Did Gresham’s Law Invade JP Morgans Comex Gold Vault?

It appears that something has “spooked” the entitled owners of 5 million oz of gold previously stored in COMEX depositories…

 

Submitted by PM Fund Manager Dave Kranzler, Investment Research Dynamics

Gresham’s Law states that bad money drives good money out of the system.  People will use inferior money in their daily “bartering” for goods, services, investments etc and hoard good money.

We are seeing Gresham’s Law work in the gold market, where eastern hemisphere Central Banks, investors and populations are in the process of hoarding all the gold the west will send their way in exchange for the constituent country fiat currencies.  “Here, take our currency and convert it to dollars and sell us your gold.”

And the gold seems to disappear from sight.   Can anyone hazard a guess how much gold the People’s Bank of China controls or where it’s safekept?

Recently my friend and colleague Craig “Turd Ferguson” Hemke – TFMetals Report – noticed an usual amount of gold was being removed from the “registered”/investor account in JP Morgan’s Comex vault.    Last Friday, for instance, 24% of the eligible gold disappeared from JPM’s registered vault account and disappeared to destinations unknown:  LINK

Again yesterday another chunky 160,750 ozs of gold fled the questionable custody of JP Morgan’s eligible account (click on image to enlarge):

The amount of gold removed yesterday represented 32% of the amount of gold remaining the eligible account after last Friday. In total, this entity or entities has/have removed 49% of the gold that was sitting in “investor safekeeping” section of JP Morgan’s Comex custodial vault.

We can only speculate what might of “spooked” the entitled owners of that gold to take it away from the Comex.

However, I will say this with confidence:   whomever removed that gold decided that they no longer trusted JP Morgan to safekeep it.  It’s interesting because the Comex offers storage rates that are a significant discount to market rates to investors who take delivery off the Comex and use the Comex vaults for safekeeping.

Whatever the case may be, nearly 50% of ALL of the gold in Comex vaults has been removed since 2011 (source:  24hgold.com, edits are mine – click to enlarge):

 

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