What Am I Missing?

Wed, Jun 10, 2015 - 10:54pm

A LOT of talk these past two days about an article written by Avery Goodman that was posted at Seeking Alpha. Maybe I'm missing something but I fail to see what the big deal is.

The article in question supposes that the FRBNY "bailed out" JPMorgan on their Comex delivery obligations earlier this month and it can be found here: https://seekingalpha.com/article/3247676-did-comex-just-receive-a-physic...

Look, I like this Avery Goodman guy. The article he wrote last month about China was prominently featured here at TFMR as a "guest post". If you haven't yet, you should be sure to read it: https://www.tfmetalsreport.com/blog/6845/guest-post-real-reason-china-bu...

In this case, though, I don't see what the big deal is. We discussed the Comex vault movements of June 1 as soon as we saw them. Here's what I posted in the Vault thread of the day:

Submitted by Turd Ferguson on June 2, 2015 - 2:52pm.

"A HUGE slug of June deliveries were made yesterday and it's just the same old Comex circle jerk. Of the 2,468 deliveries issued (that's allegedly 246,800 troy ounces or 7.7 metric tonnes!), ALL OF THEM came out of the House account of JPM. The circle jerk comes from 1,570 of them being stopped by the House account of HSBC.

Just one criminal organization passing off some paper warehouse receipts to another criminal organization. No honor amongst thieves?

By the way, on today's CME Gold Stocks report, JPM moved 177,408 ounces from their eligible to their registered account. In order to send it over to HSBC? We'll see. This brings their registered total up to 297,541...enough to ship over the 246,800 to HSBC if need be, I guess. More likely, HSBC will just keep "their" "gold" in JPM's vault leaving JPM with only 50,000 ounces of registered currently available.

I'll keep an eye on these reports every day for the next few days just to catch any games as they're played."

And below is the CME Gold Stocks report in question. See how JPM reclassified 177,408 ounces from eligible to registered? As noted above, we remarked at the time that this was likely earmarked for "delivery" to HSBC et al. (click to enlarge)

And how do we know that this eligible to registered gold came from The FRBNY? This sounds like guesswork. Far more likely is this explanation: The House (proprietary) account of JPM has been stopping gold deliveries all year with 1,988 in December and 1,25o in April....more than enough "gold" to deliver back out this month.

Finally, as projected/expected, so far there has been NO additional movement into or out of the JPM Comex vault, as you can see below from Wednesday's report. Yes, JPM has allegedly issued 2,468 deliveries this month for 246,800 ounces but, so far, those warehouse receipts and paper certificates are just sitting chilly in JPMs vaults.

So, in the end, I guess I just wanted to offer a contrary opinion. Where we can all agree, however, is the the Comex is a den of thieves, run by criminals for criminals. The last Commitment of Traders report showed the gold "Commercials" to be gross short 246,573 contracts or 24,657,300 ounces of paper gold. This on a total Comex vault that you can see above only contains 7,891,115 troy ounces of gold. That's more than 3X leverage and if you only look at the registered vault of just 548,749 ounces, The Comex Crooks are levered nearly 45X.

We should all be far more concerned with the fraud and deceit of the paper pricing scheme that is managed by the Comex and their parent company, the CME Group. Worrying, instead, about the minutiae of the opaque "delivery process" and a report that the CME itself deems "unreliable" and for "informational purposes only" seems a fools errand.



p.s. Denver Dave is our A2A guest on Thursday, We'll be sure to discuss this with him, too.

About the Author

turd [at] tfmetalsreport [dot] com ()


Jun 10, 2015 - 11:03pm

I'll take a deuce

After all it's turdville...

Jun 10, 2015 - 11:03pm

Absolutely Nothing!

What are you missing?.....not a damn thing Turd!

boomer sooner
Jun 10, 2015 - 11:08pm


Been almost 2 years since! Hot damn

Add- My opinion for the big deal. Someone finally posted a theory on a site that is read by the investment world that is a few layers into the onion. The article is not screaming manipulation, but provides an "acceptable" theory to those not deep down the rabbit hole.

Jun 10, 2015 - 11:32pm

Turd's back

Did they really shut down the entire internet in your town just to disrupt this website?

4 oz
Jun 11, 2015 - 12:16am
Jun 11, 2015 - 12:16am


I'll take the 5th.

Jun 11, 2015 - 1:58am


I feel this way about all of it. Not just one article here or there...

