Skip to comments.JPMorgan's Eligible Gold Plummets 65% In 24 Hours To All Time Low
Posted on 04/25/2013 4:36:56 PM PDT by djf
We are confident that in the aftermath of our article from last night "Just What Is Going On With The Gold In JPMorgan's Vault?" in which we showed the absolute devastation of "eligible" (aka commercial) gold warehoused in JPM's vault just over the Manhattan bedrock at 1 Chase Manhattan Place (and also in the entire Comex vault network in the past month), we were not the only ones checking every five minutes for the Comex gold depository update for April 25. Moments ago we finally got it, and it's a doozy. Because in just the past 24 hours, from April 24 to April 25, according to the Comex, JPM's eligible gold plunged from 402.4K ounces to just 141.6K ounces, a drop of 65% in 24 hours,and the lowest amount of eligible gold held at the vault on record, since its reopening in October 2010! Everyone has seen what a run on the bank looks like. Below is perhaps the best chart of what a "run on the vault" is.
The absolute collapse in JPM's eligible gold inventory, means total Comex eligible gold has fallen to just 5.8 million ounces, half of what it was in early 2011, and back to levels last seen in March 2009.
So, once again, just like last night, we ask the same questions which are even more critical today than they were 24 hours ago:
1) What happened to the commercial gold vaulted with JPM, and what was the reason for the historic drawdown?
2) Gold, unlike fiat, is not created out of thin air, nor can it be shred or deleted. Where did the gold leaving the JPM warehouse end up (especially since registered JPM and total Comex gold has been relatively flat over the same period)?
3) Did any of this gold make its way across the street, and end up at the vault of the building located at 33 Liberty street?
4) What happens if and/or when the JPM vault is empty of commercial gold, and JPM receives a delivery notice?
Incidentally, JPM now has just under a paltry 5 tons of eligible gold left in storage. We hope this is also the maximum exposure it faces for imminent delivery requests, because if tomorrow it receives withdrawal requests for 141,581.5 ounces +1, then things get really interesting.
How eligible for marriage is it now? Will it kiss on the first date?
Gold is a barbaric relic.
We’ll need it again, during barbaric times.
Bet the price of AU goes up $200 tomorrow.
The tall dogs hold and trade paper gold future contracts.....which have been twisted now to the same basic ponzi scheme as derivatives were/are.....yes they are all scum.
To me and others in the gold blogs...looks like the big money boys are fleecing the little guys by betting short and churning the paper contracts...this drives the price down and requires many investors to pony up more cash for their margin accounts.....often they have to sell to raise cash to do so...or, if they panic....sell it all...further driving down the price.
Could also be a conscious action by central banks to drive gold down to keep sale of the Cypriot gold reserves (any other indebted nations) from reducing their indebtedness as much as they could have now that they are forced to liquidate their gold reserves....double scum.
Probably both as both gain by it.
Physical gold will always have value...unlike Wall Street paper. It’s actually value in real world goods is constantly being distorted by the contract gold speculators....which as you might guess are banks and big funds.
You have heard it said before....gold is not an investment as much as a store of value....it appears to be true.
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