More Oddities In The Comex Vaults

181
Thu, Jun 18, 2015 - 8:45am

Last week, all the hubbub was about the movements of "gold" into the JPM Comex vault. This week, I'd like to point out something far more interesting and unusual...the flight of "gold" out of the Scotia Bank vault.

In case you missed it last week, some noise was made about a massive addition of eligible gold within the JPM Comex gold vault. I failed to see where it was noteworthy and I wrote about it here: https://www.tfmetalsreport.com/blog/6912/what-am-i-missing

You see, here's the thing...I try to abstain from lengthy discussions about the CME/Comex vaulting system because, to me, it's so clearly just a big lie and charade. Heck, the CME itself disavows their own reports with this disclaimer found at the bottom of each one:

Therefore, anyone attempting to explain what goes on there is simply adding an air of legitimacy to what is clearly a fraudulent and deliberately opaque "market".

That said and taking the CME's disclaimer fully into account, I would like to bring some "irregularities" to your attention.

On the CME Gold Stocks report below, dated 3/6/15, note the big red box and arrow pointing to the amount of "gold" allegedly being held in custody at The Scoshe and used as a physical foundation for the paper derivative market (click to enlarge):

As you can see on the report, less than three months ago The Scoshe reportedly held:

  • 230,988 troy ounces in their registered (ready and deliverable) account. That's a little over seven metric tonnes.
  • 2,720,391 troy ounces in their eligible (not delivery ready) account. That's about 84.5 metric tonnes.

On its own, this information is hardly remarkable. However, we've been monitoring a steady drain of The Scoshe's eligible account. In fact, just this week there have been withdrawals of 64,000 ounces Monday, 155,000 ounces Tuesday and 63,000 ounces Wednesday. That's a lot. Nearly 282,000 troy ounces or about nine metric tonnes...this week alone. And now, look at Wednesday's CME Gold Stocks report and note the overall change in The Scoshe's vault:

As you can see:

  • 176,734 troy ounces in registered gold...down 54,200 ounces from March or less than two tonnes
  • 1,560,385 troy ounces in eligible gold...down a remarkable 1,160,000 ounces. That's a loss of 37 metric tonnes or nearly 43% of their eligible gold.
  • The combined loss is 1,390,994 troy ounces or 47% of the total vault.

Well, that's interesting, isn't it? This brings up a number of questions. Let's take them one by one, shall we?

  1. Is Scotia getting out of the Comex business? Maybe. Too early to say. However, when your vault declines by nearly 50% in under three months, it's a fair question to ask.
  2. Why is it primarily eligible gold that is exiting? Another excellent question. This suggests that perhaps Scotia's clients are rapidly withdrawing the gold they had in storage in Scotia's vault. If that's the case, why would Scotia's clients be acting so decisively to reclaim their gold? That's another excellent question.
  3. Is this just The Scoshe making Comex deliveries? It doesn't appear that way. For the month of June, the CME reports (https://www.cmegroup.com/delivery_reports/MetalsIssuesAndStopsYTDReport.pdf) that The Scoshe is only on the hook for 403 deliveries thus far...and as noted above, they've shipped out enough gold for 2,820 deliveries just this week alone.
  4. Maybe Scotia is simply playing catch up for deliveries they made in April? Nope, that's not the answer, either. As you can see on the report linked in #3, they were only on the hook for 1,266 deliveries back then. Again, since March, they've "lost" enough gold to physically settle and deliver nearly 14,000 contracts.

In the end I suppose that, if these CME Gold Stocks reports are to be taken at face value and deemed to be accurate, then the most intriguing question is #2 above and the possible answer listed. Are Scotia Bank's customers rapidly withdrawing gold from unallocated, eligible storage within Scotia's Comex vault? If so...and it certainly appears on the surface that they are..the next question is "why"? Why would Scotia's clients be in such a rush as to withdraw 37 metric tonnes of gold and reclaim it as their own?

(And please don't waste my time emailing me to inform me how Comex eligible vaults are fully allocated and safe. Have you ever tried to take an actual delivery of physical metal? If so, did you get anything other than a promise to deliver and a warehouse receipt in return? Please review these excellent posts from Denver Dave. This from 2013: https://truthingold.blogspot.com/2013/06/the-comex-confirms-that-its-gol... And this from 2009: https://www.cheatsheet.com/breaking-news/is-the-comex-the-next-madoff-di...)

And one final note. Look again at Wednesday's Gold Stocks Report. Note that this time I've drawn an arrow toward JPMorgan's vault numbers:

Last week, all the intrigue had to do with JPM's sudden switch of 177,000 ounces from eligible to registered, ostensibly to cover a massive pile of June deliveries. Below is the report in question:

Note that, since last week, the amount of "gold" within JPM's vault has actually increased! Now wait a minute...I thought they were making deliveries this month. Instead, their registered vault is unchanged over the past week and their eligible vault has increased by 161,000 ounces. HUH??

