JP MORGAN GOBBLES UP A MINIMUM OF OVER 31 TONS (POSSIBLY UP TO 186 TONS!) OF PHYSICAL GOLD!

Share This Article With Your Friends!
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  

Back in August 2015, I noted that Goldman Sachs and HSBC had taken delivery of a huge tonnage of physical gold, probably purchased near the lows. Physical bars of gold are, by definition, a very long term investment in the yellow metal. At the time, the two banks were telling clients and others not to buy gold, even as they were loading up on it, themselves.

Let’s fast forward…

Starting in December 2015, JP Morgan began buying tremendous quantities of physical gold, as opposed to paper/electronic gold futures, forwards, ETF certificates etc. From December 1, 2015 to December 29, 2016, the big bank purchased and took physical delivery of over 31 metric tonnes worth of bars of the yellow metal for its house account at COMEX alone.

In other words, it now has a physical gold pile which, at minimum, is worth over $1.1 billion at $1,140 per troy ounce, and it is an asset of the corporate bank. By May, 2016, unlike the actions of GS and HSBC in buying while advising clients to sell, analysts at JP Morgan were beginning to encourage customers to buy gold also.

Let me repeat that the enormous purchase of 31+ tonnes of traceable physical gold occurred at New York’s COMEX exchange. The so-called “OTC” gold market in London is five times larger than the gold market in New York City, and if they were buying at COMEX, they were probably buying in London also. The problem with London is that the “LBMA” is not a formal exchange with disclosure rules and regulatory oversight. It is simply an informal collection of banks who operate by agreeing to a common set of rules of engagement. Transactions are secret.

We will never know how much physical gold has been purchased in London by JP Morgan, HSBC, Goldman Sachs or anyone else. However, if JPM’s purchases happen to be synchronized to market size, with New York’s COMEX, they will have purchased another 155 metric tons, for a total of 186 tonnes of gold. Either way, JPM is now in the realm of a sovereign sized gold holding. Most countries hold less than 31 tonnes of gold. Only a handful own more than 186 tonnes.

Why would a commercial bank, like JPM, make such a huge investment in physical gold bars? Is it just opportunism? Is it because they know that gold prices are going to rise dramatically? Do they know this because, as many have alleged, the company houses the most important or some of the most important people who run the gold price manipulation scheme? That’s fun to say but it makes no sense as a explanation for the purchase of so much physical gold. JPM may or may not be a gold manipulator, but that fact is irrelevant with respect to this question.

Generally speaking, the idea behind gold price manipulation is to mint a quick paper profit. If you can convince a foolish and incompetent American President to subsidize your front-running operation, by claiming that it is a way of “stabilizing the value of the US dollar”… all the better. Getting a government subsidy increases profits and reduces risk. But, there is no good reason to choose physical gold as your avenue of manipulation and every reason not to. For one thing, it is a non-leveraged investment. For another, it is more difficult to trade than shares of GLD, other ETFs, gold futures contracts, and mining company shares. All of the latter are far more efficient investments so long as the question of being able to get the real thing doesn’t come up.

In fact, all the big banks, including JPM have bought significant stakes in various gold mining companies over the last 2 years. Why spend money to store and insure physical bars of gold when it is more efficient to mint your profits by simply buying more mining company shares? That’s why the purchase of so much physical gold is puzzling. It seems to me that something bigger must be going on behind the scenes.

JP Morgan is the US Treasury and Federal Reserve’s most important proxy in financial markets. For example, it manages the Fed’s entire mortgage bond portfolio. Physical gold is not normally something that is on the top of the trading floor’s list of preferred products. These purchases are now tying up a significant percentage of the bank’s capital. In order to put so many resources into physical gold bars, JPM’s top management would have had to approve the action. That means the purchases must be supported by some very good underlying reason.

