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Willem Middelkoop
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Willem Middelkoop (1962) author of The Big Reset, published in three languages English, Chinese and Dutch. He is founder of the Commodity Discovery Fund. In the Netherlands he is best known for his work as a business commentator for the RTL Z business channel between 2001 and 2008. He also... More
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Commodity Discovery Fund
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The Big Reset
  • JP Morgan Sells Its Gold Vaults (Next To Fed NY) 0 comments
    Aug 19, 2013 12:52 PM | about stocks: JPM

    Friday JP Morgan (NYSE:JPM) announced it would sell its One Chase Manhattan Plaza office building. According to the New York Times this office building at Liberty Street is "the silvery, sky-scraping symbol of Lower Manhattan".

    But among precious metals watchers this address is best known for its precious metal vaults. The vaults are situated 80 feet below ground level at 33 Liberty Street. It used to contain up to 20% of the worlds. Recently reports surfaced that almost all of its "eligible gold" was withdrawn from its warehouse at Chase Manhattan Plaza 1.

    Surprisingly Zerohedge earlier discovered these JP Morgan vaults are situated right across the Feds gold vault at Chase Manhattan Plaza, " .. we have learned that the world's largest private, and commercial, gold vault, that belonging once upon a time to Chase Manhattan, and now to JPMorgan Chase, is located, right across the street, and at the same level underground, resting just on top of the Manhattan bedrock, as the vault belonging to the New York Federal Reserve, which according to folklore is the official location of the biggest collection of sovereign, public gold in the world."

    But the most stunning revelation was the fact, ".. the Chase Plaza (now the Property of JPM) is linked to the (Fed) facility via tunnel.. the elevators on the Chase side are incredible. They could lift a tank."

    The news about JPM's plan to sell Chase Manhattan Plaza come just weeks after JPM announced that it was "pursuing strategic alternatives for its physical commodities business, including its holdings of commodities assets" and "it plans to get out of the business of owning and trading physical commodities ranging from metals to oil". According to financial blogger Turd of tfmetalsreport.com JPM has used the large drop in the silver price to close its silver short position and even go long.

    The Federal Reserve announced early August "it might reconsider its decade-old policy which has allowed investment banks to diversify and own certain unrelated businesses such as participation in the physical commodity markets." There seems to be a coordinated action between the Fed and the Commodity Futures Trading Commission (CFTC). CFTC commissioner Bart Chilton remarked earlier during a conference, "I don't want banks owning warehouses, whether they have aluminum, gold, silver, or anything else in them.

    CNBC published parts of a leaked letter from the CFTC to the Federal Reserve. In the letter the CFTC is, "urging the Fed to firmly draft the final Volcker Rule in a way that ensures banks can no longer speculate in commodity markets."

    According to Bloomberg the CFTC has even sent letters to banks asking them "not to destroy documents relating to warehouses registered by exchanges such as the London Metal Exchange (LME) or Chicago Mercantile Exchange (COMEX).

    So we have increasing circumstantial evidence that JPM is planning for a future without market distorting metal activities.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

    Stocks: JPM
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