We all obviously missed a whole lot.

Jun 11, 2015 - 6:04am

Well I wake up

To a Turd post and I still find myself in the top 10. Lets hope the rest of my day goes in a positive way. Keep Stacking

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

Jun 11, 2015 - 8:09am


I picked up some hammerheads, about 75c higher, a week or so ago. Sigh. How to pick myself off the ground and improve my mood. Hey, look, Blue Ridge ATB's are on pre-sale! Cha-ching!

James Crighton
Jun 11, 2015 - 8:25am

Nice piece on Jamie Dimon by The Wealth Watchman

What’s REALLY Behind this Billionaire’s Recent Announcement?


Flying Like a G6

Are any of you having trouble paying your ever-mounting insurance or electric bills? Noticed lately that your grocery budget is eating away more of your paycheck every week? Well, in case you have, and you’ve stopped and thought to yourself, “man, I sure hope the market riggers on wall street are getting by!” Well, friend, worry no more!

In 2014, there were 1,645 who people made the list of the world’s public billionaires(I say public, because there are a great many private ones, but that’s another story). This small group of elites last year was worth over .4 trillion dollars(or nearly 40% the US GDP).

Recently, however there was one bloke in particular who made some real waves with his announcement of having reached the highest, visual capstone of the wealth pyramid. For those who haven’t heard yet though, I’m sure you’ll be thrilled to know that this chap’s net worth is streaking to the heavens!

(Photo by Daniel Acker/Bloomberg via Getty Images)

Yessirree! The Weasel himself, Jamie Dimon, has now officially crossed over on the other side of the wealth wall, and no longer belongs to the “unwashed masses” of those who are “merely” worth hundreds of millions or less!

“Wait Watchman, this can’t be true! This guy only received a salary of million last year? How on earth did he make such a vast sum of cash?”

Friend, the first thing you’ve got to realize about the loathsome world of Wall Street, is that the true value of positions like his, is not in his salary, but rather in his insider knowledge, and his blank check to rig markets on behalf of the US Fed and Treasury.

That’s the real ‘pot’-o’-gold, me boy!

Secondly, yes, I’m afraid it’s quite true.

According to Bloomberg news, his fortune now tallies over .1 billion dollars, however, buried within that same story are some telling items. So bear with me brothers, because I’m gonna ask several key questions as we review this story.

The Breakdown

Now that we all know he’s joined the “10 digit club”, let’s examine the details, line by line, to see what this story can teach us. First off, what do we know?

We know the public claim that his net worth is now .1 billion.

What’s the make up of his portfolio though? They say you can know woman by the contents of her purse, and likewise, I submit that you can know a man by the contents of his portfolio. A portfolio tells a story. So what did this headline reveal about his portfolio?

How has he made that cash and where is it? Interestingly, we are also told key aspects of his wealth in surprising detail!

First off, we’re told that 5 million dollars of that .1 billion(or roughly 44%) is made of his current exposure to JP Morgan stock).

Now, stop right there, because that’s astounding! Think about that…

Jamie Dimon, the ultimate insider, has roughly 50% of his billion dollars….in just one investment: JP Morgan stock!

To be more precise, he has it in stock & stock options. Read on:

Dimon owns 6.1 million shares of JPMorgan valued at about 4 million based on Tuesday’s closing price of .02. He also has 3.2 million exercisable options worth more than million, according to company filings.”

Now, take a quick look at the JP Morgan stock price, because it reveals something even more amazing…

Wow! JP Morgan stock is at an all-time high! In fact, if you pull up a 30 year chart, the only time it was nearly this high, was waaay back in 2000, when it achieved a value of roughly per share.

The company’s stock is actually on a bit of a tear recently, because just since February, it’s rocketed higher by nearly 25%!

Now, stop again!

Remember, JP Morgan stock comprises nearly half his net worth. Just 4 months ago, in February that his current 0 million in JPM stock was worth roughly a full 5 million less than it is today! Meaning that if the Bloomberg article’s guesstimate is true, that this man’s billionaire status is literally likely just a few weeks old, and is solely being driven at this point by one bank’s stock performance.

It gets even better though. Does anyone remember the date the story of Jamie’s wealth first ran?

It was run on June 3rd ….just 2 days before JPM stock hit its all time high, at a closing price of .68.

Now….brothers, something weird is going on here.

