The Comex Delivery Charade

Thu, Sep 3, 2015 - 11:52am

We attempted to explain this in yesterday's podcast but it seemed as though this data needed a written post in order to be truly understood. Thus, we give it a try today.

First, just a quick reminder of what the terms eligible and registered mean. Source:

Eligible category means that the gold meets the exchange requirements. Eligible gold essentially means that the gold is stored in COMEX warehouses. It is being stored in the COMEX warehouse for a private party or the vaulting/bullion bank, itself. It is NOT immediately available for delivery to contracts.

Registered gold means that the gold is fully available for delivery to longs who stand for bullion delivery. This gold has been certified to meet the exchange standards for purity and size. Registered gold is deliverable or available for delivery to a long contract holder standing for bullion delivery.

Next, here's a reminder of how August Comex gold deliveries played out. Our final summary was posted last Friday:

Though there were 9,215 August gold contracts still open at contract "expiration" on July 30 and 8,295 still open the next day July 31, First Notice Day, the Comex ultimately reported just 5,113 deliveries for 511,300 ounces of "gold". But that's not the story here. Instead, we want to focus on how The Banks, particularly JP Morgan, manipulate the gold vault data to maintain the illusion of delivery and legitimacy.

The delivery month of August got off to a slow start with just 343 contracts "delivered" as of August 3. The next day, August 4, the CME released their daily "Gold Stocks" report for activity as of August 3 and it is posted below. Please take a good look. (Click to expand)

Note the exact amount of gold that JPMorgan showed in the registered vault: 98,970.886 troy ounces. This was only enough "gold" to physically settle and deliver 989 August contracts. And now here's where it gets interesting....

On the night of August 4, The CME/Comex posted delivery notices for 2,828 contracts...of which 2,750 were supposedly "delivered" from the House (proprietary) account of JPMorgan. Again, see below:

This caught the eye of a few analysts, yours truly included, because as noted above JPM only showed the ability to deliver 989 contracts. How were they going to manage these deliveries?

Nearly every analyst thought they had their answer the next day, August 5, when the CME released that day's Gold Stocks report. As you can see below, JPM had reclassified 276,049.092 troy ounces fo gold from eligible to registered. Problem solved, right? Issue 2,750 contracts one day. Reclassify enough gold for 2,760 deliveries the next. At the time, even ZeroHedge fell for the scam:

However, and though every other analyst looked away and moved on to the next topic du jour, we kept watching because we've long suspected that this entire Comex metal delivery process was nothing but a charade and fraud of unallocated metal and paper warehouse receipts. As fate would have it, we didn't have to wait long for some confirmation.

The daily CME Gold Stocks report from August 7 is shown below. Note that, despite the alleged 275,000 ounces of gold deliveries that JPM posted three days earlier, the JPM registered vault hadn't changed. In fact, that day, JPM actually reclassified some "gold" back from registered to eligible...the opposite of the movement that had satisfied everyone two days earlier. Be sure to note the amount...143,550.418 ounces moved back from registered to eligible.

Then, rather amazingly even though JPM had already issued 2,750 contracts from their House account AND they went on to issue another 1,756 from the Customer accounts, the total JPM registered vault didn't show a single movement of even one ounce...for the rest of August and, as of Monday, the JPM registered vault was still claiming to hold 231,469.560 ounces of gold.

Finally, on Wednesday, the curtain was finally pulled back and the charade was revealed for all still watching...which appears to be only us at TFMR. Below is the CME Gold Stocks report for 9/2/15. Note that JPM attempted to slip past another reclassification, this time moving 89,425.481 ounces back from registered to eligible.

OK, so now let's do some math...

JPMorgan began the delivery month of August with just 98,970.866 ounces of "gold" in their ready and available for delivery registered vault. They then added 276,049.092 ounces to the registered vault on 8/4/15 and this brought their total registered vault up to 375,019.978 ounces. Two subsequent reclassifications back to eligible have brought the JPM registered vault back down to 142,044.079 ounces.

So, versus one month ago, the JPM registered vault has grown in size by 43,073.193 troy ounces and it has only grown by the exact amount remaining after the two, subsequent reclassifications. No "gold" has moved at all and there was clearly an attempt to deceive made by JPM early in August!

Remember, the House Account of JPM allegedly delivered 275,000 ounces of gold on 8/4 and, over the course of the month, the Customer Account of JPM allegedly delivered another 175,600. That's 450,600 ounces of gold that should have been moved from JPM's vault and yet...NOTHING.