And lest you think that this was the result of some of Scotia's gold making its way over to JPM, think again. The daily report from 6/11/15 is shown below and note that the entire eligible gain for JPM was once again one of those utterly perfect and precise, round number jobs. No need to weigh and assay. Just booked in at precisely five metric tonnes or 160,750.000 troy ounces. More background here: https://www.tfmetalsreport.com/blog/6272/information-deemed-be-reliable

So what's the point of all this? Frankly, I believe that you and I and all of the Comex/Cartel Apologists are really only left with two options:

  1. As we've concluded before and as the CME disclaimer infers, these CME Gold Stocks reports are all bogus and bullshit. Designed to confuse and distract, all the while appearing to assign physical legitimacy to the fraudulent paper derivative precious metal pricing scheme.
  2. There's a slow-burning "run" taking place on the Scotia Bank Comex gold vault. Clients of The Scoshe, apparently concerned about the safety and provenance of their gold held in the vault, are slowly but surely reclaiming their gold and moving into storage elsewhere.

Actually, come to think of it, there's a third option that should be considered:

3. Both #1 and #2 above are correct.

Either way, this all seems as more fuel for the fire that will ultimately consume and end the current fractional reserve bullion banking system. All we can do is continue to prepare accordingly for that eventuality.

TF

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  181 Comments

SlobberingBull
Jun 18, 2015 - 8:54am

morning all

Number 2! Not bad. Coffee is ready, now to read.

mel
Jun 18, 2015 - 9:05am

Craige..

Great analysis sir...I believe # 2 is correct...

Jun 18, 2015 - 9:06am

A nice start to our short squeeze.

First thing I like to do each morning when I arise is to check the metals prices. Unfortunately that first look at the charts often steers my attitude for the rest of the day. Some days I simply have to move on and do other productive things. First on my list today is emptying all the fireplace wood from my trailer that we picked up last night. But before I do that, I think I'll linger a bit. Yesterday was fun, but today is even better. I suppose it is all part of the cycle. Within a few days we will top out, the cap will be put on and we'll start heading back down, slowly at first, but then violently and then metals will be on sale.

Doctor J
Jun 18, 2015 - 9:12am

Hi, Doc

Yep, things are looking good as per here: https://www.tfmetalsreport.com/blog/6915/here-we-go-again-another-silver...

Silver beginning to bump up against its 50-day. Hurdle #1 for accelerating the squeeze.

DickB
Jun 18, 2015 - 9:27am

gold price

gold looking very healthy at $1202......

jaba
Jun 18, 2015 - 9:29am

A Possible Elegant Solution To The Greek Problem

TPTB are increasingly concerned about a Greek default and Grexit.

Whilst a straightforward Greek default and Grexit probably appeals to the majority of TPTB as the financial system should be able to absorb the losses involved in writing off the Greek debt, albeit with some under the table help from various central banks.

However, the financial ramifications of a Greek default, vis-a-vis the underlying derivatives such as Credit Default Swaps etc., are another matter altogether, as they are probably comfortably valued in the Trillions of Euros/Dollars. Because of those concerns, the Troika have been kicking the can down the road trying their best to delay/avoid a formal Greek default.

Perhaps the Greeks' very recent stance, that their Troika debt is both 'odious and illegal,' may well actually appeal to TPTB, as it could enable the Greeks' Troika debt to be declared 'null and void' due to legal technicalities; in such an event, all related financial derivatives would also be classified as 'null and void' as there had been, and never will be, a formal Greek default per se !! The matter could be dragged out in the courts for as long as TPTB wished, but a 'null and void' verdict would definitely be in favour of the TBTF banks.

Just a thought.

Mickey
Jun 18, 2015 - 9:34am

Scoshe

It possibly wants to get as much out of those vaults as possible before someone else takes it. better to panic first and early.

Consider it a run on the bank.

usk
Jun 18, 2015 - 9:49am

Some feedbacks from my local purchase

I have made my purchases this morning. Napoleons were at 199 €, I have missed the bottom -again!- at 196€, but they will be more than 200€ tomorrow... This is the first time I need to show my passport and pay by Visa to buy gold. Cash is not allowed anymore here in any metal purchases. I am now probably registered in the french people-to confiscate-gold.db database. I will be registered soon as a terrorist too.

Yellen, Lagarde, Grexit, Comex... What a total joke these people are. Lies, greed and corruption is the new credo.

The Bullshit du jour: "That was the strongest 1st minute rally (9:30-9:31) in eMini since late 2011"

What a total scam.

Gold is approaching $1205, what kind of bullshit shorts can get out of their ass to defend this level?

Thorus
Jun 18, 2015 - 10:50am

You wanna talk about weird numbers?

Check out the Liberty Metals site: https://libertymetals.com/silver/

American Silver Eagles for $3

A monster box of Silver Eagles for under $1,500.00

You have pay them $0.20 - $0.30 to take silver rounds off your hands.

Not sure what's screwed up, but something is definitely screwed up. Literally every product on the page has an incredibly (as in not credible) low price. Any ideas?

I just did a check, great news! Their American Gold Eagles are free! Maybe today only? https://libertymetals.com/gold/

BTW, if you try add to your cart at these prices, it won't let you. Yeah, I was curious enough to try.

. I've got enough storage space for a heckuva lot of free gold eagles - build a small hill in the middle of the pond!

Best Regards,

Thorus

Libertybella
Jun 18, 2015 - 10:51am

what do do with home sale proceeds

Seeking advice. I am selling my home as quickly as I can because I think the housing market is going to drop significantly and soon in my area.

What should I do with the proceeds from the sale? Where is a safe place to invest? I don't trust the banks but perhaps there are a few ultra safe ones out there.... I already have silver and gold tucked away.

Any ideas and all advice much welcome.

-Libertybella

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