COMEX GOLD INVENTORIES HIT NEW LOW

It looks like the stagnate two month bottom in the Comex Gold inventories is now over as a huge withdrawal from HSBC has taken the total warehouse stocks to a new low not seen since 2006.

COMEX GOLD Inventories 92413

As you can see from the table, 173,358 oz of gold were withdrawn from HSBC’s Eligible category.  While this withdrawal was only 5.5% of HSBC’s Eligible (Customer) inventory, it would have totally wiped out Brinks, HSBC, Scotia Mocatta, and most of JP Morgan’s Registered inventories.

This single withdrawal was more than what most of these individual banks held in their Registered Inventories.  Furthermore, the 173,358 oz withdrawn from HSBC is 5.4 tonnes of gold… now more than likely gone forever from the Comex.

Not only does this large withdrawal from HSBC break the two month flat line bottom, but it also puts the Comex Gold Inventories at a NEW LOW not seen since 2006:

Comex Gold Flat Bottom

Here we can see in the one month chart below what a huge decline has taken place as it does not fit on the chart.  This chart will not be updated until tomorrow, so I stretched the graph to include the new data point which is now at 6,860,160 oz.

COMEX GOLD new Low 92413

Another surprising trend is taking place on the GLD inventories.  Since the price of gold bottomed in the beginning of July, the level of gold at the GLD is 1,887,419 ounces less even though the price has rallied nearly 12%.

On July 1st, the gold inventory at the GLD stood at 31,131,769 oz while the price of gold bottomed at $1,180.  Today, gold ended the day at $1,323, but the total gold inventory at the GLD is 29,244,351 oz.  For some odd reason, the GLD is not adding gold as readily now that the price has increased compared to how it was drained as the price declined.

There seems to be an orchestrated effort by the Gold Cartel to convince investors not to purchase physical gold.  As I mentioned in a previous article, the World Gold Council has announced the following:

World Gold Council Promoting Gold ETFs with New Program

(Kitco News) – Weak investor demand in gold markets remains a major concern as outflows continue to plague gold-backed exchange-traded funds.

However, the World Gold Council is trying to change investors’ perceptions of the yellow metal with the creation of a new program. On Thursday, the council announced the appointment of William Rhind as the managing director of its new Institutional Investment Program.

According to the WGC, Rhind will be “responsible for developing and implementing initiatives focused on expanding the use of SPDR Gold Shares (NYSE: GLD) and other physical gold-backed products.” GLD is the world’s biggest gold-backed ETF and since the start of the year has seen significant outflows as investors moved out of gold and into better performing equity markets.

Thus, the World Gold Council has appointed Rhind to be “Responsible for developing and implementing initiatives focused on expanding the use of the SPDR Gold Shares and other ETFS” to continue to bamboozle investors into buying worthless paper garbage gold products while making sure that MUMS the word for those who want to purchase physical metal.

There seems to be serious trouble ahead for the bullion banks as their registered inventories are at record lows.  There is no way a withdrawal of this size today could have been met by the bullion banks registered gold inventories.

There will be new updates on the COMEX & Shanghai inventories at the SRSrocco Report.

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19 Comments on "COMEX GOLD INVENTORIES HIT NEW LOW"

  1. Registered gold only amounts to about 20 tons and some of the registered gold may have warrants outstanding which buyers accepted in the past in lieu of delivery.

    Typically only 1 to 2% of open interest takes delivery of gold but at some point that’s going to blow up. October 2013 comex gold settlement is in 3 days. Open interest as of this am is about 57 tons. If the buyers of this gold decide to stand and take delivery, the bullion bankers are likely to default. Usually, the open interest in the current month is rolled over or closed out.

    If I had a billion dollars I would take delivery of October contracts and at the same time take on a massive long position in December contracts.

    This is not rocket science. Simple supply and demand. You need a billion dollars of capital to make it happen. Worldwide there are many potential players. I don’t think they care about the financial consequences faced by the bullion bankers.

  2. what the cartel is doing is blatantly criminal.

    i’m just telling myself day after day that i’ll stay alive to see the day of reckoning, no matter how long it takes.

  3. quite many chinese escaped communist china and emigrated to USA. well, they lose again! china has prospered and USA is heading towards ruins.

    life is too short for this kind of struggle.

    man, i wish i never understood this shit and live a happy life of a frog!

  4. “i’m just telling myself day after day that i’ll stay alive to see the day of reckoning, no matter how long it takes.”

    It would give me great pleasure to see the bullion bankers go bust but I think we have to be careful about what we wish – creating another “lehman” – potentially bringing down the global economy.

