muses of the moment

May 8, 2013

It’s all about moving the “numbers” on the balance sheet

Filed under: Gold and Silver Investing, Precious metals — totallygroovygirlfriday @ 9:13 pm

Click here.

Two weeks ago we reported about one of the biggest daily withdrawals of eligible gold from the JPM gold vault, it not on an absolute basis, then certainly on a relative, when in one day over 260k ounces of gold were withdrawn, leaving a record low 141.6k ounces, or just over 4 tons of gold in the vault. Subsequently, we tracked the daily additions and withdrawals of gold from the vault to see if any other major withdrawal request would come, instead discovering instance after instance of JPM reclassifying Registered gold into Eligible, which is how the vault saw its eligible inventory rish back to 195K ounces as of yesterday, without any actual net additions or more importantly withdrawals. It seems the pause of withdrawals has ended, and as of yesterday, another delivery led to a withdrawal of 53,658 ounces, or 28.5% of the total, leaving a fresh record low inventory of only 137,377 eligible ounces in the vault.

Do you know where your gold is? If you have your gold with a major bank or bullion bank in an allocated or unallocated account, MF Global made sure that you can not sue anyone for leasing out or stealing your gold.

Accounting gimmicks only work for a short period of time.

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