Worse, JPM clearly sought to deceive and mollify critics of the process by reclassifying 276,000 ounces of gold from eligible to registered on 8/4. Not only was this gold never delivered, it was just systematically moved back to eligible after everyone stopped paying attention. There is no doubt that this was done deliberately by JPM in order to convince analysts that enough gold was available to satisfy all of JPM's August delivery demands. Once we all looked away, JPM quietly moved the "gold" back to eligible, no doubt ready to pull the same trick in October or December if necessary.

And one more important point. Go back up and check the total vault of HSBC on the first report dated 8/4. Note the size of the total vault was 4,815,090.453 ounces. Now note that, as of yesterday, the total HSBC vault still stood at 4,725,815.903 ounces. It's only down because of an 88,849 ounce eligible withdrawal back on 8/26. Otherwise, HSBC would still be at 4,814,672.503 total ounces. See below:

Al the while, the House Account of HSBC allegedly stopped and took delivery of 1,548 contracts in August (154,800 ounces) while also making 166 deliveries (16,600 ounces) from their Customer accounts. All of this and yet their total Vault never changes during the month?!?

Look, we'll cut to the chase...

THIS IS ALL A CHARADE AND A SHAM. Proven again by the clear effort by JPM in August to mask and hide the fraud by cleverly moving some eligible "gold" back and forth to registered during the delivery month. There is no actual gold being delivered. The entire delivery process is nothing but a shell game of unallocated metal and paper warehouse receipts. However, it is only this alleged delivery process that gives the paper derivative Comex any legitimacy. If the activities of August prove to you that metal delivery on the Comex is nothing but one, big scam...then how can anyone claim the Comex pricing derives a fair and true price?

The simple answer is: You can't. This fractional reserve, overleveraged and unallocated paper derivative scheme is a fraud of the first order. One day, it will all collapse under the shear weight and magnitude of its deceit. Until then, we wait. Patiently stacking true physical metal at deeply discounted levels until the day comes when fair and true value is finally reflected in "price".


About the Author

turd [at] tfmetalsreport [dot] com ()


LostMind · Sep 3, 2015 - 11:54am



chocolatechiphorses · Sep 3, 2015 - 11:55am


Oops thought I had a first smiley


· Sep 3, 2015 - 11:56am

(One of the) furst?

Can't be...

2c piece · Sep 3, 2015 - 11:59am

Thank you

Thank you for the explanation. Looking forward to your time with Willie shortly.

J Siefert · Sep 3, 2015 - 12:00pm

"ORD" (outside reversal day) by Bill Holter

For anyone who needs it an explanation of "ORD" (outside reversal day) by Bill Holter:

"For those of you who don’t know what an “outside reversal day” is, let me briefly explain. It is the “outside” part which is important and without it, the “reversal” part is much less meaningful. For this to occur, trading for the day must be both lower and higher than any trades performed the previous day. In other words, the “bar” on the chart must totally engulf the action of the previous day and then close in the opposite direction of the previous momentum. Outside reversal days are very rare in any market. One of these may only occur once in a year’s time or even longer. The important thing to understand is when you do see a reversal day and accompanied by big volume, the “trend” is probably changing!"

s1lverbullet · Sep 3, 2015 - 12:04pm

Comex Delivery Report

I'd rather watch paint dry or have a root canal. Not being mean Turd, just saying that at this point I know it is all a scam so I could give a crap less about fabricated granular details.

I don't have the attention span to read this post today but I listened to the podcast so I think I get the gist.

Picabo · Sep 3, 2015 - 12:10pm
Libertybella · Sep 3, 2015 - 12:11pm

Best Simple Description of Bankster Fraud

Found this gem over in the comments section at Zero Hedge. I plan to share it widely. Best and simplest description of the parasitic nature of banks and the obscene and unjust power they hold over our economies.

Economics are dead simple: If Joe (mechanic) wants a new roof made by John ( roofer), John (roofer) makes the roof and Joe (mechanic) writes him an IOU (worth of a new roof). So next time John (roofer) wants something done he knows Joe (mechanic) is good at, John (roofer) can use this IOU to trade for Joe's ( mechanic) work.

When it becomes ridiculous is when Joe (mechanic) can't write this IOU, but only James ( banker) has the power to write IOU's. Now Joe (mechanic) has to lend an IOU (worth of a roof) from James ( banker) who writes this IOU with his magic pen. So now Joe (mechanic) uses the IOU to pay John (roofer).

