As the paper price of gold falls even lower due to market manipulation, gold continues to bleed from the COMEX Warehouse stocks.  Today, another 156,310 ounces were removed from the Customer inventories.  What is even more interesting is how much gold has been removed from the COMEX since the beginning of the year.

If we look at the COMEX Inventory table below, we can see that 64,177 oz were removed from HSBC and 92,133 oz were removed from Scotia Mocatta.  Again, both of these were withdrawn from the Eligible or Customer Inventories.


While HSBC and Scotia Mocatta can afford these sort of gold withdrawals from their customer inventories, as you can see, JP Morgan cannot with only 141,197 oz remaining.  Basically, the gold that was removed from these two bank vaults, would have totally wiped out JP Morgan’s remaining customer inventory.

Furthermore, as we can see from the chart below, Gold Continues to Bleed from the Comex:

Comex Gold Inventories 62513

Since the beginning of the year, total COMEX gold inventories have fallen 32%, from 11 million oz in January to 7.5 million oz today.  This chart is from, and has not been updated yet as it still shows the previous days total in the top right part of the chart at 7.68 million.

So, as the bizarre paper trading in the precious metal markets keeps pushing the price of gold lower, investors continue to withdraw more gold out of the COMEX warehouses.

It will be interesting to see what happens to JP Morgans pathetically small gold inventories in the next several weeks and months.

Lastly, it is amazing to see that copper has only declined 18% since the beginning of the year, while Gold is now down 26% and Silver down a whopping 41%.  I plan on putting out posts this week showing how the extremely low paper price of gold and silver have impacted the miners.

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  1. Perceptible Failure | June 25, 2013 at 4:51 pm |

    This is the classic play at the casino. They’re down to their last wad and they’re pushing it all in on the 100 to 1 Roulette Wheel, hoping to catch some lightening in a bottle, but just like almost every time before they’ll miss their number.

    I would highly suggest pulling out because the casino is closing down with everybody’s money still left sitting on the tables.

  2. silver inventory at shanghai futures exchange is down another 18 tons today. total remaining stands at 629 tons! the bleeding is accelerating.

    today’s hit was clearly orchestrated. copper was deliberately pumped higher by 1% right before shanghai open and slammed down right at shanghai open and took silver/gold down thru support levels decisively! while copper was able to hold 3 dollars per pound for the past 2 years, gold/silver was taken down to the dungeon mercilessly!

    volume was massive. gold/silver is probing for new lows and who knows where the bottom is.

    gold may indeed repeat 1975-1976, down 45-50% before it bottoms.

    next stop 1200, if 1200 goes, 1050 is the final bottom.
    silver could see 15-16.

    i seriously wish i never took part in the silver trade. it’s too painful.
    i want to be a sheeple. ignorance is bliss. i hate myself!

    • Judejin… yeah, I noticed that copper is down 18% since the beginning of the year (actually up today), while Gold is down 26% and Silver 41%.

      I also noticed the big drop in Shanghai Silver Stocks. I plan on writing about this in a new post for everyone to see. I will make sure I mention you as the source.

      By the way Judejin, I wonder what other warehouses are holding Chinese silver stocks besides the Shanghai.


      • So the COMEX warehouse stocks remain relatively stable. One wonders about the data.
        Perhaps they like silver better in China.

        My problem with a lot of the discussion is lack of knowledge about what goes on,,,or rather maybe what goes back and forth between customer and management when a COMEX delivery is involved…NO buyers EVER step forward and complain about harassment, manipulation to take stocks instead of metal, waiting periods, it all seems anecdotal. If they are rigging the data, it should show up in the numbers and SOMEBODY at least should say, “Hey, my delivery isn’t showing up in the data!”

        Is there some sort of non-disclosure agreement involved? Maybe they are intimidated?

        This is annoying. Really.

      • Chinese or japs must’ve been margin long and they are puking up blood due to tightening. Shanghai open shouldn’t have this much impact on Au prices

        The only question is whether this is an artifact of Abenomics or the Fed or both, and intentional. If the PBOC ran up the POG to discredit the Fed, well, Ben and Abe just cut their heads off.

        SHIBOR at 25% says all isn’t well there and they can’t print it away.

      • shanghai gold exchange also has around 70 tons of silver. they don’t disclose daily numbers.
        but since it is tiny. you can ignore it.
        there are two other major precious metal exchanges in china:
        1. tianjin precious metal exchange
        2. pan asia precious metal exchange

        they don’t disclose inventory numbers.

  3. I find it funny that , People are still relying on technical analysis? How can it work, when Paper Gold Just drops out of the clear blue sky by the Ton? I personally think the only sane thing to do is buy what you can and wait things out. The FED will not quit printing. Gold & Silver have to go up it’s below production value.

    • Paul… I couldn’t agree more with you. Now, I respect Dan Norcini a great deal, but at some point in time he has to realize he is providing advice in a totally rigged market.

      One day those paper traders are going to be standing there with a great deal of paper gold contracts,worth absolutely nothing when gold will not be available for any FIAT DOLLAR PRICE whatsoever.


      • someone commented at tfmetal :”paper liquidation has to be finished before the physical price can be released.”

        in some aspect, this is absolutely necessary to get rid of the freeriders.

        but i’m afraid that there are just not enough gold to go around, paper gold/silver will always be around. unless fractional banking is outlawed. but i don’t think it will happen in our lifetime because the ruling elites will always want to cheat and the sheeple is too stupid to realize that they have been cheated upon.

        great social corruption/downfall cannot be cured in one generation.
        all the universities in USA are teaching the wrong economcs and philosphy. there’s no philosophical foundation for a total about-face reform.

        we may admire ron paul. but when ron paul dies before anything can be done, he will quickly be forgotten by history while all those presidents who cheated on america still enjoy great honors.

