The LBMA And Comex Gold Markets Are In A State Of Collapse

missingbullionThe disappearing stock of physical gold on the Comex and the LBMA has been documented and discussed by several analysts recently, including this website.   In correlation with the disappearing physical gold is the  preposterous amount of paper gold claims issued against the dwindling supply of gold both in NY and London.

But what does it mean and where is all this gold going?

Long time precious metals market professional and analyst, David Jensen, has written a must-read analysis which explains why the explosion in the amount of paper gold and the disappearance of physical gold is transmitting the message that the NY and London bullion markets are collapsing:

Many will chuckle at the proposition of Western gold market failure and note that the price of gold has gone nowhere. If the markets are in collapse due to lack of available of gold, then where is the price action exploding to the upside? Well, digital gold and silver are still available in copious (infinite) amounts and continue to trade on both the LBMA and COMEX exchanges – you can have as much digital or virtual metal as you want on these digital exchanges. There is no shortage of virtual metal and thus the virtual price that most investors follow won’t move up. The bullion banks have always sold-down this virtual gold price when it has risen.

The telling of the story is instead in physical metal availability and so we look first to the LBMA – the primary global ‘physical’ exchange. The LBMA indicates in it owns market guide that its primary gold trading contracts, unallocated spot market contracts which are claims for spot physical gold (ownership right-here, right-now), give the holder just an unsecured claim for physical gold. This has allowed the creation and trading of non-existent gold to the point that the London spot physical gold market trades 200% of the global annual gold mine production of gold – each day.

You can read the rest of this article here:  LBMA/Comex Gold Markets In Collapse

We must not forget that when Germany, in 2013, asked for the return of 674 tonnes of their gold primarily from the Federal Reserve and some from France, they only received 5 tonnes. They were then told that they could get the rest back by 2020. They then announced that they actually received around 150 tonnes back in 2014.

But Germany has since stopped repatriating their gold, with Merkel declaring that Germany is happy holding its gold in the United States.   Egon Von Greyerz, King World News

 

12 thoughts on “The LBMA And Comex Gold Markets Are In A State Of Collapse

  1. Hi Dave …. if you look at a chart of the COMEX “Owners Per Ounce” … you’ll see the big increase in “Owners Per Ounce” started literally when Germany officially asked for it’s Gold back … ever since then, “Owners Per Ounce” has been going parabolic.

  2. Also … the Chinese just luv the corruption on the COMEX/LBMA …. I can assure you the Chinese who are flush with cash would rather be accumulating at $1,100 per ounce as opposed to $3,500 per ounce.

    1. Cool, I have yet to see one of those. Been to Bahia de Los Angeles a bunch of time but haven’t manage to catch one. We chartered a panga to go spearfishing and when coming back a sperm whale was snoozing right in our path. We slowed and stopped near it and my buddy (the guy who took those photos of people catching rides on great whites a couple years ago) jumped in with my Gopro but the whale took a dive just as he got to it.

      Hoping to get down there again, maybe April, assuming all hell doesn’t break loose in the markets before then and make travel difficult, expensive, or dangerous.

  3. Link to David Jensen’s article is great. Thanks for the reference.

    What shock me was the following sentence regarding the LBMA: The ‘Unaccounted’ Privately Vaulted gold (gold potentially available in size to the spot market) has declined from 1,651 tonnes in 2011 to 6 tonnes this year. Wow!

  4. Russia Debates Unorthodox Orthodox Financial Alternative

    A strategic proposal of Glazyev that the state impose a halt on all export of gold, precious metals, and rare earth elements, and that the Central Bank buy up gold mined by foreign companies to build monetary gold reserve strength, was, unfortunately, refused by Central Bank Governor Elvira Nabiullina who told the Duma, “We don’t believe that a moratorium is needed on gold exports. We are able to buy enough gold to diversify our gold and currency reserves.”

    Nabiullina has come under criticism from members of the Duma for being far too slow in building the gold reserves of the ruble. Russia today is the world’s second largest gold producer after China, and China has been building its Peoples’ Bank of China gold reserves in recent years at a feverish pace. Western central banks, led by the Federal Reserve, since gold backing for the dollar was abandoned in August, 1971, have done everything, including brazen market manipulation, to discourage gold currency reserves around the world.
    First appeared:

    http://journal-neo.org/2015/11/22/russia-debates-unorthodox-orthodox-financial-alternative/

  5. I’m surprised the “allocated’s” aren’t moving out of their (LBMA, Comex) vaults to safer (private) storage at a faster rate. Like Kyle Bass, I wouldn’t want to wake up one morning and find I’d been MF Global’d.

  6. The new article on the Moon of Alabama website favored by Russian commentators is fairly pessimistic about the future of Syria. Cameron is already puffing for war and boots on the ground. Can you smell a force majeure.

    What’s at issue amongst other than the generality of the Yinon plan for the middle east is the Qatari pipeline through Sunni territory to the Mediterranean. This requires the development of a 50 mile strategic buffer zone between Turkey and Syria preferably held under NATO forces. The 34 year old Eton and Sandhurst emir of Qatar has been at the fore front of ISIS and the other violent off shoots of whatever philosophy can be put to work in sending young men to war.

    Qatar has enough gas to power Europe for 30 years and the alternative is Nord Stream through Germany with Russia and Germany doling out energy power throughout Europe. The pipeline has to cross the Med to Thessaloniki to meet the BP pipeline to Italy and Spain. This is a so year energy power play.

    So we see limitless money behind a conflict in Syria just as we saw money behind Ukraine. Now that Russia and Germany have agreed Nord Stream 2 and Germany is in the cat bird seat on Europe’s energy Ukraine is irrelevant and the war is for Southern Europe and France.

    http://www.moonofalabama.org/

  7. The new article on the Moon of Alabama website favored by Russian commentators is fairly pessimistic about the future of Syria. Cameron is already puffing for war and boots on the ground. Can you smell a force majeure on the horizon.

    What’s at issue other than the generality of the Yinon plan for the middle east is the Qatari pipeline through Sunni territory to the Mediterranean. This requires the development of a 50 mile strategic buffer zone between Turkey and Syria preferably held under NATO forces. The 34 year old Eton and Sandhurst educated emir of Qatar has been at the fore front of ISIS and the other violent off shoots of whatever philosophy can be put to work in sending young men to war.

    Qatar has enough gas to power Europe for 30 years and the alternative is Nord Stream through Germany with Russia and Germany doling out energy power throughout Europe. The pipeline has to cross the Med to Thessaloniki to meet the BP pipeline to Italy and Spain. This is a 30 year energy power play.

    So we see limitless money behind a conflict in Syria just as we saw money behind Ukraine. Now that Russia and Germany have agreed Nord Stream 2 and Germany is in the cat bird seat on Europe’s energy Ukraine is irrelevant and the war is for Southern Europe and France. It is as much a war between France and Germany for control of Europe as it is between the US and Russia and China. Hence Merkel is absolutely saying nothing and Hollande is puffing away under the frightening shadow of all out expertly coordinated terror threats or hoaxes.

    Can you say the sinking of the Lusitania?

    http://www.moonofalabama.org/

  8. Dave, I know you don’t talk about this much but what do you think of the Paris attacks? Real Muslims, or a hoax, or something in between? Seeing as 9/11, Sandy Hook, Umpqua Oregon, and Canadian Parliament shootings were all inside jobs I don’t trust any reports of terrorist attacks anymore.

    1. False flag event orchestrated by the CIA in conjunction with French intelligence. See Paul Craig Roberts articles on the topic posted on his website.

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