JPMorgan Gold Vault Hubbub

Thu, Aug 6, 2015 - 3:16pm

We were all over this yesterday and ZeroHedge has brought it to everyone else's attention today. However, instead of dwelling upon the here and now, I'd like to give you some history to consider.

Here's yesterday's Vault thread discussing the ongoing shenanigans:

And here's today's ZH article on the movements within the JPM gold vault:

However, for this particular post, I'd rather focus on something from the past instead of the present...

For a couple of years now, we've been monitoring the peculiar trend to list perfect and precise deposits within the Comex gold vaults. A "normal" movement of something as precious as gold would/should require very precise assaying and measuring...and the Comex/CME usually lists these changes all the way out to three spots past the decimal point. For example, a deposit or withdrawal might be 13,142.085 troy ounces.

However, about two years ago, we took notice of a new trend...perfect and precise deposits with nothing but zeroes to the right of the decimal point and we've written about it several times including here: and here:

Some were quick to rush to the defense of the fractional reserve bullion banking system and claim that there was simple explanation. The argument was that these deposits were simply factory-fresh gold kilobars. These bars were so brand new and perfect that the Comex vaults had no need to measure and assay them. Just simply book them in as perfect and precise and make no notations to the right of the decimal point.

That explanation seems a bit of a stretch and, at the time and up to this day, we still call BS. The Comex vaulting system is a sham and fraud based upon paper warehouse receipts and unallocated metal. In our view, these perfect and precise "deposits" provide color to the deception.

Which brings us back to the present. The last week has seen some unusually heavy activity within the JPM Comex vault. As noted yesterday, there was a massive reclassification from eligible to registered, ostensibly to cover a slug of 2,750 deliveries that the house account of JPM issued back on Tuesday. Note that this adjustment was 276,049.092 troy ounces. Additionally, last Thursday, the JPM vaults saw a huge, outright withdrawal. Again, note that the listed size was 200,752.608 troy ounces. The corresponding CME Gold Stocks reports are below:

Now here's where a guy like me, with a decent memory and a knack for recall, gets into trouble. You see, if we go back over the past two years, we find all kinds of perfect and precise vault deposits. In fact, though I'm sure I missed a few along the way, check out the fourteen reports below. From October of 2013 through just the end of June this year, these 14 reports alone show an accumulation of a whopping and massive 44 metric tonnes of perfect and precise "deposits", totaling 1,414,600 troy ounces of gold.

Go ahead, call me "crazy" and a "gold bug". Call me a "conspiracy theorist", if you like. However, doesn't it strike you the least bit odd that JP Morgan can book in 44 perfect and precise metric tonnes of gold but, at crunch time when that gold is demanded for delivery, 15 metric tonnes flow back out measured back to three spots to the right of the decimal point?

Perhaps the best explanation still lies with the disclaimer that the CME suddenly began including in 2013. ( Lawyers at the CME, recognizing that these reports could/might be a fraudulent distortion of the truth, felt they needed to add the disclaimer in the hopes that they won't one day be indicted/prosecuted for fraud. We'll see about that. In the meantime, the charade of physical delivery continues with the goal of maintaining the fractional reserve bullion banking system. This current pricing control scheme will likely continue to function until the day comes when it simply fails. The resulting conflagration will be a sight to behold.


About the Author

turd [at] tfmetalsreport [dot] com ()