    • Just looking at the possibility.

      How do you know they won’t quit printing? They could. Just thing of the amount of taxes the treasury receives. It’s quite a bit.

      If you managed and income that big you could probably figure out how not to have a deficit.

  4. I’ve watched premiums on silver increase from ~12.5% to ~35% (almost a 300% increase) in the last month. And that’s the premium charged by a low cost producer, not some small coin shop that is trying to make up the difference on inventory they bought 6 months ago… it’s almost as if demand for their product hasn’t abated!

    • GoinFawr… the world is not prepared at all for what is coming in the next few years. MSM is slapping itself on the back as it shouts from the Rooftop that it called the end of the GOLD BULL MARKET. Well, they suffer from 40 years of FIAT MONETARY AMNESIA.

      There is a lot more to this story that I will be writing about in the future. The precious metal investors don’t realize they have the biggest SECRET WEAPON ON THEIR SIDE…. ENERGY…. or the lack of thereof.

      The $trillions of dollars of supposed wealth wrapped up into worthless paper instruments such as pension plans, 401k’s, IRA’s, Annuities, Treasuries & Bonds, most stocks, and etc and etc are not real assets or should I say… REAL STORES OF WEALTH, rather they are what I call, ENERGY DEBTS or IOU’S. The reason why they will become increasingly worthless is due to the future rise in energy cost as well as upcoming shortages.

      Yes, I know there are a great deal of NITWITS talking about how much oil the United States and other countries have… but to be completely honest and blunt, they are completely FOS.

      FOS – Full of Sh*t.

      I have to get a real laugh at the Porter Stansberry’s of the world who think SHALE OIL is going to be the next energy savior. How on earth are Shale oil wells that suffer from 40-50% annual decline rates, going to offset the 5% annual decline rate by the world’s existing oil fields? At 75 mbd of global oil production, we are talking 4-5 mbd has to be replaced each year just to keep global oil production flat.

      If investors thought BERNIE MADOFF was a Ponzi Scheme… just wait until the collapse of the GREAT SHALE PONZI SCHEME.

      Eat YA HEART out Porter…


      • Shale is a joke but there’s money to be made on it.

        The notion that the USA will become world #1 producer on extrapolated production rises from Bakken etc. is just utterly laughable.

        The real problem is that nobody is correctly reporting true production; we’ve no idea right now if we’re off the Peak plateau or not. They throw NG liquids in and refinery gains as substitutes for real oil; this may satisfy the paper crowd but you can’t burn refinery gains as real barrels.

        Obama declares war on coal; wtf EXACTLY is going to keep the lights on? NG? Am I the only one who has seen production curves from NG wells? You think shale looks bad, sheeit. When we work through this NG glut, and systematically replace coal and gasoline (to an extent) with NG, eschewing all other forms of production as “unpalatable,” and we hit the NG Peak, all hell will just break loose overnight.

        • trav777… couldn’t agree more. There’s a great deal more behind the scenes on shale energy costs that meets the eye. For instance, the trucks that drill, frack and transport the shale energy are tearing up the local roads. As you know it takes a fleet of trucks to just take care of one well.

          Even though counties and states are receiving some revenue from the shale companies, it turns out to be a fraction of the amount needed to repair and maintain the roads. Of course this EXTERNAL COST is not factored into overall real price of energy.

          These shale energy companies would rather OFFLOAD these costs to the local taxpayers than pay their fair share. On-the-other-hand, they really can’t fork out any more money to fix roads due to the fact that they have to continually acquire outside funds to maintain the illusion of growth… as their operating cash flow cannot.

          The world will get a huge 2 X4 across the forehead when it realizes “WALT DISNEY WORLD” is just a theme park and not reality.

          • the shale gas thing is probably planned by the top as a scheme to prolong the life of USD ponzi scheme. without shale gas, oil price can’t be capped, which will make it more difficult to cap inflation, thus causing a lot of grave consequences.

  5. Just read the Heller article wherein he talks about large quantities of gold being dumped on the markets to take down the price…These guys never mention that it is all paper…There should be a campaign to ALWAYS INFORM THE PUBLIC in these types of articles that real gold is not involved (in any size) otherwise the public never realizes the fraud – and indeed will DISHOARD real gold that they have…For all we know this may be partly the intent..As a community we are often our own worst enemies.

    Galearis the ghoul

  6. shenanigans | June 27, 2013 at 1:37 pm |

    The drawdown in gold inventory is roughly equal to the total decline in the comex price of gold.

    The same does not appear to be true for silver.

    I agree with the theory that the paper price has to be as low as possible for the inevitable force majeure.

  7. Look if these stocks are where house stocks and correct, there could be an other reason to go down. Where houses often keep stocks in some proportion to the rate of draw and inverse to the cost of holding stock. *

    There fore if the rate of draw from the ware house goes down it is prudent to reduce the stock in the ware house. One wants to reduce the amount of capital tied up in the ware house.*

    Notice in the data given there is no supply flow to the ware houses. The received column is zero.

    Here is an other problem the table looks like it is for one day only.


  8. OK, if inventory is plunging, Where did it go? And where does gold going into inventory come from? It didn’t just vanish.

  9. epic bottom may be in!
    gold was sold hard before shanghai open but couldn’t shake silver any lower than 18.18!

    18.18 is a very lucky number in chinese, means to prosper!

    gold rebounded back above 1200, silver back to 18.80!

    this is history. 26 months long silver correction is over!

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