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According to CME reports, J.P. Morgan accounted for nearly all of the physical gold sales at...

According to CME reports, J.P. Morgan accounted for nearly all of the physical gold sales at Comex in the last three months, writes blogger Mark McHugh. The sales, representing nearly 2M ounces, is 74% more gold than the U.S. Mint delivered through its American Eagle program in all of 2012. The very idea of "broad-based" selling is a farce, says McHugh. “One thing’s very clear: When it comes to selling physical gold, J.P. Morgan is acting alone.”
Comments (21)
  • marketwatcher23
    , contributor
    Comments (1014) | Send Message
     
    funny goldman was not selling.
    26 Apr 2013, 08:36 PM Reply Like
  • doctorslernon
    , contributor
    Comments (79) | Send Message
     
    So you mean one entity controlled the whole gold price collapse? And Goldman Sachs telling investors one thing and doing another? Who would have thought!
    26 Apr 2013, 08:57 PM Reply Like
  • RSI Raistlin
    , contributor
    Comments (400) | Send Message
     
    very very interesting I'm no psychic but I'm willing to bet my entire trading account that JPM made much more money in the puts and shorts in gold and the GLD than they lost stimulating the gold price collapse. Mark this post down for record profits next quarter in JPM
    26 Apr 2013, 09:04 PM Reply Like
  • minecanary
    , contributor
    Comments (488) | Send Message
     
    So as soon as the judge tossed the GATA lawsuit by saying they hadn't shown JPM intended to effect the price via their shorts, they promptly drive the metals down 30% because they won't be touched.
    Time to remake the entire regulatory system.
    26 Apr 2013, 10:43 PM Reply Like
  • pollyserial
    , contributor
    Comments (1093) | Send Message
     
    what regulatory system? did you see that amazing decision in the libor case, where the judge threw the case out because plaintiffs should have known that big banks would have been colluding? so, any and all corruption is always ok, because we're supposed to expect that from our financial system.
    26 Apr 2013, 11:38 PM Reply Like
  • Joe2922
    , contributor
    Comments (421) | Send Message
     
    The rules and laws do not apply to everyone. Euphemisms for felonies. What happened to free market capitalism with rules enforced for everyone? Did it ever exist?
    This is a high risk year about to turn into extreme risk, 5 charts say it's time to sell this market now:
    http://bit.ly/WpVqYk
    27 Apr 2013, 08:13 AM Reply Like
  • pmiller100
    , contributor
    Comments (359) | Send Message
     
    That is extraordinary. Sometimes I wonder if suits are synonymous with criminals, and if this account is true, I'm closer to my answer.
    26 Apr 2013, 11:25 PM Reply Like
  • crimsonbey
    , contributor
    Comments (546) | Send Message
     
    Do people actually realize that 500 tons is more than 15 mill troy oz? That was the amount sold moreover it continued in Asia was it JPM selling in Asia? I am sure there were margin calls worldwide but the problem is too many people were on one side of the market leveraged to the hilt and that's when the last marginal buyer bought and the economics worked in reverse.
    26 Apr 2013, 11:42 PM Reply Like
  • june1234
    , contributor
    Comments (2701) | Send Message
     
    Too many people = one entity JPM
    27 Apr 2013, 06:15 AM Reply Like
  • dieuwer
    , contributor
    Comments (2421) | Send Message
     
    Every heard of the adagio: "If you cannot beat them, join them"?
    26 Apr 2013, 11:54 PM Reply Like
  • RS055
    , contributor
    Comments (2886) | Send Message
     
    It is helpful to think of the world as completely without laws and regulations. Pure Darwinism. Gang warfare.
    Then you can think clearly about how to proceed.
    27 Apr 2013, 12:20 AM Reply Like
  • Jason Burack
    , contributor
    Comments (1765) | Send Message
     
    I am sure China, Middle East, etc was willing to buy every single ounce JPM was trying to sell.
    27 Apr 2013, 03:09 AM Reply Like
  • bbro
    , contributor
    Comments (9854) | Send Message
     
    Gold Bugs...blame Bernanke for Gold going up...blame Bernanke for
    Gold going down....
    27 Apr 2013, 07:04 AM Reply Like
  • kmi
    , contributor
    Comments (4042) | Send Message
     
    The movement of large value-quantities in and out of warehouses and controlled by financial entities doesn't tell us anything, except the fact that JPM is the primary intermediary entity.

     

    What is referenced by the linked article is almost meaningless except in that it proves that the financialization of gold is handled primarily by a single entity in the US. It doesn't tell us who was really buying or selling, only that JPM constituted the endpoint and startpoint of the transaction.

     

    That commodities are heavily controlled by the large financial institutions is also not much of a revelation, although it is good to see more people talking about it.

     

    A recent article on SA had an awesome comment in it:
    http://seekingalpha.co...
    "Aluminum expert Jorge Vazquez of HARBOR Aluminum commented to us recently that the North American LME Aluminum market is owned by traders and financiers; end users have not turned to delivery points in Detroit or New Orleans for a year or more."

     

    We know already that GS controls the aluminum market, and we also know for example that oil and copper are quite well controlled in the same manner.

     

    Anyway, my point is only that JPM isn't the only entity selling and we know this from multiple recent reports, but it is clear that JPM is the one primarily concerned with controlling gold movements from those selling.
    27 Apr 2013, 07:15 AM Reply Like
  • Archman Investor
    , contributor
    Comments (2470) | Send Message
     
    Awesome!!!:
    http://bit.ly/15OMPGV
    27 Apr 2013, 08:07 AM Reply Like
  • ComputerBlue
    , contributor
    Comments (821) | Send Message
     
    Ha that is awesome.
    27 Apr 2013, 09:46 AM Reply Like
  • berourke
    , contributor
    Comments (3) | Send Message
     
    When the Hunt brothers caused silver to move against Wall Street the regulators stepped in and bankrupted them. When Morgan trashes gold not a peep for the regulators. Apparently the regulator's only concern is helping Wall Street. I wonder if the public will ever get tired enough of this to demand change.
    27 Apr 2013, 08:47 AM Reply Like
  • Ryan Sullivan
    , contributor
    Comments (16) | Send Message
     
    Next London Whale?
    27 Apr 2013, 09:56 AM Reply Like
  • rheimerl
    , contributor
    Comments (392) | Send Message
     
    im buying!
    27 Apr 2013, 10:11 AM Reply Like
  • MJT
    , contributor
    Comments (19) | Send Message
     
    The selling by JPM is simply a function of the fact that a lot of owners of physical gold warehouse that gold via JPM, so JPM is in custody of the gold; this, in turn, is partly a function of JPM's low fees for providing this service, combined with JPM's solid reputation (so owners of gold feel comfortable holding their gold at JPM). When people go to sell gold that they are holding via JPM, it appears as though JPM is selling, which they are, but they are selling on behalf of their clients.
    28 Apr 2013, 06:20 PM Reply Like
  • 1980XLS
    , contributor
    Comments (3333) | Send Message
     
    That's what FDIC insurance is for?
    28 Apr 2013, 08:28 PM Reply Like
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