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As of last Friday, JP Morgan had 89.4k ounces withdrawn from the “customer”/ eligible account in its vault and it moved 122k ounces of gold from its “deliverable”/ registered account into its customer account.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

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  86 Comments

  Refresh
Sep 9, 2015 - 3:29pm

Today's leverage is 227:1

The Scoche moved about a half ton from reg to eligible and this dropped total reg to A NEW RECORD LOW OF JUST 185,314 ounces.

Safety Dan
Sep 9, 2015 - 3:24pm

Holter and Sinclair..

Holter and Sinclair..

Bill Holter: Something Snapped and The Fed has Lost Control

Holter: If, and [BIG] if Fort Knox has ~8000 tonnes of gold, physical gold (considering GDP to debt and total derivatives) gold = $50,000 / oz; minimum! Anything less than the purported 8000 it goes north of 50k proportionate per tonne, bar, etc. If no gold in Fort Knox, then physical gold is priceless ..

Jim Sinclair-Silver Will Be Gold On Steroids In Coming Rally

Sinclair: The coming [gold] rally is the one you don't sell. On the market and the economy, "It's all PSYOPs."

Safety Dan
Sep 9, 2015 - 3:22pm

The Last Honest Fed Chairman

The Last Honest Fed Chairman explains:

Paul Volcker: Gold Was the Enemy

“Gold was the enemy to me because that was a speculative vehicle while I was trying to hold the system together. [The speculators] were on the other side.”

Then and now, the gold price is viewed as the inverse price of the confidence in the system. If gold is high, it usually means something is amiss. In Volcker’s time, the high inflation and budget deficits of the 70s propelled gold from a low of $35 before 1970 to a high of $668 in 1980.

https://www.theepochtimes.com/n3/1299447-paul-volcker-gold-was-the-enemy/

Sep 9, 2015 - 3:16pm

Fresh from Bill H

We have a very important inflection point coming next week with the Fed meeting. I believe the inflection point has already been reached a few weeks back but next week may be the final straw. Will the Fed raise rates to "save face" and try to stem the loss of credibility? Or will they remain "patient" (cornered) and realize they cannot raise rates without razing the entire building? Before getting to the rate hike thoughts, a bit of backdrop is needed. World equity (and credit/currency) markets are in disarray. 20-40%+ drops in equity bourses around the world are now common. In plain English, the world is already in a bear market of significant historical proportions. Credit markets particularly in Europe are showing signs that illiquidity is taking over. The German bund trading to .8% up from nearly 0% is just one illustration. In the U.S., the 10 year Treasury is now moving through the 2.23% level to the upside which has been strong resistance. I believe a close over 2.4-2.5% will be a stake in the heart of American credit. I say this because we already have real estate markets stretched and higher mortgage rates will lower "purchasing power" of new buyers. As for autos, higher rates almost don't even matter because what was once less than a 5 year loan market is now 7 years with negative equity to start, laughable! Non financial yes but of very high importance are the now FOUR chemical plants explosions/four immediate retaliations (have you even heard of the latest explosion in Minnesota? https://kfgo.com/news/articles/2015/sep/07/natural-gas-pipeline-explodes... ). Could it be sabotage on the ground? Yes of course it could. Could it simply be coincidence ...after coincidence? I leave that to you. Say whatever you would like, something very odd is occurring with regularity and the case can be made a new type of weapon is being used. I believe the public has not been informed or able to keep up with warfare technology. Whatever the "cause", it is safe to say we are in the "sparring" stage prior to war. One other area to look at before we get back to the Fed is the COMEX gold circus. Registered gold available for delivery by dealers has dropped significantly because of last month's deliveries https://www.zerohedge.com/news/2015-09-09/something-just-snapped-comex . The total is now about seven tons left (JP Morgan has less than 1 ton) which leaves total contracts divided by deliverable gold at the crazy multiple of 207 potential claims for every deliverable ounce: ...now 207! This is beyond dangerous and now means a paltry $250 million is enough to clean out the vaults! I have said for about two years, "force majeure" would be the end game and it certainly looks more and more likely. To put this in perspective, this amounts to about 6 hours (or less) worth of interest the U.S. must pay on its debt. To point out the obvious, you probably sleep more hours each day than this! As for the Fed, they are well and truly STUCK! Their meme of being patient and "we're gonna gonna gonna raise rates" has gone about as far as the world will allow. They simply cannot raise rates with the current externals. The 2007-2008 "solvency problem" was medicated with more liquidity. Today the problem is not just solvency, liquidity has steadily dried up all over the world. A Fed rate hike is "tightening" credit no matter what the blowhards on CNBC want to tell you. Equity and credit markets are suffering from illiquidity and non existent volume. TAKING MORE CAPITAL OUT OF THE SYSTEM WILL ONLY MAKE IT WORSE! Please note, we have not even mentioned derivatives which all have an interest rate assumption in them ...how many do you suppose have been written over the last five years with a rate higher than 0-.25%??? Any rate hike by the Fed will burn the entire house down! Stocks will crash. Credit will cease to trade, be issued or forwarded. Derivatives will blow up and calls for physical product on the commodity exchanges will be issued. How far do you believe seven tons of gold can be spread out? Not going very far out on a limb, if the Fed does raise rates next week, I do not believe markets will stay open more than two weeks at most. Going out on a speculative limb, many of you know I have spoken of a potential "truth bomb" being dropped on the world by Mr. Putin. Sergei Glayzev has said as much several times. How ironic would it be if this truth bomb was actually dropped on 9/11? Might this fulfill and bring true the Shemitah? No, I'm not off my rocker, events are now gathering to hit all at once. Multiple explosions back and forth, Russia building bases in Syria, Obama's Iran nuke deal, bear markets all over the world, credit illiquidity, currencies experiencing 5+ sigma events time after time, central banks losing faith at every turn, and topped off with COMEX inventories of gold pulling a disappearing act? Can the Fed really raise rates? Do they have the ability to "buy" everything that will be sold? How will they "buy" dollars themselves? Can they buy homecoming dollars using new dollars? Everything will need to be supported and nothing can be allowed to fall. You must ask yourself this, can you go to sleep for eight hours and expect everything to be the same "normal" as when you went to bed? I leave you with this seemingly unrelated question. If we are truly at war with China, either financially or militarily. How many American companies produce the bulk of their product (OR ALL!) via Chinese manufacturing? If hot war does break out, will China continue to deliver product as if business as usual? What would the stock price of Apple be if China decided to no longer produce I-phone parts or units? I guess the best question would be, is there a bigger word than "crash"? Standing watch.

