empty COMEX vaultToday was first notice day for February delivery in gold, and as usual, we had a waterfall raid in gold to $1655.  The cartel MO has long been to raid gold and silver on options expiration as well as first notice day, to help prevent longs from standing for delivery.

While the the cartel raid was successful based on the paper futures price, it was an epic fail based on physical gold delivery requests, as a monumental 1.391 million ounces, or 43.26 tonnes of gold stood for delivery today on first notice day

To put this number in perspective, December delivery in gold, which is traditionally the largest delivery month of the year, saw less than 10 tonnes stand for delivery. 

Has the Buba’s gold repatriation request ignited a full-fledged run on the cartel gold bank?

 

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From Harvey Organ’s COMEX update:

Today we had first day notice and what a surprise.  We had a massive 1,391,000 million oz of gold stand or 43.26 tonnes of gold.  I have been following the gold and silver comex data from the mid 1970′s and I have never seen anything like this before.  You will recall that this past December we had only 10 tonnes of gold delivered upon.  Generally December is the biggest delivery month of the year.  The comex is not a physical market.  If one needs physical they generally head over to London at the LBMA and purchase the metal over there.  The high amounts standing may mean that our gentlemen from Eastern persuasion are having difficulty finding metal and thus they are heading over to our neck of the woods to obtain this very valuable commodity.

The total comex gold open interest rose 425 contracts to settle at 431,137 from Wednesday’s level of 430,712.  We now have the number of contracts for gold standing as today is first day notice.  The total number of contracts standing for gold is a whopping 13,910 contracts or 1,310,900 oz of gold which translates to 43.26 tonnes of gold.  I am sure that Blythe will be one busy girl these next few weeks as she tries to entice some longs standing to accept paper instead of metal.  The next non active contract month is March and here the OI rose from 1087 up to 1211 for a gain of 124 contracts.  The estimated volume today at the gold comex was fair at 161,916.  The confirmed volume yesterday was quite good at 245,696.

 

In all the years that I have covered the comex I have never seen such a high amount of gold standing.  The comex is a paper market and too see such a high level of gold standing seems to suggest that the gold investor boys (and sovereigns) are crossing the pond because physical gold is scarce.  London must be out or close to it.

 

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  1. Well you now have massive global currency debasement and extremely tight supplies of gold and silver. Thirty eight countries are actively debasing their currencies. Trust amongst central bankers is clearly deteriorating. Germany has arranged for repatriation of some of it’s gold. Holland, Austria, Switzerland and other countries are asking questions about gold repatriation. China, Russia and many other countries are adding to their Central Bank gold reserves to hedge foreign currency reserves or perhaps even to introduce gold backed currencies. Wow I wonder how this ones going to end.

  2. I have long said that this is the straw that will break the cartel’s back.  This kind of move would a) prove that there is no physical gold (not to mention silver) behind all the paper promises, and B) cause the paper derivatives bubble to burst overnight. Let us hope that Blythe and Jamie’s worse nightmare is nigh!   

  3. And the Swiss are urging allocated accounts.  They are very concerned about the flow of gold to the LMBA and COMEX and out of their hands.  If they decide to stop playing the game, the struggle noted above will become a hot war for gold. 
    Iran, Turkey, Mali and other gold rich countries will be in real danger.  One note that seems interesting is that Turkish good delivery LBMA bars are being held up from sale due to the Turks and Iranians working together to get around the SWIFT sanctions. Turkey is buying a few billion in oil and gas from Iran, paying for it with gold through Dubai which is then transfered to Iran.
      The western bullion banks and governments are putting a great deal of pressure on Dubai to refuse transit or purchase of Turkish minted gold.  That is a serious flank attack on gold, Turkey and Iran but I’m not sure how that will shake out. 
    Turkey is  a NATO member but also becoming more Islamist.  The army does not have has much power as they had in years past.  Attacking Turkey through their good delivery bars, the coin of the realm gold, not only hurts that country as it’s another form of Currency War in MENA, it  reduces their ability to pay for their needed oil and natural gas, but also hurts their fellow Islamists in Iran. We are shooting allies and that will not play out well at all.
    That ‘gold for oil system’ that was working well for a while will probably force Turkey to seek other means to move gold.  Gold is like water. It will seek its own level and find a way around sanctions.   I think there will not be a peaceful solution given the fiery issues in Syria, Iran, Egypt, Mali and Israel. 
    Attacks on the Petro Dollar system will be dealt with severely.  The US sees real consequences against their regime when adversaries work to replace the Petro Dollar for Petro Gold.
    China is also solidly behind this monetary regime change and will consider these assaults against their developing alternative  Yuan gold backed currency as dangerous moves on the global chess board.
    That alt currency cat is now out of the bag as well   Mali, France and AFRICOM are all chess pieces used an increasingly aggressive attempt by the western powers to regain and retain control of the resources of Africa; resources that are vitally needed to help prop up the western thirst for commodities and China’s equally strong need for gold, silver, platinum, oil, natural gas and the human capital (read slave labor) they need to ‘conquer’ that continent.

