Guest Post: "The Comex Is Facing A Gold Crisis", by Dave Kranzler

86
Tue, Sep 8, 2015 - 9:28pm

Today, the level of fraud and deceit on the Comex reached a new record. I was going to spend some time this evening writing on this subject but, fortunately, our pal "Denver" Dave Kranzler beat me to it.

This all stems from today's CME Gold Stocks report. It is posted below and you just need to click on it to enlarge it:

Be sure to notice several very important items:

  1. JPM saw an eligible withdrawal of 89,425 ounces
  2. JPM also reclassified ANOTHER 122,124 ounces from registered to eligible
  3. This leaves JPM's ENTIRE REGISTERED VAULT with just 19,718 ounces or only enough gold to physically settle 197 Comex contracts
  4. And the TOTAL Comex registered Vault reaches what may be a new alltime low of just 202,054 ounces. Considering that last night's total open interest was 419,002 contracts, this leaves the Fraudulent Viper Den with a "coverage ratio" of an incredible 207:1...open interest ounces vs registered and available for delivery ounces.

This new low in registered gold, taken in tandem with Ronan Manly's terrific expose on the lies and fraud of the LBMA (https://www.bullionstar.com/blogs/ronan-manly/how-many-good-delivery-gol...), should leave everyone wondering just how much longer The Evil Bullion Banks will be able to maintain the charade.

TF

"THE COMEX IS FACING A GOLD CRISIS"

by, Dave Kranzler of https://investmentresearchdynamics.com

Sure, you can’t eat a bar of gold and it just sits in storage like a Pet Rock that’s been cast aside by its bored owner. But try selling the Indians or Chinese a paper gold bar and see how far you get. You might end up with a knife in your forehead.

The stench has been growing stronger by the day. Many of us have been writing for years about the extreme imbalance between the paper futures open interest vs. the underlying amount of gold being reported as available for delivery. The latest disclosure from the CME is that the ratio of paper gold vs. the amount of deliverable ounces has spiked to over 200:1.

As of last Friday, JP Morgan had 89.4k ounces withdrawn from the “customer”/ eligible account in its vault and it moved 122k ounces of gold from its “deliverable”/ registered account into its customer account. What the true nature of those transactions were – i.e. who the counterparties were and did in fact any real gold actually leave JP Morgan’s gold vault – is anyone’s guess due the intentional opacity of disclosure on the Comex.

But the bottom line is that, as of last Friday, the Comex vaults collectively now show 202k ounces of gold in the “registered” / deliverable accounts of the Comex vault custodians. As of today’s trading, the “preliminary” gold futures open interest rose to 419k contracts representing 41.9 million ounces of paper gold. This would, preliminarily, put the ratio of paper gold to deliverable physical gold at an astonishing 207:1 ratio.

The amount of “deliverable” gold on the Comex is the lowest that I’ve seen it in the time I’ve been following the Comex data avidly since 2002. Please note that the preliminary open interest is almost always revised, most typically a bit lower, by the time the Final report is issued the next day. But based on many years of tracking this data, it is likely that any revision will not move the “needle” on that 207:1 ratio by much in either direction.

Nothwithstanding all the other information contained in this disclosure, this number represents the confirmation that the Comex is nothing more than a pure paper gold market. It’s nearly 100% derivatives. It’s the imposition of derivatives by the Fed and the U.S. Treasury – via their agent bullion banks – on the gold market in order to control the pricing discovery mechanism.

In other words, the Comex gold market is now a 100% artificial gold market.

I find it it quite interesting that the elitists overseeing this operation on the Comex are willing to advertise the 200:1 paper:gold ratio when they have the means at their disposal to hide that number or to make it look a lot smaller.

There’s some kind of message they’re sending to anyone who cares about this sort of thing. It’s either “f*ck you” we’re in control” or “help, we’re in trouble on our paper gold short position.” Or a combination of both.

The implications embedded in all three of those possibilities are quite horrifying to contemplate.

It’s quite obvious that there’s a problem with the supply of physical gold that is readily available for delivery. The same is true of the retail silver market, in which available supply at the retail level shrinks by the day. Premiums on a simple roll of 20 silver eagles are now over $5 at big coin dealers claiming to have inventory. Most dealers have been wiped out of most if not all of their entire inventory of silver SKU’s.

In my opinion, that head-splitting 200:1 ratio of paper to deliverable gold on the Comex is the surest sign that the market for gold and silver is in crisis mode. The term “crisis” also describes the state of condition of the U.S. stock market and, ultimately, the entire current U.S. financial and economic system.

About the Author

Founder
turd [at] tfmetalsreport [dot] com ()

  86 Comments

LostMind
Sep 8, 2015 - 9:36pm

First!!

Snap...

sellersjk
Sep 8, 2015 - 9:41pm
hammerman
Sep 8, 2015 - 9:41pm

2nd

2nd where is everybody?

tyberious
Sep 8, 2015 - 9:42pm

First?

First, to fully read the post!

Nephi
Sep 8, 2015 - 9:47pm
Fred Hayek
Sep 8, 2015 - 9:53pm

So, that staid, conservative 124:1 ratio needed to be geared up?

At what ratio would the world of finance admit that it's a fraud?

