JP Morgan- Can I Haz Your Gold?

[House]

Yesterday;

What happens when 63.5K ounces of registered gold in your warehouse (16% of total) just has their warrants detached and the vault is about to finds itself 63.5k ounces of gold emptier? If you are JPM you call the gold vault with most inventory in town, that of HSBC, and politely request that they transfer as much eligible gold as they can on short notice - in this case a tiny 6,444.936 oz to be exact.

None of which changes the fact that in a few days, the inventory in JPM's gold vault will drop to another record low of only 380K ounces and the JPM "rescue" pleas from HSBC and other Comex members will become ever louder and more desperate until one day they may just go straight to voicemail.

Today;

Sure enough, as the just released Comex update shows, JPM was forced to receive a "completely unsolicited" handout of some 20.2K ounces from Scotia Mocatta, the vault best known for being situated under 4 WTC during September 11 (and whose current physical vault can be found conveniently within spitting distance of JFK airport).

However, what is notable today unlike yesterday, is that JPM's pleas seem to be getting more shrill: while yesterday HSBC released eligible inventory, today Scotia was forced to hand over registered gold straight into JPM's eligible pile: this is perhaps the first time we have seen this happen laterally between two vaults, without an intermediate warrant detachment step. Furthermore, with HSBC moving 43.4K oz from Registered to Eligible, we would expect either another major Comex withdrawal in the next few days from HSBC, or this is merely HSBC making room for further gold "requests" by JPM.

ZH

 

[mmissinglink]

Well, what does that mean for the average physical stacker? Does it mean that because financial institutions cannot come up with adequate physical to cover contracts that investors will have lower sentiment and lower interest in investing in gold (lower demand) thereby driving gold prices down over the next year or two....or something different?



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[upandaway]

I'd appreciate if someone who follows this closely can post on all possible explanations for this not just the blind bull pump stuff.

I wouldn't imagine I was the only one who has heard this stuff for ever and am a little sceptical that we will finally see the game up and a functioning market anytime soon.