“The information in this report is taken from sources believed to be reliable; however, the Commodity Exchange, Inc. disclaims all liability whatsoever with regard to its accuracy or completeness.  This report is produced for information purposes only.”

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$1.19 Over Spot At SDBullion!



Well now.  How would like to get your bank statement in the mail from JP Morgan or Bank of America and see this disclaimer added at the bottom:

“The information in this account statement is taken from sources believed to be reliable; however, JP Morgan Chase & Co. disclaims all liability whatsoever with regard to its accuracy or completeness. This account statement is produced for information purposes only.”

How would feel about that?  That’s pretty much the equivalent of what the attorneys for the CME/Comex have done by adding the statement at the top to their daily gold and silver warehouse stock reports.  That disclaimer was not in Friday’s warehouse stock report, it was on yesterday’s (kudos to the commenter “anonymous” who discovered this).

The common reaction would be to ask “why now?”  But we already know the answer to that question.  I’ve suspected for a long time that the Comex vault operators lease out a substantial portion of the gold and silver bars that they keep in both the “registered” and “eligible” account designations.  It would be easy income for JP Morgan, a bullion bank who actively engages in gold leasing, to lease out the majority of the bars it stores for delivery – “registered” – and for investors who have taken delivery but keep their gold/silver in JPM’s Comex vault – “eligible.”  After all, in any given delivery month, less than 1-2% of the open interest ever stand for delivery, making it very easy for a Comex vault operator to earn extra income by leasing out gold and silver that it knows it will never be required to produce for delivery.

I am willing to bet a very large amount of money that this disclaimer was put on the warehouse reports starting yesterday as a result of the large amount of gold bars that has been physically removed from Comex vaults, and specifically from JP Morgan’s “eligible” account, since the beginning of the year.  This means that it is highly likely that a significant portion of the remaining gold and silver sitting in Comex precious metals vaults – especially JPM’s –  has been been hypothecated in some form.

For anyone who has witnessed what happened with MF Global and the illegal hypothecation of customer assets, a situation in which JP Morgan is/was inextricably tied, if  you believe that Wall Street is willing to hypothecate the sacred customer accounts but would not hypothecate or lease out Comex gold, then you are either tragically naive or terminally ignorant.

To make matters even worse, I just looked up the Comex warehouse rules with regard to storage and guarantee requirements, and there is not any requirement that Comex vault operators establish “allocated” accounts for the individual customers who have taken delivery – theoretically – of gold or silver from the Comex and chose to “safekeep” it in a Comex vault.  Here’s the link the to rules:  Comex Storage Rules

Yes, insurance is required, but there will come a time – likely sooner than most think – when there will be a rush by Comex vault customers to take delivery of the metal they have been ambivalently assured is sitting in a Comex vault.  Unfortunately for them, they will receive a notice that will say “see the disclaimer on our website, check’s in the mail.”

Submitted by Dave in Denver:


2013 Canadian Maples As Low As $2.39 Over Spot At SDBullion!

Silver Maple

  1. So analysis of the comex is as useless and technical analysis, and fundamental analysis when predicting price movements?
    Perfect, we can all officially go back to playing video games, drinking beer and diddling ourselves. LOL!

    • Agreed.  I also think data the COMEX releases is likely to massaged.  I expect the outward sign verifying the COMEX is in real trouble will be when they begin to aggressively raise margin requirements in an effort to transition to being a cash market to stave of default. 

    • @Canadian
      Apparently so!  Somehow I can’t say I’m surprised though!  Seriously now, has ANYONE trusted their numbers or, for that matter the COT reports???
      What DOES surprise me is that they even bothered to add the disclaimer language at all.  As if there is some liability that they would face?  HA!  No charges would ever be brought to bear.  seems there would be absolutely no reason whatsoever for a CYA here… as for legal liability, hey, the Fed can print up whatever they need!
      I DO have a correction for their disclaimer though:  Might as well complete the move to transparency…
      “The information in this report is taken from sources known to be complicit in the continued propagation of our deception; however, the Commodity Exchange, Inc. disclaims all liability whatsoever with regard to its accuracy or completeness.  This report is produced for disinformation purposes only.”

    • Agree 100% on the movement of said PMs, although why anyone in their right mind would leave something this valuable laying around within the reach of such well-known stick fingers is completely beyond me.
      How about, “most people can’t or won’t read such notices”?