    The behavior of the Fed has been utterly reckless to date. They should have never monetized their gold via the bullion bankers. The market to hedge is insignificant vs. the amount of gold leased. Now what we need to hope for is that the Fed realizes their mistakes and puts forth a plan to minimize additional damage. But I don’t know how they recover the many thousand tons of leased gold – it’s going to take decades. The bullion bankers simply do not have the capital to return the gold.

    • Not Acceptable!

      An appropriate representation of the requested resource could not be found on this server. This error was generated by Mod_Security.

      • Roguefaction… I have no idea what to say. The Mod stands for Moderator, which means for some reason, the Moderator Spam software is not allowing a post to be made. I have never had any complaints besides numerous links throwing someone in the spam file.

        steve

        • Actually I’m treating the whole thing as a happy “accident,” as it serves to reinforce the basic point that I first came here to make. I only hope that you managed to read my response to your initial comment about this strange message, on the US Economy Stagnates thread, as I wouldn’t want to bore anyone by covering the same territory twice.

          While I don’t live in the Western Hemisphere, or outliers of the western gulag zone like the Antipodes, I make a point of using a proxy when online, in order to at least attempt to shield myself from the prying eyes of the Security State. And it’s the very denizens of that same Big Brother entity who, as your anecdotal evidence shows, who have the least concern about the almost total loss of anonymity which is being imposed step by step on web-based communication.

          What, one might ask, does any of that have to do with precious metals investment?

          Quite a lot, as it turns out! See, those of my brethren of the bar\n coin who have opted to stay put (despite all the indicators pointing to a complete erosion of economic and political liberties being the planned agenda for the west)are for the most part fully up to date on the progress of the Security State towards its’ goal, yet evince a complacency bordering upon hypnotic trance when asked to consider how it relates to their own lives and well-being.

          For Americans, the issue is all too clear- as law after law is enacted to secure the obedience and the assets of the citizen inmates via a far flung tax regime that treats anyone and everyone as cheats until proven otherwise, the organs of the Security State are assembling total awareness of each persons’ assets, interests, and potential to challenge the totalitarian regime in the making.

          But the actions of the G20 states to coordinate tax compliance strategies make it clear that everyone no matter where they live in the socalled ‘developed world’ is going to be expected to give up all privacy and submit to a total transparency, on the net and in their daily lives. Those who suppose that holding assets outside of the banking cartel will shield them from abuse are simply building castles in the sand, oblivious to the roiling tide.

          Indeed, the notion beloved to so many holders of gold/silver, that their work is done once having accumulated some hidden store of wealth, is a pipe dream encouraged by tptb, so as to better inveigle the victims of this fantasy into becoming defacto collectors of the very assets which these proven criminals plan to sequester in the usual fashion, after their nefarious plans come to fruition.

          Traveling around the net with an interest in precious metals sites without any appropriate masking by a secure proxy is now akin to taking a trip to Bangkok for a week of unprotected sexual encounters. Not only do your visitors appear to (almost)uniformly indulge in such a breach, but your site, though through no intent of your own, actually forbids commentary from those who do not.

          For the sake of brevity, I’ll stop there, but the subject is far overdue for exposure, and very very few sites of the pm kind appear open to its’ presentation. Your willingness to open up discussions of seminal importance to a pm community being held hostage by factions operating in accordance with the mandate of the criminal cartel is what will give you the edge in becoming the place for wise gold\silver bugs to nest.

          If you’ve got the cojones, I’ll supply the script. But only if my proxy is no longer verboten… all the best!

          • roguefaction… I appreciate your reply and your explanation of the DADDY STATE. Maybe I am naive, but I look at life as a state of balance. Jim Sinclair has advised that smart investors should leave the U.S. and settle overseas somewhere. You believe there is no safe place as the G20 will get you anyhow.

            Furthermore, our gold and silver investments according to you will be taken away in some form or fashion by the very entities that have setup the whole BALL GAME. Well, I gather if that is the case, then we might as well slit our wrists now or find a strong tree limb and hang ourselves and be done with it.

            I have come to the conclusion that there will not be a GRAND AWAKENING from the masses. As it has taken place before, the few will continue to rule the many. Nothing has changed in the past 2,000+ years except for the technological level of our goodies.

            However, in that time, people have still been able to live a life, get fat and have families. Of course it may not have been in an ideal utopia, but mankind has somehow managed to make it through all the BS.

