Jesse: Record COMEX Gold Claims Per Deliverable Ounce at 79 to 1 GLD, MUX, TNR.v, GDX

  

  Jesse reports that the Game Of Musial Chairs in the Western Fractional Gold Reserve System is getting into the new stage with the record level of leverage. Now report from Bloomberg can be put into another perspective. 

Bloomberg: London Gold Vaults Are Virtually Empty GLD, MUX, TNR.v, GDX

Bloomberg quite suddenly provides some really interesting information about the state of the gold market and ongoing manipulations around it these days. Could the reports about JPMorgan being Net Long Gold now be correct in the end?

Government Interventions In Gold Market: "The Double Face of Gold" GLD, MUX, TNR.v, GDX

 "We have the second part of the interview with Dmitri Speck revealing the ongoing Government interventions in the Gold market. This view from Europe on the Gold Cartel and Government Interventions in Gold market is particularly important now with the announced investigations in the Gold Market manipulation by German and UK financial regulators."

Jesse Cafe Americain:

Comex Claims Per Deliverable Ounce at 79 to 1

Not to worry, JP Morgan has the situation well in hand.

They are just recycling the deliverable for the next go round in the next active month, February. 

What could go wrong?

Gold Short Squeeze: COMEX Deliverable Gold Bullion Drops To Levels Not Seen Since 2003 - Claims Per Ounce Around 55 GLD, MUX, TNR.v

  

  Jesse has summarised the COMEX explosive situation for us this week. Gold LBMA fractional reserve system is under The Bank Run now.

  Big boyz know too well about it and have positioned themselves well in advance before the Syria escalation. We are just wondering: How would they know about it in advance?

  And by the way, this is what happened with Gold after 2003:

Turd Ferguson: More Evidence That JPM Has Cornered Comex Gold GLD, GDX, GDXJ, MUX, TNR.v

"We continue to build up our puzzle together for The Crime Of The Century - Gold Market Manipulation by the banksters. Planet Ponzi run by the banksters is very cynical in its attempts to push everybody to the worthless FIAT IOUs by all means necessary.

  Turd Ferguson provides very interesting findings on the recent events behind the curtain in the gold market and what could happen next. 

  It appears that the Boyz from Goldman Sachs and JPMorgan know too well where the Real Value is and they were  shaking the tree very hard to get out of Gold short positions and accumulate longs from the weak hands in the market place, just before the Syria geopolitical card will be played out."

  

Guess Which "Bearish" Bank Bought A Record Amount Of GLD In Q2 GLD, GDX, GDXJ, MUX, TNR.v

"Zero Hedge reports what we have already suspected, but now it is the matter of fact and we have the clear answer Who Was Buying. We must be close to that Waking Up Moment Peter Schiff is talking about."

Jesse's Cafe Americain:

COMEX Deliverable Gold Bullion Drops To Levels Not Seen Since 2003 - Claims Per Ounce Around 55

"Price discovery is not a sexy function of markets, but it is critical to the efficient allocation of scarce capital and resources, and to the preservation of the long term wealth of investors and the economy as a whole. If price discovery is compromised by manipulation, then we will all be gradually impoverished and the economy will be imbalanced and unstable."

London Banker, Lies, Damn Lies, and Libor


"Delivery takes on a note of finality, of a reckoning, when supply has become rehypothecated into little more than a state of mind.  The unanswered call for delivery is the final lifting of the veil."

Jesse

Gold bullion available for delivery on the COMEX dropped a little more than 15,000 ounces on Thursday, with one large withdrawal from Scotia Mocatta and one small adjustment that added back a few hundred ounces at HSBC.  

There were no other ounces received. Total registered (deliverable) gold at the COMEX now stands at 686,434 ounces of actual bullion.

This number is, according to the COMEX' own language on the report, based on sources believed to be reliable.  But COMEXassumes no liability for errors or related counterparty risks.

We have not seen deliverable levels this low since 2003, which was in the earliest stage of the current gold bull market.

There are still over 7 million total ounces of gold bullion in COMEX warehouses.  It will probably take higher prices to motivate owners to move their stored bullion into the market.

