JPM Continues To Hoard Gold

The gift that keeps on giving. This is so unusual that I had to write about it again.

Recall that back in July, JPM suddenly had an interest in acquiring silver through the Comex. (I say "suddenly" because, prior to July, JPM had not been nearly this active in taking Comex deliveries. See for yourself here: http://www.cmegroup.com/delivery_reports/MetalsIssuesAndStopsYTDReport.pdf)

For the July silver delivery month, JPM stopped 2,824 contracts into their house account. This represented 82% of the total for all of July. If you add in the 216 additional contracts they stopped into customer account, they took down 88.3% of all July silver deliveries.

Again and for perspective, for the prior three silver delivery months, the JPM house account stopped a total of 1,250 contracts. This was just 12.7% of the total Dec12, Mar13 and May13  deliveries of 9,864 contracts.

In gold, for Dec12, Feb13, Apr13 and Jun13, the Comex delivered a total of 37,824 contracts. During those past four delivery months, JPM stopped into their house account 2,162 contracts or 5.7%. If you add in the contracts stopped into the JPM customer account, the number rises to 4,230 or 11.2%.

Yesterday, there were 58 deliveries of the August Comex gold.

The JPM house account took 53 of them.

53!

Over the past six days, there have been 874 August deliveries made for 87,400 ounces or 2.718 metric tonnes. The JPM house account has stopped 827 of them for 82,700 ounces or 2.572 metric tonnes. Stated another way, over the past six days, JPM has absorbed for itself  94.62% of all August Comex gold deliveries.

For the month, 2836 contracts have been delivered.

The JPM house account has stopped 2,033 and JPM has also stopped 263 for their customers.

Thus, for the entire month, between its house account and its customer account, JPM has stopped 2,296 of the 2,836 deliveries. That's 81%.

So, let's put all of this back together....

  • For the prior three silver delivery months, the JPM house account had accounted for just 12.7% of all Comex deliveries. In July, that number skyrocketed to 82%.
  • For the prior four gold delivery months, the JPM house account had accounted for just 5.7% of all Comex deliveries. So far for August, that number has skyrocketed to 71.7%.

And finally today, chew on this for a moment. The total amount of Comex contracts delivered last December was just 3,253. In February, we all sat up and paid attention when the number soared to 13,070. This trend continued into April when the Comex delivered 11,632 and persisted into June when the Comex delivered 9,869. Yesterday was the 12th of August. After an initial surge of deliveries in the first two days of the month when over 2,000 contracts were delivered, as noted above only 874 contracts have been delivered over the past six days.

  • Is August simply reverting back to a slow delivery month like December? The August contract still shows 1,577 in open interest (http://www.cmegroup.com/trading/metals/precious/gold_quotes_settlements_futures.html) though it's still possible for those seeking immediate delivery to "jump the queue", put up 100% margin, buy a contract and take delivery this month.
  • Jumping the queue is not unprecedented, in fact it's a normal occurrence. For example, back in April 6,601 contracts initially stood for delivery. Yet the final delivery total was 11,632 (nearly a double). And in June we saw 4,946 standing on First Notice Day yet the delivered contract total reached 9,869 (again, nearly a double). August initially had 3,960 standing. The Comex has settled 2,836 and open interest is still 1,577 meaning 400 or so have jumped the queue so far this month and bought August gold for delivery after FND.
  • What happens if, over the next few days, another 4,000-5,000 contracts suddenly appear for delivery? This would simply bring total August delivereis into line with Feb, April and June. What in the world would happen if this occurs again over the  next two weeks?
  • And if it does, what percentage of the total will JPM stop into their own accounts?
  • And from where will all this gold come given that total Comex stocks are already dwindling?

We'll have our answers soon, I suppose. Rest assured, I'll be right here keeping track of everything and keeping you updated.

TF

114 Comments

tmosley's picture

Dirk, why don't you disclose

Dirk, why don't you disclose YOUR name, you wretched little bastard?

benque's picture

Turd & DPH

I received the same PM, and thereby suspect many, many others did as well.  WTF is up with that Dirk??!!

