A Massive Surge In GLD "Inventory"

95
Wed, Sep 6, 2017 - 10:54am

Yesterday saw the 2nd-largest one day surge in GLD "inventory" in the past five years. What does this signal, if anything at all?

I think most everyone here knows how I feel about the GLD. It's a scam. It's a sham and it's a fraud. Oh sure, there's almost certainly some gold held in the HSBC vaults but how much is truly, 100% allocated to just the GLD? Recall the whole charade from back in 2011 when Bob Pissonme of CNBS was allegedly driven in circles for hours before being allowed into the super-secret vaults that house the GLD's gold: https://www.silverdoctors.com/gold/gold-news/ned-naylor-leyland-reveals-...

Meh, whatever. There's no sense in relitigating this nonsense today. What is curious sometimes is the timing of the the Authorised Participant (Bullion Bank) alleged additions and withdrawals. Most recently we noted a stretch of 16 consecutive withdrawals over the period from June 26 through August 7. The total amount of "gold" withdrawn from "inventory" over that time was 66.81 metric tonnes.

However, since August 7, the GLD has seen seven consecutive additions to inventory. The first six, from August 14 to August 30, were for a total of 29.56 metric tonnes. This is astonishing in its own right as it's difficult to imagine this gold just laying around, waiting for HSBC to pick it up when needed. And then yesterday, we got the coup de grace...an incredible 23.65 metric tonnes were allegedly added yesterday alone.

How much gold is 23.65 metric tonnes? That's about 760,000 troy ounces.

And is that a lot? Well, there are about 400 troy ounces in every London Good Delivery Bar so 23.65 metric tonnes equates to about 1,900 of these babies:

If you stack 192 of them to a pallet, it also means you're looking at 10 pallets as shown below:

So, I'm sure this is all totally on the up-and-up and honest. Remember, the custodian for the GLD gold is HSBC and they have a stellar and impeccable reputation: https://www.corp-research.org/HSBC

Again...whatever. This is all old news. The only reason I bring this up is to remind you of the last two times the GLD saw such a massive addition to "inventory".

Recall the heady days of June and July 2016. The Brexit vote had just shocked the financial world. Negative rates abounded and even the 10-year US treasury note traded at a yield of just 1.50%. Comex Digital Gold began the year near 00 but had risen to 00 and beyond.

On June 24, 2016...the day after the Brexit vote...the GLD "inventory" surged by 18.41 mts. "Inventory" continued to rise into early July and then, with the largest one day surge that we have on record since 2012, "inventory" jumped 28.81 metric tonnes on July 5. Hmmmm....July 5. What else happened on July 5? That was the very day of the 2017 price peak near 75! How about that?

Cause and effect? Effect and cause? Simple coincidence? Maybe there's no connection at all as the APs (Bullion Banks) can simply stuff the GLD "inventory" with as many delivery receipts and promissory notes as they deem necessary to give the appearance of propriety. But then again, maybe not.

However, I don't want to leave you with the impression that this HAS TO BE a bad sign and signal of a short-term price top. According to our records over the past five years, there was one other massive GLD inflow. It was for 18.74 metric tonnes and it came in on December 18, 2015. And where was price then? Near 60 and the absolute bottom of the 2012-2015 bear market. From that point, price soared nearly 30% in 6 months and the GLD "inventory" rose with it from 630.17 mts on December 17, 2015 to that July 5, 2016 peak noted above at 982.72 mts.

At any rate, we hope that by now you realize that, in the end, anyone holding anything but true physical gold is going to be left holding the bag when this entire paper charade system comes crashing down. Just yesterday, even the criminals at TungstenmanSachs admitted as such. Be sure to see this link though the money shot is pasted below: https://www.zerohedge.com/news/2017-09-05/using-gold-hedge-korea-nuclear...

Today is a day of relative market calm before the dual storms of Irma and Kim rear their ugly heads again later this week. Use this time to prepare wisely and accordingly.

