Massive Inflows Into GLD

92
Fri, Mar 4, 2016 - 11:24am

I was already planning to write a public article today about the massive additions to GLD "inventory" in 2016. But now, with news hitting about Blackrock's gold ETF, writing this post has clearly become a priority.

So, before we get started, be sure to review this: https://www.zerohedge.com/news/2016-03-04/blackrock-suspends-gold-etf-is...

Here's the full press release from Blackrock: https://www.businesswire.com/news/home/20160304005402/en/Issuance-IAU-Go...

As ZH states: "It appears the huge demand for physical gold (and lack of supply) is finally catching up with the manipulation of paper prices. If this is anything other than a brief technical suspension, it could well unleash panic buying and as we already pointed out - there is no physical gold!"

I guess we'll just have to see what happens next. However, as we've maintained for years, all it will take is ONE delivery failure and the entire Bullion Bank confidence scheme will come crashing down. While this news today is not technically a delivery failure, all of this surging demand for gold certainly seems to be pushing The Banks to the brink.

To that end...the topic of today's post...

We've long maintained that the GLD is nothing but a bank-sponsored vehicle for syphoning away investment demand from actual, physical gold. Allegedly, the GLD saw massive inflows of "gold" up until 2012 and then it saw its "inventory" cut in half between 2013 and 2015. We've wondered from where the GLD and its custodian, HSBC, would source new gold WHEN investment demand for gold finally returned. It now appears that we are in the early stages of getting our answers.

To that end, please consider the incredible alleged inflows of "gold" into the GLD in 2016.

As noted above, the GLD stated that it held 1,349.92 metric tonnes (mts) of "gold" in its "inventory" on January 1, 2013. As price was smashed lower over the next three years, the GLD "inventory" moved lower, too, reaching a low of just 630.17 mts on December 17, 2015. Now let's stop right there for a moment and consider the significance of the date, December 17, 2015. What happened on that date? Why does that sound so familiar?

Oh, yah. I remember now. December 17, 2015 was the day following the announcement from Mother Fellen that her Federal Reserve was raising the Fed Funds rate for the first time in nearly 10 years. What did the chart look like on that day? See below for one from the archives:

So, what happened the day after that, Friday, December 18? Not much. Gold rallied back a little and closed higher at 66. N0t much to get excited about. Price was barely off the lows of 50 seen the day before and every purported "analyst" was projecting triple digit gold prices for 2016.

But not us at TFMR. In fact, we'd already been calling for a January rally and something else happened on December 18 that really got our attention. For the first time in nearly two months, there was an addition to the GLD "inventory" that day. And we weren't talking just a few ounces. That day, December 18, saw a GLD addition of 18.74 metric tonnes, growing the alleged "inventory" by nearly 3%. Here are c&ps of two comments we added to that evening's podcast thread:

WOWOWOWOWOWOW!

Submitted by Turd Ferguson on December 18, 2015 - 4:57pm.
15
That has to be just about the largest one day addition of "gold" ever seen!

Maybe an AP paying back a big short?

More significantly, maybe another sign of the possible bottom discussed in this podcast???

And

I'm looking back over my notes from the past few years

Submitted by Turd Ferguson on December 18, 2015 - 5:04pm.

Today's HUGE dump of gold INTO the GLD is a very good sign of an impending rally. Back in January, the GLD added 9.56 mts on Jan 15, 13.74 mts on Jan 16 and 11.35 mts on Jan 20.

Other significant additions occurred in April and September. Nothing even close to 18.74 mts in a single day. And how about the timing? Big final washout yesterday following the rate hike. Price recovers 1.5% today and GLD "inventory" grows by 3%. Hmmmm.....Will be chewing on that over the weekend.

So, now, he we are on March 4, 2016 and price is $1275 as I type. That's up $225 or 21.4% from the lows December 17. And what has happened to the GLD "inventory"?

