Socio-Economics History Blog

Socio-Economics History Blog

Turd Ferguson: JP Morgue Has Cornered The COMEX Gold Market?

by mosesman
Source: CFTC for COT, Cash Market for gold, GGR. To quantify the chart, as of November 26 the Producer Merchants reported 5,910 contracts net long with gold then $1242.
Source: CFTC for COT, Cash Market for gold, GGR. To quantify the chart, as of November 26 the Producer Merchants reported 5,910 contracts net long with gold then $1242.
  • “JPM just wants their gold back before the current fractional reserve bullion banking system breaks, prices skyrocket again and a new global currency regime takes hold. And now, for the first time ever, they’ve cornered the Comex gold futures market in order to ensure that it happens.” – Quote
    –
  • Q.E.D. II 
    by Turd Ferguson | Saturday, December 7, 2013
    … Well, after Wednesday night’s Comex delivery reports, QED is also how I feel regarding the JPM NET LONG position I’ve been harping on for months.
    –
    As first noted in the July Bank Participation Report, a “U.S. Bank” is now massive long Comex gold futures. Experience told us that a position of this size…generally around 75,000 contracts…HAD TO BE JPM. However, this experience was just conjecture and we needed demonstrable proof. The first four days of December delivery provide the proof.
    –
    If you’ve been following along, I’ve estimated that, in a NET LONG position averaging 75,000 contracts, it was likely that at least half the position was in the front-month Dec13. That position was then rolled into Feb14 and April14 but not without causing some extreme volatility, which JPM used to their selfish price advantage. Additionally, because JPM issued almost 3,000,000 ounces of gold to the other banks through the Comex delivery process of Feb13, Apr13 and June13, it was to be expected that they (JPM House) would use their long position to stand for delivery this month. Not wanting to “break” The Comex…YET…JPM will eventually stand for 7,000-8,000 in December. If the entire system doesn’t collapse first, look for them to stand for the same amount in February and April of next year.
    –
    Given all of that listed in the paragraph above, “proof” of JPM’s NET LONG position will lie in just how much gold they actually take in delivery during December. If the total had turned out to be miniscule…like earlier this year….my entire analysis and conclusion could be justifiably called into question. If, however, JPM ends up stopping 90%+ of the Dec gold contract deliveries…
    –
    And what do we have so far? Wednesday alone was breathtaking. There were 2,472 deliveries announced. Of the 2,472, the JPM House account stopped (took delivery) of 2,389 or 96.6%. This brings the total for the first five days of the month to:
    –
    Total Deliveries: 3,558
    Total Stopped by JPM: 3,400 or 95.6%
    Total Issued (thus far) by HSBC: 2,216
    Total Issued (thus far) by Scotia: 787
    –
    Now consider this. Back in the first half of this year, when JPM was desperately converting a 75,000 NET SHORT position into a 75,000 NET LONG position, it got stuck “holding the bag” and deliveries were made against it by the other banks. For the delivery months of Feb13, Apr13 and June13, it looked like this:
    –
    read more!

end