What happened?

Joe (mechanic) is in debt with James (banker) (who has done no work) equal to the worth of a roof + interest

John (roofer) has a IOU equal to the worth of a roof.

Joe (mechanic) has to work for James (banker) to repay the IOU (worth one roof + interest)

So John (roofer) has worked hard to provide Joe (mechanic) with a new roof, Joe (mechanic) is breaking his back doing work for James (banker).

And James (banker) is best at doing no work at all but getting Joe (mechanic) to work for him with a strike from his magical IOU pen.

One could say 2 slaves and one master were created, with the power of writing IOU's

Now James (banker) can control the economy of their little community, since only he can write IOU's. If he wants a economic boom, he will write IOU's easily without questioning. But if he wants to create a crisis, he refuses to write a single IOU, without these IOU's Joe (mechanic) and John ( roofer) can't trade, so all activity stops..

hmmmm - maybe we need to replace FRNs with local currencies...

andrewbyrd s1lverbullet · Sep 3, 2015 - 12:11pm


Thank you for explanation. Much clearer now. Sometimes I really wonder how much longer this can continue with all that is happening around the world. So many countries currencies falling in value now. Just wreaking havoc on the common people.

Stackable · Sep 3, 2015 - 12:20pm

Where is the gold?


I think you are making a logic error in your presentation. You are assuming that JPM can only deliver gold from their own vault. Also, the term "delivery" does not involve the use of trucks to actually move gold around. As far as I can tell, "delivery" is just the other side of "stopping". "Stopping" or "delivering" a gold futures contract, simply implies the change of ownership of some gold in some vault - a warehouse receipt. So, who is to say that JPM actually owns the gold in their vault and doesn't own the gold in the HSBC vault? In fact, I remember a while back, you were documenting how JPM and HSBC were trading warehouse receipts back and forth by stopping and delivering on alternate delivery months. And where did GS put their gold? They don't have a vault. So, the real story here is that these banks are just trading back and forth with each other. It doesn't matter where the gold is.

canary · Sep 3, 2015 - 12:23pm

I just want the Stock Market to crash...

...and to become a funny part of the National Museum......That's all folks.

andrewbyrd Libertybella · Sep 3, 2015 - 12:23pm


It's atrocious the grip these pos bankers have on society. 20 years ago usury existed in the financial world with interest over 20%, now 30% for a used car loan is the norm. Last year when I tried to buy a used tractor (big truck), the bank wanted to charge me 15% interest for a 75k loan with me putting down 20K. I basically told them to f>ck off. That's with above average credit score. Just remember all those truckers on the road. 90% of the independent/owner operators are up to their necks in debt and pay huge amounts of interest every single year they are in business. That is pure and simple usury by any definition with prime around 2 or 3% or whatever it is. 

Bottom line is, most people don't care about the future. I trade my mechanic skills for other skills that people can offer. No money exchanges, just trades. It works great. Sorry, but we live in a throw away society. Just buy a new pos from china when this one breaks. People can still vote with their dollars but choose not to because they don't care. jmo

benque · Sep 3, 2015 - 12:26pm

Libertybella, don't forget

John (roofer) has a IOU equal to the worth of a roof minus continuous depreciation (known as inflation).

tyberious · Sep 3, 2015 - 12:31pm

Turds everywhere

Turd Ferguson: Hyperinflation And Economic Collapse Coming To U.S.

from The Victory Report:

Turd Ferguson: Hyperinflation And Economic Collapse Coming To U.S.
aachilles · Sep 3, 2015 - 12:34pm

Doesn't anybody care?

Great stuff and very important. What is most disturbing as Turd noted is that very few people outside of a tight knit group of PM watches seem to care!! Where is the outrage? I hope this gets some circulation from the BSDs like Sprout. Nice catch Turd.

cashonly · Sep 3, 2015 - 12:36pm

is it possible

that no gold is actually moving at all? maybe there is no gold to move? 

There sure are lots of numbers moving around, just like Bernie Madoff's customer statements!!

Marchas45 · Sep 3, 2015 - 12:36pm


3 weeks in a row. I log onto the A2A and I can't hear a damn thing, nothing, nada. Speakers work fine. Must be something on your end. It also say's I'm muted. Lol Me with the big mouth . Lol Keep Stacking

MrC · Sep 3, 2015 - 12:54pm

A2A works fine here. do you

A2A works fine here. do you have the right output selected for your speakers?

tyberious · Sep 3, 2015 - 1:08pm

RE: is it possible

As Holter said, "something happened" and it could that there is no metal to be delivered from the LBMA, see Jeff Nielson Gold War III: What’s Next?.

