Connecting The Comex Dots

Tue, Feb 2, 2016 - 3:33pm

Last week, there was a lot of hubbub regarding the record low Comex registered gold inventory. At the time, we suspected that the vault movements were due to December "deliveries" and today we got our answer.

Before we start, please go back and review this article from one week ago. We rushed to get it published last Tuesday as it was important for everyone to understand the context and likely rationale for the movement of the "gold" that left the registered vaults at an all-time low.

  • At the time we speculated this:

    "So, here is how I think this all comes together and why I caution you against jumping to conclusions today.

    Go back up and look at how much gold was reclassified yesterday between Brinks, HSBC and The Scoshe. Notice that the total is 201,345 ounces.

    And how much "gold" did JPM allegedly deliver to their own, proprietary account back in December? Again, that number was 202,100 ounces.

    And we went the entire month of December and all of January without seeing ANY sizeable deposits into JPM's Comex gold vault. JPM booked in one of those perfect and precise, two metric ton jobs back on January 4. This raised their total Vault to 409,396 ounces. On today's report it's still just 409,195 and still shows just 7,774 ounces of registered.

    So, here's what I suspect...

    This movement today of 201,345 ounces, out of registered and into eligible at Brinks, HSBC and Scoshe, is the actual "delivery" of "gold" for JPM from December. JPM now holds this "gold" in warrant or warehouse receipt form in their competitor's vaults and it's all in the eligible category. As February "deliveries" begin later this week, DO NOT BE SURPRISED if JPM now becomes the issuer with HSBC and Scotia taking "delivery". This would fit the pattern of the continual and endless, circle jerk parade that creates the illusion of physical delivery on the Comex and allows the exchange to claim and maintain dominion over the price discovery process.

    One final item, however, and this is important: Again, let's wait to see what the Gold Stocks report shows tomorrow. Perhaps JPM will book in these ounces after all and place them back into the registered category. IF THEY DON'T, then we have another data point on the long list of signals indicating physical tightness in the global gold market. As recently as 2009, The Comex showed over 5,000,000 ounces of registered gold in its vaults. As recently as one year ago, the total Comex registered Vault exceeded 1,000,000 ounces. As of today, that number has fallen to a new all-time low of just under 74,000 ounces."

    With today's latest CME Gold Stocks Report, it appears that this is precisely what transpired.

    Again, the important points are these:

    1. The proprietary account of JPMorgan stopped (took "delivery") of 2,021 Dec15 gold contracts during the delivery month of December.
    2. No gold was moved at all during December.
    3. Suddenly last Tuesday, 201,345 oz get reclassified from registered to eligible at Brinks, HSBC and Scotia. See below:

    And now look what was reported today. The latest Gold Stocks report shows ALL of that same gold finally being moved from Brinks, HSBC and Scotia. And where did it go? Directly into the eligible vault of JP Morgan. Note that JPM also booked in another one of those perfect and precise, 3 metric ton jobs, too:

    So, this obviously connects all of the dots. JPM stopped over 200,000 ounces of gold for itself back in December and, just today, they finally booked in the gold, having it sent over from the House Accounts of HSBC and The Scoshe. This still leaves two important points, though:

    1. Once again, the Comex delivery process is shown to be nothing but a Bullion Bank Circle Jerk where a bank takes delivery one month, only to turn around and issue the gold back out the next. Rarely does gold ever actually leave the Comex vaulting system and, today's action notwithstanding, rarely does it even move from vault to vault.
    2. Total Comex registered gold remains at all-time lows. Though some gold has recently been re-classified from eligible to registered as Feb16 deliveries begin, the total Comex registered gold vaults still hold just 145,000 ounces with 3,687 Feb16 contracts still open and standing, representing as much as 368,700 ounces of delivery obligations.

    As usual, we'll continue to monitor this entire charade closely as the month of February will, no doubt, bring a whole new set of interesting developments.


    About the Author

    turd [at] tfmetalsreport [dot] com ()


    Feb 2, 2016 - 3:42pm



    Feb 2, 2016 - 3:42pm

    I meant

    Gamble amble gamble

    Feb 2, 2016 - 3:44pm

    How about 3rd


    Feb 2, 2016 - 3:44pm



    Feb 2, 2016 - 3:45pm



    What If
    Feb 2, 2016 - 3:47pm


    Keep Stacking

    Feb 2, 2016 - 3:54pm

    Next .....

