A Massive Surge In GLD "Inventory"

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: http://www.silverdoctors.com/gold/gold-news/ned-naylor-leyland-reveals-actual-owner-of-bob-pisanis-gld-gold-bar/

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 The total amount of "gold" withdrawn from "inventory" over that time was 66.81 metric tonnes.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: http://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 $1100 but had risen to $1300 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 $1375! 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 $1060 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: http://www.zerohedge.com/news/2017-09-05/using-gold-hedge-korea-nuclear-war-risk-how-do-it-according-goldman

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

www.tfmetalsreport.com/subscribe

95 Comments

silver66's picture

first

Thanks for the update

Those in the islands and FLA thoughts are with you.

focus on what is really important

silver66

Turd Ferguson's picture

In A2A two weeks ago, Brent

MODERATOR

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's picture

How 'bout

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

Turd Ferguson's picture

Not me

MODERATOR

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

Response to: How 'bout
Turd Ferguson's picture

An excellent new post from

MODERATOR

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

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

joeblack's picture

Whoever asked about royalty companies

is a smart dude smiley

abundance's picture

dollar selling off...91 today? eom

eom

cashonly's picture

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?

landplanner's picture

@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.

Turd Ferguson's picture

oh shit

MODERATOR

As if there wasn't already enough to worry about...

Please watch this and consider. Was just posted earlier today.

 

lund175's picture

Corbett report, pass along to others

Good 10 min. video about the recent release from the Asian Review 

China's New World Order: Gold-backed oil benchmark on the way

lund175's picture

Food shortage cycle soon?

Cycle guy Eric Hadik  has been predicting a 40 year food shortage cycle that starts very soon.

Actually is something to think about.

abundance's picture

ototot...my gas containers in the garage..the

stoppers have fallen off (they were empty)..can I still use

them ..fill them and use the gas for a car or generator?

lol, any help appreciated..

lund175's picture

Holy crap is right

Craig

I have never heard that guy sound so shocked . 

I hope this event does not tie in with the start of the food crisis cycle posted up top.

Off to the bank for some last minute green.

mgilbert's picture

Another BP Earthwatch update

This was posted about 10 minutes ago

cashonly's picture

Landplanner

thats great.  Did this new company produce something of value or a service?  Were the wages paid to employess living wages?

Double Bogey's picture

Solar flare

This guy seems concerned too.

Double Bogey's picture

wrong link

Here is the right link

lund175's picture

Space.com info

I guess if nothing happens, at least this gives me kick in the butt to get my final preps together.

https://www.space.com/38057-sun-unleashes-decades-strongest-solar-flare.html

Early this morning (Sept. 6), the sun released two powerful solar flares — the second was the most powerful in more than a decade.

At 5:10 a.m. EDT (0910 GMT), an X-class solar flare — the most powerful sun-storm category — blasted from a large sunspot on the sun's surface. That flare was the strongest since 2015, at X2.2, but it was dwarfed just 3 hours later, at 8:02 a.m. EDT (1202 GMT), by an X9.3 flare, according to the National Oceanic and Atmospheric Administration's Space Weather Prediction Center (SWPC). The last X9 flare occurred in 2006 (coming in at X9.0).

According to SWPC, the flares resulted in radio blackouts: high-frequency radio experienced a "wide area of blackouts, loss of contact for up to an hour over [the] sunlit side of Earth," and low frequency communication, used in navigation, was degraded for an hour. [The Sun's Wrath: Worst Solar St

infometron's picture

'Massive surge...'

My 'go to' site regarding matters terrestrial and celestial:

landplanner's picture

@cashonly

Yes, services, and living wages. yes

cashonly's picture

@Landplanner

goodstuff!

Turd Ferguson's picture

Brand new GFS places Cat5

MODERATOR

Brand new GFS places Cat5 Irma right on top of Miami and Palm Beach at Noon Sunday.

https://www.tropicaltidbits.com/analysis/models/?model=gfs&region=us&pkg=mslp_pcpn_frzn&runtime=2016112106&fh=210&xpos=0&ypos=0

bently's picture

Cashonly -- TRICKLE-DOWN ECONOMICS

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

I'll try.  For starters, you're phrasing your question in a misleading way. The current capital gains tax rate is either 15% or 20% depending on your tax bracket. Let's try to be accurate. Trump is proposing to cut the business tax rate -- currently highest in the world -- from 35%, and it's actually higher when you factor in state taxes, to 15%. 

Reagan's across-the-board tax rate cuts instruct on what the power of such incentives could produce. What you malign as TRICKLE-DOWN ECONOMICS for the wealthy in the 1980s actually represented a nearly 25% personal tax rate reduction for every working American. The rate cuts were implemeted incrementally starting in 1981 and were fully in place by 1983. So, how did the economy respond?  Did it limp along as it has for the past 8 years under Obama, never higher than 2% per annum?  The economy grew by 7.3% in 1984 and 4.2% in 1985.  Growth averaged over 4% from 1983-1988. During those TRICKLE-DOWN years, new business start-ups took off, small businesses came roaring back, millions were hired and the foundation for the high-tech economy and a generation of prosperity was built.

If that's all a lie, why was Reagan re-elected in 1984 with such a massive landslide that he won every northeastern state and lost only one state nationwide, Minnesota, Walter Mondale's home state?  Of course, it's fair to say, as Ron Paul has pointed out, that Reagan did not cut the size of government. Correct, he rebuilt the military. But he absolutely did cut the growth of domestic spending, and the left and the media savaged him day and night as cruel and heartless. The important takeaway is that millions of small businesses pay taxes by personal rates, so they benefitted personally from the incentives, and they immediately put their capital to work increasing output, productivity, innovation and growth.  In Trump's case, these enterprises could easily incorporate and benefit from the 15% rate.

All that is not to say corruption doesn't exist as this community understands so well. Rather, it's fair to argue that because human behavior does not change, incentives could work again today as powerfully as they did under Reagan and also JFK -- who btw also cut tax rates for everyone and also rejuvenated our economy.      

AGAU's picture

solar flare etc

What does one do to "protect electronics other than unplugging pcs etc??    What time does this hit?

RickshawETF's picture

Goon Fisher is GONE!

billhilly's picture

Just in case...

...you held out any faith in Trump

http://www.zerohedge.com/news/2017-09-06/gold-sinks-trump-congress-agree-3-month-debt-limit-extension

Total and complete CAPTURE !  

Turd Ferguson's picture

In yesterday's podcast, we

MODERATOR

In yesterday's podcast, we openly predicted that some event today would be used as cover to spike the USDJPY back above the 109 level that has been defended by the G-3 for the past four weeks. Well, here you go: http://www.zerohedge.com/news/2017-09-06/gold-sinks-trump-congress-agree-3-month-debt-limit-extension

And of course, when USDJPY goes straight up, Comex Digital Gold goes straight down:

OOOBuck's picture

Hillary Clinton's new book "What Happened"

will almost certainly be greeted with a lot of chatter in some circles.  My only regret is that it won't be reviewed by a team of shrinks (or then again, perhaps it will - more than of curious  interest in the world of psycho analysis).  It would probably be funny if only our madam president wannabe (MPW?) wasn't so friggin' dangerous. 

I personally would love to read it (just for S&G) but only if it cost me $0.00

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