Blythe Masters Jamie DimonIn another stunning withdrawal, JP Morgan had  an additional 321,500 oz  gold ounces removed from its vaults today.
Since last Thursday, JP Morgan has lost 44% (20 metric tons = 643,000 oz) of its gold inventories.

If a picture is worth a thousand words, then the table below is worth over $400 million (at current market prices):

 

1 oz Silver Buffalo As Low As $0.79 Over Spot at SDBullion!

 
From the SRSRocco Report:

 

Here is the Comex inventory table for last Thursday:

Comex Gold Inventories 12414

 

2014 Silver Eagles As Low As $2.99 Over Spot at SDBullion!

    • @silverdog

      “Lets hope it gains momentum!”
       
      Yes, he absolutely did.  But, he gave it up in the end!
       

      @AGXIIK

      “I heard he was whistling while he whistled past the 15th floor. No one heard the tune”

      Something tells me it was a remake of a 60s flower-power song… something about,

      “Where have all the gold bars gone, long time passing?
      Where have all the gold bars gone, long time ago?
      Where have all the gold bars gone?
      Banksters stole them every one.
      Oh, when will we ever learn?
      Oh, when will we ever learn?

      At that point, the song was quite rudely cut off…

    • @Shamus001
       
      GREAT article!  Thanks for posting the link.
       
      Some comments seem in order…
       
      “One place to start is to note that JP Morgan Chase had, at the end of 2012,  a mind boggling, but only silver medal, $69.5 Trillion with a ‘T’ gross notional Deriviatives exposure . While the gold medal for exposure to Derivative risk goes to …Deutsche Bank, with $72.8 or €55.6 Trillion Gross Notional Exposure. Gross Notional means this is the face value of all the derivative deals it has signed. Which the bank would be very quick to tell you would Net Out to far, far less. Netting Out, for those of you who do not know just means that a bet/contract in one direction is considered to balance or cancel out a similar sized bet/contract betting the other way.”
       
      Note that this article references a time that was about a year and a half in the past.  These days, the JPM derivatives book is about $75-80T USD.  Understandably, it is difficult to get accurate numbers for these “off the books” and completely unregulated in any way derivatives.  And yes, banksters are always telling us about “notional value” and “net derivatives risk”.  But, note that no one EVER asks one of these shysters, “So, what happens if your derivatives counter-parties can’t or won’t pay what they owe you?”.  That would be an “Oh, S**T! / Lehman Bros. / MF Global moment of EPIC proportions.  Practically all of these derivatives are connected in a vast chain… web?  Once even one of the members of the chain can’t or won’t pay, the whole thing comes unraveled like pulling a loose bit of yarn on a cheap sweater.  Like Christmas tree lights wired in series, when one bulb goes out, the entire string will go dark.
       
      “Remember that Derivatives are what Warren Buffet dubbed “weapons of financial mass destruction.””
       
      Yes, he did say that… but that was before he was brought into the NWO inner circle.  No doubt that made the NWO ring-leaders out there just cringe.  He’s been a good boy ever since, though, but the comment was heard and read by far too many people to ever retract and eliminate from public consciousness.
       
      “Mr Ackermann had built a derivatives position 18 times larger than the GDP of Germany itself.”
       
      Indeed… and about equal to the entire WORLD GDP as well.  In fact, if the $1400T number for the total amount of derivatives is correct, these are about 20 years worth of GDP for the entire planet!  That these financial instruments have ballooned up to their current size in spite of the danger they pose to national and world economies is absolutely astounding.
       
      “In some ways it was a creative move – in the way finance is creative , like making a better land mine I suppose – since Zurich already ran the world largest derivative trading exchange, Eurex. With the new trade Zurich would not just be running the exchange but would now become a major player in the risk trade. Of course this is fine so long as the risk never materializes.”
       
      And therein lies the allure of derivatives… money for, hopefully, nothing.  These are a form of insurance against risks of various kinds, yet it is impossible to know whether of not the level of risk and the level of payment for taking on that risk have been carefully and accurately balanced.  It is likely that they have not and that the derivatives are far more risky than their cost indicates.
       
      “Deutsche is sitting on the world’s biggest pile of them and J P Morgan the second biggest pile. And right now global events are making those risks sweat. When HSBC tries to limit cash withdrawals and so does one of Russia’s largest banks then something somewhere is not healthy. We are , I think, circling around another Morgan Stanley moment.”
       
      I don’t know about a Morgan Stanley moment but these certainly seem to be building up to a gigantic Lehman Bros. / MF Global moment.  I agree that both of these banks are sitting on HUGE piles… of the smelly and steaming kind… and that they will very likely rue the day they ever got themselves into them.  If they are circling anything, it is likely to be the toilet bowl just prior to heading down the drain.
       
