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.