COMEX deliveries and registered gold (silver too)

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Looks like 15% of JPM's eligible gold was removed Wed, so they had to convert some registered into eligible, again...

http://www.zerohedge.com/news/2013-05-02/next-escalation-gold-goes-100-initial-margin

. And in other news, the delivery requests to JPM continue, as does the company's somewhat questionable strategy to make it appear it has no eligible deliverable problem by continuing to convert registered gold into commercial. Because while the bank's vault has not received one additional ounce of gold in over a week, just as it got another request for 24,028 oz of gold on Wednesday, the bank continues to "restock" by converting its stock of registered gold into eligible, this time "adding" another 57,860 oz (something HSBC decided to do as well), the fourth day in the past week it has done just this.


. We wonder what happens if those holding gold warrants with JPM (i.e., registered stock) decide to inquire as to why over a hundred thousand ounces of their gold has been converted into eligible to satisfy ongoing delivery requests?
 

pmbug

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Harvey Organ said:
...
The total of all gold declines again at the comex and this time falls below the 8 million oz as it rests at 7.979 million oz or 248.18 tonnes.
...
[GLD] May 6.2013:
Tonnes 1,062.30 - Ounces 34,153,900.65 - Value US $50.153 billion

May 3.2013:
Tonnes 1,065.61 - Ounces 34,260,271.68 - Value US $50.311 billion

May 2.2013:
Tonnes 1,069.21 - Ounces 34,376,316.61 - Value US $50.482 billion
...
http://harveyorgan.blogspot.com/2013/05/gold-continues-to-leave-comexonly-57.html

The "vacuum cleaners" are still sucking away.
 

pmbug

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JPM vault drain continues:

Two weeks ago we reported about one of the biggest daily withdrawals of eligible gold from the JPM gold vault, it not on an absolute basis, then certainly on a relative, when in one day over 260k ounces of gold were withdrawn, leaving a record low 141.6k ounces, or just over 4 tons of gold in the vault. Subsequently, we tracked the daily additions and withdrawals of gold from the vault to see if any other major withdrawal request would come, instead discovering instance after instance of JPM reclassifying Registered gold into Eligible, which is how the vault saw its eligible inventory rish back to 195K ounces as of yesterday, without any actual net additions or more importantly withdrawals. It seems the pause of withdrawals has ended, and as of yesterday, another delivery led to a withdrawal of 53,658 ounces, or 28.5% of the total, leaving a fresh record low inventory of only 137,377 eligible ounces in the vault.
...
http://www.zerohedge.com/news/2013-...h-record-low-following-withdrawal-28-holdings
 

pmbug

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The chart below looks at the relative moves in JPM Eligible and Registered gold, starting with the massive withdrawal day, April 25. What is immediately obvious is that the only reason JPM's eligible gold hasn't plunged, is due to the periodic "adjustments" out of Registered into Eligible gold, which on essentially all days in the past three weeks netting out, and for every ounce converted into eligible, one ounce was removed from registered gold.This also explains why even with the three distinct sizable withdrawal days, of 24K, 57.9K, and 22.8K on May 2, May 8 and May 14.



Incidentally, when asked about the rationale behind such seemingly arbitrary reclassifications, and warrant cancellation of registered gold into eligible gold, a market surveillance analyst at the CME replied as follows:
...the adjustment column does reflect the issuance and cancellation of warrants, but it can be used for other purposes as well. Anything that is not received or withdrawn would be reported in the adjustment column.
In other words, JPM and the Comex have full liberty to adjust what is eligible and what is registered, at will, and can thus easily replenish inventory even when it is about to run out.

And run out, it almost would have.

Because if one ignores the 100k or so ounces of Registered gold that were reclassified to replenish eligible inventory, JPM's eligible gold would, as of right now, be down to a negligible 36,931 ounces, or just over 1 ton!

At that point JPM would be down to one withdrawal request away from declaring force majeure on its eligible gold holdings, and all the unpleasant consequences that this would entail for future delivery requests.
http://www.zerohedge.com/news/2013-...ord-low-and-why-it-could-have-been-much-worse

... The total of all gold at the comex again fell and this time it is well below the 8 million oz at 7.943 million oz or 247.06 tonnes of gold.

The GLD for a change reported so far no change in inventory.
The SLV inventory of silver remained constant.
...
http://harveyorgan.blogspot.com/2013/05/indians-have-only-received-10-of-gold.html
 

Unbeatable

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As PMBug's post shows, JPM has been converting a lot of registered gold into eligible in the last 2 weeks to make up for the huge amount of eligible gold that has been withdrawn. In total they converted around 100k ounces these last few weeks.

Well I see JPM converted a whopping 160k ounces from registered into eligible yesterday! I wonder if that means that they know there will be some very big withdrawels in the next few days...:popcorn:

http://www.cmegroup.com/delivery_reports/Gold_Stocks.xls
 

pmbug

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... Tonight, the Comex registered or dealer gold plummeted to 1.668 million oz or 51.88 tonnes. The total of all gold at the comex fell slightly but still well below the 8 million oz at 7.966 million oz or 247.77 tonnes of gold.