TF

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  95 Comments

silver66
Sep 6, 2017 - 11:00am

first

Thanks for the update Those in the islands and FLA thoughts are with you. focus on what is really important silver66

pabste
Sep 6, 2017 - 11:11am
Sep 6, 2017 - 11:12am

In A2A two weeks ago, Brent

In A2A two weeks ago, Brent Cook said something to the effect of "if you're going to own a royalty company, why would you own anything other than Franco Nevada?".

I see his point:

Thor
Sep 6, 2017 - 11:15am

How 'bout

the Sprott physical funds for Au and Ag? Anyone concerned that the full physical backing isn't there?

Thor
Sep 6, 2017 - 11:16am

Not me

I have full faith and confidence in Eric and his organization.

Sep 6, 2017 - 11:17am

An excellent new post from

An excellent new post from Charles Hugh Thorogood: https://charleshughsmith.blogspot.com/2017/09/the-insanity-of-pushing-in...

It includes this chart, which I've amended with a critical bit of historical information:

joeblack
Sep 6, 2017 - 11:20am
abundance
Sep 6, 2017 - 11:26am
cashonly
Sep 6, 2017 - 11:33am

Hey Turd

Could you amend that chart one more time and place "TRICKLE DOWN ECONOMICS" in the appropriate spot? (198?)

I remember clearly being sold the idea that giving the wealthy massive tax cuts (Corp. and capital gains included) would see them create more business and jobs. Hope and change in a different package.

Could someone explain to me how cutting capital gains on stocks from 50% to 15% would cause the wealthy to put their capital to better use?

landplannercashonly
Sep 6, 2017 - 11:47am

@cashonly

I'll give it a shot by example.

I've sold stock in businesses that I've owned and paid the lower rate. I took those funds and started new companies that had higher growth rates than the company sold, thereby affording the ability to hire more people and grow the economy. It takes entrepreneurial spirit to put capital to work in a positive way. Much more fun than hoarding gains and hiding under a rock.

Had .gov taken the higher rate, that same money would have been squandered on any number of bullshit programs.

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Key Economic Events Week of 12/9

12/10 8:30 ET Productivity and Unit Labor Costs
12/11 8:30 ET CPI
12/11 2:00 pm ET FOMC fedlines
12/11 2:30 pm ET CGP presser
12/12 8:30 ET PPI
12/13 8:30 ET Retail Sales
12/13 10:00 ET Business Inventories
12/13 11:00 ET Goon Williams speech

Key Economic Events Week of 12/2

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12/4 9:45 ET Markit Services PMI
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12/6 8:30 ET BLSBS
12/6 10:00 ET Wholesale Inventories

Key Economic Events Week of 11/25

11/25 8:30 ET Chicago Fed Nat'l Idx
11/25 7:00 pm ET CGP speech
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Key Economic Events Week of 11/18

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11/20 2:00 ET October FOMC minutes
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11/21 10:00 ET Existing Home Sales
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Key Economic Events Week of 11/11

11/12 Three Fed Goon speeches
11/13 8:30 ET CPI
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11/14 8:30 ET PPI
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11/14 10:00 ET CGP on Capitol Hill
11/15 8:30 ET Retail Sales
11/15 8:30 ET Empire State Manu Index
11/15 9:15 ET Cap Ute and Ind Prod
11/15 10:00 ET Business Inventories

Key Economic Events Week of 11/4

11/4 10:00 ET Factory Orders
11/5 9:45 ET Markit Services PMI
11/5 10:00 ET ISM Services PMI
11/6 8:30 ET Productivity & Labor Costs
11/6 Speeches by Goons Williams, Harker and Evans
11/8 10:00 ET Consumer Sentiment
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Key Economic Events Week of 10/28

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Key Economic Events Week of 10/21

10/22 10:00 ET Existing home sales
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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
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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

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