Bundesbank goldWe may be finally witnessing the REAL ENDGAME TO PAPER GOLD MANIPULATION.
The Death of the paper gold market picked up speed today as Blackrock announced that issuance of new Gold IAU ETF shares was suspended.
However, it’s MUCH WORSE than the information in news release…



From the SRSRocco Report:

When we factor in the total supply and demand situation:

According to the article on Zerohedge, BlackRock Suspends ETF Issuance Due To “Surging Demand For Gold”:

BlackRock’s Gold ETF (IAU) has seen fund inflows every day in 2016 (no outflows at all) and with the stock trading above its NAV for most of the year, the world’s largest asset manager has made a significant decision:

Now, why is this so interesting?  Because, this now suggests a tightness in the paper gold market due to the last several years of surging physical gold demand…. especially now that China has recently become an “official” Central Bank buyer of gold.

If we look at the increase in Blackrock’s iShares IAU ETF gold inventories, they have increased 1.2 million (Moz) in the first 2 months of the year:


The iShares IAU ETF held 4,905,600 oz of gold at the end of 2015, but this jumped 1.2 Moz to 6,133,283 oz presently.  This is nearly a 25% increase in gold inventories in only two months.  As we can see, the outstanding shares increased from 508.1 million Dec 31st 2015, to 635.6 million shares currently.

In order for Blackrock to issue more shares of its gold IAU ETF, it will need to acquire more physical gold.  Blackrock’s news release also stated the following:

February marked its largest creation activity in the last decade.

This surge in demand has led to the temporary exhaustion of IAU shares currently registered under the ’33 Act. We are registering new shares to accommodate future creations in the primary market by filing a Form 8-K to announce the resumption of the offering of new shares.

Blackrock says they are registering new shares to accommodate future creations in the primary market.  The question to ask is this….. why wait until shares are exhausted before filing a 8-K form to acquire additional shares?  Is it just a matter of getting new paper shares, or is it a matter of acquiring the physical gold to back those shares?

This is a good question because if we look at the SPDR’s Gold GLD ETF, they don’t seem to have a problem adding more physical gold to their inventories:


While Blackrock’s has suspended issuance of new shares of its IAU Gold ETF, SPDR’s GLD ETF has added a whopping 4.8 Moz of gold to its inventories in the past two months–four times the rate of the IAU Gold ETF.

Could it be that the GLD ETF  has no problem acquiring physical gold because it really doesn’t contain all the gold it says it has in its inventories?  Or maybe the gold they say have in their inventories is over subscribed?

The GLD ETF had 20.6 Moz of gold in its inventory in the beginning of the year, but now holds 25.5 Moz.  Just these two gold ETF’s have added 6 Moz of gold to their inventories in just the first two months of the year.  This is an amazing feat when we realize total mine supply was likely only 14.5 Moz for January and February.

Surging Gold ETF Demand Destroys Supply & Demand Balance

According to the World Gold Council’s 2015 Full Year Demand Trends, the gold market suffered a 43 metric ton (1.4 Moz) deficit in Q4, even with a net outflow of Gold ETF’s of 69 metric tons (2.2 Moz):


If the gold market suffered a 1.4 Moz deficit in Q4 2015 even with 2.2 Moz of supply coming from Gold ETF outflows, what kind of trouble is taking place now with just two Gold ETF’s added 6 Moz to their inventories in just two months???  Folks, this translates to 187 metric tons of additional physical gold demand during JAN-FEB compared to a 2.2 Moz outflow last quarter.

This is an amazing net 8.2 Moz change in Gold ETF demand in just the first two months of 2016 versus Q4 2015.  No wonder Blackrock had to suspend issuance of new shares.  We may be finally witnessing the REAL ENDGAME TO PAPER GOLD MANIPULATION.

It will be interesting to see how things unfold over the next few months as more cracks continue to appear in the Greatest Financial Paper Ponzi Scheme In History.

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    • I’m not an expert at ETF legalities but when this news broke I remember it saying the Blackstone fund is an ETC not an ETF. The C is for commodity.  And ETCs are governed differently and more strictly than ETFs.

      So Blackstone had to stop selling when they couldn’t source physical.  GLD can keep right on issuing IOUs and pretending they have physical.

      Is anyone familiar with these specifics?



      IAU is an exchange-traded commodity (ETC), which therefore is not eligible for registration as an investment company under the ’40 Act. IAU may only be registered under the ’33 Act as a grantor trust. Under the ’33 Act, subscriptions for new shares in excess of those registered requires additional filings with the SEC.
       Nearly all other U.S. iShares are exchange-traded funds (ETFs), registered as investment companies under the ’40 Act. The ’40 Act provides for the continuous offering of shares and does not require registration of additional shares as the fund grows due to investor demand in connection to new subscriptions.