       

    • To put it simply, the QE policies by “Helicopter” Ben has worked. His “helicopter” speech got Ben elected as the Fed Chairman. His “helicopter” speech has been implemented since the 2008 derivative scare. He successfully saved the banking system. He successfully kept the US consumer afloat. He has facilitated a reflation of US net worth…in “paper” wealth, not wage-income. He has created another credit-fueled recovery where the US consumer is borrowing from a collateral base that is defined by paper wealth. Besides the Fed Balance Sheet, the Fed’s sole strategy is to keep the stock market from falling.
      Equities is where you should be. In regards to the Fed Balance Sheet, this will be bailed out by forcing all public pensions into US Treasuries…with a 8.5% fixed return. So relax, Yellen will double down on QE to 100 billion a month! The DJIA to 20k!
      As for the lack of wage-income growth in the private and the public sector, I say this: get used to it or start your own company.
      This has been my guide book for the two years. I suggest you read Ben’s 2002 speech.
      http://www.federalreserve.gov/

    • @ Thomas – you were right in understanding Ben and his play book…but the play book has actually failed as the tapering of QE is and will cause equity and EM dislocations and has not allowed for a handoff of the economy from Fed to consumer. 
      Housing is 40% cash buyers and primarily institutional…all premised on extremely low rates forever.
      Earnings suck.  Capex is falling apart.  UE is no better.  Leverage in markets is record high.  Debt loads are massive and yet there isn’t adequate money to buy them up w/out either the Fed buying or somebody selling something else (risk) to buy bonds. 

      And, oh, by the way the bulk of institutional physical metals appear to be gone and the run on the phyzzz is now getting rather obvious. Time is about to run out on Ben’s playbook.

      Fed is now against the wall and the handoff was supposed to over long ago…but now there never can be a handoff and Ben/Janet are now beyond anything they or their models ever anticipated.

    • The remittances from the Fed Reserve to the US Treasury hit 290 billion from 2009-12. I read an article from a financial writer over at Seeking Alpha that the Fed Reserve’s purchases of MBS’s are crowding out big REIT’s. I need more than that to make a 500.00 decision but it feeds a hunch of mine. I have to do a lot of reading from Fed Reserve member speeches or testimony to give me wings to stay above the bullshit which I do not always do. I did bump into this nugget from February 2013:
      “Another aspect of the Federal Reserve’s policies that has been discussed is their implications for the federal budget. The Federal Reserve earns substantial interest on the assets it holds in its portfolio, and, other than the amount needed to fund our cost of operations, all net income is remitted to the Treasury. With the expansion of the Federal Reserve’s balance sheet, yearly remittances have roughly tripled in recent years, with payments to the Treasury totaling approximately $290 billion between 2009 and 2012.However, if the economy continues to strengthen, as we anticipate, and policy accommodation is accordingly reduced, these remittances would likely decline in coming years. Federal Reserve analysis shows that remittances to the Treasury could be quite low for a time in some scenarios, particularly if interest rates were to rise quickly.”

      http://www.federalreserve.gov/newsevents/testimony/bernanke20130226a.htm

      What this says to me is there are scenerio’s played out for many possible outcomes. I can only see one outcome from insight. This is based to some degree on oil staying under 120.00 a barrel and China going along until they have built a respectable deep water Navy. As far as the US Treasuries and the interest due in five years, some three-seven trillion, they have five years to get public pensions to bail out the UST part of the balance sheet. As for the MBS side of the balance sheet, the German in me says force the notes due and take possession of the properties, but the Cheyenne in me says sell them off to REITS. However, the Irish in me says I have a few years of very low interest rates till we cross that bridge. “Equities Now” starring Captain Thomas as he winds up the river to assassinate Colonel Kurtz has been my Modis Operandi since very late 2011.

  1. So how long until COMEX vaults are empty? Is this just some “creative accounting” tricks (the same ones Obama uses to reduce the debt)? Does COMEX have the ability to refill the vault, maybe from “deep storage” or some other crazy scheme? Is this the dying gasps for the manipulators? Should I raid the LCS? So many questions…

    • Comex is just a facilitator, they do not buy or sell gold, their customers do.
       
      Read my post in the forum for my deeper look at this.
       
      First intent date is tomorrow for feb cnts, who is playing will be telling.

    • @The-Big-Giant
       
      First reports for feb deliveries have to make the shorts nervous.  Only 55 cnts delivered.  
       
      My rule of thumb is big deliveries on the first day, the short is in control… wimpy deliveries on the first day the long is in control.  Not perfect and there are certainly degrees of the extremes and exceptions… but my first read is that I would expect backwardations to the April contract.  Currently there is a 30c carry to april based on settlement prices, that should go negative unless the pace of deliveries picks up or if the longs happen to be weak (i don’t think the latter is likely)

      Also, it will be interesting to see what prices silver doctors and other dealers quote as ‘spot’. the cheaper april or the higher Feb? I’ve not paid close enough attention to that before to know.