The claims per deliverable ounce on the COMEX remains unusually elevated at 54.6.   If there is a rush to exercise those contracts, the gold on the exchange that is available for delivery will not go very far.   That means price would have to go much higher, in the manner of a short squeeze.  I tend to watch 'claims per ounce' in the same way you might watch 'days to cover' for the short interest on a stock.

The gold cartel is trying hard to keep the price from breaking out above 1420, which could precipitate some short covering with the leveraged traders, and prompt the ETFs to try and recover some of the bullion which they so graciously surrendered into the price decline earlier this year.

At some point there is always a reckoning, and claims that have been made on paper must be fulfilled or surrendered, one way or the other.  And in this case the supply and demand flows worldwide do not seem favorable for those who attempted to knock the price of gold down below a sustainable market value earlier this year. 

I marked when enough ounces had been made available from the ETFs to return Germany's gold to their people.  But the gold was not returned, and they did not stop their pricing operation there.   It is always the greed, and then the coverup.

The strong physical buying, especially out of Asia, seems to have turned a pricing operation into a stubborn trap.  Keeping the price lower only seems to prompt more buying, and more scarcity of legitimate supply.

But let's assume the price goes high enough so that all 7 million ounces of gold held in all the COMEX warehouses becomes available to the market.  That is a little less than 218 tonnes.  That would satisfy the current demand from China through Hong Kong alone for about two months at current rates. 

The last chart below shows how import levels into China exploded when the clever boys knocked the prices down well below the natural market rates given demand and costs of production.

If global supply should show signs of faltering at any point, with undue delays from another bullion bank or, worst case, the LBMA, the relatively thin inventories at the COMEX that are used as largely symbolic bollards for the world's precious metals price would evanesce,  almost overnight, with bids up limit and none offered.  Défaut, en fait accompli.  Quel dommage!

You may wish to fold your cards here, gentlemen, and let the price rise to a more defensible level, before the supply levels become untenable at any price.  Once confidence has become broken, it is often difficult to get it back.   And there are a lot of delivery days between now and the end of the year. 

Weighed, and found wanting.

Stand and deliver.

Gold Short Squeeze: Claims Per Deliverable Ounce of Gold Rise To Over 54 GLD, GDX, GDXJ, MUX, TNR.v

  

  Jesse reports that the Gold fractional Ponzi Scheme has achieved staggering leverage of over 54 claims per once of Gold available for delivery. We will witness the run on the Bullion banks in the very near future. The Mother of all Short Squeeze will be unleashed in the Gold market and the main players have been already positioning themselves to capitalise on it during the orchestrated gold Market Collapse this spring.

Turd Ferguson: More Evidence That JPM Has Cornered Comex Gold GLD, GDX, GDXJ, MUX, TNR.v

"We continue to build up our puzzle together for The Crime Of The Century - Gold Market Manipulation by the banksters. Planet Ponzi run by the banksters is very cynical in its attempts to push everybody to the worthless FIAT IOUs by all means necessary.

  Turd Ferguson provides very interesting findings on the recent events behind the curtain in the gold market and what could happen next. 

  It appears that the Boyz from Goldman Sachs and JPMorgan know too well where the Real Value is and they were  shaking the tree very hard to get out of Gold short positions and accumulate longs from the weak hands in the market place, just before the Syria geopolitical card will be played out."

Guess Which "Bearish" Bank Bought A Record Amount Of GLD In Q2 GLD, GDX, GDXJ, MUX, TNR.v

"Zero Hedge reports what we have already suspected, but now it is the matter of fact and we have the clear answer Who Was Buying. We must be close to that Waking Up Moment Peter Schiff is talking about."

Jesse's Cafe Americain:

Claims Per Deliverable Ounce of Gold Rise To Over 54 As the August Delivery Period Ends

"When I began the Ponzi scheme I believed it would end shortly and I would be able to extricate myself and my clients from the scheme. However, this proved difficult, and ultimately impossible, and as the years went by I realized that this day would inevitably come..."