Banking Woes

The timing of this announcement seems most curious, indeed! Now, while the article says that Jamie “refused to comment on his wealth”, that’s wholly, patently absurd, considering we’re talking about the guy who publicly quipped, “that’s why I’m richer than you”! You can accuse this guy of many things, but modesty isn’t one of them.

This man has no misgivings whatsoever about rubbing his ill-gotten gains in your face. Jamie Dimon is an extraordinarily powerful man, and this story would never have been run without his consent.

So think like a billionaire, and a cunning insider:

Why, would Mr. Dimon choose to toot his own horn at this stage of the game?

Why would he announce reaching billionaire status just a few weeks after the fact, with his bank’s shares at all-time highs?

Why would the man who just warned us all of a pending treasury/debt instrument liquidity event, still have half his net worth in banking shares?

Why would the man, whose bank has been furiously stacking silver(and who just took delivery of another 600k ounces yesterday, by the way), choose to run a story about his exposure to his company, and as well as highlight his company’s earning performance?

“Wait Watchman, what are you getting at?”

I’m saying it appears to me that someone mighty important sure wants to exit some JP Morgan stock exposure in a hurry!

I’m saying that the guy who recently warned investors that the market is due for a “liquidity event” soon, is smart enough to know when to cash out!

I’m saying that an ultimate banking insider, like Mr. Dimon, is certainly cognizant of the vulnerability of his new-found wealth, in such a market climate, and is likely correcting that problem as we speak…

Think about it, if you were in this man’s shoes, and had half a billion dollars in JP Morgan stock, knowing what you know….you’d want to be exiting too, right? The trick though, is how would you go about lightening your half a billion dollar exposure without roiling that same market?

Well, how about throw in a few, fresh mainstream headlines about your affluence, coupled with your utter confidence in your company(and its stellar earnings)? That might really get that ball rolling of successfully passing that torch on to the next sucker!

Remember, all those “financial analyst shows”, like Cramer, or channels like CNBC are owned by banks, who pump investments to unsuspecting ‘mom and pop’ investors, because they’re on the other side of the trade. It’s just how the game is played.

Mr. Dimon is the smartest, most ruthless, and cunning shark in the entire tank.

Mr. Dimon was the one recently warning JP Morgan shareholders an “event” was coming, which would shock the markets, and rip the guts out of treasuries, and the world’s most liquid debt instruments.

This man is a master of getting out while the getting’s good!

Mr. Dimon also knows how quickly bank shares can go from hero to zero, literally. After all, the previous bank, which he literally helped build from scratch, Citigroup, went from 0 to….. within 5 years!

Do you think this man is going to let his billionaire status slip away by making the rookie mistake of keeping himself overextended in one bank, during the next monstrous, financial crisis?

Neither do I.


They say “no one rings a bell at market tops”, but that’s not really true. Truth be told, there are usually plenty of bells that are rung at market tops, if you but have eyes to see and ears to hear them.

This puff piece story about Jamie Dimon(and JP Morgan, by extension), just having recently reached billionaire status seems to have a distinct bell-ringing quality, doesn’t it?

Here’s the good news…

We’ve all heard the terms “peak oil”, or “peak silver” bandied about these days…I think with the stories of all the latest banking layoffs, and Deutsche bank woes, coupled with this announcement could signal “peak cronyism”.

Jamie Dimon is a slimy creep whose business practices would make Al Capone look like the Apostle Paul! He’s also a bloke with a gift for survival, and is highly in-tune to market realities worldwide.

He’s effortlessly survived scandals, navigated his bank through tens of billions in fines, run roughshod over competitors, and successfully rebuffed silver’s advances for the last 4 years(with some help from his former wing-woman, Blythe Masters).

He’s the superstar, poster-child for banking criminality. However, I detect a sea-change within recent bank headlines,and this article could very well be the ultimate contrarian indicator.

Call this man every dirty name in the book(I know I sure do!), but one thing you cannot call this man….is stupid. So let me ask you a question:

Is really that unreasonable to think that such a man might allow this personal/JPM puff piece, in order to make the task of lightening his rather untenable, over-exposure to JP Morgan stock….just a little bit easier?

One last question.

As new suckers take the “Jamie-the-billionaire” bait, and rush in to buy JP Morgan shares at all-time highs…

How many of Jamie’s newly-sold JP Morgan shares, do you suppose, are now being converted into these bad boys at this very moment?

Enjoy the Watchman’s insights?

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