    • @The-Big-Giant
       
      It would appear i was right, in one day we went from a 30c carry to a 30c inverse to april… yesterday if you were short you could have made $300 per contract by waiting to deliver until april, if you chose to turn that down you now have to pay the long $300 per contract to wait until april to take his gold.  That is a $600 per contract swing in the value of spot gold in one day, wowza!

  2. To read this article, it is made to sound as if 321,500 oz. of gold just disappeared from the JPM vaults in a puff of smoke.  Is the bottom line in all this that JP Morgan Bank SOLD some gold from their vault?  Considering the size of the multi-billion dollar fines they are facing, one would think that they would be scrambling to sell just about any asset that was not nailed down… and some that are as well.  Gold is liquid.  It can be sold at just about any time and is frequently sold when other assets are either unavailable or are plunging in price.  

    • o@Hambone
       
      I don’t think that is the case for two reasons.  First it is the kilobars, and second it left the eligible category (meaning it was not regiostered for delivery),

      @Ed_B

      I think you are close, but it would be my contention that JP was just storing this gold and never owned it in the first place, the client put it there to store and is now moving it. I posted in more detail in the forum.

    • @mikeyj80
       
      “I think you are close, but it would be my contention that JP was just storing this gold and never owned it in the first place, the client put it there to store and is now moving it.”
       
      Could be… but that someone had better be VERY powerful if they do not want JPM to abscond with it.  I can think of MANY places where I would rather store gold than in the clutches of one of the planet’s most notorious gold manipulating, rehypothecating, and scheming banksters.  ;-)
       

  3. All gold is leaving the USA before the comex default it will be worth a lot more in other countries. As when it does default game over. The government will freeze pms prices. Till the NWO money is accepted an then they might price it 10% to 15% above the avg  price to mine it. And if the government price is out bid on the price on the street an they lose control they will outlaw it. Its coming in 2 months guaranteed. I rather be in cash but the price of pms so low hard to sell.

    • Hi Dang, I hesitate to comment because I’m not a knowledgeable as most here, but I have to say the govt may try to freeze prices as you predict, but price controls never work. We’ll create a black market with our own prices. Maybe the official price will be $xx.xx on the exchanges but the premiums at the local coin shop will be whatever the free market sets. I’ve heard that when COMEX defaults the spot price will be set in foreign exchanges, probably Hong Kong. I’m not disagreeing with you, these are just my speculations.

  4. Nothing to see here… move along, move along.  The U.S. Markets are recovered, we’re in a new growth stage, unemployment is under 7%.  You heard it from the most reliable sources. You are all conspiracy nuts.  Might as well liquidate your gold and silver now, and buy a new GM car…. that’s what the GOOD American would do.
     

    • shamus001  I’m so tough that when the earth jumps to its death it jumps on to me
      Chuck Norris
      BTW  can you put a link to that post ‘Connecting the dots-you got to read this
      I gotta read that

    • @Shamus001
       
      “Only I refuse to jump from anything less than 50 stories!  I like to make a splash! “
       
      Lol, well, that should do it.
       
      My older bro was a cop for quite a few years before he retired.  He got a “jumper”  call one day and just as he arrived on the scene and got out of his car, the old lady took a swan dive off of about a 12 story building.  She hit the pavement with the usual splat-crunch sound, her head cracked open, and her brain popped out of her head and skittered across the pavement, ending up about 5 feet in front of my bro.  Now that was one helluva nasty scenario.  I don’t know how long it took him to get that image out of his mind but it was a while.  :-/   He’s a Mormon, so does not drink, but I can’t think of too many better reasons to start drinking than that!

       
       

  5. Here is an interesting article for JP followers.
     
    http://econintersect.com/b2evolution/blog2.php/2014/01/27/dimon-does-davos
     
    Here are a few quotes.  Definitely interesting reading.
     
    The board has decided to increase Jamie Dimon’s compensation substantially.
     
    Note, because Deal Book never will, the fact that Dimon’s key defense – Bear and WaMu were worse than JPM – confirms that senior leaders of three of the largest and most elite U.S. banks were serial criminals whose frauds are (we pray) without equal.
     
    Deal Book reports that anonymous JPM board members say that Dimon’s “star has risen” as JPM’s frauds mounted.
     
    The reality is that the fraud proceeds went largely to the senior officers and directors of JPM, Bear, and WaMu in the form of bonuses. What JPM’s board is really delighted about in Dimon’s performance as a negotiator is that not a single JPM director or senior officer has had to repay a penny of the huge fraud proceeds that made them wealthy (or far wealthier).
     

