I’ve been blogging about the JPM COMEX vault for a while now as it’s at the epicentre of the Gold fraud. Last night it was reported in the Hedge that they have 1 tonne of eligible gold left in the vault, leaving a lot of empty space and millions of paper contracts backed by nothing. It’s feet up and popcorn time I thinks, could this be the beginning of the end for physical delivery on contracts or will there be
more fraud a twist in the tale. I believe they will go the same way as ABM AMRON and Rabobank. They will settle contracts in cash but if the fund is meant to be backed by gold and there is no gold, then the fund has no intrinsic value and the market value of said fund will drop to zero. End game scenario anyone?
For over a month, JPMorgan managed to mysteriously avoid matching up the gold held in its (world’s largest) vault with the Comex delivery notice update. However, as of today, that particular can will be kicked no more. Starting yesterday, JPM reported that just under 12,000 ounces of Eligible gold (the same Registered gold that two days earlier saw its warrants detached and convert to eligible) were withdrawn from its warehouse 100 feet below CMP 1. But it was today’s move that was the kicker, as a whopping 90,311 ounces of eligible gold were withdrawn, accounting for a massive 66% of the firm’s entire inventory of non-Registered gold, and leaving a token 46K ounces, or a little over 1 tonne in JPM’s possession.
Needless to say, today’s massive move which increasingly puts JPM’s gold holdings in the danger zone vis-a-vis future delivery notices which just refuse to stop, has pushed total JPM vault gold to a new all time low of just 436k ounces, or a little under 14k tonnes with just 12 tonnes, or 390k ounces, of Registered gold left and rapidly draining. And to think that two years ago around this time JPM had over 3 million ounces of gold in its possession.
Finally, those who believe there is a connection between the ongoing run on JPM’s vault gold, the suppressed price of the metal, the redemption of Bundesbank gold, and the fact that 3M GOFO has now been negative for 10 straight days or the longest period in history it has been below zero, and indicating an unprecedented gold collateral shortage, you are correct.
Finally, putting it all in context, this is what 1 ton of gold looks like in the real world courtesy of Demonocracy: