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As of last Friday, JP Morgan had 89.4k ounces withdrawn from the “customer”/ eligible account in its vault and it moved 122k ounces of gold from its “deliverable”/ registered account into its customer account.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

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  86 Comments

ReachWest
Sep 8, 2015 - 11:03pm

Flagrant, Shameless, Brazen

Flagrant, shameless and brazen.

I sincerely doubt 'they' give a rats ass anymore about hiding the fact that this whole charade is a joke. One that they are profiting tidily from. So .. my feeling is that the message 'they' are sending is of the "f*ck you .." variety.

tyberious
Sep 8, 2015 - 11:20pm

Words Of Wisdom From The

Words Of Wisdom From The Second Worst President

by stevengoddard

In 1976, Jimmy Carter said the world would run out of oil by 2010, so we need to switch to coal. TimesMachine: September 24, 1976 - NYTimes.com

Read more of this post

SS121
Sep 8, 2015 - 11:24pm

the comex, as i understand it...

is like S.W.I.F.T in that it just facilitates the tracking of buyers and sellers. So even if you do "take delivery" you are taking delivery from a seller via the comex, not taking delivery from the comex. (similar to a consignment lot for used cars)

...which is why the comex, as a facilitator, put it in writing that contracts may be settled in cash by the comex. ...in case the seller turns out not to have any phyzz to deliver.

The big sellers like mines and refineries do run their deals thru the comex and then all the other stuff is just big bank fiat paper drills.

and none of any of this has anything to do with the formulation of the price on the live silver and gold charts, an assertion for which i have presented much evidence in support of and seen NONE presented against.

- - -

another nuance of the comex is it's "warehouse".. (warehouse accounts)..

this is where the comex could enter fiat oz. of metal that is being held by people who have "taken delivery". Let's say JPM "takes delivery" of 2 zillion ounces of gold. that could go into their comex warehouse account, either as fiat or phyzz. It could then be caterized as deliverable, non-deliverable, or whatever.

but does the ratio of the amount of ounces labelled deliverable to amount of outstanding contracts, or the ratio between Y and Z or P and Q within the comex have anything to do with anything??? imo, not even almost.

the P to Q ratio is at an all-time low... so what? What exactly does that mean? Are there accountable objective logical processes at play? "well that would indicate blah blah blah... ... " but blah blah blah is just some more superstitious correlating factors being misidentified as causative factors. Again.

All Comex stuff can be settled in cash and it doesn't mean there was a default. It's the rules. In black and white.

So we swallow these giant camels....

  • all can be settled in cash

  • no evidence of trading formulating chart

  • the warehouse and it's metal are fiat

  • any manipulation of any part of it, including the chart, has been legal since the 1930's

...and then choke on a little gnat like

  • some meaningless internal ratio might be a little off??

Either we as a metals community have really lost our way, or my understanding the comex and it's legitimacy is completely ass-backwards. idk

But one thing i do know...

If there is EVER a comex "default" it is because TPTB needs people to read the headline "Comex Default" prior to a metals chart revaluing or reflagging, (like w/ the cny 4 e.g.)

Joseph Warren
Sep 8, 2015 - 11:38pm

I guess they figure they can do whatever they want

and even admit it to everyone, with no consequences for them.

Here's an experiment -

Explain all this to a non 'gold bug' member of your extended family.

See that blank look on their face and attitude of indifference ?

Next explain all this to your dog or cat.

Same blank look and attitude of indifference, right ?

That'll all change when the above get hungry after the Ponzi crashes and the supply chains are disrupted. (Well, maybe except for the cat. They can be pretty good hunters and fend for themselves. He'll still give you the indifference look.)

P.S. - some are so clueless that they can't imagine why They try to spy on everyone, everywhere, all the time. And, they can't imagine why the government is in multiple wars or why the police have been militarized. Gotta do anything & everything to keep the Ponzi going. Of course, when a scam crashes, hungry & angry people likely get very 'motivated'.

I need a beer.

Mickey
Sep 9, 2015 - 12:08am

and the answer is 210

the question is?

Mickey
Sep 9, 2015 - 12:09am

Question is

what is 42,400,000 divided by 202,000?

Mickey
Sep 9, 2015 - 12:14am

correct ratio?

why not use the banking fractional reserve ratio of 10:1

so 42 million oi would be 4.2 mil ounces registered--which is still a big shortfall.

