Yesterday saw the 2nd-largest one day surge in
GLD "inventory" in the past five years. What does this signal, if
anything at all?
I think most everyone here knows how I feel
about the GLD. It's a scam. It's a sham and it's a fraud. Oh sure,
there's almost certainly some gold held in the HSBC vaults but how much
is truly, 100% allocated to just the GLD? Recall the whole charade from
back in 2011 when Bob Pissonme of CNBS was allegedly driven in circles
for hours before being allowed into the super-secret vaults that house
the GLD's gold:
http://www.silverdoctors.com/gold/gold-news/n...s-gld-gold-bar/
Meh, whatever. There's no sense in re-litigating this nonsense today. What is
curious sometimes is the timing of the the Authorised Participant
(Bullion Bank) alleged additions and withdrawals. Most recently we noted
a stretch of 16 consecutive withdrawals over the period from June 26
through August 7. The total amount of "gold" withdrawn from "inventory"
over that time was 66.81 metric tonnes.
However, since August 7, the GLD has seen seven
consecutive additions to inventory. The first six, from August 14 to
August 30, were for a total of 29.56 metric tonnes. This is astonishing
in its own right as it's difficult to imagine this gold just laying
around, waiting for HSBC to pick it up when needed. And then yesterday,
we got the coup de grace...
an incredible 23.65 metric tonnes were allegedly added yesterday alone.
How much gold is 23.65 metric tonnes? That's about 760,000 troy ounces.
And is that a lot? Well, there are about 400
troy ounces in every London Good Delivery Bar so 23.65 metric tonnes
equates to about 1,900 of these babies:
If you stack 192 of them to a pallet, it also means you're looking at 10 pallets as shown below:
So, I'm sure this is all totally on the
up-and-up and honest. Remember, the custodian for the GLD gold is HSBC
and they have a stellar and impeccable reputation:
target="_blank" http://www.corp-research.org/HSBC
Again...whatever. This is all old news. The only
reason I bring this up is to remind you of the last two times the GLD
saw such a massive addition to "inventory".
Recall the heady days of June and July 2016. The
Brexit vote had just shocked the financial world. Negative rates
abounded and even the 10-year US treasury note traded at a yield of just
1.50%. Comex Digital Gold began the year near $1100 but had risen to
$1300 and beyond.
On June 24, 2016...the day after the Brexit
vote...the GLD "inventory" surged by 18.41 mts. "Inventory" continued to
rise into early July and then, with the largest one day surge that we
have on record since 2012, "inventory" jumped 28.81 metric tonnes on
July 5. Hmmmm....July 5. What else happened on July 5? That was the very
day of the 2017 price peak near $1375! How about that?
Cause and effect? Effect and cause? Simple
coincidence? Maybe there's no connection at all as the APs (Bullion
Banks) can simply stuff the GLD "inventory" with as many delivery
receipts and promissory notes as they deem necessary to give the
appearance of propriety. But then again, maybe not.
However, I don't want to leave you with the
impression that this HAS TO BE a bad sign and signal of a short-term
price top. According to our records over the past five years, there was
one other massive GLD inflow. It was for 18.74 metric tonnes and it came
in on December 18, 2015. And where was price then? Near $1060 and the
absolute bottom of the 2012-2015 bear market. From that point, price
soared nearly 30% in 6 months and the GLD "inventory" rose with it from
630.17 mts on December 17, 2015 to that July 5, 2016 peak noted above at
982.72 mts.
At any rate, we hope that by now you realize
that, in the end, anyone holding anything but true physical gold is
going to be left holding the bag when this entire paper charade system
comes crashing down. Just yesterday, even the criminals at
TungstenmanSachs admitted as such. Be sure to see this link though the
money shot is pasted below:
target="_blank" http://www.zerohedge.com/news/2017-09-05/u...cording-goldman
Today is a day of relative market calm before
the dual storms of Irma and Kim rear their ugly heads again later this
week. Use this time to prepare wisely and accordingly.
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Our Ask The Expert interviewer Craig Hemke began his career in financial services in 1990 but retired in 2008 to focus on family and entrepreneurial opportunities. Since 2010, he has been the editor and publisher of the TF Metals Report found target="_blank" at TFMetalsReport.com, an online community for precious metal investors.
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The views and opinions expressed in this material are those of the author as of the publication date, are subject to change and may not necessarily reflect the opinions of Sprott Money Ltd. Sprott Money does not guarantee the accuracy, completeness, timeliness and reliability of the information or any results from its use.