This is one of those questions that can't actually be asked, isn't it? Because the only way for the mainstream media to deal with the ludicrously fraudulent nature of the Comex is to not talk about it, isn't it?

pm_newbie
Sep 8, 2015 - 9:59pm

the watch tower

thanks for all you do Craig and continuing to man your post.

Fred Hayek
Sep 8, 2015 - 10:06pm

Exactly

Why not 500:1 or 1000:1?

Frankly, it doesn't matter to those people. It's the Comex price...so...it's the price. It could be ∞:1 and they wouldn't care.

4 oz
Sep 8, 2015 - 10:25pm

207:1???

So my question is---Just how long can stupid things keep going on...?

Mickey
Sep 8, 2015 - 10:50pm

hell

pretty soon I could buy a few contracts and stand for delivery & upset the comex. Not sure I would want to draw attention.

Key Economic Events Week of 10/21

10/22 10:00 ET Existing home sales
10/24 8:30 ET Durable Goods
10/24 9:45 ET Markit flash PMIs
10/24 10:00 ET New home sales
10/25 10:00 ET Consumer Sentiment

Subscribe or login to read all comments.

Contribute

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 10/21

10/22 10:00 ET Existing home sales
10/24 8:30 ET Durable Goods
10/24 9:45 ET Markit flash PMIs
10/24 10:00 ET New home sales
10/25 10:00 ET Consumer Sentiment

Key Economic Events Week of 10/14

10/15 8:30 ET Empire State Fed MI
10/16 8:30 ET Retail Sales
10/16 10:00 ET Business Inventories
10/17 8:30 ET Housing Starts and Bldg Perms
10/17 8:30 ET Philly Fed MI
10/17 9:15 ET Cap Ute and Ind Prod
10/18 10:00 ET LEIII
10/18 Speeches from Goons Kaplan, George and Chlamydia

Key Economic Events Week of 10/7

10/8 8:30 ET Producer Price Index
10/9 10:00 ET Job Openings
10/9 10:00 ET Wholesale Inventories
10/9 2:00 ET September FOMC minutes
10/10 8:30 ET Consumer Price Index
10/11 10:00 ET Consumer Sentiment

Key Economic Events Week of 9/30

9/30 9:45 ET Chicago PMI
10/1 9:45 ET Markit Manu PMI
10/1 10:00 ET ISM Manu PMI
10/1 10:00 ET Construction Spending
10/2 China Golden Week Begins
10/2 8:15 ET ADP jobs report
10/3 9:45 ET Markit Service PMI
10/3 10:00 ET ISM Service PMI
10/3 10:00 ET Factory Orders
10/4 8:30 ET BLSBS
10/4 8:30 ET US Trade Deficit

Key Economic Events Week of 9/23

9/23 9:45 ET Markit flash PMIs
9/24 10:00 ET Consumer Confidence
9/26 8:30 ET Q2 GDP third guess
9/27 8:30 ET Durable Goods
9/27 8:30 ET Pers Inc and Cons Spend
9/27 8:30 ET Core Inflation

Key Economic Events Week of 9/16

9/17 9:15 ET Cap Ute & Ind Prod
9/18 8:30 ET Housing Starts & Bldg Perm.
9/18 2:00 ET Fedlines
9/18 2:30 ET CGP presser
9/19 8:30 ET Philly Fed
9/19 10:00 ET Existing Home Sales

Key Economic Events Week of 9/9

9/10 10:00 ET Job openings
9/11 8:30 ET PPI
9/11 10:00 ET Wholesale Inv.
9/12 8:30 ET CPI
9/13 8:30 ET Retail Sales
9/13 10:00 ET Consumer Sentiment
9/13 10:00 ET Business Inv.

Key Economic Events Week of 9/3

9/3 9:45 ET Markit Manu PMI
9/3 10:00 ET ISM Manu PMI
9/3 10:00 ET Construction Spending
9/4 8:30 ET Foreign Trade Deficit
9/5 9:45 ET Markit Svc PMI
9/5 10:00 ET ISM Svc PMI
9/5 10:00 ET Factory Orders
9/6 8:30 ET BLSBS

Key Economic Events Week of 8/26

8/26 8:30 ET Durable Goods
8/27 9:00 ET Case-Shiller Home Price Idx
8/27 10:00 ET Consumer Confidence
8/29 8:30 ET Q2 GDP 2nd guess
8/29 8:30 ET Advance Trade in Goods
8/30 8:30 ET Pers. Inc. and Cons. Spend.
8/30 8:30 ET Core Inflation
8/30 9:45 ET Chicago PMI

Key Economic Events Week of 8/19

8/21 10:00 ET Existing home sales
8/21 2:00 ET July FOMC minutes
8/22 9:45 ET Markit Manu and Svc PMIs
8/22 Jackson Holedown begins
8/23 10:00 ET Chief Goon Powell speaks

Recent Comments

by Montross515, Oct 21, 2019 - 9:37pm
by AGAU, Oct 21, 2019 - 8:17pm
by Montross515, Oct 21, 2019 - 8:13pm
by metallionnaire, Oct 21, 2019 - 7:47pm

Forum Discussion

by Trail Trekker, Oct 21, 2019 - 10:38pm
by Trail Trekker, Oct 21, 2019 - 8:49pm
by admin, Oct 21, 2019 - 6:49pm
by admin, Oct 21, 2019 - 6:44pm