TRICK OR TREAT: The Drain Of JP Morgan Gold Inventories Continues

Just in time for the Halloween Spooks to come out and play by slashing the prices of the precious metals, JP Morgan (vampire squid), experienced another ghastly withdrawal from its gold inventories today.  Something quite eerie seems to be taking place as the majority of Comex gold withdrawals are coming out of the dark dungeons at JP Morgan Chase.

In just one week, JP Morgan lost 41% of its total gold inventories.  On October 22nd, JP Morgan held 983,694 oz of gold… and as of the last update on Thursday, October 30th, there were only 581.819 oz remaining.   This was a drain of 401,875 oz in a tad bit more than a week.

JP Morgan Total Gold Inventories

That’s a lot of gold….

A standard good delivery gold bar at the Comex weighs approximately 100 oz.  Thus, JP Morgan saw more than 4,000 of these nice gold bars leave its vault in short order. 

Comex Gold Bar 100 oz

(courtesy of goldbarsworldwide.com)

Not only are a great deal of these gold bars leaving JP Morgan’s vault, we are also witnessing a large withdrawal from the total gold warehouse stocks at the Comex.  In just one month, nearly a million ounces of gold were removed from Comex inventories.

In the next chart, we can see that at the end of September, there were 9,286,525 oz of gold at the Comex.  As of Thursday, October 30th, total gold warehouse stocks were 8,350,953 oz.  This was a decline of 935,572 oz, or 10% in one month:

COMEX Gold Inventories OCT 30

And… if we do the math, that’s a staggering 9,355 bars of gold withdrawn from the Comex vaults and shipped to some individual, group or entity.  I would imagine these folks were more than happy to exchange Fiat Dollars for one of the oldest forms of real money in the world.

Now, if we take it a step further… there was a lot more gold removed from the Comex if we go back to its peak of nearly 10 million oz at the end of August this year.  Since then, more than 1.5 million oz of gold have been withdrawn from Comex.

If this downward trend of gold warehouse stocks continues, there is still a lot of the yellow metal at the Comex to satisfy deliveries for a while.  However, JP Morgan only holds 581,819 oz of gold in its inventory.  So, if the bank suffers another one of these record day withdrawals (321,500 oz shown below)… they might get a meeting with the GRIM REAPER sooner than later.

COMEX GOLD 102314

Happy Halloween…. and make sure if you are going to buy gold, do yourself a TREAT and purchase the real thing and not fall for a TRICK by owning a paper claim-check.

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50 Comments on "TRICK OR TREAT: The Drain Of JP Morgan Gold Inventories Continues"

  1. The show must go on..

  2. Very interesting… gosh darnit though, when is the supply crunch going to come, something has to give here but it goes on and on…

  3. In the meantime, gold have been destroyed this morning below 1180 so where is the bottom : 1150, 1050, 100, 900, 850, 600 ???

    • Hunt for real hard physical assets is ON. So paper is being SOLD.

    • Predicting the “bottom” in dollar terms is meaningless. They can push the paper price to $0 if they want. Set yourself price targets to accumulate more ounces as long as it’s still possible. The panic to buy PMs will come soon enough. I for one am not looking forward to that day because our financial world will not be the same…..

      • True AK. Imho, the draining of the vaults has started already. Paper gold is just a promise, as we move along more people will have doubts about those promises being fulfilled. The paperpushers are frontrunning by stacking the phyz, and dumping the paper. At $600,- gold there won’t be any delivery!

      • True enough.

        Btw, if we’re talking about the vault below Chase Plaza, didn’t Chinese buy that?

    • Brian Scrocca | November 1, 2014 at 2:02 pm |

      Try and but it for those prices. Coin shops have none to sell.

  4. I am very distressed at my situation of having purchased a good amount of silver at much higher prices. Not blaming anyone but my lack of patience.

    • I hear you. I stopped worrying about price a long time ago and at this time am focused solely on adding as many ounces as I can every month. I am certainly getting a lot more for my paper trash today than I was a couple years ago.

    • Be happy you have ANY phyz at all! I have purchased at 49, 40, 35, 30, 28, and 23. If they NEVER QE’d and lingered the markets to save THEIR *ss…. mine would have been lost as well. I had NO PHYZ AT ALL! As a working man, my purchased limited, therefor purchase when you can and be happy you’ve managed to “Stack” anything. REMEMBER: There’s enough silver in existence to provide EVERYONE in this world with 1.4 oz. – Do you have your share?