Bernard Madoff

The August delivery period on the COMEX ended last Friday with a little over 701,000 ounces of gold marked as deliverable in their warehouses.

Higher prices may be required to pry more ounces of real bullion out of storage and into the deliverable category.

August has passed, but September has just begun.   And soon enough the winds will turn cold.

Weighed, and found wanting.

Stand and deliver.

Gold vs FIAT EMPIRE - Why the Federal Reserve Violates the U.S. Constitution

  

  Some of these movies and posts are all history already, but recent events in the Gold Markets are only proving that the whole FED based financial system is rigged and there will be only one way out - ultimate currency, which is Gold.

"The Illuminati Were Amateurs" - Matt Taibbi Explains How "Everything Is Rigged" From LIBOR to Gold Markets

 "Matt Taibbi continues his investigative journalism at its best - will his longly voice in the mainstream media be heard one day finally? With the recent Crash in Paper Gold market this new information clearly points out that Gold Shorts under the JP Morgan's management are in a Big Trouble Now."  

The History Of Money And Why US Dollars Are Issued By Private Bank - Federal Reserve System

  "We are at the very important point in the history of the modern financial system. The recent events in Europe  are no less than ground-changing historical  development and the magnitude of it will be understood only many years later. European countries are giving up their Sovereignty in order to save the Euro zone. Now the history of money will be your guide to the new order, when the New Normal will be transformed into the New World Order. 

  Private FED manipulates all markets now and has the right at its own discretion to increase the FED rate at any moment, which will increase all interest rates in a chain: mortgage payments, car loans, student loans, credit card loans, business loans etc. Should FED decide to stop monetary expansion at some point: QEn+1 and Twists - yields on the Treasuries will explode. U.S. is at the total mercy of the unelected managers running the private bank. You would think: who can do such a thing, which will bring a total collapse to the world economy - watch the movies to get your own answer. The idea to buy the assets for pennies on the dollar can be irresistible again."

Business Insider: Everyone Is Passing Around This 'Whistleblower' Letter Claiming To Know About Market Manipulation At JPMorgan

  With today's news from JP Morgan the old article from Business Insider is taking the new context at least - what revelations will be next now? JP Morgan's name is all over the place with the recent scandals - we can not tell yet that it will become the "Next Lehman moment" which will unleash QE3 - but company's involvements in MF Global bankruptcy, PFG bankruptcy, Trading Loss Revelations and today's announcement about "cooking the books" are not leaving any room for "error".

What Is The LIBOR Scandal?

 "Now let's wait for the stories of Gold and Silver market manipulations to surface with the new JP Morgan "trade loss" announcements."

Business Insider:

Everyone Is Passing Around This 'Whistleblower' Letter Claiming To Know About Market Manipulation At JPMorgan

"We have major doubts about whether this is real, but everyone is talking about it so we though we'd pass it on...

There's a letter on the CFTC website from an alleged (and anonymous) JP Morgan whistle-blower.

He claims he was inspired by the Greg Smith op-ed, and wants to share information about illegal activity at the bank.

The letter touches on a wide range of offenses — it says JP Morgan is hiding MF Global money, manipulating the LIBOR and gold, and lying about exposure to Greek debt.

Basically, it's a tinfoil hat bonanza that's heavy on hype and short on substance.

Again, we haven't confirmed whether or not this is legit... and it certainly reads off. We've reached out to the CFTC, and they haven't returned our request for comment. We'll let you know when we find out more, but for now, the letter is copied below:

Dear CFTC Staff,

Hello, I am a current JPMorgan Chase employee. This is an open letter to all commissioners and regulators. I am emailing you today b/c I know of insider information that will be damning at best for JPMorgan Chase. I have decided to play the role of whistleblower b/c I no longer have faith and belief that what we are doing for society is bringing value to people. 

I am now under the opinion that we are actually putting hard working Americans unaware of what lays ahead at extreme market risk. This risk is unnecessary and will lead to wide-scale market collapse if not handled properly. With the release of Mr. Smith’s open letter to Goldman, I too would like to set the record straight for JPM as well. I have seen the disruptive behavior of superiors and no longer can say that I look up to employees at the ED/MD level here at JPM. Their smug exuberance and arrogance permeates the air just as pungently as rotting vegetables. 