Angry Chef
Aug 7, 2015 - 10:51am

Fred Hayek - Exactly

I couldn't agree more with your comments. It's not just analysts like Mish and Denninger that need to perpetrate the myth. It's the entire planet ! Think about it. A fiat monetary system with no anchor to Gold, nor an anchor like Glass-Steagal Legislation, is a Ponzi scheme. For a guy like Denninger, whom I like, to talk about basic Arithmetic in one sentence. But deny the very denominator for that "basic arithmetic" is a moving target throws a turd in his punch bowl. But it's not just Denninger nor Mish, who I also like. It's pension funds, insurance companies, Banks, States, Provinces,'s everyone. When Paulson went before Congress and held a gun to their heads and said " give me 800 billion dollars or you'll have Martial Law in the streets tomorrow"....he was right. It wouldn't have just been the TBTF Banks that would have blown up. It would have been the debt based, derivative fueled, unregulated monetary system. All of it ! It's going to blow. That's what we here in Turdville know and plan for daily. But it's going to be horrible ! The eleech knows this. They have their private jets and private islands to run to. We don't. Just think about all the people outside of Turdville that you've tried to discuss what we discuss here. And multiply that by billions. They're in denial for a reason. The end result is too terrifying to think about. Because if you truly think about it they're is only one ending. Complete collapse and War. Because it's not just the USA and the West. It's everywhere. The one's that will survive will be the countries that have padded the Treasury with Gold & Silver. The others will fall into the Third ( more likely oblivion ) World.

I was channelling my inner Jim Willie on that last sentence.

Fred Hayek
Aug 6, 2015 - 7:04pm

What about their self interest?

Mike "Mish" Shedlock is another writer on economics whom I read and respect. Well, someone asked Mish about manipulation of the gold market. Mish tap dances around a bit coming across with a sort of skeptical, sort of agnostic position.

That's fine. I can read someone's work and find value in a lot of it but disagree completely with a part of it. It's the same way with Karl Denninger over at But what does annoy me about these guys is when they express skepticism toward the idea that gold is manipulated and say that proponents of this idea are biased and talking their book.

What about their interests? What about their "book"? Don't they have theories they hold and reputations they've made? Wouldn't it be normal human nature for them to oppose ideas that oppose their favorite theories and their reputations? Mind you, I consider both of them to be good guys even though they're both skeptical about precious metals, especially Denninger.

If you're Denninger or Shedlock and you've made a name for yourself analyzing markets that turn out to look even more fraudulent if gold and silver have been drastically manipulated to make the present economic paradigm possible, doesn't acknowledgment of gold and silver manipulation inherently detract from your reputation? Is, to some degree, protecting your reputation a form of talking your own book?

Aug 6, 2015 - 6:29pm


I shot liquid also but unfortunately it wasn't through my nose.

Dyna mo hum
Aug 6, 2015 - 6:17pm



Aug 6, 2015 - 5:00pm

@Dyna mo hum

a work of sheer genius, I shot liquid through my nose.

Dyna mo hum
Aug 6, 2015 - 4:41pm
Aug 6, 2015 - 4:37pm


They don't even try to hide it. In your face fraud. There is no regulation. Justice department rolled, collects their pay and counts the days until their job starts with Goldman. The White House goes out and makes another speech on how bad those Chinese and Greeks are, so we better start another war. All of it orchestrated theft.

Aug 6, 2015 - 4:15pm

It is all such a SHAM

The Crimex will not be the only ones under scrutiny when the wheels come off. During the major market advances since 2009, how many sizable corporations(not just the banks) have been taken to the mat by the regulators? Very few comparably in my recollection when considered historically.

I know mark to market went out the window a long time ago and allowed misrepresentation from that standpoint in balance sheets, but I just don't think considering that, the big Corp's have played fair. They never do. More likely the regulators have looked the other way and it won't come out till they just can't cover up the fraud any longer.

That's what I think anyway, and even if I am missing something those thoughts help me justify current conditions and keep my head from exploding under my tin foil hat.

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

Aug 6, 2015 - 3:54pm
Aug 6, 2015 - 3:40pm


keep stacking

Edit: must have missed by a whisker. Ok Fourth, sorry Marchas!

Subscribe or login to read all comments.


