What happens if JPM can't deliver Hugo's gold?

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#1 Thu, Aug 18, 2011 - 6:56pm
Gunrunner
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What happens if JPM can't deliver Hugo's gold?

Being new to this world of highly educated Turd's, of which I am not, what could happen if Hugo demands his gold from JPM?

Using the chart from ZH I see that JPM has 338,303oz of registered gold available.

https://www.zerohedge.com/news/chavez-pulls-venezuelas-gold-jp-morgan-gr...

According to Bloomberg, Hugos share would be 380,769oz from JPM, 623,076 from BOE, and 2,042,307oz from Zurich. If my math is correct...Someone is in trouble. Possibly JPM?

https://www.bloomberg.com/news/2011-08-18/chavez-emptying-bank-of-englan...

Am I anywhere near right? Or am I just acting like I know something? If this is correct, what types of issues could we as the little guy's be looking at from all of this? Furthermore, how could this further affect our economy of banking systems ect?

Edited by: Gunrunner on Nov 8, 2014 - 5:31am
Thu, Aug 18, 2011 - 10:28pm
Gunrunner
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Three hours later and not

Three hours later and not even a single "YOUR NOT EVEN CLOSE TO RIGHT". I really expected more from ya'll.

A very small Turdite...:)

Bang Bang
Thu, Aug 18, 2011 - 10:55pm
Brotha Bob
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Who knows

Who knows, many possibilities. 1. Nothing happens. Everyone ignores Hugo. And what could Hugo do? Start a war to get his gold? 2. Spot prices rocket, as banks seek phyz to cover Hugo. 3. Partial transfer, that stresses the system and another issue collapses the system. Hugo is good for making trouble, but so many issues going on, it won't be just one thing. Hugo is just one more brick in the wall. Be happy you are here, and hopefully are stacking for yourself. The end game is near.

May God Help Us All But, what do I know?
Fri, Aug 19, 2011 - 8:55am (Reply to #3)
Gunrunner
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Very happy to be here Bob,

Very happy to be here Bob, Thanks. I have been stacking for a food while and am sitting pretty well. In fact, I am way ahead of the game with the spot prices continually climbing. Gold has reached a point that it would be hard to buy like I used to. Right now I will stick to silver.

Bang Bang
Fri, Aug 19, 2011 - 10:56am (Reply to #2)
Patrancus
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a golden contagion coming

I am sure most are familiar with the term "contagion", taking delivery of your goods could even become a topic at the CDC. 

I posted this link on the Gold forum it gives great insight as to the current mindset of the banking investment broker calling you to tout his newest investment idea. The fact is they is just plumb out of ideas that make sound financial sense, which is reason alone to buy and hold your goods. 

Fri, Aug 19, 2011 - 10:57am
Patrancus
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The link from the

The link from the bubbleheads who used to operate a horse drawn coach

https://webcache.googleusercontent.com/search?q=cache:leIHKHbOZGoJ:https...

Fri, Aug 19, 2011 - 12:29pm
Dr Durden
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Well, JPM is the Fed's proxy

Well, JPM is the Fed's proxy bank, right? So all they have to do is do a few computer transactions and voila, Hugo gets his gold. Paper gold, of course. As we know, the Fed has 0 and JPM probably has 0. How's he going to obtain something that doesn't exist? Beggars can't be choosers. 

Got GIABO? "It's called the American dream, because you have to be asleep to believe it." ~George Carlin
Sat, Aug 20, 2011 - 11:06am
Ernie Pantusso
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Gunrunner wrote: If this is

Gunrunner wrote:
If this is correct, what types of issues could we as the little guy's be looking at from all of this?

"Remember, it was France who broke the back of the gold manipulation in 1971, by trying to convert gold certificates into real gold. Back then, the certificates were called US Dollars! That event started gold on it's bull market move from $35/oz. to $850/oz."

https://silverstockreport.com/2011/pushing-gold.html

Maybe one day someone will write:

"Remember, it was Venezuela who broke the back of the gold manipulation in 2011, by trying to bring home their gold ... That event started gold on it's bull market move from $1980/oz to $. . . . ./oz"

Sat, Aug 20, 2011 - 11:10am
Ernie Pantusso
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Playing with numbers

"Remember, it was France who broke the back of the gold manipulation in 1971, by trying to convert gold certificates into real gold. Back then, the certificates were called US Dollars! That event started gold on it's bull market move from $35/oz. to $850/oz."

35 : 850 = 1980 : x

x = 48,000 $ / oz

cheeky

Sat, Aug 20, 2011 - 12:07pm
bern
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"Venezuela, which holds 211

"Venezuela, which holds 211 tons of its 365 tons of gold reserves in U.S., European, Canadian and Swiss banks, will progressively return the bars to its central bank’s vault, Chavez said yesterday. JPMorgan Chase & Co. (JPM), Barclays Plc (BARC), and Standard Chartered Plc (STAN) also hold Venezuelan gold, he said."

That doesn't provide enough information to determine JPM's share/holdings of Hugo's gold.

"Of the country’s liquid reserves, which amount to about $6.3 billion, 59 percent are held in Switzerland, 18 percent in the U.K and about 11 percent in the U.S., according to a government report."

OK... Assuming the $6.3B means gold *and* the US portion is held by JPM:

$6.3B * 11% = $693M

$693M / $40oz (approx. price at time article was written) = 17,325,000 ounces

That's much more dire than your numbers. How did you calculate your numbers?

Sat, Aug 20, 2011 - 10:45pm (Reply to #10)
tko
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Venezuela's Gold ounces?

@bern

Aren't you incorrectly dividing the $693m by silver's price ($40) instead of gold's? It looks Gunrunner went with:

$693M / $1820oz = 380,769 ounces

Sun, Aug 21, 2011 - 7:06am
bern
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@tko - yep!  Thanks for

@tko - yep! Thanks for straightening me out. I figured I did something wrong.

The calculation is still predicated upon some assumptions the validity of which isn't clear. The $6.3B liquid reserves may not be all gold. The 11% US holdings might be spread out amongst JPM and some other institutions.

Sun, Aug 21, 2011 - 9:34am
lilbromarky1
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I heard gaddafi has gold

I heard gaddafi has gold reserves in libya. Lets invade that country to make good on Hugo's request

Like my ideas? Check our blog at: https://backtobasicseconomics.blogspot.com/
Mon, Aug 22, 2011 - 6:52pm
Brotha Bob
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It becomes more interesting

The situation with Hugo becomes more interesting. But, there are many factors pushing Gold higher. Hugo is just one of them. It will be interesting to see how it plays out. I would not invest in shipping, or insurance companies right now.

May God Help Us All But, what do I know?
Mon, Aug 22, 2011 - 8:21pm
bobby
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[quotIf this is correct, what

never mind

randomness