    • “The board has decided to increase Jamie Dimon’s compensation substantially.”
       
      Yep.  With maybe $15 billion or so in fines to pay, why wouldn’t they want to compensate the fellow who was responsible?
       
      /sarc/off
       

    • @Whiskey Zero
       
      “LOL Ed_B in this bizarro world, white is black and black is white.”
       
      It sure seems to be.  Those of us who read Orwell’s novel, 1984, only thought that he was being outrageously pessimistic.  As it is turning out, he seems to have been an optimist!  X-[
       

  6. Shamus001
    On a side note regarding the unemployment rate
    Last week the Senate voted down the extension of unemployment benefits for 1,400,000 people   These people will not be counted for the January head count/unemployment rate. 
    last month we lost 500,000 people off these roles and the unemployment rate dropped to 6.7% from 7%.  Total job growth was 74,000, half of whom were part time
    This government has absolutely no shame when it comes to cooking the books. After KLUMMAC’s inexecrable yapping SOTU you can be assured that he will have the BLSBS announce a new umemployment rate of 5.9%, the equivalent of that 1,400,000 people dropping off the rolls
    I predict a unemployment rate of less than 6.5%, that magic number that Bernanke announced at the point where QE would be tapered.  So Ben won’t announce tapering but Yellen could continue this theme and drop QE and taper based on this magic number
     Bernanke knows the unemployment number well in advance It will be interesting to see if he runs the same BS in his last speech as KLUMMAC ran in SOTU last night

    • @AGXIIK
       
      Not to worry, AG.  Thanks to the beauty of creative mathematics, the BLS BSers will soon be able to show that when no one is working, we will have 0% unemployment!  They will be looking at zero revenues coming into the US Treasury with that deer-in-the-headlights look on their faces, totally unable to understand why tax receipts are not at an all time high.  Idiots.
       

  7. China’s recent test of a new ultra-high speed strike vehicle highlights growing concerns that Chinese military advances will overtake those of the United States in as few as five years, a senior Pentagon official told Congress Tuesday. Frank Kendall, the Pentagon’s chief weapons buyer, told lawmakers that when it comes to “technological superiority, the Department of Defence is being challenged in ways that I have not seen for decades, particularly in the Asia-Pacific region.”

    Citing China’s major investments in anti-ship missiles, stealth fighter jets, hypersonic vehicles and other hi-tech weaponry, Kendall said the United States could lose its dominant position if it failed to respond to the altered strategic landscape.
    The Pentagon is investing some resources in two forms of hypersonic arms: a ballistic missile boost glide vehicle and a jet powered, atmospheric cruise missile, he said.
    Kendall said the threat of such hypersonic vehicles to the United States is that they are difficult for missile defenses to counter. The vehicles travel and maneuver while flying at speeds of up to Mach 10 or 7,680 miles an hour.
    “The high speed of these systems makes it much more difficult for air defenses to engage,” he said.
    “Their budget is far smaller than ours, but their personnel costs are also far smaller than ours,” said Kendall, undersecretary of defence for acquisition, technology and logistics.
    “Our budgets are going in the opposite direction. So just by that metric alone, it’s not positive.”
    “A boost glide missile theoretically would be intended to counter existing mid-course missile defenses,” Mark Stokes, a former US Air Force officer said.
    “The beauty of the HGV is that it can perform hypersonic precision strikes while maintaining a relatively low altitude and flat trajectory, making it far less vulnerable to missile defenses,” Rick Fisher, an analyst at the International Assessment and Strategy Center, told the Washington Free Beacon.
    The Chinese are “actively seeking global military power to challenge the United States, and it is not yet in any mood to talk, or engage in arms control, about it,” Fisher said.
    US officials said that, while the glide vehicle test was not an intelligence surprise, it showed China is moving much more rapidly than in the past in efforts to research, develop, and test advanced weaponry.
    Adm. Samuel Locklear, commander of the US Pacific Command, noted that the hypersonic test demonstrated China’s ability to move quicker than the United States in developing some advanced arms.

    • Thus proving that, as with the USSR, it is faster, easier, and cheaper to steal technology from others than it is to do the grunt work of developing it yourself.

  8. shamus001  I read that review of the dots.  Aside from the ‘suicides’ and suspicious deaths, the are hundreds of banks in the Eurozone who are being called to task and singing like canaries about their incredibly corrupt, illegal and immoral tradings.  These men and women will received reduced sentences or probation.
    Here is my new saying
    “Those who sing first get the best deal”
      Hundreds of bankers are singing in HSBC, UBS, DBank, and Banca Monti Di Pesci. 
    More will turn 
    Hundreds of bankers are taking early retirement to avoid the Interpol, Finra, Bafin and OCC scrutiny
    World wide banking has its risks. You can get haul up on charges in 5 countries.  There is no place to run or hide.

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