Pisani gold gld

Another 2 tonnes of gold was removed from the GLD trust yesterday.  The last time the reported amount of gold in GLD was this low was November 18, 2008.   The price of gold was $738.
Despite the fact that the price of gold is up about 2% YTD, 6% of GLD’s reported amount of gold has been removed by the bullion banks.
I predicted in 2009 in a report I wrote about GLD’s legal structure that GLD would eventually suffer the same fate as Enron.   In fact, our entire is system is one giant Enron/Madoff Ponzi scheme.

To compound the removal of the “visible” physical stock of gold from our western system, nearly 10 tonnes of gold was removed from JP Morgan’s Comex gold vault:

EmptyVault

As the increasingly volatile stock markets bounced back higher today,  JP Morgan experienced one of the largest withdrawals of gold from its inventories this year.  In just one day, a stunning 321,500 oz of gold (10 metric tons) were removed from JP Morgan’s Eligible inventories:

HarveyOrgan1

Today, we had a huge withdrawal in inventory at the GLD. of 2.1 tonnes.
On the 22nd the LBMA stated that they will no longer publish GOFO rates.

It looks to me like these rates are now fully manipulated. 

Pisani gold gld

Another 9 tonnes of gold was removed from the GLD trust yesterday.  This takes the “reported” amount down to 751 tonnes.
The last time the reported amount of gold in the trust was at this level was November 18, 2008.
The price of gold was $738.

asian gold demand

China is still in a holding pattern ready to pounce when needed.
The open interest on silver is  still highly elevated.  Gold has a low OI with a low gold price.  Silver has a high OI with a low silver price.  Something has got to give!!
Let’s head immediately to see the major data points for today…

GLD(Editor note: the question is where will GLD find the physical gold to replace the inventory that was sucked East in 2013?)

The mighty GLD gold ETF’s bullion holdings have remained stable in 2014, an impressive feat.  Last year they suffered an epic outlying record plummet as the Fed’s stock-market levitation sucked capital out of alternative investments.  (and as the East sucked every ounce of AU out of the vaults)
This year’s resiliency in the face of the ongoing stock-market melt-up almost certainly means the bottom is in.  GLD’s holdings are set to surge as weaker stock markets entice traders back.

caption contestAccording to the official 2014 report, the BoE had 755 tonnes less gold in their vaults in February 2014 relative to February 2013.
However, when we look at UK’s net gold trade over this period (March 2013 – February 2014), we can see 1593 tonnes were exported.
GLD’s stock lost 451 tonnes over this period.
This leaves a gap of 392 tonnes (1593 minus 1201), which had to be supplied by additional LBMA or private vaults in London.

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GLDTFMetalsReport’s T. Ferguson joins the show this week to discuss: 

  • The Vaults Are NEARLY EMPTY- why claims of a physical gold shortage is not stacker hysteria, but rather the COLD HARD TRUTH!
  • PM Sentiment sucks by design: Cartel fears Western investment demand with vaults vastly depleted- vigorously capping any and all price rallies
  • Big picture outlook:  Summer stock market decline & tapering halt
  • Doc sees the first signs of renewed PHYSICAL SILVER SHORTAGE- 90% silver premiums leap as supply dries-up

The SD Weekly Metals & Markets With The Doc, Eric Dubin, & T. Ferguson is below!

Blythe Masters Jamie DimonAlthough the western media at large, and especially the mainstream in the United States, remarkably never reported the event, the United States Government defaulted on Germany’s request to have some portion of its gold shipped from the Fed custodial vaults back to Germany.
That’s right – the U.S. outright defaulted.

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launch rocket verticalLondon expert Alasdair Macleod returns to the SD Weekly Metals & Markets with his brilliant PM analysis, including:

  • Chinese 2013 gold demand 7,603 tons- More than DOUBLE Global Supply & mainstream estimates!
  • Macleod states that China’s total gold reserves (public & private) may be between 10 and 25,000 tons of gold!
  • Vaulting companies have never seen a 1 kilo (9999) gold bar- not one ounce is leaving China!
  • Gold being delivered from Western vaults has turned dirty- (barely .9 gold):  Bullion Banks Now Scraping the Bottom of the Vaults to Source Asian Gold Demand!
  • Swiss Refiners are working 24/7, with up to 20 tons a day being sourced to China via Switzerland alone!
  • We discuss plunging GOFO rates: Macleod explains that the London Market has been Effectively Cleaned Out of Gold Below $1300, & that No One is Willing to Arbitrage the Negative GOFO Because There is No Bullion Available! 
  • Alasdair provides his short & long term outlook for gold & silver, & states that Paper Currencies Face Ultimate Collapse, and that the Coming Loss of Confidence in the Dollar Could Propel Silver to $75!

A Special Extended Edition Metals & Markets With Alasdair Macleod is below:

Stock-market capital finally started flowing back into the flagship GLD gold ETF for the first time in 14 months in February! 
Though this buying was small, this is truly a momentous event.  Extreme gold-ETF outflows were the dominant culprit behind last year’s epic gold selloff.  Without that massive influx of additional supply weighing on the global markets, gold is going to surge on strong physical demand.

gold eagleGold is marginally lower in all currencies today but holding near its strongest level in four months. Concerns about the possibility of the Chinese property bubble bursting affecting economic growth in China and the world is supporting gold.  Nervousness over Ukraine, after new acting President Turchinov warned Ukraine is close to default, is also supportive of gold at these levels.
Indian and Indonesian buyers also continue to purchase gold: “We are seeing some buying, and there are purchases from India. Other clients are still buying some quantity, about 20 to 30 kilos each time,” a gold dealer in Singapore told Reuters.
The increase in gold ETF holdings could also reflect renewed interest from investors. SPDR Gold Trust, the world’s largest gold exchange traded fund, said its holdings rose 0.41% to 801.61 tonnes on Monday from 798.31 tonnes on Friday.
Gold has risen more than 11% this year in dollar terms, 10% in euro terms and 9.1% in pound terms due to renewed safe haven demand.

gold vaultMuch has been made recently about “metal flowing back into the GLD”. As if this is a sign that “investors are returning to the sector” and “the ETFs are working just as you’d expect”. Uhhhh….not so much. Let’s look at the actual numbers.
As you know, the gold price hit a Double Bottom on 12/31/13 at $1180. Since then, it has rallied over $140 or nearly 12%. But the GLD is now down YTD, falling from 798.22 mts to yesterday’s 795.61.  So, don’t buy this nonsense that “gold is returning to the GLD” and that “the ETFs are functioning just as they should”.

Physical gold is clearly in very short supply worldwide as demand is insatiable.
Continue to stack, while there’s still time. 
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Gold VaultHarvey Organ joins the SD Weekly Metals & Markets Wrap this week to warn of a possible February COMEX Gold Default:

  • Continued decline in “registered” gold inventory at the COMEX- 2o tons of gold “kilo bars” withdrawn from JPM vaults headed to Hong Kong!
  • 2014 will mark the year where physical forces deep “managed retreat” in the least
  • Geopolitical and Global Macro review:  From MyRA & pension fund confiscation to Ukraine & Emerging Markets
  • Fed Taper Review- Eric believes the Fed will overshoot tapering to $50 billion/month, while Harvey believes Wednesday’s taper will be the last
  • Harvey discusses why February may very well see strains to the point of the long anticipated COMEX default in gold!

The SD Weekly Metals & Markets with Harvey Organ is below: