T. Ferguson: Why is JPM Hoarding Gold?

Bernanke-Dimon-Fed-TunnelLast month, we asked why JPM was hoarding silver.  Now, with August gold deliveries just underway, is it time to ask why they are hoarding gold, too?
The silver hoarding question was asked on July 11. At that time, JPM had absorbed nearly 90% of the July Comex silver deliveries, primarily for their own or “house” account. That trend did, in fact, continue through the entire delivery month and when the totals were finally tabulated, JPM had stopped 3,040 of the 3,444 deliveries for July. That’s 88.27% of the total!
It gets even better. Of the 3,040 that JPM took down, 2,824 went into their own house account.
That’s 12,140,000 ounces of silver (377+ mts) and 82% of all Comex silver deliveries for July. To JPM. Into their own house account.
The turnaround and resumption of the bull market in gold (and silver) is by no means a matter of IF, it is now a simple matter of WHEN.

War Bird

From T. Ferguson of TFMetals Report:

The full post from July 11 is here: http://www.tfmetalsreport.com/blog/4830/why-jpm-hoarding-silver

So now here we are into the delivery period for August gold. In just the first two days, there have already been 1,963 total contracts delivered. (3,960 stood on FND and there will likely be at least another 3,000-4,000 more that will show up during the month. Harvey always keeps track of the numbers so you can follow along there.) Of the 1,963 contracts delivered last Thursday and Friday, JPM has stopped 1,466 or 74.7%. Additionally, of these 1466, 1,206 have gone directly into the JPM house account. So, if you’re keeping score at home, JPM has stopped to their own account 61.4% of the August deliveries…and the month has only just begun.

If you want to see these numbers yourself, click here: http://www.cmegroup.com/delivery_reports/MetalsIssuesAndStopsYTDReport.pdf

Now, of course, there’s lots of time left in the month and maybe JPM won’t stop even one more contract over the next three weeks…but…still…they took for themselves 82% of all the July Comex silver deliveries and they’re already on a pace for 61% of all August gold? Seriously?? Hmmm.

Well, what else is going on? Are there any other data point “dots” that we can connect?

  • JPM is sitting very tight with their Comex stocks. Very little change for the past two weeks. Their total registered gold is 390,000 ounces but their total eligible gold is only 46,262 troy ounces or just 1.4 metric tonnes.
  • All Comex gold is extremely low at just 7,000,000 ounces. See chart below.
  • The GLD continues to be drained. Another 2.41 mts (77,000+ ounces) were sucked out just last Friday, bringing the Thursday-Friday total to 8.71 mts or 280,000 ounces. JPM is one of the “Authorized Participants” which can liquidate the GLD at 100,000 ounces a throw. How much of these recent withdrawals or, for that matter, how much of the 431 mts withdrawn YTD have flown directly into JPM’s hands?

…And here’s something interesting….The GLD “inventory” had been steady at 927.35 metric tonnes for over a week, from 7/24 until 8/1. Then, on Thursday and Friday of last week, it fell 280,000 ounces. Let’s see…August Comex delivery also began on Thursday and continued Friday. So far, there have been 1,963 contracts delivered for 196,300 ounces. I’m sure that’s just a coincidence…

And here are the charts referenced above. Thanks to Jesse! (http://jessescrossroadscafe.blogspot.com/2013/08/comex-registered-gold-inventory.html)

OK, let’s get back to out list.

  • Gold Forward rates in London (GOFO) have remained negative now for 20 consecutive days. The previous record was 3 days and that occurred in 2008. Negative GOFO implies extreme physical tightness and rates are nowhere near moving back to positive.
  • And some traditional “backwardation” has finally crept into the Comex boards. Your closing prices for Friday are:

Click here for more on Why JPMorgan is suddenly hoarding gold from TFMetalsReport:

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Comments

  1. All the dots are connected on this very long Stansberry presentation.
    http://pro.stansberryresearch.com/1304PWAUP2YR/PPSIP777/?h=true

    • What a riot…
      1. GLD gold is redeemed. Probably by Authorized Participant JPM. On the day COMEX deliveries begin.
      2. COMEX contracts are delivered, in an amount approximating the GLD redemptions.
      3. JPM takes deliveries of the COMEX contracts to its own account.
      So this then is how we have JPM shipping GLD gold into its own account, via the COMEX. As JS Kim told us so presciently 5 years ago, that GLD was a conduit for suppressing gold demand, a process of reverse alchemy whereby banks (authorized participants like JPM) quashed gold demand turning it into paper. Now they utilize genuine alechemy,  turning dumb money’s GLD shares into gold, for themselves into their own account. Dont forget too, that when COMEX gets really stormy, authorized participants like JPM, can just tell any GLD bag holding dumb money that their COMEX contracts can be settled in GLD shares. Diabolically ingenious. The kind of devious dark artistry you would expect from our bankster foes.
       

    • @Strannick, for that to happen you would need to see issuances from JPMos house account line, they have issued zero from this line.  The delivery reports show that they are taking delivery from other players.  (kudos to the author for referencing a correct link!)
       
      If JPMo was redeeming GLD shares to their vault, all you would notice would be an increase in stocks, that is assuming they are receiving the gold into a warehouse eligible against the CME contract.  If they have another warehouse ‘off the grid’ so to speak, we have no way of knowing the inventory without access to their books. I do not know if they have such a warehouse or not.

    • Come on mikey.  Of course JPM is lying, scheming and doing everything in their power to distort, suppress and pervert the gold market.  
       
      When they go long for good, and they will have to, they will have plenty of physical to ass rape everyone short paper. The ETFs are a sham and farce. That is undeniable at this point.

    • I’m really intrigued by your last point, I’ve been doing a bit of research on the etfs for my own benefit and find it really interesting that the extended bull mkt in gold has amplified with their introduction in the mid 2000s.
       
      Anyway, i have no vested interest in the success or failure of any of the ETFs… but as to your last comment, haven’t they, at least so far, done exactly as they were supposed to do, that is, providing an alternative investment that closely mirrors the price of gold?

  2. All the hype a couple years ago about the ‘moon shot’ that was to happen on the short covering event was all evaded because of those stupid ETFers. Perhaps we really ought to have considered the possibility of the ETFs as an ‘escape hatch’ for BOTH short covering AND demand shortfalls. … oh well. Nevertheless, that sideshow has just about run out of gawking suckers so, I hope the change-over forces them to play a ‘straight game’.

    • i have actually been wondering as of late if the ETFs have alctially created INCREASED demand for the underlying physical.  As people buy paper shares, the APs buy the physical, should be a good demand correlation there,s
       
      While I’ve no doubt that the APs make good money off of the scheme, from what i can tell this is due to price fluctuations between the value of the etf and the price of the physical.  Buy one mkt, sell the other and satisfy both via physical settlement, that also puts a limit on just how ‘out of whack’ an etf ocan get… the more out of whack, the bigger the profit.

  3. How much Gold & Silver does China have Edward Snowden?

  4. This is an interesting video with PS   While his calls on fracking conflict with Steve DeAngelo and for reasons mean he’s not doing his research, Porter was the first person I started researching when my wake up call came about.  Those videos gave me the willies then and they do now. He’s been right on the big picture and particularly the bond bubble which is starting to pop.  Smart guy with some first rate people.  I stillsubscribe to come of his newsletters.  They are good dot connecters.
    The end of the dollar is preordained by the dismal  math of all fiat reserve currencies  Hubris, inflation, hyperprinting and a population ill-educated and cowed by their overeaching government hell bent on the road to destruction
    PS Check Bix Weir and his disclosure of HSCB dropping the Vatican, diplomats and the other usual suspects.  Their data bag of black secrets is in danger of being disclosed because of their money laundering and the $2 billion fines for being a bad actor. 
    PPS The garbage strike in the UK reminds me of Detroit. Poor Detroit, how we once knew you

    • AGXIIK,
       
      Yes I thought the video was a big dot connector on all the phases of what is discussed by the Gurus and members here putting it all on the table. There is no rocket science figuring out a timetable of a “When”, for what I gather from the dots the party will begin way sooner than I think any of us here suspects, and I mean immanent!
      Regards,
      Ranger
       
       
       
       

    • “PPS The garbage strike in the UK reminds me of Detroit. Poor Detroit, how we once knew you”
       
      It’s unlikely that they even have garbage pickup in Detroit now.  The trash guys there can’t figure out what it is they are supposed to haul away!  lol
       

    • AGXIIK  … “PS Check Bix Weir and his disclosure of HSCB dropping the Vatican, diplomats and the other usual suspects”

      To that can be appended THIS item, fresh off the wires, which I count as a MAJOR DEVELOPMENT >>>
      http://www.scmp.com/news/world/article/1294382/hsbc-closes-bank-accounts-40-diplomatic-missions

    • @PatFields
      Wow. Good find. That surely has to be connected to the recent US Embassy closures … The Trans-Pacific-Partnership (TPP) talks that Obama has been having have probably broken down and the US and London are sending ‘warnings’ to other countries that they will have to choose their bed fellows. HSBC was the main lynch pin of Western attempts to infiltrate and affect the Chinese system, but then removed its head office from HK to London when of course that failed. Now it shuts Embassy accounts? … even the Vaticans? … something is a-rye. Something BIG is coming real soon! I bet you all that the TPP has failed.
      It’s not like it is just a HSBC internal decision either >>>“The majority of missions are finding it very difficult for other banks to accept them,” he said.    they’re playing the old pariah tactic?
      I’d love to get a full list. The Equadorian Embassy will be on the list for sure. Maybe they will throw Assange over the wall and request mercy? …poor bastard.

    • WillNotBeASlave … “Wow. Good find.”

      Actually, it ‘fell into my ear’ this evening during a conference call I was attending. I’ll take credit for at least appreciating its significance though, so … thanks!

      Also … Standard Chartered just dropped like a stone a short while ago … stuff is moving faster and faster.

  5. I’m jumpin out of all equities as of today…and rallying into  PMs…before this rocket takes off….thanks SD! Been reading comments for sometime now…100% convinced…bye bye USA

  6. “WHY IS JPM HOARDING GOLD?”
     
    Probably for the very same reasons that many of us are stacking.  Also, we don’t really know what JPM is doing as regards the metals, now, do we?  Then can be and probably are doing just about everything that can be done with them.  As soon as we have to depend on the numbers that they create and report, however, all bets are off.  Those numbers are likely to be as legit as a $3 bill with Bill Clinton’s smiling winking face on it.

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