            I am actually more concerned by the Global Climate than I am of TPTW – The Powers That Were. While I realize many don’t adhere to Climate Change… in all honesty… I could give a RAT AZZ.

            Unfortunately, the human brain has been lobotomized much the same way that the Ritalin Drug has actually lobotomized children’s brains. The seeds of our destruction were sown decades ago. Now, all we can do is sit back and watch the toxic harvest.

            Sometimes I wonder if I should continue what I am doing here. Actually, I rather be outside working in the garden or tending to the land rather than stuck in front of this unhealthy computer writing material that in the end won’t really matter.

            So, I applaud your NSA insight, but to be honest, the coming mass extinction event due to climate change now forecasted to occur by 2040, makes all this other CLOAK & DAGGER rhetoric a lot less important.

            Currently science has now reported 23 negative environmental feedback loops that are now beyond the point of no return… and these are just the ones that they know about.

            That being said, I am going to finish eating my oatmeal here and get back to writing really important stuff on the decline of Gold & Silver Ore Grades.

            LOL….Steve

  5. I wonder whether this gold price manipulation has anything to do with the coming debt ceiling. Every time a new debt ceiling was raised, the gold price had moved up significantly. It may be the US government knows that they have to (and they will) raise it, so they do an preemptive strike on gold. So it won’t look like a big surge in gold price after the ceiling is passed.

  6. “For the sake of brevity, I’ll stop there” – paragraph 9, roguefaction

    Thank you.

    • Not Acceptable! An appropriate representation of the requested resource could not be found on this server. This error was generated by Mod_Security.;;; oops;;; looks like I gotta get naked agin in order to participate….

      Norm

      thanks for reminding me. I actually was responding to a comment of yours yesterday when I got blocked out for the second time when using a proxy.

      I see that my intuition in doing so wasn’t far off.

      Best of luck to you pal.

      Hopefully Steve is on top of this, so as my pal Norm n I can get to grips.

  7. @ Steve, I’m not sure what it is with “our camp” that cannot see the environment is becoming a complete cesspool. Yes, that includes the climate. The pH of the freaking ocean is changing for god’s sake. Not good.

    Nobody seems to be able to talk about this without getting tangled up in politics is part of the problem. Then you have environmental “leaders” who do not live what they preach. Google image Al Gore’s massive mansion for example.

    It’s also worth pointing out to members of the blue team that if they don’t like a MASSIVE carbon footprint, then they should do everything they can to end the fed, since all this carbon couldn’t be burned without monopoly money coming so fast.

    It’s also worth pointing out to members of the red team, alternative media included, that they’ve been completely co-opted by big oil/coal propaganda.

    • webster… Sometimes I wonder if indeed we are in fact a genetic experiment from some far distant alien culture. I don’t even listen or read much of the WHITE NOISE coming from the majority of news feeds and websites. As I mentioned in my prior comment, I wonder if what I am doing here is worth my time anymore.

      That being said, I will probably keep doing what I am doing for the mean time while I transition to a more simple life.

      Even though I enjoy the research and writing about a subject very few are aware… its nice to be able to spend more time in the sunshine.

      steve

      • maybe write a book dealing with energy/precious metals. You wouldn’t have too much overlap. Chris Martenson and his three E’s (energy, environment, economy) is the closest I can think of right this minute.

  8. Steve,

    I applaud your move to spend more time in the sunshine.

    Before pulling my “get out of jail” card, and hightailing it out of Dodge, I had noticed that the number of truly ‘blue’ sunshiny days in Norte Merika had dwindled to such a frightening degree that it was getting difficult to even utilize my(very expensively) purchased solar power equipment to the modest degree I had hoped.

    Cloud cover of the chemtrail kind. If that’s not a topic for discussion on an EROI-oriented blog…. I don’t what is! We can look at cheating…thievery…and monopolization of what G[od]\Nature intended to be free to all from many different angles -including, of course, the precious metals one.

    Your work(and perspective)is incredibly important to the people of the west… whether it will ever be recognized as such, or not… if you have any doubts about that, I”d like to dispel them now; liike sunshine burning up a foggy mist.

    Of course it’s sweetly ironic that somebody from outside the west will need be witness to that truth… but that’s the way the course plays in Gulagistan. Truth is disparaged, and truthtellers persecuted to the maximum. I expect that you are smart enough to realize that high quality of your work is not only unlikely to bring you no “reward” but entirely likely to bring you only trial and sorrow for all your trouble.

    No matter. There are indeed higher courts, and higher powers, than our mere understanding can fathom. The concerted attack upon human kind in general, and the western peoples in particular, which we are witnessing via events like Fukushima, is indeed a matter of great gravity. But no, sitting on one’s wrists was in no way the take home message I sought to leave.