¤'s picture

Tmo

Your right about what you just asserted and with all due respect to you I'd prefer to not let this become a big issue on here....because I can see where it could do so quickly.

Maybe I shouldn't have commented in public. blush

The big yellow-hatted one has been informed and we'll see if nature takes it's course soon.

Thanks Tmo yes

tmosley's picture

Isn't it clear?  It is a lame

Isn't it clear?  It is a lame attempt to discredit him by showing that he used to make money selling pensions (how this is supposed to discredit him is beyond me--he just wasn't really aware of gold back then).

It is also, of course, a blatant intimidation attempt.  Next I'm sure he will be sending out his home address and the school schedules of his children.

tmosley's picture

DPH: agreed.  If some

DPH: agreed.  If some moderator could purge this thread, that would be nice.

Turd Ferguson's picture

FWIW

MODERATOR

Jakarta Expat wants to "expose" me so he's told a few of his pals here on the site. Apparently, he hopes to discredit me because he doesn't like the new format.

Yes, as part of my "serial entrepreneurship", I tried to start an online business that sold immediate annuities back in 2009. Never sold a single one. Great flippin idea. Terribly capital intensive...much more capital than I had. A PR firm I was working with got me a couple of shots on CNBC. Would you say no to 100,000+ viewers? Regardless, as I said, no one ever bought anything and it has been mothballed since 2010.

The site is still live and hosted because I'm hoping that someday, someone will come along and buy the domain from me. Maybe I'll actually get some of my money back...

¤'s picture

Tmo

Yep...TF's fully aware of it and has expressed his view to me.  It's sound reasoning.

edit: I see he's on top of it at this moment.

Turd Ferguson's picture

One more thing

MODERATOR

Have you ever noticed how few interviews I do?

It's because so few want to have someone named Turd as their guest. So, I've been thinking about coming out of the closet for over a year now. This may just do it. Would be very beneficial for the site's success and result in a lot of free PR.

Thanks Jakarta Expat.

SilverTree's picture

China Prepares For

China Prepares For Gold-Standard:

http://homment.com/China-Gold-standard

¤'s picture

Subscription Service Now Available

I just noticed the subscription link at the top of the page and I just joined for the year.

Here's my testimonial...

I would encourage anyone who is on the fence to consider subscribing if you can swing the approx. $.30 a day to have access to TFMR 24/7/365

I look at like this...I've been around for a long time on here and I'm not about to turn my back on TF or the community at this point when I can see where this might be headed in due time.

When the PM's or some global monetary situation (or just daily events) crop up you'll want to be on the inside and get in on the commentary and thoughts from TF and some folks in there just like it used to be in The Library. 

Think about it enlightened   ...and I'll be seeing you on the other side.

Art Lomax's picture

USDA Corn Estimate

@opticsguy,

The jury is still out on the size of the corn crop, lots of differing opinions. This video does indicate there are areas with problems, mainly Iowa and Minnesota. There have been several private forecasters calling for a bigger crop this year. The thought being that the good areas overcompensate for the poor areas. The USDA report Monday lowered the corn yield, but market action yesterday indicates that traders believe that the USDA estimate is too low.  Here are two outfits that use satellite technology for crop estimates that are far apart on yields. Pro Farmer Tour is next week so that may give us a better idea of crop size.  I have been bearish all year on the corn market but now is the time to come away from any short positions in my opinion, and see how the August weather plays out.  Prices could go lower but probably not until combines roll and actual yields are known. With the cool weather pattern we are in, an early freeze is on everyone's mind, and could certainly damage this late maturing crop. Farmers are not selling at these prices, and I would expect they fill up all their empty bins before making any more sales.  The market these next few weeks should be volatle as we transition from tight old crop supplies to abundant new crop supplies.

http://www.waterstreet.org/post/2013/08/14/Crop-Tours-USDA-Report-Showing-Different-Yield-Estimates.aspx

http://www.genscape.com/featured-news-releases/genscape-landviewer-cautions-grain-buyers-investors-us-department-agriculture

http://www.reuters.com/article/2013/08/09/crops-lanworth-idUSL1N0GA0CM20130809

http://www.agweb.com/profarmer/pro_farmer_events.aspx

Cranky Old Bat's picture

Subscribed!

