Last week, all the hubbub was about the movements of "gold" into the JPM Comex vault. This week, I'd like to point out something far more interesting and unusual...the flight of "gold" out of the Scotia Bank vault.
In case you missed it last week, some noise was made about a massive addition of eligible gold within the JPM Comex gold vault. I failed to see where it was noteworthy and I wrote about it here: http://www.tfmetalsreport.com/blog/6912/what-am-i-missing
You see, here's the thing...I try to abstain from lengthy discussions about the CME/Comex vaulting system because, to me, it's so clearly just a big lie and charade. Heck, the CME itself disavows their own reports with this disclaimer found at the bottom of each one:
Therefore, anyone attempting to explain what goes on there is simply adding an air of legitimacy to what is clearly a fraudulent and deliberately opaque "market".
That said and taking the CME's disclaimer fully into account, I would like to bring some "irregularities" to your attention.
On the CME Gold Stocks report below, dated 3/6/15, note the big red box and arrow pointing to the amount of "gold" allegedly being held in custody at The Scoshe and used as a physical foundation for the paper derivative market (click to enlarge):
As you can see on the report, less than three months ago The Scoshe reportedly held:
- 230,988 troy ounces in their registered (ready and deliverable) account. That's a little over seven metric tonnes.
- 2,720,391 troy ounces in their eligible (not delivery ready) account. That's about 84.5 metric tonnes.
On its own, this information is hardly remarkable. However, we've been monitoring a steady drain of The Scoshe's eligible account. In fact, just this week there have been withdrawals of 64,000 ounces Monday, 155,000 ounces Tuesday and 63,000 ounces Wednesday. That's a lot. Nearly 282,000 troy ounces or about nine metric tonnes...this week alone. And now, look at Wednesday's CME Gold Stocks report and note the overall change in The Scoshe's vault:
As you can see:
- 176,734 troy ounces in registered gold...down 54,200 ounces from March or less than two tonnes
- 1,560,385 troy ounces in eligible gold...down a remarkable 1,160,000 ounces. That's a loss of 37 metric tonnes or nearly 43% of their eligible gold.
- The combined loss is 1,390,994 troy ounces or 47% of the total vault.
Well, that's interesting, isn't it? This brings up a number of questions. Let's take them one by one, shall we?
- Is Scotia getting out of the Comex business? Maybe. Too early to say. However, when your vault declines by nearly 50% in under three months, it's a fair question to ask.
- Why is it primarily eligible gold that is exiting? Another excellent question. This suggests that perhaps Scotia's clients are rapidly withdrawing the gold they had in storage in Scotia's vault. If that's the case, why would Scotia's clients be acting so decisively to reclaim their gold? That's another excellent question.
- Is this just The Scoshe making Comex deliveries? It doesn't appear that way. For the month of June, the CME reports (http://www.cmegroup.com/delivery_reports/MetalsIssuesAndStopsYTDReport.pdf) that The Scoshe is only on the hook for 403 deliveries thus far...and as noted above, they've shipped out enough gold for 2,820 deliveries just this week alone.
- Maybe Scotia is simply playing catch up for deliveries they made in April? Nope, that's not the answer, either. As you can see on the report linked in #3, they were only on the hook for 1,266 deliveries back then. Again, since March, they've "lost" enough gold to physically settle and deliver nearly 14,000 contracts.
In the end I suppose that, if these CME Gold Stocks reports are to be taken at face value and deemed to be accurate, then the most intriguing question is #2 above and the possible answer listed. Are Scotia Bank's customers rapidly withdrawing gold from unallocated, eligible storage within Scotia's Comex vault? If so...and it certainly appears on the surface that they are..the next question is "why"? Why would Scotia's clients be in such a rush as to withdraw 37 metric tonnes of gold and reclaim it as their own?
(And please don't waste my time emailing me to inform me how Comex eligible vaults are fully allocated and safe. Have you ever tried to take an actual delivery of physical metal? If so, did you get anything other than a promise to deliver and a warehouse receipt in return? Please review these excellent posts from Denver Dave. This from 2013: http://truthingold.blogspot.com/2013/06/the-comex-confirms-that-its-gold-and.html And this from 2009: http://www.cheatsheet.com/breaking-news/is-the-comex-the-next-madoff-disaster.html)
And one final note. Look again at Wednesday's Gold Stocks Report. Note that this time I've drawn an arrow toward JPMorgan's vault numbers:
Last week, all the intrigue had to do with JPM's sudden switch of 177,000 ounces from eligible to registered, ostensibly to cover a massive pile of June deliveries. Below is the report in question:
Note that, since last week, the amount of "gold" within JPM's vault has actually increased! Now wait a minute...I thought they were making deliveries this month. Instead, their registered vault is unchanged over the past week and their eligible vault has increased by 161,000 ounces. HUH??
And lest you think that this was the result of some of Scotia's gold making its way over to JPM, think again. The daily report from 6/11/15 is shown below and note that the entire eligible gain for JPM was once again one of those utterly perfect and precise, round number jobs. No need to weigh and assay. Just booked in at precisely five metric tonnes or 160,750.000 troy ounces. More background here: http://www.tfmetalsreport.com/blog/6272/information-deemed-be-reliable
So what's the point of all this? Frankly, I believe that you and I and all of the Comex/Cartel Apologists are really only left with two options:
- As we've concluded before and as the CME disclaimer infers, these CME Gold Stocks reports are all bogus and bullshit. Designed to confuse and distract, all the while appearing to assign physical legitimacy to the fraudulent paper derivative precious metal pricing scheme.
- There's a slow-burning "run" taking place on the Scotia Bank Comex gold vault. Clients of The Scoshe, apparently concerned about the safety and provenance of their gold held in the vault, are slowly but surely reclaiming their gold and moving into storage elsewhere.
Actually, come to think of it, there's a third option that should be considered:
3. Both #1 and #2 above are correct.
Either way, this all seems as more fuel for the fire that will ultimately consume and end the current fractional reserve bullion banking system. All we can do is continue to prepare accordingly for that eventuality.