*UPDATED 2:45pm Sunday:
A journalist on scene on Wall Street this evening has just sent us footage of a massive fleet of Firetrucks and ambulances in front of the JP Morgan Chase building, with fire-fighters stating they are responding to a COMMERCIAL VAULT FIRE IN THE BASEMENT!
*FDNY has confirmed that the fire is in a commercial vault at JPMs old HQ of 15 Broad St.
With JPM’s gold inventory plunging 66% Friday to an all-time low of 46,000 ounces, and with reportedly over 502,000 ounces still standing against JPM for the JUNE gold contract, is the long anticipated force-majeure event in progress?
Video footage on scene is below:
We will refrain from speculating whether the underground tunnel connecting the NY Fed basement with 1 CMP’s gold vault also provides access to the 15 Broad St. vault.
*Update 3: ZH and others finally covering this story Sunday afternoon are declaring it a non-event as 15 Broad St. is 2 blocks from JPM’s current HQ at 1 Chase Manhattan Plaza and JPM’s gold vault 5 stories below street level- yet the fact remains that 15 Broad St. is the former HQ for JPM.
As a fire incident sufficient to induce a force majeure declaration would need to destroy the paper certificates indicating title of said gold (as last we checked while rehypothcation may make gold bullion disappear, a structure fire NOT involving detonation of thermite or tactical nukes does not vaporize gold), such an event might at least buy a bullion bank a bit of time to come up with the bullion necessary to meet outstanding requests.
While we have no reason as of yet to believe any such records involving gold title are still held at JPM’s prior HQ, the timing is at the least suspect and inviting of speculation with JPMorgan’s gold vault dropping 66% to a new low Friday amid speculation JPM might not hold sufficient bullion to meet outstanding delivery requests.
Meanwhile, earlier Saturday:
Good luck getting any sleep Saturday night if you hold any allocated “gold” on deposit at JP Morgan.