GLD Drain Continues In 2014

Tue, Jan 6, 2015 - 12:19pm

Though gold was only down a little more than 1% in 2014, the drain of the GLD, which began in 2013, continued in earnest.

We've been documenting the drain of the GLD "inventory" for over two years. There have been a number of posts written, a few examples are listed here:

Well, the pillaging and plundering continued in 2014, even if not at the same furious pace seen in 2013. As mentioned above, after the raid of New Year's Eve, gold actually posted a slightly negative return for 2014, down 1.4%. However, global physical demand continued unabated with China leading the way at nearly 2,100 metric tonnes:

So it should come as no surprise that the alleged "inventory" of the GLD fell by another significant percentage in 2014. After having begun the year with an "inventory" of 798.22 metric tonnes, the GLD wrapped 2014 with an "inventory" of just 710.81 metric tonnes. This is a decline of 87.41 mts or 10.95%. Though not as dramatic as the 551.70 metric ton (40.87%) decline of 2013, this is a significant plundering, nonetheless.

Just how much is 87.41 metric tonnes?

It's 2,810,296 troy ounces. Stated another's 2,810,296 of these:

If you had added these to your personal stack in 2014, your stack would now be about 11,000 feet high. You'd better alert your local aviation authorities if this is the case!

Looked at in a more traditional fashion, recall that a traditional London Good Delivery bar is approximately 400 troy ounces. This means that 2,810,296 ounces of gold equates to about 7,026 of these:

If we stacked all of our bars onto pallets, holding 192 bars each, it would look like this:

However, for the total 87.41 metric ton withdrawal, we would need about 37 pallets:

In the end, what matters is where all of this gold went. So, where did it go?

First, it went to Switzerland, where it was re-assayed and then re-cast into 87,410 of these:

Then shipped off to points East and gone for good:

Is it any wonder why the CME Group is so excited to unveil their new, Hong Kong based, kilobar contract? ( There are scarcely any London Good Delivery bars left!

The Old Order is passing away. The paper--physical connection is finally breaking and the new markets for pricing precious metal will be based upon physically delivered contracts, located in Asia. Expect unprecedented volatility as this transition continues and, if you have to ask yourself whether or not you hold enough physical precious metal yourself, then you likely don't.

2015 is going to be a wild and eventful year. Continue to prepare accordingly.


About the Author

turd [at] tfmetalsreport [dot] com ()


Jan 6, 2015 - 12:27pm

Can't Resist


Jan 6, 2015 - 12:39pm
Jan 6, 2015 - 12:42pm

I Am Preparing Turd

Any loose Fiat goes into PM's Food and other necessities. Keep Stacking

Jan 6, 2015 - 1:07pm


silver is good for me.

Jan 6, 2015 - 1:19pm

Can The Dow Correct for up to 5 Months?

Posted on January 6, 2015 by Martin Armstrong

DJIND-D 1-3-2015

A weekly closing in the Dow Jones Industrials below 17722 will confirm that the January correction where we have had that Panic Cycle due in the middle of the month is in play. This will open the door to a retest of the 16300 area. Keep in mind that we did NOT achieve the year-end closing ABOVE 18500. That left the Dow in a position that warned the Phase Transition just might be postponed until BIG BANG – (2015.75-2017)

There is now a potential for up to a 5 month correct into May. This may be the real driving force behind sending heaps of capital flooding into the bond markets on the flight to quality scenario. If this unfolds, we should have a really wild bubble for recessions are created by a stock crash. However, moving into a bond crash wiped out the capital formation. This is why the 2007-2009 crash was so devastating. Bonds are where MOST capital resides – not equities. The swing into equities REQUIRES a swing out of bonds. That is what BIG BANG will be all about.

So for now – CAUTION is advised in stocks. Pay attention right now for we may be in a phase transition in bonds.

Jan 6, 2015 - 1:36pm

Stack and Sleep Well

I don't even try to time the gyrations of these manipulated markets. When the savings gets back up over $4,000 cash we buy another $1,000 worth of metal. I don't care about the spot price at the time. When this system breaks the Federal Reserve Note price won't matter.

Jan 6, 2015 - 1:37pm

Jan 6, 2015 - 1:38pm

And there are some really

And there are some really attractive deals today at

Jan 6, 2015 - 2:42pm

if you have to ask yourself ..............

