Original Zero Hedge Article: http://www.zerohedge.com/news/2013-04-25/jpmorgans-eligible-gold-plummets-65-24-hours-all-time-low
So what if it dropped 260K oz's in one day? I don't quite understand the significance of this drop? If they want, can't JPM just do whatever they did in Oct 2010, where there inventories increased by from 0 to XXX in one day? Or, is Oct 2010 just when data began?
it it is eligible vs registered ... looks like that someone doesn't want his gold to be used in paper games that's why the owner demands to record the gold as not eligible ... finally the shortage of paper )))
Wouldn't that be a shortage of gold, and abundance of paper claims many times over for that limited supply of gold?
no, it is not shortage of gold ... it is abundance of paper they just letting know that they are able to make less contracts for underlying gold ... what's the reason and consequence of this smoke I have no idea
Are you suggesting that these "holdings" are already rehypothecated from a fractional reserve base of metal, and this move is the result of new policy in the increase of how many times over JPM's bullion bank will promise the same ingot of metal?
from another message board "The Eligible category means that the silver meets the exchange requirements. Exchange requirements include purity, size (eligible silver bars must weigh within 10% plus or minus of 1000 ounces), and also must be from (stamped with) an exchange approved refiner. Eligible silver essentially means that the silver is stored in COMEX warehouses, and conforms to exchange standards. It is being stored in the COMEX warehouse for a private party, but it is NOT available for delivery to contracts. For example, Warren Buffet decides to store 30 million ounces of silver owned by Berkshire Hathaway (he has no intention of making the silver available for sale at current prices) in a COMEX vault rather than his Omaha basement, he could do so, and the silver would be eligible inventory. Registered silver means that the silver is fully available for delivery to longs who stand for bullion delivery. Registered silver used to have a paper bearer warrant attached for delivery, but these paper warrants are reportedly being phased out. To simplify, registered silver is deliverable- or available for delivery to a long standing or demanding bullion delivery. Eligible silver can become registered, and vice-versa. (i.e. the owner can decide to make his silver available for sale at a certain price) This is seen almost daily in the adjustments section of the COMEX inventory data reports. In order for eligible silver to become registered, the owner must have an exchange licensed depository (Brink's, The Delaware Depository, HSBC, JPM, or Scotia Mocotta) issue a depository receipt (warrant). In addition, the bars must total 5,000 ounces (size of 1 contract) plus or minus 6%. it is possible because I don't know what they do when they move from eligible to registered and vice versa
This is the Comex total (all depositories) April 23: PREV TOTAL RECEIVED WITHDRAWN NET CHANGE ADJUSTMENT TOTAL TODAY TOTAL REGISTERED 2.281.503,073 0,000 70.767,144 -70.767,144 0,000 2.210.735,929 TOTAL ELIGIBLE 6.301.870,154 852,174 167.948,938 -167.096,764 0,000 6.134.773,390 COMBINED TOTAL 8.583.373,227 852,174 238.716,082 -237.863,908 0,000 8.345.509,319 April 24: TOTAL REGISTERED 2.210.735,929 0,000 36.646,060 -36.646,060 0,000 2.174.089,869 TOTAL ELIGIBLE 6.134.773,390 1.286,000 319.350,305 -318.064,305 0,000 5.816.709,085 COMBINED TOTAL 8.345.509,319 1.286,000 355.996,365 -354.710,365 0,000 7.990.798,954 April 25: PREV TOTAL RECEIVED WITHDRAWN NET CHANGE ADJUSTMENT TOTAL TODAY TOTAL REGISTERED 2.174.089,869 76.315,116 1.300,030 75.015,086 -16.969,356 2.232.135,599 TOTAL ELIGIBLE 5.816.709,085 77.433,858 0,000 77.433,858 16.969,356 5.911.112,299 COMBINED TOTAL 7.990.798,954 153.748,974 1.300,030 152.448,944 0,000 8.143.247,898 This is the part of the total Comex at JP Morgan April 23: PREV TOTAL RECEIVED WITHDRAWN NET CHANGE ADJUSTMENT TOTAL TODAY JP MORGAN CHASE BANK NA Registered 780.334,469 0,000 0,000 0,000 0,000 780.334,469 Eligible 505.930,569 0,000 103.556,840 -103.556,840 0,000 402.373,729 Total 1.286.265,038 0,000 103.556,840 -103.556,840 0,000 1.182.708,198 April 24: PREV TOTAL RECEIVED WITHDRAWN NET CHANGE ADJUSTMENT TOTAL TODAY JP MORGAN CHASE BANK NA Registered 780.334,469 0,000 0,000 0,000 0,000 780.334,469 Eligible 402.373,729 0,000 260.792,233 -260.792,233 0,000 141.581,496 <- the drop ZeroHedge talks about Total 1.182.708,198 0,000 260.792,233 -260.792,233 0,000 921.915,965 April 25: PREV TOTAL RECEIVED WITHDRAWN NET CHANGE ADJUSTMENT TOTAL TODAY JP MORGAN CHASE BANK NA Registered 780.334,469 0,000 0,000 0,000 -17.468,876 762.865,593 <- Here an example of the many occurring moves between Registered and Eligible, no total change. Eligible 141.581,496 0,000 0,000 0,000 17.468,876 159.050,372 Total 921.915,965 0,000 0,000 0,000 0,000 921.915,965 This ZeroHedge article makes again clear what ZeroHedge does all the time: in order to insinuate shortages by stock drops, they select all substantial drops. No matter whether it's a separate Comex depository or the total of all Comex depositories. They produce a 50+% article that references just a part of the total Comex stock, where it is only 4% yet they use it to insinuate a gold shortage. No matter whether it's Eligible or Registered (which doesn't matter either, the Eligible/Registered form just a cascaded stock close to the market, much like a CPU's L1 (Registered) and L2 cache (Eligible) is to the RAM (all gold appearing on the market). ZeroHedge, the precious metals pumper club. All they want, is to sell, and blabla about shortages is just one of the tricks to make you do so, at any price. I bet they are the same that cause the bigger price drops. When the pumper club becomes the dumper club. But then of course, they blame Comex / JP Morgan for the price drop. Abit like you would decide to dump your long position, causing me to dump my short position (a contract needs both, and since the price risk of the long is gone, the short is unneeded anyway), and then you blame me the dump, haha.
Pirocco. How about this? http://seekingalpha.com/instablog/839735-katchum/1795901-comex-gold-s-alarming-plunge-in-inventory and this? http://seekingalpha.com/instablog/8...n-vault-doubles-registered-silver-inventories