      From: http://www.zerohedge.com/news/2016-03-04/blackrock-suspends-gold-etf-issuance-due-demand-gold

      In my ignorance it seems to me that IAU shares have to be fully backed by gold whereas Gold ETFs do not.  So either Blackstone forgot to to “file for new shares(?) with the SEC in time” OR they are unable to find the metal.  The big question to me in view of the steep rise in gold demand is “how long does the SEC take to process the paperwork?”  Maybe Blackstone did its part two months ago and are simply awaiting the SEC to do its bit?  There is not much point in pursuing a gold shortage angle when everything can be explained by bureacracy.

    • silverine
      Yes, that is the ZH article that I read quickly that described differences between ETF and ETC.  There have been many wrong references to calling the Blackrock fund an ETF when if fact it is an ETC.

      I read that to say as an ETC must have a more stricter backing of gold than does the GLD ETF.  So GLD can continue on their merry way with or without gold.  Blackrock needs to stop and catch up.

      Of course some of the stop and wait might be SEC paperwork but I suspect they are connected.  Blackrock couldn’t source gold fast enough with prior paperwork and now has to catch up with phys and get their paperwork in order to pursue more phys.

      If the gold media like SD and ZH would get the facts straight about ETF vs. ETC there could be a story that while Blackrock appears behind on phys, it is probably GLD that is (with permission) the one that is really behind on phys.  Kind of like how all of the gold media missed the facts of the Lined Up In London To Get Gold story.

  1. GLD prospectus:

    GLD contains millions of ounces of gold in its inventory, or IOUs for millions of ounces of gold in its inventory. What’s the difference, who cares! You sure don’t. We say that Paper Promises for gold shall be counted as gold. In case where Paper Promises are not paid and we blow up, sorry, but you lose!

    Now Blackrock possibly has physical gold. But then again, they probably got a tap on the shoulder saying “you need to stop buying, it is hurting us” and so they slammed the door on their clients. They are just as much a part of the cabal just as HSBC is.



    We were right! We deserve this win! Don’t sell yourself short on some baby rally or regret not having a sh**t-ton in your stack. Buy buy buy, buy buy, buy buy. And then buy. And make these people pay, make them pay YOU the big bucks for all the lies they told while we were trying to tell the truth. Make them pay for that. And you can, by buying more now. Let’s really go for a big win here.


    Have a great weekend everyone!

  3. You got that right. I’ve been buying all week. Keep looking around the house for non-critical items to ebay…find some… then place another order. Haha. I’m single so I can get away with that. Writing more auctions as we speak so I might grab a few more tubes Sunday night and leave a little dry powder for  next week…. We sure as heck deserve this.

  4. Just because black rock has a problem finding and sourcing Gold that doesn’t or may not apply to GLD and SPDR. After a few years of research I tend to think that there is more baloney at the GLD and SPDR than there is Gold.  More Silver.  I can’t wait to see what washes out of this dirty laundry.

  5. Just also to point out that the WGC underestimates Chinese wholesale demand by over 1000 Tonnes per year and that “Official” PBOC demand is probably also significantly understated by “hiding” Official Gold at the State owned Banks. It really looks this time as though theBIS/CB/BB/ESF Complex is holding on by the skin of its teeth. They added 26K contracts Friday alone to cap the price and pushed the OI/Registered up to OVER 550!! Wouldn’t it be lovely to see them get a dose of their own medicine and get short-squeezed?

  6. They could  build Himalayan sized mountains of bulls*** to GLD   If they actually acquired 150 tons of gold in the last 2 months I’m  a stripey-assed baboon.

    Just checked.

    There’s no paint on me bum.

    Come on down to GLD

    Get a big yummy bowl crock o’shiite  gruel from the ass bastards of ETFs  GLD!!!

  7. Perhaps Blackrock was assuming some ‘IAU Gold Baskets’ would get liquidated on a COT smash that has begrudgingly not materialized? Today’s 8-k filing and suspension announcement is poorly timed for the gold cartel, unless they are instead positioning for a major short squeeze?

    If I recall… wasn’t Bear Stearns the first casualty in early 2008? And if they were indeed one of the ‘Big 4’ concentrated silver shorts per the COT data as Ted Butler’s post-mortem analysis indicates:


    then, Bear was net short approx $2.5B in Gold and Silver futures as Gold and Silver prices rallied into March 2008, coincidentally just as emerging stress from the infamously ‘contained’ sub-prime housing hit.

    Fast forward to today, with Bear Stearn’s ‘gracious acquirer’ JPMorgan now holding at least 300 million ounces physical silver via ‘winnings’ from their five year COMEX manipulation; and perhaps as Ted Butler has long estimated; the big money is finally set to be made on the long side.