The GLD reported a huge loss in gold inventory of 5.71 tonnes which followed yesterday's loss of 4.52 tonnes of gold. The SLV inventory of silver also lowered by 1.545 million oz.
...
http://harveyorgan.blogspot.com/2013/05/gold-falls-by-940silver-holdscomex-gold.html
 

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pmbug

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... Tonight, the Comex registered or dealer gold remains at 1.668 million oz or 51.88 tonnes. The total of all gold at the comex fell slightly and still well below the 8 million oz at 7.897 million oz or 245.6 tonnes of gold.

The GLD reported another loss in gold inventory of 1.5 tonnes. The SLV inventory of silver lost a gigantic 5.648 million oz. ...
http://harveyorgan.blogspot.com/2013/05/japanese-nikkei-halted-last-nightbond.html

I didn't post the updates over the last couple of days, but GLD lists 1,018.57 tonnes as of yesterday (23rd) and they listed 1,031.50 tonnes as of the 20th. They lost 15 tonnes or roughly 1.5% of their inventory in the last 3 days.
 

Aubuy

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Yeah, sorry about that. I went ahead and took delivery of 10 tons yesterday but I am having trouble getting it off my porch after FED EX left it. The weird part is they didn't even ask for a signature.


OK, for those of you who are now trying to figure out where I live, I was kidding. Seriously, that was just a joke. I really don't have 10 tons of gold on my porch. More like 10 tons of manure for my lawn. :pffftt:
 
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pmbug

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"The information in this report is taken from sources believed to be reliable; however, the Commodity Exchange, Inc. disclaims all liability whatsoever with regard to its accuracy or completeness. This report is produced for information purposes only." - disclaimer now posted on the Comex gold and silver daily warehouse stock report as of Monday, June 3, 2013.
Well now. How would you like to get your bank statement in the mail from JP Morgan or Bank of America and see this disclaimer added at the bottom:
"The information in this account statement is taken from sources believed to be reliable; however, JP Morgan Chase & Co. disclaims all liability whatsoever with regard to its accuracy or completeness. This account statement is produced for information purposes only."
How would feel about that? That's pretty much the equivalent of what the attorneys for the CME/Comex have done by adding the statement at the top to their daily gold and silver warehouse stock reports. That disclaimer was not in Friday's warehouse stock report, it was on yesterday's (kudos to the commenter "anonymous" who discovered this).

The common reaction would be to ask "why now?" But we already know the answer to that question. I've suspected for a long time that the Comex vault operators lease out a substantial portion of the gold and silver bars that they keep in both the "registered" and "eligible" account designations. It would be easy income for JP Morgan, a bullion bank who actively engages in gold leasing, to lease out the majority of the bars it stores for delivery - "registered" - and for investors who have taken delivery but keep their gold/silver in JPM's Comex vault - "eligible." After all, in any given delivery month, less than 1-2% of the open interest ever stand for delivery, making it very easy for a Comex vault operator to earn extra income by leasing out gold and silver that it knows it will never be required to produce for delivery.

I am willing to bet a very large amount of money that this disclaimer was put on the warehouse reports starting yesterday as a result of the large amount of gold bars that has been physically removed from Comex vaults, and specifically from JP Morgan's "eligible" account, since the beginning of the year. This means that it is highly likely that a significant portion of the remaining gold and silver sitting in Comex precious metals vaults - especially JPM's - has been been hypothecated in some form.
...
More: http://truthingold.blogspot.ca/2013/06/the-comex-confirms-that-its-gold-and.html
 

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Massive gold withdrawal from JPM!

JPM has said goodbye to another 28.4% of all of its vaulted gold - the largest one day withdrawal since April 25, the result of the departure of 61.5% of its Eligible gold, or 218k troy oz, as hundreds of thousands of registered ounces in the bast few weeks have seen warrant detachment.



Whoever is "running the JPM vault" shows no sign of relenting. At this pace, the world's biggest gold vault located below 1 CMP, and just next to the Fed's own gold vault, will be empty in about 1.5-2 months.
http://www.zerohedge.com/news/2013-...lides-fresh-record-low-withdrawals-accelerate
 

pmbug

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Looks like the game of musical chairs is getting closer to ending. Someone doesn't want to be left holding the paper when the music stops.
 

benjamen

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The furthur the paper spot gets pushed down, the higher the physical demand:
http://www.kitco.com/news/2013-06-2...ransferred-Climbs-To-12-Year-High-In-May.html

"Total gold transfers rose by 17.2% to a daily average of 28.2 million ounces, the most in 12 years. Despite continued offloading of gold by exchange-traded funds in the Western economies, strong physical demand for gold on falling prices -- particularly from India and China -- led to a significant increase in demand, the LBMA said, The value of gold ounces transferred increased by 11.2% to a daily average of $39.8 billion, the highest level since August 2011."
 

Unbeatable

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Well I see another 120k ounces were removed yesterday, on the first backwardation day, they're down to 7 298 163 ounces. :popcorn:
 

pmbug

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That means roughly 600K ounces of gold disappeared from COMEX inventories in the last month and a half (since post #70 above). Yesterday's 120K is 1/5 of that amount. If yesterday's action is indicative of a new trend (increasing pace of withdrawals), things are going to get "interesting".
 

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Yip could be a new trend... :popcorn:

The report for activity date 08/07/2013 shows another net change of - 95 675 ounces for the report, the new total is 7 202 488.

(Edit: So I guess the report I was looking at yesterday would have been for activity over the weekend before the backwardation was announced.)
 
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