Comex Registered Gold 20614The warning signs are increasing as the death of the Global Fiat Monetary System approaches.  The bullion banks lost 88% of their Comex registered gold inventories over the last year and are now rushing to build their stocks to satisfy future deliveries.
As the chart below demonstrates, since April of 2013, the Comex Gold Registered Inventories have declined 88% from 3 million oz to a low of 369,212 oz at the end of January.
In just the past three days, the bullion banks transferred nearly 200,000 oz of gold from their Eligible inventories to their Registered in a desperate effort to avoid default.  The bullion banks only had 439,900 oz of registered gold in the inventories on February 4th.  During the next three trading days, the bullion banks transferred 197,590 oz  from the Eligible to the Registered category. It is quite interesting to see the bullion banks rush to add 200,000 oz while the majority of contracts standing for physical delivery in February were settled with cash.
Will the bullion banks be able to stave off a February default in COMEX gold?


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From the SRSRocco Report:

Comex Registered Gold 20614

According to Harvey Organ’s interview, 20 Tons of Gold “Kilo Bars” Withdrawn From JPM Vaults & Headed to Hong Kong! , 1.3 million oz of gold were standing for delivery in the beginning of February.  However, Harvey believes the majority of these contracts were settled with cash.

It is no surprise that a large percentage of these contracts were cash settled, because there wasn’t enough available gold in the registered inventories.  In just the past three days, the bullion banks transferred nearly 200,000 oz of gold from their Eligible inventories to their Registered.

Comex Gold Inventories 20514

Comex Gold Inventories 20614

Comex Gold Inventories 20714

Here we can see that the bullion banks only had 439,900 oz of registered gold in the inventories on February 4th.  During the next three trading days, the bullion banks transferred 197,590 oz  from the Eligible to the Registered category.

It is quite interesting to see the bullion banks rush to add 200,000 oz while the majority of contracts standing for physical delivery in February were settled with cash.

Monetary scientist, Antal Fekete has warned about the collapse of the fiat monetary system for several years.  He stated the end will be close at hand when gold on the futures market goes into backwardation.

Backwardation basically means the present cash price of gold is higher than the futures price (the opposite is normal state in the futures market).  Thus, gold traders are concerned their physical gold will be returned in the future.

Mr. Fekete stated in his interview, Gold and The “Red Alert” For Collapse Of Fiat Currency, that the world is heading for a disaster unless gold backs the global monetary system.

Fekete Youtube

Mr. Fekete also believes there isn’t much time for the world to make this transition to a gold-backed monetary system because there is a flashing “RED WARNING LIGHT” as gold has traded in and out of backwardation on the futures markets since July of 2013.

Furthermore, Fekete believes that the leasing of gold (since the late 1990′s) also ended in July of last year as investors and institutions are no longer willing to part with their physical gold knowing they may not receive the metal back in the future.

Even though there seems to be a calm in the markets as the Dow Jones average jumped 165 points today after shrugging off lousy employment figures, the financial system continues to disintegrate as currencies throughout the world are devalued.

The fiat currency dominoes are falling.  At some point, the falling dominoes will reach the U.S. Dollar and then it will be too late to buy gold or silver.

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  1. The COMEX storage for precious metals is similar to the Cushing Oklahoma storage facilities for Crude.  Once traders latch onto that fact, and realize demand has caused the supply at the COMEX to fall dramatically for gold, gold will rocket higher, just like it did for oil in 2008.  I remember big moves based on 1% drops in inventory, gold inventory is down 88%!!  There are some of us who are paying attention and some ETF’s like GDXJ are up over 30% so far in 2014 and we’re not even two and a half months in.  We broke above the 200 day SMA yesterday on high volume and are continuing today also on high volume, that is a technical breakout in any book.  Get on board or miss the big move higher.  It appears to be happening now or is just around the corner. 

  2. Here’s a fun fact. RED ALERT in these parts is a norotious gang comprised of first nations people, aka indians.
     
    To the article – it certainly stacks up with the mounting evidence that the desperation in the air smells worse than port a potty at an NFL tailgate party parking lot on a 100 degree day.
     
    Either way, bring it on, let it burn and hang em high.

  3. According to St. Louis Fed, the Monetary Base has halted it’s year long $100 B/mo growth and as of Jan, added just over $10 B/mo…bout to rollover and go negative???  Big change in trajectory since November…prior to taper $10B (now $20B/mo taper)??? 

    here are the last five months…after growing by about $100B/mo all ’13..Novembers growth was $31B, Dec $13B…and likely going negative in next month…

    2014-01: 3,749.462 Billions of Dollars

    2013-12: 3,736.789

    2013-11: 3,705.077

    2013-10: 3,610.306

    2013-09: 3,508.808

    This slowdown is way in excess of tapering and looks more like reverse repo’s kicking in

    Somebody draining the pool well in excess of tapering???
     
    http://research.stlouisfed.org/fred2/series/AMBNS
     
    click on 1yr or 5yr chart to see big change
     
    http://research.stlouisfed.org/fred2/graph/?chart_type=line&s1id=AMBNS&s1range=1yr
     
    http://research.stlouisfed.org/fred2/graph/?chart_type=line&s1id=AMBNS&s1range=5yrs
     
    During periods since ’09 when the monetary base was flat, equities have been down / flat and then lifted by anticipation of QE / QE execution.  If this pattern holds (particularly w/ record leverage) stocks bout to get clobbered.
     
    Also notable is that golds big upside runs happened during the flat periods or QE runoff periods…
     

  4. Steve, one of the good guys, does ferret out some good intel.  Add that to his knowledge of the PEAK OIL, and added up, this whole situation is going to end in some unpleasant ways.  Thanks for the research Steve

  5. What the bullion banks going to buy out there????????????????? There hardly any gold left to buy. Its all in the form of toilet paper driving the price down the crapper. An the time is getting real close to where this toilet paper is getting used over an over again. Meaning its starting to stink. And there just waiting for the right time to flush it all away. And all there worries be gone forevers. The sell button for the government to sell there stocks they bought propping up the stock market. The final  market crash yes the big one. 16,000 down to 5500 which is enough for the American people to panic and not notice that the comex has defaulted this time. And the government comes in to run things by the end of march is my guess.

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