    There are plenty of space n places outside of the G20’s remit; I’ve [re]established my life in one of them, because I believe that the only way to celebrate and give thanks for the legacy of freedom which our forebears(and betters!)left us with is to spare no effort in doing what it takes to keep the flame of a great and free people alive. However much the odds are against us.

    Your work must continue to evolve…like the plant in your garden… under the glow of uncompromised reportage of the kind that the few of us who read here have come to appreciate. I trust that GATEKEEPER NORM will busily count the number of paragraphs I have used to convey this message of thanks, and come up with a new angle to demonstrate his adherence to the powerz message to it’s many minions on the net….

    CRUSH.ALL.DIVERSITY.OF.OPINION.NOW.

    looking forward to being able to comment from a safe proxy place soon!

  9. “looking forward to being able to comment from a safe proxy place soon!”

    This is a personal investor board. I think most participants are interested in the drivers of precious metals – primarily gold and silver. As an investor, I’m not interested in reading excerpts from Atlas Shrugged.

    You’re entitled to your opinions but I suggests your comments be data driven.

    For 3 decades now, the Federal Reserve has been monetizing their gold to create demand for US Treasuries. Nothing wrong with this except the bullion bankers have been dumping US Treasury gold on the market unhedged. Sell several hundred tons of gold per year over 3 decades and the cumulative total approximates the alleged amount of gold vaulted at the NY Fed (including gold held for other countries – i.e. Germany – 1600 tons). The bullion guys are on the hook for the leased gold. 1 ton of gold at $1300 has a market value of about $42 million, 10 tons $420 million, 100 tons $4.2 billion, 1000 tons $42 billion, 10000 tons $420 billion.

    Think it’s safe to say the bullion guys have very sizable cumulative losses – my guess is 25% of current market price. That puts a huge hole in their balance sheet – their capital levels are therefore, grossly inadequate. But this is from a theoretical viewpoint.

    The problem in reality is much worse because the bullion guys simply are not able to buy many thousand of tons of gold to return to the Fed without the market price of gold going to the moon.

    So the Fed and the bullion guys, I believe, are desperately attempting to drive gold below a thousand dollars per oz. so they can start to replenish the NY Fed vault. Not going to work because the Chinese, Indians, Thais etc. recognize that gold is money – everything else is credit.

    Readers here, I believe, are searching for various scenarios regarding the “end game”.

    • Norm,

      I applaud your willingness to stand in for Steve, while he’s getting some much needed downtime, and step forward in defining both what readers come here for, and what the focus of his site needs be. That’s generous of you to a fault.

      We can all breathe easier now, knowing what is, and is not a desirable contribution to this site.

      Thanks again, for your willingness to play the role of a “Great Helmsman,” guiding us across a sea of confusing opinion. ” East is red, the sun rises, and just a Mao cartier watch replica, our man Norm will chime on any discussion with a cuckoo-like regularity!

      Ayn Rand? Objectivism? lol… Might I suggest you inhibit yourself from further public embarrassment Sir?

      • Reply…. I have a pretty good idea of the some of the crap coming from the offices of TPTW – The Powers That Were. I knew about Chem-Trails back in the early 2000’s. I have seen most of the excellent alternative data and videos on 9/11. I realize aluminum that is included in the chem-trail spray is impacting soils in many areas of the U.S. which changes the structure to more alkaline destroying the ability to grow many crops. I have a good grasp of the GMO Frankenstein crops and what now is pawned off as food for Americans.

        A great deal of this information is available at many websites such as Rense.com & etc.

        I have no problem with the discussion of these sort of topics in the comment section of the site. I will not silence anyone unless they are using immature methods in getting their point across.

        That being said, I believe TPTW are in fact amateurs compared to the forces of nature. This is why I tend to stay away from subjects that focus on them.

        Rogue, while I admire your move outside the G-20’s grasp, I plan on staying put and experiencing the theater from the front row seat. Life is more than a single life-span…. it continues. My wife and I plan on moving to one of the islands in Hawaii, not because we believe it is a safe haven per say, but because that is where family is.

        steve

  10. Taxation during a very inflation environment. Hmmmm, although the citizen will mostly not conceive of it, taxation during a monetary collapse is pure extortion by the state….Something everyone should keep in mind,,,,,,If inflation is the hidden tax, and it is, for the state to tax at the same rate while the currency declines is pure robbery. Get ready for migrations.
    FWIW,
    G.

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