    What better kick off than an epic short squeeze set up where another ‘Big 4’ bullion bank gets carried out on a stretcher? You can bet JPMorgan knows when and IF it is time to execute ‘the squeeze’… IMO, they will only do so when they are sure another death in the ‘family’ will result.



  8. Some stock monkey on ZH actually posted this:


    1. They cry about manipulation every time they lose money
    2. They hoard gold instead of investing in the economy, denying millions of people jobs and income growth
    3. They undermine our national currency and national interests
    4. They selfishly pursue profit at the expense of others
    5. They keep ‘stackin’ even when they’ve already lost half of their family’s retirement
    6. They have no understanding of basic economic principles
    7. They snobbishly reject all other investments
    8. They have a lemming-like mentality and buy in panic whenever they see any second rate article about ‘armageddon’ or ‘hyperinflation’
    9. They have an inability to see the other side of the gold argument
    10. They rush to anothers defense in pro gold arguements, even if they have no understanding of the argument at hand

    WOW! Sounds like this guys pissed off his bank is losing it’s *ss. Sounds bitter about pm investors choice of investments, and is awfully involved in ‘lemming’ idiots decisions?

    Just my answers to these points:

    1. Manipulation in just about every market has been proven. PM investors are no different than any commodity investor in crying foul when they’ve been ripped off by investment banks rigging markets. Full market manipulation has finally been admitted by FED chairs & yes were angry.
    2. We hoard gold, because cash is inflated away. If cash paid interest, I would loan it to the bank to use for investments, but who in their right mind would loan 30 grand to someone for .03%?
    3. Our national currency was undermined by the Federal Reserve by removing any substantive backing, which gives currency legitimacy. Each country’s CB did it to themselves, we’re just consumers, we don’t make monetary policy – your barking up the wrong tree.
    4. Everyone who invests ‘selfishly pursues’ profit. Getting return on one’s investment is the reason people go into business, no different than investing in a turnip crop, then harvesting & selling it.
    5. A wise PM investor will continue ‘stacking’ even when the asset has lost value, yes, as long as the market trend shows the asset undervalued, this is the nature of all investments; buy low, sell high. And as an indestructible asset, it is always wise to keep a small stack for ‘winter’.
    6. If they had no understanding of basic economic principles they wouldn’t know anything about commodities in the first place.  Investing in PM’s is commonplace with CB’s, perhaps they are economic idiots as well?
    7. Actually, you’ll find many PM investors to be well rounded in investments.  I myself was well vested in S&P until it capped.  I look forward to a sound market without intervention so I can invest in growth again.
    8. I find the stock market has more ‘lemming like’ mentality investors.  After all ‘lemmings’ follow the herd, and the herd is packed into stocks. Were they in PM’s, there would be none available. So your stereotype is more mirrored towards ‘typical’ stock investors! – would you like some sugar with your ‘lemming-juice’?
    9. The other side of the gold argument? There is no other side, either you own gold, or you don’t. It’s an investment like any other. Either you love Tech stocks, or you don’t. Why do you care if I invest in tech’s or gold? Mind your own damn business you loser!
    10. No one ‘rushes’ to the defense of the gold argument.  If you log onto a gold site and start bashing the investment, then you will likely receive backfire.  If I logged onto a tech stock forum and bashed tech stocks, I would be assailed by investors defending their investments, it’s only normal.
    • Yep, that would be MillionDollarBonus. Thing is, people on ZH still haven’t figured out if he’s clueless or an on point satirist. I’m leaning clueless.

    • actually @shamus001, i find that list to be gold.

      right there, in one comprehensive list, the manipulators have summarised their entire psyop disinformation against gold. even a relatively unintelligent person could refute at least one or two of those arguments. obviously, many could refute most or all.

      as usual, ZH posting garbage like that speaks volumes about who is behind ZH.

      2) and 3) are very interesting. they’re setting up buyers of gold for blame of the upcoming financial collapse.

    • Hmmm… gold up 19% in 2016.  Stocks down 2.5% in 2016.  That is a 21.5% smack-down difference for stocks vs. gold.  Damn, I hate it when these fiat bugs go on one of their anti-PM tirades.  lol

      Also, don’t be fooled by the gains of the past week.  Not sure if this is one of those infamous “dead cat bounces” or not but these gains are likely to be temporary as more bad economic news trickles out.

  9. @shamus001   Leaving the brilliance of Bugs, Foghorn Leghorn, Pepe LePew and Yosemite Sam,  there is one thing about stocks that I have noticed.  They can go to zero value.

    Having traded more than a few of these crapfiestas, at one time owning at least half the shares of Global Marine when it could be bought for 100 shares for a penny in 2005, zero is zero no matter how you spin the turd.   Gold, on the other hand, has that unusual quality of retaining some value no matter what is going on.

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