  • It added 4.76 metric tonnes just yesterday
  • This brings the total addition for just this week to 30.93 mts
  • For all of 2016, the GLD "inventory" has now grown by over 150 mts
  • And since the low of December 17, total "inventory" has now grown by 163.16 metric tonnes

(Leaving aside that it will take Germany over seven years to repatriate 300 metric tonnes and the GLD has allegedly dug up more than half that amount in less than ten weeks...)

And now let's look at an updated chart with the addition of just one, simple notation:

At a time when global demand continues unabated, with China, Russia, India and others all importing gold on a monthly basis, the GLD has managed to add 163.16 metric tonnes to its "inventory". How much gold is that? About 5,246,000 troy ounces. How much is that? Well, there are 400 troy ounces in every London Good Delivery bar so we're talking about more than 13,000 of these:

And if you stack 192 of those bars onto a pallet, you'd fill over 68 of them:

That's A LOT of gold...again, all at the same time as Russia and China both import about 20 mts per month: https://smaulgld.com/russia-increases-gold-reserves-by-ounces-in-january... and India imports up to 100 mts per month: https://www.business-standard.com/article/markets/gold-import-bill-up-12...

Where the heck do you suppose all of this gold is coming from???

Look, if you can't see that the Bullion Banking Confidence Scheme is seemingly hanging by a thread, then I'm not sure there's much I can do to help you. Additionally, if you continue to own ETFs as a proxy for the real thing, the day is coming when you're going to find yourself supremely frustrated and angry. When the music stops, you're going to be left standing without a chair to sit on.

All signs point to 2016 indeed being the "year of consequence" that we forecast. Perhaps The Banks can keep their scheme going a bit longer, perhaps not. Just yesterday, they added nearly 26,000 contracts of open interest (paper obligations of 2.6MM ounces or an additional 81 metric tonnes) to the Comex in a seemingly desperate attempt to contain price and, by extension, suppress sentiment and physical demand. Will it work? Will they soon be able to play their old tricks of reversing and smashing price, thereby "calming the storm"? Or, instead, will price continue to rocket forward with increasing speed as The Banks get squeezed for once? We're likely not going to have to wait too long to find out.

For today, let's just leave it here:

Continue to prepare accordingly by stacking physical metal, not paper certificates.

TF

About the Author

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turd [at] tfmetalsreport [dot] com ()

  92 Comments

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Ned Braden
Mar 4, 2016 - 4:57pm

"Sir" Bollocks

to you, Mr. Marchas ! (And me)

Marchas45
Mar 4, 2016 - 4:34pm

Well Said Bollocks

But you never did say where you lived. LMAO

surfeitndearth
Mar 4, 2016 - 4:13pm

Frustrating...

What a round trip clusterfuck for my miners!

Portfolio @ mid-morning high: +7.3%

Portfolio @ late morning: +1.9%

Closed for the day @ +1.5%

This 4+yr patience biz

is... such a bitch!

pabsteJames Crighton
Mar 4, 2016 - 4:11pm

James Crighton

Are you telling me that you cannot get your physical gold or silver from GoldMoney without any hassle? Have they not advertised you can GET your physical any time you want it? I'm almost I've heard James Turk make that statement?

MiningJunkie
Mar 4, 2016 - 4:03pm

UGLY COT

Commercial Cretins now at net short 171,431 contracts....

Bollocks
Mar 4, 2016 - 4:02pm

Errr... No

stop it with the "I feel for you" stuff.

I have never felt uncomfortable about buying all that gold. Not once since I did that in 2011. All I know is that I could have had more if I'd waited longer, but I'm really not bothered about that.

I didn't do it without doing my own research first. I spent 2 years obsessively researching the monetary / banking system before I bought my first ounce.

I saw that the whole system is based on belief. I saw that, it wasn't a conclusion that I came to by knitting together some points, I realised that the whole system and markets are based on belief and that the currencies are an instrument of theft. I saw that there is nothing that can be done to stop the currencies from collapsing, and that this would come soon. I didn't know when then and I don't know now, but I could see it wasn't far away.

In my life I've seen that there's a big difference between realising something and knowing something.

I have a background in physics. One thing when I was at university that I was fascinated about was gravity and its effects. I learnt a lot about gravity. I ended up knowing a lot about gravity.

