Changes On The COMEX As Bankers Increase War On Cash & Gold

There have been some recent changes on the COMEX in response to the Bankers “War on Cash.”  Last year, Chase Bank in the U.S. advised its clients who rent safe deposit boxes there would be some policy changes.  Some of these changes had to do with the storage of cash and coins.

According to The International Man article, The End of Safe Deposit Box For Wealth Storage:

Of particular interest is the following condition:

“Contents of box: You agree not to store any cash or coins other than those found to have a collectible value.”

Interesting. After all, cash and precious metals are traditional primary stores of wealth. Why single them out as no longer being acceptable?

When Chase refers to “Coins” they mean gold and silver bullion coins.  I would imagine they give a rats azz about someone who has a few rolls of quarters in their safe deposit box.  Also, individuals or the wealthy are no longer able to store some extra cash in their safety deposit boxes at Chase.

This has impacted many wealthy investors as they have been forced to move their gold and silver bullion out of safe deposit boxes at Chase and likely at other large financial institutions.  This has caused a new demand for storing cash and precious metals outside the banking industry.

Changes On The COMEX From The War On Cash

I have been looking at updates on the COMEX gold and silver inventories for years.  However, I was surprised to see two new depositories added just recently.  Here is the COMEX Silver Inventory update on Jan 13th:

COMEX-Silver-Inventories-011316

I used this COMEX Silver Inventory update to also show the huge 3.1 million oz (Moz) single day withdrawal of silver.  As you can also see, there are two new Silver Depositories:

  1. International Depository Services of Delaware
  2. Macla-Amit USA LLC

If we go back to my last COMEX Silver Inventory update at the end of November 2015, we can see these two depositories were not yet added:

COMEX-Silver-Inventories-112515

I did a bit of research and found out the International Depository Services of Delaware is a subsidiary of Dillon Gage Metals.  This is interesting as Dillon Gage Metals is one of the dozen Authorized Purchasers of U.S. Mint Gold & Silver Eagles.  Basically, Dillon Gage is now offering a private vaulting storage away from banks, but is also Comex approved.

This is the same for Macla-Amit USA LLCThese two new Comex approved precious metal vault facilities are offering storage services outside the typical Banking institutions.  These two new depositories are also COMEX gold approved as well.

While I realize many precious metal investors do not trust anything associated with the COMEX, wealthy investors who hold a great deal of gold and silver bullion need a place to store their metals outside the banking industry.  The “War on Cash” is now forcing wealthy investors to seek alternative places to store their precious metals.

As the broader markets continue to collapse as the Fed hints at negative interest rates, I believe we will see a tidal wave of wealthy investors purchasing gold and silver and storing it in these alternative private vaulting facilities.

EAST vs WEST: Silver Inventories Move In Opposite Directions

I mentioned this in an article last month.  Silver Inventories at the Shanghai Futures Exchange (SHFE) continue to increase while those at the COMEX decline.  I just checked the recent update on the SHFE and was quite surprised:

Shanghai-Silver-Inventories-011516

In just one day, silver inventories at the Shanghai Futures Exchange – SHFE increased by 31.7 metric tons (mt) to 737.6 mt.  This is a dramatic increase as total SHFE silver inventories were only 615 mt on Jan 6th.  On the other hand, Comex silver inventories experienced another large withdrawal today.  There was 1.8 Moz withdrawal and a 1.2 Moz deposit for a net decline of 680,000 oz.  Total Comex silver inventories are now 159 Moz versus 161 Moz at the beginning of the year.

I believe the recent spike in SHFE silver inventories is due to the sudden drop of industrial silver demand and export products.  The majority of Chinese silver consumption is industrial, not investment.

Precious metal investors need to keep watch of what takes place in the broader markets over the next 2-3 months.  If we continue to see a collapse of the U.S. and global stock markets, this could force the Fed and Central Banks to actually go to negative interest rates.  Negative interest rates will force more wealthy investors out of paper and into the precious metals.

It will only take a small percentage increase of precious metal buying to totally overwhelm the physical markets.  Already, the U.S. Mint already sold its entire weekly allocation of 4 million Silver Eagles.  If sales remain strong for the rest of the month, total sales could surpass 8 million oz… a new record for January.

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15 Comments on "Changes On The COMEX As Bankers Increase War On Cash & Gold"

  1. Why is ISID – a “private vaulting service away from the banks” – offering all its silver holdings as “Eligible”? Is it just to help boost COMEX holdings and reduce the paper / physical ratio, or have they joined the banker’s racket of selling physical and vaulting paper?