  2. Just a little more “awareness” for the folks.  Hell, most of us have known this for a loooooong time, so its only another nail in their coffins.  ANYONE who has PMs stored with JPM and isn’t banging on their door to get it out NOW, is in the words of Ann Barnhardt, “either on drugs or an idiot”.  Works for me….

  3. What would be a way to massage figures, or not see actual figures?
    Could the commercials have “leased out”, even at negative lease rates, their COMEX shorts, to effectively be NET LONG rather than short as they’re portrayed in the all-too-open COT report? The shorts could even be used as collateral for short leverage derivatives. I am making this stuff up right here. Would like to hear detailed more educated thoughts on this.

  4. The COT reports could be as fictional as their inventory reporting.  Who knows what goes on behind the scenes with these creeps.
    The average ‘investor’ is a naive Pollyanna, trusting those smiling bankers because they wear nice suits, I guess.

  5. Well, as an idiot on drugs, let me  say this about that.
    Why has the COMEX not blown up?  The same reason the entire PIIGS banking system has not collapsed in trillion Euro bank runs.
    When we do CCW training on the range there are 3 rules to live by
    1.  Assume people are stupid—you won’t be disappointed
    2.  Nothing is foolproof—fools are so ingenious
    3.  Murphy WAS an optimist–we’ll miss him. He assumed that the shooter next to him unloaded his firearms
    Ok, I won’t be too much of an ass hat.  There are 350 million people in the Eurozone.  Some, maybe 5-10%, got it figured out and are converting to phyzz and jogging out of the bank with their money before TSHTF.  The rest of the folks?  Not so good. They will be hurt somehow, maybe a flesh wound, maybe fatally.
    In PMs, as in politics, everyone lies.  It’s a  lie usually  promoted by those who’s vested interests are  either being destroyed or stolen. Those who do not lie are delusionsal.  
    Take that as your standard and you won’t be disappointed. It is not a pretty picture but if you are like most stackers, the lie is your clue as to your best course. 

    • I am now picturing a Monty Python classic as the Knight (Cleese) has his arms chopped off, blood spurting as he dismisses it all as a mere flesh wound!! The parallels of this clip to the attitude towards the dire straits of the global economy makes for delicious satire!!

    • This is a real crack in the wall signifying one thing – The end is near! It is frustrating to be short of fiat paper currency to get some more silver. Aaaaarrrrgh!

  6. As they say: The devil is in the details!
    Well, they have now broadcast the alert, for those who understand. We have discernment, and now ask the question of WHEN? The answer is SOON ! LOL. How soon? Not as soon as you want, but sooner than you would expect AND in such an insidious form that you would not even believe! 
    AGXIIK, from my analysis, the primary reason most people do not want to believe and prepare for the rough times to come is simple – LAZINESS. It takes a lot of mental effort and heartache to confront the Harshness of Life! I have been through this before in the Philippines (early to mid 80s) and it was already a tough life in a 3rd world country. It is easier to pretend and not think about what is to come, especially since it is not here yet. But when the Gale Winds blow, it will be too late! ACTION also requires you to take responsibility for your life!

    • People generally avoid that which is outside their comfort zone.  Even thinking about the things that most stackers take for granted is too painful for many.  With this in the works, no wonder it is so difficult to talk to the non-stacking population about the need to stack.  It is an interesting sociological point that those who are aware and prepared for disaster are ridiculed and avoided by those who are not.  Sigh.

    Whoa, an attack of the obvious is now in progress!  After MF Global, PFG-Best, Sentinel, and Cyprus who in their right mind would have the faith necessary to store PMs with ANY of these criminal organizations?  As is so often the case, false faith WILL be punished.
    “How would feel about that?”
    Personally, I would feel like a complete and utter fool for having ANY relationship with the likes of JPM, BofA, or the Comex.  I suggest that doing so is just asking… no, BEGGING… to be financially gang raped.  Those who put themselves in this position will have their wish granted.  Then, they can get on with the deer-in-the-headlights look and asking everyone around them, “Who could have see this coming?”.  Who, indeed?  :-/

    • PS… my octogenarian parents have a lot of money on deposit with JPM.  I have advised them multiple times to GTF outta there… in the nicest terms, of course.  No deal.  They like their local branch and insist on keeping the bulk of their money deposited there.  It IS their money, of course, but I sure do hate seeing it just laying there, fully exposed to a “Cyprus moment”.  Well, this is not the 1st warning of a potential problem that I have issued to them and been ignored… to their cost, I might add.  As the executor of their Wills and the successor trustee of their Trusts, however, that relationship will be terminated upon their demise.  I just hope that JPM does not implode before then.  If it does, it will be one hell of an expensive lesson.  🙁

  8. Stealing peoples Gold from accounts at the Comex, I will predict that Jamie Dimon and that fool with the long blond hair will be fished out of the Hudson River.  I have no Gold there but I am a new Yorker and this game is close to an end. This is not Cyprus or is it MF Global, you are talking about some big players and they will dismiss this government and go right for the American children of fraud and deception.  Obama and Bernanke are responsible for allowing these bastards such power and selling America out. No surprise there!