Again, Willie was right, no deliveries on the Comex since 2012.

Dr. P. Metals · Sep 3, 2015 - 1:15pm

This seems to lend credence

To @SS's theory

jaw777 · Sep 3, 2015 - 1:24pm

I get it, but I don't

So my understanding is that this charade and fraud is kept going so the COMEX can claim to have a connection to silver and gold and set the price. Delivery = Price discovery, but there are no deliveries.

So is anyone actually buying any silver or gold anywhere? Does that mean there is less demand than we might want to believe? If they are buying it somewhere else, where is it and what are they paying for it?

Dr. P. Metals · Sep 3, 2015 - 1:33pm


Yes pretty bizarro... Nothing makes sense, even the analysis doesn't make sense (real world wise). I frankly can't find ANY finance info, on any site, about any maket that "makes sense". Oil going up and down 10% PER DAY!! And nothing breaks???

This is all seeming like a really bad version of the Truman show (if I recall the name of the movie right?)

Dr. P. Metals · Sep 3, 2015 - 1:40pm

Gold is

"Off the lows" lolz

Marchas45 · Sep 3, 2015 - 2:03pm

Charlie, I saw your note but

Charlie, I saw your note but the audio was working fine for everyone else on the call. It almost has to be a setting on your end.

Sorry for the inconvenience.

Stackable · Sep 3, 2015 - 2:05pm

That's just it!

Of course there's no gold!

Of course it's all a scam!

I wrote this post with the intention of making it public tomorrow. It's laid out in a way...not to make it understandable for the majority of those here who already realize this. Instead, this is for the general public and shills who still cling to the belief that the Comex is free and fair, honest and transparent.

tyberious · Sep 3, 2015 - 2:05pm

My take

Bullion Banks and associated Hedge Funds along with algos simply trade back and forth, churning. The BB take turns stopping and issuing, circle jerk is what I've called it. Anyone foolish enough to try the Crimex casino and actually hold a contract until expirery, will be cashed settled, as there is no metal. 

arch stanton · Sep 3, 2015 - 2:12pm

Great A2A

Had to be the holy grail at 2 hours. Marchas I'm with you on logging in for the last few a2a's, I just kept quitting and re-logging in and it comes up just before the start.

Mickey · Sep 3, 2015 - 2:17pm

internet connections can cut out streaming

some problems come from old equipment--models decline in quality over time (3-5 years) as do the routers and wifi. Every few years its a good idea to replace that hardware with new stuff which is better tech anyway.

I also raised my internet speed to 100mps--works like a charm. get 120, more than I need but its clean.

boomer sooner · Sep 3, 2015 - 2:24pm

Just tweeted by Goldmoney

Dealing Desk: Silver back in the spotlightBy KellyAnn KearseyIt has been silver’s turn to shine this week, as it was a clear buying favourite amongst GoldMoney’s customers. Dealing Manager at the online precious metals trader, Kelly-Ann Kearsey said, “Gold rallied to a one week high on Tuesday before slipping back again, but it’s treading water right now. Silver has been far more interesting and is coming from a relatively low price base." “Gold’s furtunes were hit by a stronger dollar as a result of strong US jobs data. It has given hope to a more imminent rate rise in the US, despite warnings from the IMF that the US and UK should not be in a hurry to raise interest rates while potential repercussions from the Chinese economic slowdown play out." “While, on the one hand, the Chinese downturn could boost gold’s safehaven appeal, the fact that China is the world’s largest consumer of the yellow metal may result in a reduction in demand." “There has been the usual flow of metals from the west to the east, but the one new trend we saw last week, which has continued, is an increased interest in physical gold bullion delivery. We have also noticed plenty of customers funding their accounts so that they’re ready to purchase, which is positive. All in all though, it has been silver’s week with more people buying the industrial metal than its higher value yellow cousin.” Week on week price performances 03/09/15 16:00. Gold up 0.1% to $1,124.16, Silver increased 2.5% to $14.68, Platinum gained 1.1% to $1007.50 and Palladium jumped 5% at $582.47. Gold/Silver ratio: 76

lnardozi · Sep 3, 2015 - 2:28pm


heh. Click the little speaker icon and take it off mute!

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