  2. It’s Malca-Amit and it’s an Israeli company. Very shady.

  3. Seasoned_Citizen | January 15, 2016 at 8:01 pm | Reply

    As a neophyte PM investor, may I ask a question– what guarantees the owners of PM who deposit their holdings in these facilities that their metals will never be the object of say, bankruptcy or receivership proceedings? Once a company files, metals it holds usually are “assets of the estate” controlled by a judge.

    If there is a major financial disruption and these PM holding facilities, for whatever reason, file for bankruptcy protection, how do true owners get their PM back without lengthy and costly litigation? How valid are receipts that show segregate PM versus commingled metals when SHTF? Thank you!

    • S_C,

      Don’t do it. They are not any safer than storing PMs in you safety deposit box.

      Google “secret stashes”. There are a lot of books on how to make a secret stash.

      Welcome to the Silver Stacking (Stashing) Club.

      SteveW

      • Seasoned_Citizen | January 16, 2016 at 4:40 am | Reply

        Thank you, kind Sir, SteveW! The reason I asked this is that I had a rather “unpleasant” experience with a “licensed, bonded, insured” Fortune 500 escrow company, which held the proceeds of a sizable realty deal I had just made. The escrow was to be parked “just a few days.” Turns out this multi-billion dollar company was doing a Ponzi scheme with funds–it filed bankruptcy.

        Try going to the typical “1st Meeting of Creditors” a thousand miles away, with over 200 lawyers screaming over hundreds of millions of USD, and a guy seated on high in a black robe telling you face-to-face: “These funds now BELONG to the bankruptcy court….”

        Fun…just a lot of fun….

        • It just wasn’t your season i guess. The iou spectrum is very big. It washes away your currency, your believes, your trust and your loved ones.

  4. If you are going to “google” anything about storing silver or gold at home use the tor web browser. It makes you anonymous online.

  5. Another period of PM annihilation led by crashing gold and silvers tocks is coming from the next few days/weeks.

  6. A look to the miner stocks and everything is clear.Downwards!

  7. RD & Freaky,

    You are both right but it seems your time perspectives are too short sighted.

    Economies are like very large ships they have tremendous momentum. It takes a long time to turn or stop them. The Chinese and US economies are huge and it is going to take a seemingly very long time for them to come to a stop. You can bet that their central bankers will pull out every trick they can think of to avoid the inevitable collapse. To get a feel for the process, its effects and relative timing you only need look at the recent histories of Zimbabwe, Brazil and Argentina to see what we are in for.

    The US FED increased the rate and may very well do it again, in spite of the obvious world downturn because with interest at Zero they have no ammunition left with which to influence the economy. Unlike a number of european countries, a move to negative interest rates in the US will trigger a massive move to PMs and actually shorten the path to total collapse of the dollar IMHO.

    In my estimate, the FED will increase the rate once again around June and then wait until after the election to increase it again. They will do this even though it will have major adverse effects on the US stock market but will be a sign to the rest of the world that the US government and it’s economy is recovering, Money will flow into the US dollar pushing it higher and higher. The Chinese will eagerly devalue their yaun (remembi) in the hopes of it sparking life into their economy but with the rest of the world grinding to a halt nothing can stop the collapse. The US dollar could peak around 118 and at that point either some large individual default or the aggregate defaults of the many bankruptcies will cause a full blown world wide liquidity crises and the dollar will join the ranks of all other fiat currencies that ended up down the crapper.

    With no way to pay for goods or services, especially over long distances the world will be in chaos.

    So for the next year or so, enjoy a “normal” life but prepare for what is to come.

    Keep on stacking.

    Buy for cash and stash.

    SteveW

    • Silver stocks,

      I have not been a stock investor for nearly 30 years, but I believe that the right silver stocks may be a once in a life time opportunity that is right around the corner.

      When the US dollar tops 110, I will be looking for primary silver miners in North America (preferably in the US and Canada) with high grade ores, good management and low extraction costs. I don’t know if any viable candidates exist but when the time comes and we can’t get Steve to do it, I will be doing a lot of research in hopes of finding one or two or three stocks to buy with essentially gambling money in the belief of an insane payday when the dust settles.

  8. I rather estimate they lift the oil-price.Inflation will appear.
    In a money debt system with so much debts a non growing economy is deadly.

  9. is it possible that these 2 new depositories are just a clever way to fudge the comex figures?

    after all, they have been caught out before transferring bullion willy nilly between the registered and eligible categories. they do need to find a more covert way to fudge now.

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