  4. Over at King World News, Willam Kaye, a hedge fund manager operating out of Hong Kong, gave an astonishing interview where he stated matter-of-factly that their research shows Gold has been sold at a paper-to-physical ratio of at least 100 times, but the ratio for Silver is even higher.  He made references to GATA’s work, and he pointed out that they prefer Gold because central banks have been buying and accumulating Gold, but not Silver.  Thus, he believes central banks will still be running things when a new monetary paradigm emerges (although Darryl R Schoon would disagree with that).
     
    Eric King pointed out that the reason central banks are not buying Silver (openly, at least) is because Silver is such a tiny market size in financial terms, that there wouldn’t be enough Silver to go around if central banks decided to buy it, unless the price exploded much higher.  William Kaye agreed, and said that’s why they own Silver also.  Moral of the story: Hedge funds are beginning to get into the physical Gold and Silver markets.  Most of them probably understand the fractional reserve nature of precious metals trading being practiced by the bullion banks, so they will use that to their greatest advantage.  Things in the Gold and Silver markets are really heating up now.

    • Yep.  Right up to the point when they get caught covering a gold obligation with cheap tungsten.  Then there will be Hell to pay.  Like many things in the political arena, the banksters know all about tungsten tainted gold.  But they HAVE to pretend that they don’t and they can’t do that if this cat exits the sack.

  5. How’s this for a prediction.
    Right along with blind pigs finding acorns occasionally and broken clocks being right twice a day, if the sad sack of neurons called Paul Krugman thought printing a trillion dollar platinum coin and an invasion of little green men would stimulate the economy (we have plenty in the White House how), how these pointy headed intellectualoids could place any value on anything is beyond me.  If a central bank and central government values its currency at whatever level is choses, then central banks can solve the problem of gold being in limited supply as they discover their vaults are empty.
    I think the western central banks will find a large number  of their gold bars are plated tungsten. If that’s the case they can pretend they are good bars just as they pretend a trillon dollar platinum coin represents a means to monetize debt.  They can call the bars anything they want.  People like this are very good at kidding themselves, sometimes even better than they are at kidding us.
    Once the scam is revealed, every central government that wants to claim its currency is gold back simply takes as many tungsten bars as needed, plates them with gold, gives them a value of X and voile, the problem is solved.  This is much easier that central banks constantly lying to each other concerning the 3-4,000 tons of gold that’s supposed to be stored in their vaults.  This dilution of gold and plating of base metal coins worked for the Romans.  It worked for us as the mint removed silver content of our coins from 90% to 40% to nothing.  Maybe if the central governments can pull this off they won’t be so inclined to invade another country to steal their gold in order to balance the books between their vaults and those of another country.
    I’m thinking we’ll hear about this soon enough. 
    Coming to a central bank near you: Two tiered gold.  One is the real stuff and the other is gold plated tungsten.  Take your choice because when you make your choice, you don’t get a second chance.  Once the choice is made, you’re stuck with it.
     

    • All they need is something that is in limited supply and put value on it. Much like the Indians using shells. I suggest each country use central banker poop. They already think that theirs doesn’t stink and it can be gold plated and exchanged. A DNA test can verify it’s authenticity. You would have to keep them away from the burritos though.

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