
1/13 2:00 ET Beige Book
1/14 8:30 ET Import price index
1/14 12:30 ET Chief Goon Powell
1/15 8:30 ET Retail Sales
1/15 8:30 ET PPI
1/15 9:15 ET Cap Ute and Ind Prod
1/15 10:00 ET Business Inventories

Key Economic Events Week of 1/4

1/4 9:45 ET Markit manu PMI
1/4 10:00 ET Construction Spending
1/5 Georgia U.S. Senate election
1/5 10:00 ET ISM manu PMI
1/6 US election certification
1/6 8:15 ET ADP Employment Report
1/6 9:45 ET Markit service PMI
1/6 10:00 ET Factory Orders
1/6 2:00 ET December FOMC minutes
1/7 8:30 ET Trade Deficit
1/7 10:00 ET ISM service PMI
1/8 8:30 ET BLSBS
1/8 8:30 ET Wholesale Inventories

Key Economic Events Week of 12/21

12/21 8:30 ET Chicago Fed
12/22 8:30 ET Q3 GDP final guess
12/22 10:00 ET Consumer Confidence
12/23 8:30 ET Durable Goods
12/23 8:30 ET Personal Inc and Spending
12/23 8:30 ET Core Inflation

Key Economic Events Week of 12/14

12/15 8:30 ET Import Price Index
12/15 8:30 ET Empire State Index
12/15 9:15 ET Cap Ute and Ind Prod
12/16 8:30 ET Retail Sales
12/16 9:45 ET Markit flash PMIs Dec
12/16 10:00 ET Business Inventories
12/16 2:00 ET FOMC Fedlines
12/16 2:30 ET Chief Goon Powell presser
12/17 8:30 ET Philly Fed
12/18 8:30 ET Current Account Deficit
12/18 10:00 ET LEIII

Key Economic Events Week of 12/7

12/8 8:30 ET Productivity & Unit Labor Costs
12/9 10:00 ET JOLTS jop openings
12/9 10:00 ET Wholesale Inventories
12/10 8:30 ET CPI
12/11 8:30 ET PPI

Key Economic Events Week of 11/30

11/30 9:45 ET Chicago PMI
12/1 9:45 ET Markit Manu PMI Nov
12/1 10:00 ET ISM Manu PMI Nov
12/2 8:15 ET ADP Employment Report
12/3 9:45 ET Markit Services PMI Nov
12/3 10:00 ET ISM Services PMI Nov
12/4 8:30 ET BLSBS
12/4 8:30 ET US Trade Deficit Nov
12/4 10:00 ET Factory Orders

Key Economic Events Week of 11/23

11/23 9:45 ET Markit flash PMIs
11/23 1:00 ET Goon Daly
11/23 3:00 ET Goon Evans
11/24 9:00 ET Case-Shiller home prices
11/24 10:00 ET Consumer Confidence
11/24 11:00 ET Goon Bullard
11/24 12:00 ET Goon Williams
11/24 12:45 ET Goon Chlamydia
11/25 8:30 ET Q3 GDP 2nd guess
11/25 8:30 ET Durable Goods
11/25 10:00 ET Personal Inc and Spend
11/25 10:00 ET Core inflation
11/26 US Market holiday

Key Economic Events Week of 11/16

11/16 2:00 pm ET Goon Chlamydia
11/17 8:30 ET Retail Sales
11/17 8:30 ET Import Price Index
11/17 9:15 ET Cap Ute and Ind Prod
11/17 10:00 ET Business Inventories
11/17 1:00 pm ET Chief Goon Powell
11/18 8:30 ET Housing Starts
11/18 1:20 pm ET Goon Bullard
11/19 8:30 ET Jobless claims
11/19 8:30 ET Philly Fed

Key Economic Events Week of 11/9

11/9 1:30 pm ET Goon Mester
11/10 7:30 am ET Goon Kaplan
11/10 10:00 ET JOLTS job openings
11/10 10:00 ET Goon Rosengren
11/11 Veteran's Day. Bond market closed.
11/12 8:30 ET CPI
11/12 11:45 ET Chief Goon Powell
11/12 2:00 pm ET Federal budget
11/13 7:00 ET Goon Williams
11/13 8:30 ET PPI
11/13 8:30 ET Goon Bullard
11/13 10:00 ET Consumer sentiment

Recent Comments

Forum Discussion

by canadapleasure, 1 hour 49 min ago
by scoremore, Jan 19, 2021 - 10:56pm
by murphy, Jan 19, 2021 - 10:29pm
by scoremore, Jan 19, 2021 - 10:16pm
by scoremore, Jan 19, 2021 - 10:11pm
randomness