".................if you have to ask yourself whether or not you hold enough physical precious metal yourself, then you likely don't.''

Well, how 'bout I just don't have any more fiat to exchange for Au~!? I ask myself all the time whether I have enough, but that's wasted anxiety, after you're "all-in", isn't it???

Dr. P. Metals
Jan 6, 2015 - 3:58pm

Re can the Dow correct ro 5 months

dunno, but JNUG sure can and did go down for 5 months!

Jan 6, 2015 - 4:02pm

Obama oil "sanction" confirmation?

Did President Woody confirm what we've suspected all along? Namely, that the sharp drop in the price of oil was initiated by the PPT as a covert sanction against Russia.

Link to full NPR interview from last Monday here:

The relevant section here:

Woody: But I think that one of the things I've learned over six years, and it doesn't always suit the news cycle, is having some strategic patience. You'll recall that three or four months ago, everybody in Washington was convinced that President Putin was a genius ...

Interviewer: ... for taking Crimea ...

Woody: And he had outmaneuvered all of us and he had, you know, bullied and, you know, strategized his way into expanding Russian power. And I said at the time we don't want war with Russia but we can apply steady pressure working with our European partners, being the backbone of an international coalition to oppose Russia's violation of another country's sovereignty, and that over time, this would be a strategic mistake by Russia.

And today, you know, I'd sense that at least outside of Russia, maybe some people are thinking what Putin did wasn't so smart.

Interviewer: Are you just lucky that the price of oil went down and therefore their currency collapsed or ...

Woody: Well ...

Interviewer: Is it something that you did?

Woody: If you'll recall, their economy was already contracting and capital was fleeing even before oil collapsed. And part of our rationale in this process was that the only thing keeping that economy afloat was the price of oil.

And if, in fact, we were steady in applying sanction pressure, which we have been, that over time it would make the economy of Russia sufficiently vulnerable that if and when there were disruptions with respect to the price of oil — which, inevitably, there are going to be sometime, if not this year then next year or the year after — that they'd have enormous difficulty managing it.

I say that, not to suggest that we've solved Ukraine, but I'm saying that to give an indication that when it comes to the international stage, these problems are big, they're difficult, they're messy. But wherever we have been involved over the last several years, I think the outcome has been better because of American leadership.

Jan 6, 2015 - 4:20pm

EU Showdown: Greece Takes on the Vampire Squid

Posted on January 6, 2015 by Ellen Brown

Greece and the troika (the International Monetary Fund, the EU, and the European Central Bank) are in a dangerous game of chicken. The Greeks have been threatened with a Cyprus-Style prolonged bank holiday” if they “vote wrong.” But they have been bullied for too long and are saying “no more.”

A return to the polls was triggered in December, when the Parliament rejected Prime Minister Antonis Samaras’ pro-austerity candidate for president. In a general election, now set for January 25th, the EU-skeptic, anti-austerity, leftist Syriza party is likely to prevail. Syriza captured a 3% lead in the polls following mass public discontent over the harsh austerity measures Athens was forced to accept in return for a €240 billion bailout.

Austerity has plunged the economy into conditions worse than in the Great Depression. As Professor Bill Black observes, the question is not why the Greek people are rising up to reject the barbarous measures but what took them so long.

Ireland was similarly forced into an EU bailout with painful austerity measures attached. A series of letters has recently come to light showing that the Irish government was effectively blackmailed into it, with the threat that the ECB would otherwise cut off liquidity funding to Ireland’s banks. The same sort of threat has been leveled at the Greeks, but this time they are not taking the bait.

Squeezed by the Squid

The veiled threat to the Greek Parliament was in a December memo from investment bank Goldman Sachs – the same bank that was earlier blamed for inducing the Greek crisisRolling Stone journalist Matt Taibbi wrote colorfully of it:

The first thing you need to know about Goldman Sachs is that it’s everywhere. The world’s most powerful investment bank is a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money. In fact, the history of the recent financial crisis, which doubles as a history of the rapid decline and fall of the suddenly swindled dry American empire, reads like a Who’s Who of Goldman Sachs graduates.

Goldman has spawned an unusual number of...