Top JPM management knows a lot more about the inside story about what is going on, behind the scenes, than we know. Is something big about to happen that will dramatically raise the value of real physical gold bars, above more convenient forms of gold ownership? I can think of only two scenarios that would make a large pile of physical gold bars the best corporate investment for a big bank (as opposed to its customers).

One scenario is that JP Morgan knows we have reached the end game and are on the cusp of the long anticipated collapse of the synthetic gold market (ie: gold futures, forwards, “unallocated” storage, maybe GLD etc.). If the gold derivatives market collapses, people will accept only physical gold for a very long time afterward. That would make a physical gold hoard far more profitable than even shares of a mining company. Remember, it takes time to mine more gold. But, the holder of a huge pile of existing bars can sell them, right away, when the level of panic is extreme, at the very top of the market, when demand (and prices) are at their highest.

Another scenario involves being at the cusp of a massive change in the world’s monetary system. If JP Morgan’s top management knows that physical gold is going to be a key part of what replaces the fiat US dollar as the international standard of exchange, and if that change is not very far in the future, it would make perfect sense to buy physical gold. Again, the holder would be in an excellent position to sell the gold bars to third parties (mainly, I suppose, to other banks and even nations) at the very top of the market.

The scenarios I’ve listed, above, are the only ones that come into my mind at the moment. That is not to say that the list is complete. Are there any more possible scenarios that provide a logical answer as to why JP Morgan is investing so much of its capital in such a huge number of physical gold bars?

__________________________________________________________________

Buy Synod“It moves fast, kind of like Robert Ludlum’s “Jason Bourne” trilogy…”

–  Josh Pullman –

THIS IS THE NOVEL THE INTERNATIONAL BANKSTERS DON’T WANT YOU TO READ!

CLICK HERE TO BUY THE PAPERBACK

CLICK HERE TO BUY AMAZON’S KINDLE

ALSO AVAILABLE AT APPLE iBOOK, KOBO, BARNES & NOBLE AND OTHER FINE BOOK SELLERS

The Synod is a conspiracy of 8 large international banks who seek to control gold, stock, bond and commodity markets all over the world. Jack Severs runs for his life when he learns too much, as the most sophisticated surveillance system ever built is deployed to track him down. As the ever-tightening noose closes, he struggles to uncover evidence to save himself and his world from collapsing! An exciting, fictional, fun and educational thriller about the banking cartel. Learn about the methods used to manage the price of gold and every other market on the planet, and how this affects business, politics and daily life in both the fictional and real worlds.

A GREAT GIFT!


Share This Article With Your Friends!
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  

17 thoughts on “JP MORGAN GOBBLES UP A MINIMUM OF OVER 31 TONS (POSSIBLY UP TO 186 TONS!) OF PHYSICAL GOLD!”

  1. Considering the huge silver stock pile JPM owns, I can’t believe their gold ownership bodes well for small investors like me. I own silver too—ever since 1981. And it is the same price now as when I bought it.
    Could it be that JPM realizes that the paper game is in its death throes and so must own physical gold in order to continue to depress the gold market?

    1. When the crash comes and the banks fail, those ‘paper gilts’ will be in the bank and become bank property. This is why people are expecting Governments to bring in laws to enable them to ‘confiscate’ peoples physical gold & silver.
      But banks having physical will allow them to continue trading, as Gold becomes standard for all currencies.

  2. JP Morgan is a giant ship. Gold is an anchor. Nice to have a heavy anchor when the big storm approaches. It is not enough the be tied up at somebody else’s dock as that could give way. The Captain knows that the anchor is heavy and is a liability as the ship travels from port to port rarely using the anchor at all. But still it must be bought (sic).

  3. Please consider that JPM is effectively a branch of the U.S. government , so it’s actions may well be on behalf of the U.S Treasury. Seems like a piddly amount of gold in that case ? Well if you’ve squandered the 8,000 tons previously in Fort Knox, you’ve got to start somewhere.