Some 20 years after I thought I knew all there was to know about gravity I realised what gravity was. I spent a few days during this realisation walking around my home picking things up and dropping them. Over and over I did this. I was totally in awe of what I was seeing. All that "knowing" - which is what a good student ends up with - is totally different to realising.

I suspect that when Newton realised the laws of gravity he would have been totally in awe of what he saw at that moment. Then he wrote down what he'd seen so it could be understood. But understanding is not realising. Understanding requires past reference, whereas realising is seeing it NOW, without any reference to the past - so without thought. So his students learnt about gravity through understanding, without realising what it is (which can't be put into words - it can only be seen NOW).

A realisation is an impossible thing to communicate, unless someone else has truly had that realisation too. Then there's nothing to say.

We are so totally enmeshed in thought - in reference to the past - that we can't see things as they are, right now. Yes, I said it's impossible to communicate this - these words need to be understood so they make sense, and that requires reference to the past. That's a huge barrier to realising the truth of something.

I realised that the entire monetary system will collapse. There is nothing that can stop this from happening.

So I'm not at all bothered that gold has it's "price" - measured in a currency - hammered. I am out of the system that was created to steal from virtually everyone on earth, and I continue to convert my fiat into PM's.

So there.






s1lverbullet
Mar 4, 2016 - 3:59pm

Notable reversal in miners today

But... If gold continues to chug higher based on another weekly closing high then it will pull the miners along with it.

Whitecastle123willsilvaa
Mar 4, 2016 - 3:52pm

I'm going to

Bollocks house. Anyone have his address ?

willsilvaa
Mar 4, 2016 - 3:40pm

Shooting Star formation in PM complex

Yeah, i would not buy miners today.When i look at stock charts dot com it looks like most bigger silver and gold miners have appreciated over 100 % in the last 2 months.I wish i had money to invest 2-3 months ago.....i still need to see way more till i am above water. To me,it seems like the hui and many of my miners{fr paa sso svm} are putting in a Shooting Star formation according to Japanese Candlestick theory...the SS pattern suggests a minor reversal when it appears after a rally.The stars body must appear near the low price and the line should have a long upper shadow.

Maybe we take a little hit today and next week and then this rally continues...to the moon! bwtfdik is it 420 yet

SS121
Mar 4, 2016 - 3:26pm

interesting item from covert USD coup campaign

USD COUP CHALLENGES

For the bros. to remove the USD as the world's currency standard they are going to have to bust up the fx chart. This will require a replacement method for currency valuation.

They will also need a replacement for "The gold chart" (the one that controls the prices of the real world's physical Gold transactions, currently USD/gold chart)

For many months now we've heard great stories that the SGE will be assuming a major role in the world gold "market", and we have seen the ABX come online, ...and there is the upcoming "Chinese" Apr 19th deadline for others to participate in their gold fix. All setting the stage for a situation where gold can exchange in multiple locations using the local national currencies, which would then become a de facto currency valuation mechanism to replace the Fx chart. (i didn't explain that very well, but it is super-critical that everybody understand this, so please speak up if any part of this isn't crystal clear)

This new currency valuation mechanism will value the currencies relative to one another by comparing their prices to the same amount of gold from their respective gold exchanges. Meaning all the currencies will appear to move relative to Gold.

Granted, we aren't there yet. The stage is still being set. The exchanges and the posturing and positioning is all still a work in progress. But all the recent "crash" "chaos" and "crisis" headlines might indicate the directors call for "action" is getting close. And now all the "gold awareness" headlines are buzzing up as well. All setting the mood for the day when the USD will be out, and the currencies will appear to move relative to Gold on the world's (still privately owned) "gold" exchanges/charts.

All which brings us to our interesting item from the overlords of the controlled opposition at zh...

What Is Driving All Currencies Lower Against Gold?

Submitted by GoldCore on 03/04/2016 07:45 -0500

the article itself is mindless drivel that only exists to justify the headline. the headline is the story. the message: start thinking of the currencies as all being valued relative to Gold!

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