Jan 6, 2015 - 4:27pm

@ Turd fyi Re: CME 1 kilo bar futures contract

If ya can't beat 'em, join 'em?

DATE: January 6, 2015

SER # : 7265

SUBJECT: Listing of Physically-Delivered Gold Kilo Futures Contract

Effective Sunday, January 25, 2015 for trade date Monday, January 26, 2015, and pending all relevant CFTC regulatory review periods, Commodity Exchange, Inc. (COMEX or Exchange) will list a new physically-delivered Gold Kilo Futures contract (commodity code: GCK; rulebook chapter 114). The delivery points for this contract will be located in Hong Kong.

This contract will be available for trading on the COMEX trading floor and CME Globex, and for submission for clearing through CME ClearPort.

The contract specifications are provided below:

Contract Name

Gold Kilo Futures

Commodity Code


Rulebook Chapter


Contract Size

One kilogram (32.15 troy ounces)

Listing Schedule

Trading in Gold Kilo futures is regularly conducted in the following months: (1) the current calendar month; (2) the next two calendar months; and (3) each February, April, June, August, October, and December falling within a 12-month period beginning with the current contract month.

Termination of Trading

Three business days prior to the delivery day. Business days are based on the U.S. and Hong Kong public holiday calendars.

Delivery Day

Third Wednesday of the delivery month

Minimum Price Fluctuation


Value per Tick


First Listed and Delivery Month

April 2015

Block Trade Minimum Threshold

10 contracts

Trading and Clearing Hours:

CME Globex and CME ClearPort: Sunday – Friday 6:00 p.m. – 5:15 p.m. (5:00 p.m. – 4:15 p.m. Chicago Time/CT) with a 45-minute break each day beginning at 5:15 p.m. (4:15 p.m. CT).

COMEX Trading Floor: Monday – Friday 8:20 a.m. – 1:30 p.m. (7:20 a.m. – 12:30 p.m. CT)

Jan 6, 2015 - 5:07pm

Circling the Drain

GLD vomited 2.99 tons today for a new alleged "inventory" of 707.82

The withdrawal was 96,130.70 Troy Ounces, or 240 bars, or 1.25 pallets.

Jan 6, 2015 - 7:51pm

What does it take to set up a gold storage account in

Hong Kong which would be used to store the 1 kilo bars I'm planning (dreaming, actually) to buy through the most reliable place we can imagine, the CME? (Yes, you can come over and have a puff of what I'm smoking.) 

It looks like the smallest purchase is 10 kilo bars at a time. Hey, someone has got to keep then honest. right? I wonder when will they have a 1 bar contract? (Call it a mini-kilo contract.)

Jan 6, 2015 - 8:56pm

Gold overseas @ArtL

Take alook at

Safety Dan
Jan 6, 2015 - 9:49pm
Jan 6, 2015 - 11:53pm

The commander and chump....

The commander and chump can not only hurt Russia with low oil prices. He can also make a certain proposed pipeline look almost irrelevant and punch the Venezuelans right in the wallet .

Safety Dan
Jan 7, 2015 - 12:09am

Anti-GMO Petition Receives

Anti-GMO Petition Receives 59,742,753 Signatures

Living with GMOs 

A Letter from America

An open letter to the citizens, politicians, and regulators of the UK and the rest of the EU about the hazards of genetically modified crops

Safety Dan
Jan 7, 2015 - 12:20am

Tricks Western ‘News’ Media

Tricks Western ‘News’ Media Use to Deceive about Ukraine’s War

Because of the ample video and other evidence that the Ukrainian Government is pursuing an ethnic-cleansing policy to get rid of the residents in the area of Ukraine that had voted 90% for the Democratically elected Ukrainian President that Obama’s State Department and CIA overthrew on 22 February 2014, Western ‘news’ media have had difficulty fooling their audiences into the idea that the regime that Obama installed in late February to take over the country is not racist-fascist, otherwise known as nazi, in its character and policies.

James Crighton Safety Dan
Jan 7, 2015 - 12:57am

@SafetyDan - anti-GMO

Thanks for posting that excellent link Dan - everyone should be made aware of the pernicious effects that GMO's have on the environment - especially the excessive use of "weed killers" like Roundup that cause so much more damage than just kill weeds - and breed resistance (by the weeds).