  4. What with so many Major Nations of the World apparently choosing the same course of actions recently as you have described above in an effort to also survive the calamity ahead . . . . . would it be prudent for us common folk to increase our gold holdings above the normally recommended 10 to 15%?

  5. Perhaps the rules that determine risk capital for banks are behind the acquisition of gold. Avery may know whether a bank-owned hedged position is tier one capital but an unhedged short position, however profitable, is not. Locking in the spread by buying the gold converts the position into tier one, a requirement that bank regulators require for enhanced capital adequacy. BTW, this is just a guess.

  6. This is extremely interesting. Startling, even though I have followed the thought of the world change for some time. It appears to be a ticking economical time bomb!! Unfortunately our world is wrapped in fiat currency which will explode into fragments of nothing. Countries have experienced it, but now the world will !!

  7. Gold and Silver are wealth! As long as the Federal Reserve remains a private corporation ( not connected to the United States Republic) corruption will continue, especially due to Washington D.C. being a soveriegn country of it’s own, As is downtown London, and Vatican City! Currency will die !!Will there be a world wide currency?? Will it be backed by gold and silver as before. Silver and Gold certificates?

  8. The pendulum is presently swinging away from political-economic confederations spanning disparate smaller groups of culturally/genetically distinct populations. Should this trend prove deep and durable, I would expect the fiat currencies/monetary systems which underpinned those confederations to also crumble. However, the current anticipatory move to physical gold represents only half-baked thoughts on what may come next. Gold, they reason, will always be universally recognized as having tradeable, relatively constant intrinsic value. But what if the global supply chain substantially falls apart? Could smaller political economic systems replace the current status quo with a very different, as-yet-unseen regional supply chain model? We arguably dont need massive factories anymore. Effective micropower solutions exist (solar for an individual farm/home/business). 75% of the rationale for global supply chains was cost arbitrate, driven primarily by lower tax and regulatory structures outside the OECD. Subtract the efficiency of the global shipping/logistics chain, and global supply chains become a massive liability rather than advantage. . . All this drive to the point that gold may not be the answer at all in a world where small/micro poli-economic systems rule.

  9. I have a question and I may be naive in asking but here it goes. JPM’s balance sheet shows roughly 2.3 billion in assets. Are you saying about half their assets are physical gold holdings? Also, don’t they also have a massive amount of physical silver? They seem like serious gold bugs if these numbers are even close to accurate.

    Perhaps the banks do know something is going to change in the valuation of gold. Perhaps as Rickards postulates, a major revaluation of gold in USD is anticipated. If not explicitly maybe implicitly becuase there is no othe move.

    Heck, my portfolio isn’t even that lopsided in metals. And I am a gold bug.

  10. Most meaningful post award goes to “tackingnews”. Want to make the world more fair and just while solving 50% of ALL problems in it? Abolish to FRS and get back to honest banking. The FRS has corrupted our society and our culture and institutions to include:
    politics, law, medicine, education etc? For example, think of the song: “Brother Can You Spare A Dime”. They even admit they were the cause of the 29′ crash and subsequent depression.

    And further to the post by “Fondue” I submit the following for your consideration regards corrupt politics and hedgemony by the FRS.
    The FRS goes around dumping on everyone and leave us to clean up the mess they create.

    http://www.plata.com.mx/mplata/articulos/articlesFilt.asp?offset=140&fiidarticulo=303

  11. While not a personal believer in astrology, the following article by Bill Meridian provides some historical insights about the Federal Reserve System.

    http://www.billmeridian.com/articles-files/fed-new.htm

    If we peel back the layers of the FRS corruption–along with the social and cultural consequences to our country and the world–it’s
    actions can best be described as ‘crimes against humanity’.

    Here’s another well written description of this monstrosity.

    http://www.tfmetalsreport.com/blog/8075/42-years-fractional-reserve-alchemy

    While I believe that truth is stranger than fiction, it is my sincerest hope that the importance of Avery’s novel will become apparent to all.

Comments are closed.