Hey, I'm just an irritable old fartess who has been happily lurking at this site for many months. In that time it has become the site I head for first thing every morning. What a treasure trove of  (mostly) intelligent comment and info it is! I wouldn't miss it lest I become even crankier due to info underload in these tricky times. Although I've never posted because I feel I have far less of value to offer than most of you here, I DO appreciate the lot of you! Therefore, I had no qualms at all in subscribing. Best bang for a few little bucks I'll ever get I think.  Thank you all for the amazing education, support, and inspiration. What a unique community this is!

Urban Roman's picture

Ahh what the heck, I'm

Ahh what the heck, I'm in.

Even though the much anticipated and hoped-for loss of control (HEH) never happened back there.

Oh, and Turd, you might update the figures for Andy's Army on the front page. They're a bit out of date, as Andrew has made some really good trades in the last couple of weeks.

Dyna mo hum's picture

@Turd and Dirk Dingleberry I got the memo

I don't give a damn who you were Turd! Its what you are about now that matters with me. You have admitted publicly here about your past as an financial advisor big deal.  The Turd had an epiphany between 09 and now no drama big deal. I had one too but mine is much more dated so what. More than likely next month I will take the 12 month membership.  As for you Dirk Dingleberry we know what you are about you low life piece of shit. BTW> Dirk you did not expose the Turd. I already knew who Turd is. How do you like me now Dirk you POS ? 

Missiondweller's picture

@strawboss That was me. Seems ZH thinks so too

And sure enough, breaking from the "standard" of the past 8 months, in which JPM was drowning in Issues, for both House and Customer accounts, the firm's House accounts just saw the largest Stop (i.e. taking delivery) since December of 2012, amounting to over 210K oz.

Has JPM, flooded with demands for physical, finally thrown in the towel, and seeing that the deluge in delivery requests is "untapering", had no choice but to turn to the one place it has left to replenish its stocks: the market?

http://www.zerohedge.com/news/2013-08-14/why-gold-spiking

When JPM is forced to buy on the open market for delivery, I think we see gold price lift off.

¤'s picture

Dyna Mo

Looking forward to seeing you over there as well as all others.

I understand and respect some folks decision and the principle they stand upon ( yes Bollocks, I mean you and others ;-)

Eventually this will smooth out but overall I'm liking the feel of it over there right away. That Library vibe will return one way or another.

Better days are ahead.

CALelf's picture

Subscribed for the Year

Hi y'all. I've been quietly reading for a long time. I appreciate the many viewpoints expressed here and the education as well. Turd you should have done this a long time ago. It pushed me over the edge into standing up for this site. O, and by the way, I just happen to also be a California lawyer and apparently live and practice law in the same area as the honorary Turdville AG -- the Inland Empire.

Dyna mo hum's picture

DPH ...

This place is and always will be bigger than some than some stupid prick called dirk. 

murphy's picture

Oh

sh*t! Another attorney from Cali!

Turd Ferguson's picture

"Turd"

MODERATOR

A lot of behind the scenes activity today designed to discredit me and the site.

If anyone wants info, just email me at tfmetalsreport at gmail dot com. I have nothing to hide.

Stock_Canines's picture

So - Is the Vault

Only in effect for one day, and then all the content is available to the public? I am a non-subscriber, but I have full access to the content except for todays Access to Access.

Gold Dog's picture

I got the message...

...then watched the video then immediately subscribed for the year.

Now I'm out the door to have some fun! (About time too. Ha!)

Your friend,

Dog

PS- Turd, the shades make you look like more of a bad ass.....just my opinion!

PPS- Have a Market on Close order in on SEP paper if silver stays up.

admin's picture

@Stock_Canines, if you're not

@Stock_Canines, if you're not a subscriber you won't have access to any post tagged as part of "Turd's Vault".  However it is up to TF's discretion to decide which posts are in the Vault, or which may start as Vault posts, and eventually become publicly available posts at some point in the future.

CALelf's picture

Thanks Murphy, I got in as an

Thanks Murphy, I got in as an "everybody."

Syndicate contentComments for "JPM Continues To Hoard Gold"