    • It doesn’t really matter. It’s not an investment as much as an insurance policy. Just try to buy a little bit every time they smack down the price.

  5. silverfreaky | October 31, 2014 at 9:38 am |

    I think this Investment will never be touced again by anybody.It’s a total disaster.

    • silverfreaky,

      So, I gather you say the CHINESE are INEPT and STUPID aye? Or how about those SILLY INDIANS… smuggling more gold than ever.

      You are a funny little person…LOL.

      steve

    • Freaky, it’s not an investment, it’s an insurance. Now go troll somewhere else, we all know your problems by now.

    • I’ll take any of that bad nasty metal off your hands. That way you won’t have to pollute your portfolio.

    • Either you never held any REAL metal in your hands, or you’ve played the paper investment and have watched the $ value of your portfolio tank on a daily basis. Owning Gold & Silver is like owning land you hunt on. It’s REAL. It provides protection and peaceful sleep at night. It doesn’t matter how the economy suffers as long as you have protection. Because lets face it, you do not affect the markets, BUT you ARE affected by it! – Just a silly fly, waiting to be swatted.

    • Brian Scrocca | November 1, 2014 at 2:05 pm |

      That’s what they said in the 60’s and 70’s. We keep forgetting why Gold and Silver prices rise in the first place. It’s a hedge against Govts inability to lead a manage going forward. Maybe we ought to be looking at that scenario playing out here in the near future.

    • If you’re buying it as in “investment” you’re not thinking about it correctly.

  6. Outlookingin | October 31, 2014 at 9:54 am |

    Accumulate. These “cheaper” prices for gold and silver are a gift.

    Don’t read too much into the Comex PM deliveries and withdrawals. As Ted Butler, Harvey Organ, Dave Kranzler, and T. Ferguson have noted, these transactions amount to absolutely precise and perfect weights, down to three decimal places!

    When dealing with tonnes of gold, this is a virtual impossibility. Any weight of gold bullion bar has it’s weight stamped on it, to three decimal places. A bar that weighs exactly .000 units is a VERY, VERY RARE thing indeed! Over this past year there have been many in’s & out’s of perfect weights to JPM.

    These are nothing more than cartel paper games.

  7. With the latest weakness in the Yen due to more QE, and the truly global currency devaluation as a result of QE everywhere, one would bet on history and invest in precious metals. However, for the first time in history it appears that the only thing devaluing faster than global currencies is silver and gold. Crazy.

    • The only reason gold and silver (along with other PM’s) are being smashed lower in price, is due to the actions of the cartel in front of the upcoming mid-terms.

      Of note, is the “Bring Back Our Gold” movement in Switzerland has been dealt a ‘below the belt’ blow today. Their PayPal account (containing donations) has been frozen by PayPal without any notification or explanation!

      Looks like the powers-that-be are pulling out ALL stops against gold and silver. Panic mode.

      • “Of note, is the “Bring Back Our Gold” movement in Switzerland has been dealt a ‘below the belt’ blow today. Their PayPal account (containing donations) has been frozen by PayPal without any notification or explanation! ”

        WOW WOW WOW. The central banks WILL STOP AT NOTHING until they OWN us ALL! Again, it is not who votes, it will be most certainly in this case who counts the votes.

        I think this all goes to show how tight the physical gold market really is. I think Steve is right! When I go to get gold there will be NONE NONE NONE!

        So I guess I better do something……like soon.

      • Or the people controlling the paypal account stole the money and claim it was frozen…

      • Hmmmm…..good point! Just had a discussion on this with my office mate and he noted that we had talked about this same sort of action 2 years ago before the elections. I had forgotten all about it.

        Now, the manipulation of the prices of precious metals, the drop in oil prices and gasoline and the stock market jump makes a lot more sense. Of course, they are manipulating the market and energy prices to make it appear to be signs of a recovery for the gullible voting public.

        It will be interesting to see how long prices stay down after the election. My guess would be- not long. Can it really be this simple? Are we all just over thinking the blatant manipulation being pulled off right in front of our eyes? I guess time, as always, will tell.

        It is also interesting to note that gold is being sucked up like crazy too. Has to be from interests with a lot of excess cash which again points to the manipulating “owners” as George Carlin used to put it. At any rate, someone with a lot of excess cash is storing up value from this fire sale and it sure ain’t the average citizen.

    • Yes, I agree. However, it can’t/won’t go on much longer.

  8. when I see the current price of silver, I immediately think of an “average” day.