  9. I really struggle to understand how this makes any sense at all.  My first thought that is was another sensationalization that has become all too common on this and other sites.  Not so, the report is there (although in a shameful proof of my previous comment, the notice is not at the top, it is at the bottom).  In the end, it doesn’t matter if it is big and bold on top or in the appendix, it’s there.
    Shaking the faith of the underlying physical makes no sense, not good for commercials looking for a hedge, in turn not good for volume, in turn not good for shareholders… I’ve emailed a buddy in the registrars office looking for an answer as to what would have motivated them to do this.  It certainly gets the wheels turning.  
    Maybe the truth is benign, but in my opinion, it is the exchanges obligation to enforce and audit these numbers.  They did so when I worked for delivery facilities in other commodities.  If they’re too inept or lazy to do so now they’ll start to struggle sooner than I would have thought.

    • I agree with your first thought…. another sensationalism that has become all too common on this and other sites.  It’s understandable though as there is no reason to be bullish about PMs at this time.

    • Obligation, enforcement and audits from the exchanges? Talk about sensationalism.
      LOL…that is pure gold. That’s one of the funniest things I’ve read in the last 5 years. (But you forgot your sarc tag).

    • well, this appears to be something the lawyers concocted, it’s on all cme stocks reports, grains, oilseeds, etc etc.  havent heard back from the registrar, shameful that they cant or wont work to enforce these.
      bay, if youve ever worked for a regular delivery house of any exchange traded commodity i’d be happy to gear your opinion.  I have, so you can read mine.  Seeing as how youve posted nothing useful here in any post i’ve read i’ll be happy to not bother to reply to you until i see an original thought.
      i like reading and posting here because i get a few thoughtful tidbits every day that make me think, even if they disagree with my worldview, i’d suggest you expand yours if you can handle it.

  10. My thoughts are in line with those who ask why they would even bother to change the wording at all…
    It reminds me of the treasury wording regarding its gold holdings: from “gold bullion” to “goldish recievables” to “deep storage gold; (aka claims on unmined future gold production from miners we’ve financially crushed via naked shorting of their stock)”. I know the exact wording is not quite that funny, but ellicits a similar chuckle.

  11. Confirmation that the Comex is one big fraud.
    No position limits, no proper inventory.
    They dont have to wait for FTC to impose limits. Other exchanges have limits.
    So how come they have not lost their license.
    Obama  & Banksters abetted fraud

  12. Perhaps what little bullion remains in the ETFs are reserved to ‘certain’ politicians who’ve ‘re-enforced’ their firm claim on it and so can’t be removed from the table. That ex-FED Board Member who was rebuffed trying to get delivery of gold on his claim-ticket may have ‘disturbed’ a few ‘feathers’.

    • @SPECULATIONCLNC and the message below.
      I can see desperation on your behalf SPECULATIONCLNC. Besides I love your current contribution to this blog, two real silver nuggets. 
      I am sorry PatFields but I had no choice after this f&%$# m$%^& put so many spaces after the message.

  13. The only idiots here are the ones who are too lazy to check up on the truthfulness os such claims  as made in the original post.
    The Disclaimer  is made by the Commodity Exchange Inc. ….not JPM. As well, it has always been there as the Exchange is relying on reports from the Clearing Members.  This person deliberaly changed the disclaimer to have been made by JMP instead of the Exchange.
    He is an outright liar.

    The information in this report is taken from sources believed to bereliable ;however,

    the Commodity Exchange, Inc. disclaims all liability whatsoever with regard to its accuracy or completeness.

    This report is produced for information purposesonly.


    • Well that was informative. I think we all should utilize the link button more in the post toolbar rather than spam everyone with shit we won’t read because its Too Damn Long equating to Didn’t Read It (TDL;DR) ya?!
      SD operates in hardcore mode. No edits bitchez.

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