They all know too well of the backdoor crony connections they share intimately with elected officials and with other institutions. It is apparent in everything they do, from the meager attempts to manipulate LIBOR, therefore controlling how almost all derivatives are priced to the inherit and fraudulent commodities manipulation. They too may have one day stood for something in the past in the client-employee relationship. Does anyone in today’s market really care about the protection of their client? From the ruthless and scandalous treatment of MF Global client asset funds to the excessive bonuses paid by companies with burgeoning liabilities. 

Yes, we at JPMorgan that are in the know are fearful of a cascading credit event being triggered in Greece as they have hidden derivatives in excess of $1 Trillion USD. We at JPMorgan own enough of these through counterparty risk and outright prop trading that our entire IB EDG space could be annihilated within a few short days. The last ten years has been market by inflexion point after inflexion point with the most notable coming in 2008 after the acquisition of Bear.

I wish to remain anonymous as of now as fear of termination mounts from what I am about to reveal. Robert Gottlieb is not my real name; however he is a trader that is involved in a lawsuit for manipulative trading while working with JPMorgan Chase. He was acquired during our Bear Stearns acquisition and is known to be the notorious person shorting in the silver future market from his trading space, along with Blythe Masters, his IB Global boss. 

However, with that said, we are manipulating the silver futures market and playing a smaller (but still massively manipulative) role in manipulating the gold futures market. We have a little over a 25% (give or take a percentage) position in the short market for silver futures and by your definition this denotes a larger position than for speculative purposes or for hedging and is beyond the line of manipulation.

On a side note, I do not work directly with accounts that would have been directly impacted by the MF Global fiasco but I have heard through other colleagues that we have involvement in the hiding of client assets from MF Global. This is another fraudulent effort on our part and constitutes theft. I urge you to forward that part of the investigation on to the respective authorities.

There is something else that you may find strange. During month-end December, we were all told by our managers that this was going to be a dismal year in terms of earnings and that we should not expect any bonuses or pay raises. Then come mid-late January it is made known that everyone received a pay raise and/or bonus, which is interesting b/c just a few weeks ago we were told that this was not likely and expected to be paid nothing in addition to base salary. 

January is right around the time we started increasing our short positions quite significantly again and this most recent crash in gold and silver during Bernanke's speech on February 29th is of notable importance, as we along with 4 other major institutions, orchestrated the violent $100 drop in Gold and subsequent drops in silver.

As regulators of the free people of this country, I ask you to uphold the most important job in the world right now. That job is judge and overseer of all that is justice in the most sensitive of commodity markets. There are many middle-income people that invest in the physical assets of silver, gold, as well as mining stocks that are being financially impacted in a negative way b/c of our unscrupulous shorts in the precious metals commodity sector. If you read the COT with intent you will find that commercials (even though we have no business being in the commercial sector, which should be reserved for companies that truly produce the metal) are net short by a long shot in not only silver, but gold.

It is rather surprising that what should be well known liabilities on our balance sheet have not erupted into wider scale scrutinization. I call all honest and courageous JPMorgan employees to step up and fight the cronyism and wide-scale manipulation by reporting the truth. We are only helping reality come to light therefore allowing a real valuation of our banking industry which will give investors a chance to properly adjust without being totally wiped out. I will be contacting a lawyer shortly about this matter, as I believe no other whistleblower at JPMorgan has come forward yet. Our deepest secrets lie within the hands of honest employees and can be revealed through honest regulators that are willing to take a look inside one of America's best kept secrets. Please do not allow this to turn into another Enron.

Kind Regards,

-The 1st Whistleblower of Many"

JP Morgan is bullish on Gold and Copper. GDX, AUY, TNR.v

We better listen to these guys, known for their Gold selling, hedging and Derivative positions.

http://www.gata.org/files/JPMorganGoldReport-11-25-2008.pdf