I repost the link here for ease of reference:


Safety Dan
Jan 7, 2015 - 1:05am

CDC discovers its own

 CDC discovers its own researchers were accidentally exposed to Ebola in the lab

Ebola,CDC lab,biosafety

Another major safety breach has occurred at a U.S. Centers for Disease Control and Prevention (CDC) testing laboratory in Atlanta, Georgia. At least one technician working in a Biosafety Level 4 CDC facility -- Level 5 is the highest -- may have been exposed to the Ebola...

Learn more:

Safety Dan
Jan 7, 2015 - 4:56am

Off Subject.. EMP? Do Your Own Diligence...

NASA has a report that 80 near miss Asteroids will near miss Earth in January 2015


Scientists Tremble As “Asteroid Army” Hurtles Towards Earth


"Where Western scientists are keeping their citizens attention focused on the potentiality of any of these giant asteroids actually striking our Earth, this report further states, the true danger that exists for our planet is a full-scale electromagnetic pulse (EMP) such as occurred on 19 October on Mars due to the passing of passing of Comet Siding Spring (C/2013 A1) when a still as yet unexplained 228 million kilometer (142 million mile) “plasma/electrical discharge between the Sun and Mars occurred and which was captured on video. "

Comet C/2013 A1 post-encounter with Mars

Comet C/2013 A1 post-encounter with Mars

Jan 7, 2015 - 7:23am

I can see Jim Willie smiling

China, Costa Rica announce strategic partnership


Chinese President Xi Jinping (R) shakes hands with Costa Rica President Luis Guillermo Solis after a signing ceremony in Beijing, capital of China, Jan. 6, 2015. Xi and Solis held talks here on Tuesday. (Xinhua/Zhang Duo)

BEIJING, Jan. 6 (Xinhua) -- Chinese President Xi Jinping held talks with his Costa Rica counterpart Luis Guillermo Solis here on Tuesday on a strategic partnership.

During the talks, Xi said that China and Costa Rica should set a good example of friendly cooperation between countries of different sizes with different national conditions. The two sides should advance bilateral ties from a strategic perspective and support each other on their core interests.

Stressing the significance of frequent high-level interactions, Xi proposed the two sides boost cooperation on the construction of special economic zones, infrastructure, agricultural technology, telecommunications and clean energy among others. Xi said that China stands ready to boost tourism cooperation with Costa Rica, calling on the Costa Rica side to facilitate entry procedures for Chinese travellers. He also suggested the two countries increase communication on international and regional affairs, such as climate change.

Jan 7, 2015 - 7:27am

Brent oil drops under $50 for first time since 2009

imageLONDON: European benchmark Brent oil sank under $50 per barrel on Wednesday for the first time since 2009, hit by OPEC's production stance, oversupply, weak demand and the strong dollar.

In morning London deals, Brent North Sea crude for delivery in February dived to a 5.5-year low at $49.92 a barrel. New York crude had already slumped under $50 on Monday.$50-for-first-time-since-2009.html

Jan 7, 2015 - 7:29am

More than 70,000 Chinese officials punished for violating rules

BEIJING, Jan. 7 (Xinhua) -- A total of 71,748 Chinese officials were punished in 2014 for violating the eight point anti-graft rules, the top antigraft body said Wednesday.

At a press conference summing up China's sweeping counter-corruption campaign, deputy secretary of the Communist Party of China's (CPC) Central Commission for Discipline Inspection (CCDI) Huang Shuxian, said offenders were involved in 53,085 violations and 23,646 had received serious party and government penalties. Offences include the violation of rules on the construction of government buildings, use of government vehicles, overseas travel financed with public funds, sending or accepting gifts, excessive spending on receptions, extravagant weddings or funerals, and other discipline violations.

China also brought back from overseas more than 500 fugitive corrupt officials and recovered more than 3 billion yuan (483 million U.S. dollars) in a campaign targeting those that had fled the country, said Huang, adding that China had inked deals with several countries to support global corruption cooperation, including the United States, Canada and Australia.

Jan 7, 2015 - 7:34am

China's private financing to hit 18 trln in 2015

BEIJING, Jan. 6 (Xinhua) -- Aggregate private financing, a liquidity measure that sums up funds offered by China's domestic suppliers, will amount to 18 trillion yuan (2.9 billion U.S. dollars) in 2015.

