GLD Drained Again Yesterday – 33% of JPM’s Comex Gold Is Drained

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:


Over the last month, roughly 1 million ounces, or 31 tonnes of gold has been removed from JP Morgan’s Comex gold vault.

Based on the latest Comex gold futures open interest report, the ratio of December gold futures to “registered” gold available to deliver is 31.  In other words, there 31 ounces of paper gold that has been sold into the market for every ounce of gold available to deliver.  If that’s not evidence of a rigged, manipulated market, I don’t know it is.

In the context of the amount of gold being removed from GLD, I would love to see an fully independent, publicly visible accounting of the gold bars that are supposedly being held in HSBC’s vault on behalf of GLD.  Good luck trying to get this accomplished because the Prospectus is clear on this issue:  HSBC can give you the middle finger if you ask for the audit.

11 thoughts on “GLD Drained Again Yesterday – 33% of JPM’s Comex Gold Is Drained

  1. Shit dave, only 31-1 leverage. That is nothing in their ponzi guidebook.
    Something really stinks. Almost everyday(like 23 oct), the metals start selling off around 2 am eastern time all the way through to the Crimex close. A Hoffman has some good data. Same pattern for a year or more. Must have something to do with physical bullion heading east.

  2. > the ratio of December gold futures to “registered” gold available to deliver is 31

    That’s because these clowns apply their reserve system to gold. This ratio equals pretty precisely the 3% reserve they use in every paper market. One day everyone on this planet – even the criminal central bankers – will realize what gold really is: the purest form of money. And some people who thought they had “unallocated” gold will realize the contradiction in terms when they see the word “unallocated” in their contracts and look it up in a legal dictionary.

  3. So, I have three pennies in my bank which I am holding for you, and charging you a storage fee. Bills’ hedge fund needs some money, so I give him some paper certificates for 93 pennies and charge him interest on those. Now his hedge fund loans out 2883 penny certificates to Fred who uses them to loan x31 + interest , or 89,373 certificates to Jack. Jack pays interest only for a while, but then discovers oil on his Montana property an decides to pay off his loan–so he wants his 89,373 pennies delivered ASAP. Uh oh–I am beginning to see a problem here. Is there something I am missing Dave???

  4. The naked king keeps playing the nutshell game while the 600 lb gorilla sits in the corner singing so bye bye miss American Pie.
    And of course the American people keep sleeping.
    What an American tragedy .

  5. As Harvey Organ says, the 10 tonne withdrawal is too perfect to be true. The 321,500.000 is exactly 10 tonnes. Not an ounce more, nor an ounce less! ALL gold bullion bars have weights stamped on them to three decimal places, some to even more. So, how can you have that amount (10 tonnes) of gold bullion come out to a perfect 321,500.000? You can’t. Impossible.
    This is nothing more than gold derivative paper shuffling.

    Now, the 2 tonnes from the GLD ETF sounds more legit. Going east. Never to be seen again in our lifetimes, nor in our grand-children’s lifetimes. Say Bye, Bye.

    1. In all honesty, while there may be some validity to the theory of Harvey’s, I tend to doubt any “analysis” that comes from him. To quibble over the whether the reporting of a round number constitutes proof of malice is absurd. I think we all know this to be the case:

      1) the market is highly manipulated

      2) the ratio of paper claims to actual deliverable physical is at least 100:1 globally

      3) the banks always report fraudulent numbers

      4) it’s highly likely that the reported Comex gold/silver inventories are significantly higher
      than the actual mount of physical bars sitting in the vaults

      5) Whether or not the exact number removed was 321.5k or 321.555k, the fact that JPM reports
      321.5k ounces means that a lot of gold was removed from the vault either yesterday or
      sometime in the recent past and JPM felt compelled to report a large amount yesterday.

      Furthermore, dissecting and presenting the numbers wrapped up the way Harvey does just
      adds to the “tin foil hat” perception of the precious metals commentary community. I wish
      guys like Harvey would focus on facts we can prove either directly or with very thick dotted lines.

  6. Law Lets I.R.S. Seize Accounts on Suspicion, No Crime Required

    ARNOLDS PARK, Iowa — For almost 40 years, Carole Hinders has dished out Mexican specialties at her modest cash-only restaurant. For just as long, she deposited the earnings at a small bank branch a block away — until last year, when two tax agents knocked on her door and informed her that they had seized her checking account, almost $33,000.

    The Internal Revenue Service agents did not accuse Ms. Hinders of money laundering or cheating on her taxes — in fact, she has not been charged with any crime. Instead, the money was seized solely because she had deposited less than $10,000 at a time, which they viewed as an attempt to avoid triggering a required government report.

    “How can this happen?” Ms. Hinders said in a recent interview. “Who takes your money before they prove that you’ve done anything wrong with it?”

    The federal government does.

    Using a law designed to catch drug traffickers, racketeers and terrorists by tracking their cash, the government has gone after run-of-the-mill business owners and wage earners without so much as an allegation that they have committed serious crimes. The government can take the money without ever filing a criminal complaint, and the owners are left to prove they are innocent. Many give up.
    “They’re going after people who are really not criminals,” said David Smith, a former federal prosecutor who is now a forfeiture expert and lawyer in Virginia. “They’re middle-class citizens who have never had any trouble with the law.”

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