  9. So what happens when the Comex or its participants can’t deliver physical gold? Gold does not back the U.S. Dollar. IMHO the reserve currency is based on the ability to globally project force. The world seems less willing to accept those terms in the longer run. Makes me wonder why we are allowing the country’s wealth to be plundered by foreign powers. Is it a bribe? You can have our gold and silver if you continue to accept our script for TVs and manufactured goods? I like PMs. They withstand the test of time and they are fraud free assuming you purchased real physical. Not much else can hold value across the decades. The price of gold and silver is low because the U.S. is willing to supply the market at these prices. What a shame we find our nation in this situation.

  10. I don’t think it is a coincidence….that we’re seeing the smackdown as inventories are tight and the SGI is upon the central banks. They are spooked.

    This is another attempt to get the weak hands to sell their GLD, so JP Morgan can buy it up, and withdrawal the physical gold.

    The games being played and watching it in real time makes me not trust a single thing in this world.

  11. Herman the German | October 31, 2014 at 11:01 am |

    What really badly concerns me that currently things run totaly bad for the Russians.
    Ruble tumbles very badly even with huge Intervention by russian central bank.
    Their Inflation is over 8% now, their currency reserve is diminished fast and oil is in multiple year lows, which also hurt Thema badly.
    The black swan could be an all out war with Ukraine trouble to pick up again.

    I live in Germany and I am not feeling so good about the developments.

    The Russian bear is hardly pushed in a corner ready to counter attack.

    By the way Xetra was today 90 minutes down due to technical issues.
    Perhaps that was a Russian hacker attack…next Wall Street?

    • Herman, I think you are underestimating Putin. He is busy positioning Russia to benefit from a massive economic alliance that involves China, India, Brazil, most of the rest of Asia and Central and South America. They are full steam ahead in inking new trade agreements with the rest of the world who is tired of the US Dollar hegemony. I wouldn’t be the least bit surprised if Germany pivots East to save their own economy and once Germany goes, so will the rest of Europe. I am not worried about Putin who is a true leader, I am much more worried about the psychopath in Washington D.C. who cowers to the Elite that control him.
      Russia (and Germany) will be fine, it is the US that I am worried about and what the psychopathic criminals in Washington will do when it all falls apart for them.

      • Herman the German | October 31, 2014 at 3:24 pm |

        AK,
        I totally agree with you in regards Putins preparations with China and BRIC, but this requires a lot of time and it feels somehow that the political pressure in Russian rises very fast with Putins strategy.
        This week Russia send 24 warplanes all over Europe close to air borders and demonstrated strength also having fired intercontinental rockets from nuclear submarines. It is scary that the West does not listen and not even shows some interest for compromise to work out a deal to deescacalate this whole mess.
        We all live on this little planet and sometimes I think out political leaders forget about this!

        Germany’s role must be to mediate the interest between the East and West…which is not at all happening right now!

        • Germany sits in the middle of a hornet’s nest. EU and EMU are about to blow up. NATO is about to blow up. The UN is hijacked and ineffective. The international banks don’t care how much damage they do with their endless debt. The corruption is so bad and there is so much confusion that Merkel probably has trouble remembering which way is up. If she wants to pre-empt a lot of instability within Germany’s borders she needs to act fast to pre-position Germany for the changes in progress. Germany needs to separate from Europe to save itself, and it needs to happen rapidly, before other groups start complicating the situation further with violence (which is all they know these days). It is a battle between and within mafias, and you have to decide which mob boss you respect and which ones need to be kicked out. Actually, that advice should be applied to a lot of countries right now. DO IT FAST AND MINIMIZE THE IMPACT. THE LONGER THEY STALL, THE HARDER IT IS GOING TO BE AND THE MORE SUFFERING WILL FOLLOW, WITH GAS CUTTOFFS, FAMINE, HARDSHIP ETC. Rgds

  12. Herman,

    Frankly, it has amazed me that Russia and Putin seem liked they are getting badly backed into a corner—WITHOUT much of a push back. Sure, in a few years they say they can be 100% off the dollar……but until then, WHERE WILL RUSSIA BE?

    I am really really surprised at Russia’s patience. The bear has been getting poked and poked and poked…..and is NOW hurting the Bear. But almost silence falls upon the world from Russia. It is too weird to say the least.

    Something to worry about? Sure. Everything is something to worry about. The world is totally spooky while we are spoonfed record high stock prices, record low hard asset prices, and the narrative of the greatest recovery on record that almost NO ONE seems to really believe in.