The figure is 13.6 percent up on last year, according to a report by the Bank of Communications (BOC) Tuesday, alongside a 12.5 percent expansion of M2.

The report predicted that new loans, the biggest part of social financing, will hit 11 trillion yuan in 2015, up 13.5 percent.

Jan 7, 2015 - 7:37am

Swiss central bank forex reserves jump after December interventi

imageZURICH: The Swiss National Bank's foreign exchange reserves rose sharply last month, data showed on Wednesday, after the central bank intervened to keep a lid on the red-hot franc.

The figures come as the euro zone grapples with talk of a possible exit by Greece and the euro currency slid to a nine-year low against the dollar, factors which are likely to test the Swiss central bank's resolve to defend a three-year old cap on the franc against the euro by intervening in currency markets.

The SNB held 495.104 billion Swiss francs ($490 billion) in foreign currency at the end of December, compared with 462.669 billion francs in November, revised from an originally reported 462.395 billion, preliminary data calculated according to the standards of the International Monetary Fund showed.

The reserves - which have reached a size equivalent to around three-quarters of the entire Swiss economy - are the first indication of the depth of the central bank's intervention last month, when a rapidly weakening Russian rouble pushed the franc up further and prompted the SNB to act.

Jan 7, 2015 - 7:42am

Russia boosts 2014 oil output by 0.6% to post-Soviet high


MOSCOW, January 3. /TASS/. Russia’s crude oil output rose by 0.6% in 2014 from the previous year to a post-Soviet high of 526.75 million tons, according to data released by the fuel and energy sector’s main statistical center on Saturday.

At the same time, Russia’s crude oil exports declined by 5.7% in 2014 from the previous year to 221.59 million tons, the data showed. Oil exports declined as Russian crude producers boosted refining in Russia by 5.2 percent to 288.96 million tons.

Russian oil exports via the pipelines run by Transneft fell by 4.2 percent to 176.255 million tons. Oil transit dropped by 11.3 percent to 19.29 million tons, the data showed.

Jan 7, 2015 - 7:49am

US shelves transfer of frigates to Turkey

The Oliver Hazard Perry-class frigate USS Halyburton

The Oliver Hazard Perry-class frigate USS Halyburton

The United States has shelved the handover of two leftover frigates to Turkey, as Congress excluded Turkey from a bill seeking permission to transfer vessels to foreign countries, citing Mediterranean tensions. The U.S. approved the “Naval Transfer Act” bill in late December, approving the transfer of six naval frigates to Mexico and Taiwan, but eliminated Turkey over political concerns.

In the 2012 version of the “Naval Transfer Act,” Turkey was to receive two Oliver Hazard Perry class guided missile frigates, the USS Halyburton and the USS Thach, which are being decommissioned by the U.S. Navy.

Congress members particularly emphasized Turkey’s tension with Greek Cyprus over energy sources off the divided island and its threats against natural gas exploration by American companies in the region. “Turkey has recently threatened legitimate [Greek] Cypriot and Israeli efforts to cooperation on energy exploration. Ankara has boosted Turkish armed naval presence around the natural gas fields between Israel and Cyprus and declared invalid an agreement between Cyprus and Israel on demarcating their respective energy exploration areas,” another congressman, Brad Sherman, has been quoted as saying.

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Key Economic Events Week of 1/21

1/22 10:00 ET Existing Home Sales
1/24 9:45 ET Markit Manu and Svc PMI
1/24 10:00 ET Leading Econ Indicators
1/25 8:30 ET Durable Goods
1/25 10:00 ET New Home Sales

Key Economic Events Week of 1/14

1/15 8:30 am ET Producer Price Index
1/15 8:30 am ET Empire State Mfg. Index
1/16 8:30 am ET Retail Sales
1/16 8:30 am ET Import Price Index
1/17 8:30 am ET Housing Starts
1/17 8:30 am ET Philly Fed
1/18 9:15 am ET Capacity Utilization and Ind. Prod.

Key Economic Events Week of 1/7

1/7 10:00 ET ISM Services Index
1/7 10:00 ET Factory Orders
1/9 2:00 ET December FOMC minutes 
1/10 Speeches from CGP, Goons Bullard and Evans
1/11 8:30 ET CPI