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 5/25

5/26 8:30 ET Chicago Fed
5/26 10:00 ET Consumer Confidence
5/27 2:00 ET Fed Beige Book
5/28 8:30 ET Q2 GDP 2nd guess
5/28 8:30 ET Durable Goods
5/29 8:30 ET Pers Inc and Cons Spend
5/29 8:30 ET Core Inflation
5/29 9:45 ET Chicago PMI

Key Economic Events Week of 5/18

5/18 2:00 ET Goon Bostic speech
5/19 8:30 ET Housing starts
5/19 10:00 ET CGP and Mnuchin US Senate
5/20 10:00 ET Goon Bullard speech
5/20 2:00 ET April FOMC minutes
5/21 8:30 ET Philly Fed
5/21 9:45 ET Markit flash PMIs for May
5/21 10:00 ET Goon Williams speech
5/21 1:00 ET Goon Chlamydia speech
5/21 2:30 ET Chief Goon Powell speech

Key Economic Events Week of 5/11

5/11 12:00 ET Goon Bostic speech
5/11 12:30 ET Goon Evans speech
5/12 8:30 ET CPI
5/12 9:00 ET Goon Kashnkari speech
5/12 10:00 ET Goon Quarles speech
5/12 10:00 ET Goon Harker speech
5/12 5:00 ET Goon Mester speech
5/13 8:30 ET PPI
5/13 9:00 ET Chief Goon Powell speech
5/14 8:30 ET Initial jobless claims and import prices
5/14 1:00 ET Another Goon Kashnkari speech
5/14 6:00 ET Goon Kaplan speech
5/15 8:30 ET Retail Sales and Empire State index
5/15 9:15 ET Cap Ute and Ind Prod
5/15 10:00 ET Business Inventories

Key Economic Events Week of 5/4

5/4 10:00 ET Factory Orders
5/5 8:30 ET US Trade Deficit
5/5 9:45 ET Markit Service PMI
5/5 10:00 ET ISM Sevrice PMI
5/6 8:15 ET ADP jobs report
5/7 8:30 ET Productivity
5/8 8:30 ET BLSBS
5/8 10:00 ET Wholesale Inventories

Key Economic Events Week of 4/27

4/28 8:30 ET Advance trade in goods
4/28 9:00 ET Case-Shiller home prices
4/29 8:30 ET Q1 GDP first guess
4/29 2:00 ET FOMC Fedlines
4/29 2:30 ET CGP presser
4/30 8:30 ET Pers Inc and Cons Spend
4/30 9:45 ET Chicago PMI
5/1 9:45 ET Markit Manu PMI
5/1 10:00 ET ISM Manu PMI

Key Economic Events Week of 4/20

4/20 8:30 ET Chicago Fed
4/21 10:00 ET Existing home sales
4/23 8:30 ET Weekly jobless claims
4/23 9:45 ET Markit flash PMIs
4/24 8:30 ET Durable Goods

Key Economic Events Week of 4/6

4/8 2:00 ET March FOMC minutes
4/9 8:30 ET Producer Price Index
4/10 8:30 ET Consumer Price Index

Key Economic Events Week of 3/30

3/31 9:45 ET Chicago PMI
4/1 8:15 ET ADP Employment
4/1 9:45 ET Markit manu PMI
4/1 10:00 ET ISM manu PMI
4/2 10:00 ET Factory Orders
4/3 8:30 ET BLSBS
4/3 9:45 ET Market service PMI
4/3 10:00 ET ISM service PMI

Key Economic Events Week of 3/23

3/24 9:45 ET Markit flash PMIs
3/25 8:30 ET Durable Goods
3/26 8:30 ET Weekly jobless claims
3/27 8:30 ET Personal Inc and Spending

Key Economic Events Week of 3/9

(as if these actually matter)
3/11 8:30 ET CPI
3/12 8:30 ET weekly jobless claims
3/12 8:30 ET PPI
3/13 8:30 ET Import Price Index

Recent Comments

by 4 oz, 3 min 36 sec ago
by Turd Ferguson, 10 min 5 sec ago
by Turd Ferguson, 15 min 5 sec ago
by AgAuMan, 23 min 14 sec ago
by Southsider, 28 min 40 sec ago

Forum Discussion