How about cash and carry 1:1?

think of the current situation this way. If the comex was an airline it would be overbooking at the 201:1 ratio--the 737 with 135 seats would have 27,135 seats sold. That would make the boarding gate look like Siagon when the last helicopter left.

canary
Sep 9, 2015 - 12:15am

What is the proper ratio?

We need to direct this question to:

1. Jeff Christian, the Managing Partner of CPM Group,

2. Terrence Duffy....the Honorable Chairman and Director of CME.

Or whoever is in charge of that show now.

Safety Dan
Sep 9, 2015 - 12:47am

Japan Issues ID Card

Japan Issues National ID Card That Links Bank And Vaccine Records To Government Database

Posted under WORLD on September 8th, 2015 by Thomas Dishaw

(Thomas Dishaw) Japan is considering mandatory personal ID’s for its Citizens by 2021 that link your personal bank account, health, and vaccine records to a centralized Government database. This means every financial transaction can be monitored for tax fraud, and vaccination records can be monitored for compliance.

My Number, the latest big brother tracking grid, is live and completely voluntary according to the Japanese Government. The roll out is aimed at stopping fraud, the likely excuse used by every Government, to force us into the inevitable big brother tracking system where Government can track every purchase and follow you in real-time with RFID tracking chips embedded in your card.

The 12 digit tracking system will store all personal information like date of birth, address, race, gender and most likely political affiliation. My Number, will also double as bank card that can be linked to your personal account where all transactions will be monitored. Health and vaccination records will also be stored on the card where compliance will be monitored and welfare benefits will be loaded on your card to prevent fraud. It sounds like Japan just quietly rolled out the first full-fledged National Id Card, something the US has been trying to get off the ground for years, don’t you get the feeling the Chinese are so far ahead of us on every front?

And it gets worse. Japan’s Governing body “The Diet” recently ruled you have no right to your own personal information, amending the law on private information protection, allowing companies to use personal data even without people’s consent if the data is processed to ensure anonymity of information reports the Japan Times.

The good news is not everyone in Japan is on board with the new system, there has been major opposition to the Government having access to all your personal data, citing data breaches and misuse of personal information. But this in no way will stop or slow down the inevitable.

The Finance Ministry of Japan has also branded My Number as a rewards card where you can get up to 2% cash back and earn points for all your purchases that will then be deposited into your pre-registered bank account per the Japan Times report:

Under the ministry’s plan, consumers would be required to pay the 10 percent tax rate on all goods, but would be eligible for refunds on the 2 percentage point tax hike portion for some products.

The reduced tax rate of 8 percent would be applied to all food and beverage items, except alcoholic drinks, when the tax rate is increased to 10 percent in April 2017.

To facilitate the refund, people would present their 12-digit My Number card, which will be distributed to all residents in Japan from next January, to make purchases.

The government would then use My Number to collect and store purchase data, while taking strict information protection measures to prevent personal data leaks, the sources said.

Names, addresses and birth date information on the cards, which have been created as part of a centralized system for tax and social security, would not be read, the sources added.

Purchase data would be converted into points, with consumers required to go online to determine how much they will receive in refunds from their points.

They would then need to apply for a refund, which would be deposited into a pre-registered bank account.

Leave it to Japan to quietly usher in the most complete tracking system on the planet since Facebook, something the United States hasn’t been unable to do in an efficient manner. The closest thing we have is the NSA but they don’t issue cards, press releases or offer 2% cash back for tracking our purchases, they just continue to monitor everything you do in real-time and then deny they are spying on you.

https://thomasdishaw.com/japan-issues-national-id-card-links-bank-vaccin...

@Rakka, are you in Japan? Is there others in Japan that can expand on this article?

Mickey
Sep 9, 2015 - 12:51am

Off Track Betting

When I was growing up in the early 1950's there was, uh, off track betting everywhere. I made some money by being a runner for the Chicago mob. I did not know it then. I was given a list of stores and told to "pick up the lettuce". I picked up paper bags with money in them. I liked it, it was easy money.

The games were played via the retail stores, a customer could come in and buy a ticket on a bet. if he won he would go back and be "cash settled". There was a lot of "trust" with the system as I learned later as if the store keeper had his finger in the jar, there was an explosion in the store. The house always paid off but always won.

How different is the comex?

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