Bluebellkid
Sep 9, 2015 - 3:09pm

Received this info from Texas Precious Metals today...

Silver Shipment Just Arrived: TX Rounds, Maples, Eagles, More . . .

Announcement:

Today, we received a shipment with the following silver inventory:

————

*These coins will be sold on a first come, first serve basis.

2015 Texas Silver Rounds: (10,000 ozs available)

2015 Canadian Silver Maples: (10,000 ozs available)

2015 Austrian Silver Philharmonics: (25,000 ozs available)

2015 American Silver Eagles: (25,000 ozs available)

2014 1/2 oz Australia Sister Cities: (25,000 ozs available)

We are working to secure more silver inventory and will update our clients as products become available.

Sincerely,
Texas Precious Metals

Safety Dan
Sep 9, 2015 - 3:08pm

Is the dollar-gold price

Is the dollar-gold price controlled by JPM in cooperation with the BIS?

07/08/2015

Nico Simons

To get an answer on this question we have to analyze what is happening on the gold market.

Do the notional amounts in paper tons gold through the years of JPM fit in the figures of the BIS?

Source: OCC’s Quarterly Reports, Annual Reports BIS

BIS notes to the financial statements on derivative financial instruments

https://beurs.com/2015/08/07/is-the-dollar-gold-price-controlled-by-jpm-...

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

andrewbyrdMickey
Sep 9, 2015 - 3:08pm

7 stocks

That's my point. I despise these companies, especially Elon Musk's companies. I wouldn't own a share in a single one of them but it doesn't matter because these companies are the market. He is nothing but a fraud. Solarcity makes nothing of value. Just leases solar panels which probably cause one's home to depreciate over time. Tesla nothing but a high end electric vehicle for the west coast elite. His companies burns through hundreds of millions of dollars every quarter but no problem. It's greatly bothersome to watch these companies scream higher year after year.

andrewbyrdAntony von Clearwell
Sep 9, 2015 - 3:02pm

sentiment

Don't think so. Negative or positive sentiment doesn't matter anymore. It's not a reading of any future direction in any market. Sentiment is always negative this time of the year because the economy is going to collapse and the world as we know it is going to change for any number of reasons. I won't list all the world events over the last 4-6 years which should have ignited some sort of change. It never happens. I don't believe this time is any different. Debt to GDP levels make no difference anymore, gold leverage ratios/retail or wholesale shortages seems to have no positive effect on price. Totally managed.

Bottom line is 99% of people (western cultures) today have no idea and no interest about what real money is. Only thing that matters are sports, restaurants, tv series, electronic gadgets and a new car every couple of years. That's it.

Safety Dan
Sep 9, 2015 - 3:01pm

Fractional Reserve Gold.... Kyle Bass

Just for reference, 1.5 minutes of Kyle Bass on comex delivery, comex audits, and fractional reserve gold.

https://youtu.be/lgNVNTvlpFY?t=32s

Mickey
Sep 9, 2015 - 3:01pm

miners

you know the market is screwed up when the gdx pops up over 1% in 2 minutes of trading-gdx, an etf of something like 20 miners

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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

Key Economic Events Week of 3/2

3/2 9:45 ET Markit Manu PMI
3/2 10:00 ET ISM Manu PMI
3/2 10:00 ET Construction Spending
3/4 8:15 ET ADP employment
3/4 9:45 ET Markit Service PMI
3/4 10:00 ET ISM Services PMI
3/5 8:30 ET Productivity & Unit Labor Costs
3/5 10:00 ET Factory Orders
3/6 8:30 ET BLSBS
3/6 10:00 ET Wholesale Inventories

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