    JP Morgan will reclassify from eligible to registered and use the new found metal to smash price....

    Feb 2, 2016 - 3:56pm

    First thru Fith

    Quite the shamble

    Danforth Coxwell
    Feb 2, 2016 - 4:03pm

    If those mosquito's had…...

    only washed their hands, we would not be having problems with the Zika virus today!

    Feb 2, 2016 - 4:10pm

    nice work

    great commentary today!

    how far can those 74,000 oz's be stretched?

    indiana rod
    Feb 2, 2016 - 4:20pm

    How Far Can Those 74,000

    oz's be stretched?

    542 times.

    Feb 2, 2016 - 4:40pm
    Feb 2, 2016 - 4:56pm

    They could be

    -74000 ounces in the vault! It doesn't matter period , they are the masters that control the universe ! What they decide the price is that's the price ! Take alook at what happened in silver the other day!


    Feb 2, 2016 - 4:58pm

    Keith Weiner

    Old Keith at Monetary Metals claims the fundamental price for gold in 2016 is $1,246 and the fundamental price

    for silver is $14.20 and we will have a GSR of "around 88."

    But this guy never ever mentions the price fixin/riggin/manipulatin factors, he ignores all of it for some reason. No shock, he has been writing like this for years and I have never read any of his stuff that covers anything useful or helpful.

    Feb 2, 2016 - 4:59pm

    obviously, paper "gold"

    Is the only gold that is moving around the Comex wearhouse. The "deliveries" are clearly a part of the manufactured paper derivative price control mechanism. Only the appearance of a real market exists. There is no market.

    Feb 2, 2016 - 5:12pm

    hahaha infinity, and beyond!

    Feb 2, 2016 - 5:31pm

    The kind you can only buy with


    gamble gamble

    tanderson Danforth Coxwell
    Feb 2, 2016 - 5:57pm

    Thats the way to do it Danforth

    From ignore to Hat tip,,that is the way to go Dan

    AGAU Pseudozero
    Feb 2, 2016 - 8:27pm


    those shit biscuits could stretch a gnats asshole over trailer hitch

    Feb 2, 2016 - 10:19pm

    Zika Virus Available For Sale Online

    Deadly Zika Virus Available For Sale Online, Courtesy of the Rockefeller Foundation

    February 2, 2016 by

    The virus, known as Zika, was discovered by scientists in 1947. A captive monkey at the Rockefeller Foundation was found to be carrying the disease. Because Zika wasn’t found in the wild, this led some to believe that the virus was perhaps the result of a mistake during experimentation. Since then, there have been few cases of Zika, that is, until recently; outbreaks of Zika have been on the rise, especially in South America and specifically Brazil. You’ll recall that the recent rise of microcephaly in Brazil has parents worried, doctors stumped and the WHO scrambling to figure out what’s going on.

    The reason that people are leaning into the man-made disaster theory more than ever, is because the recent outbreak in Brazil just happens to coincides with the release of genetically modified mosquitoes- back in 2012- by the British biotech company Oxitec. The recent outbreaks of sickness and microcephaly are occurring in the same place that the GM mosquitoes were released.

    What’s ironic is that the GM mosquitos were supposed to help aid in eradicating Dengue Fever (a mosquito-borne viral disease with symptoms similar to the flu). Many experts warned that not enough research had been done, no one knew what would happen if a live modified organism was released into the wild. But it seems once again, nature has found a way.

    So, as if we don’t have enough to deal with rumors have abounded that the virus is available for purchase- online- and sure enough, it is. At, there’s a listing for freeze dried Zika virus. For profit corporations will pay 6.00 and if you are working in the Non-profit sector, there’s a bit of a discount, you’ll only pay 0.00. Not looking for Zika? No worries, they have lots and lots of other viruses and biological agents for sale.

    Feb 2, 2016 - 10:21pm

    My apologies

    I thought I was putting this post and the one below in IWWTI. I will leave the one below. Why not?

    Subscribe or login to read all comments.


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