    The world is completely insane.

    • 99% of the western people who have money believe MSM, this is much lower with “poors” who had been the main victim up to now.

      Somesays that they are preparing something big for the future but until we really see it it is only conjecture at this point.

      I would hate live some more décades Under the wall street domination and the thruth is that is up to the BRICS. Either they will fight and maybe win or we are doomed.

      The problem as hugo salinas said that even brixs do not know nothing except paper money and rotschild style central banks…

      • “The financiers are the nation’s worst enemies. They have done more than any to undermine the foundations of freedom, and it is unquestionable that most of the peoples of Europe would by this time be in full possession of liberty, if such men as Rothschild, did not lend the autocrats the support of their capital.”

        – Karl Ludwig Borne
        1786 – 1837

    • Herman the German | October 31, 2014 at 4:03 pm |

      All true Frank!

      What sucks is that 99% of all people around me don’t bother or don’t want to hear what really is going in (i.e. shotdown of MH17, which really kills my hope).

      • Funny how the Blame The Russians narrative evaporated! Would love to know who is blackmailing who with the Truth.

  13. Personally, I wish I never bought a single ounce of silver. I made my first large purchase in 2003 at about $5. I’ve bought more since. Over 11 yrs of owning silver the only time it was enjoyable was the 8 months from Sept. 2010 to April 2011. The rest of the time has pretty much sucked. If this ever reaches $50 again, I’m going to sell everything and curse the damn metal to hell.

    • Not sure you will sell at 50 if it ever happens again…

    • @Mark,

      That’s the thing. All these guys like Maloney, et al. literally NEED silver to go up to 60 or 70 dollars an ounce just to make a good CAGR. Think about it. If silver hits 60 an ounce in 2020 the CAGR would be a very decent 13.4% annualized return ONLY if one had a cost basis of around 17 an ounce (it’s average rough price in 2010).

      But we know most people were duped into buying silver between 17 and 50 an ounce over the last few years. With a cost basis more likely well into the 30s. Assume a 30 cost basis, then the annual return drops down to a whoppe de do of 8%.

      This is all and only IF silver EVER hits those prices. In the meantime, one gets no income and no dividend if it never gets there or takes until 2030 to hit 60 an ounce.

      Just sayin’, you don’t hear mea culpa’s in the PM community–because it’s ALWAYS a buying opportunity.

      Too bad they don’t understand math or value and they have duped thousands of ignorant soles into believing gold and silver are the only investments to own. Bullocks to that. 9 billion people have to put on their pants one leg at a time everyday…..there are certainly other opportunities.

  14. This entire free market system is not free at all. It’s being manipulated from the stock market to gold market. The government is trying to drive down the price of gold to prop up the stock market and all their crony corporations donating to them. Stocks are being bought and sold in backdoor deals and cocktail parties in NY. It’s all a fraud. How much of a free market was it when the government pumped in nearly a trillion dollars to prop up “too big to jail” bank fraudsters. A true free market lets things happen all on its own. China and India are buying gold by the truckload and yet the price still keeps dropping like a rock everyday. This is a corrupt, criminal government manipulating everything.

    • One other thing…..next they want to do a trillion dollar bailout (I know it won’t happen again) but if they propose a bailout, let’s have a citizen’s bailout. Give a trillion dollars to pay off half the country’s mortgages. Instead, they gave a trillion to banks and still made everyone still owe banks on their loans. What a ripoff deal. If people had their mortgage paid off, they would have money for other items to buy and stimulate the economy. Obama said “we all hated the banker bailout” but that’s why he and all the other goons voted for it. United Corporations of Amerika.

  15. Capitulation at 910 on paper ,maybe.
    And physical shortly afterwards goes 2000 then 3000plus bid
    Just a guess
    777

  16. It’s interesting also that the JPM depletion was all from “Eligible” inventory. So one has to wonder who would deposit all that Gold with JPM only to withdraw it again?

    Could the total decline in JPM inventory and general lack of activity suggest that it is going to get out of PM trading? Is that because the BAFIN investigation has uncovered the paper manipulation of Gold and implicated JPM? We live in hope…

    • Just to add to the above, remember also that JPM sold its main vault (Connected underground to The Fed vaults) to the Chinese at price way below the market (So there was some hidden content to that deal also).

  17. There’s big doins shaping up in the PM markets, all markets really. I believe China and Russia have a not so nice surprise coming to us.

  18. Are we talking about the vault below Chase Plaza? If so, didn’t the Chinese buy that?

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