Phantom Gold Inventories: Has The Comex Already Defaulted?

Jeff Nielson: In the spring of last year, and on the heels of the Cyprus “bail in”; informed investors know there was a global stampede into physical bullion – and out of the banksters’ fraudulent paper-called-gold “products”. In reporting on those events, regular readers saw the following headline:

Paper-Gold Holders Flee To Real Metal

The evidence seemed conclusive. The Cyprus Steal triggered the realization among the Smart Money that no paper asset in the Western world was safe, any longer. That realization instigated the stampede out of the banksters’ paper-called-gold. Total holdings of the largest of the paper-called-gold fraud funds (the SPDR Gold Trust, or “GLD”) ultimately fell by approximately 40%.

However, as investors were liquidating 10’s of millions of ounces of what the bankers call “gold”; the Comex’s gold inventories didn’t rise by 10’s of millions of ounces. In fact those inventories didn’t rise at all – they collapsed. This seemed to indicate that investors were redeeming their GLD paper, and extracting real, physical gold to replace it.

Recent evidence, however, suggests an entirely different interpretation of the precisely synchronized collapse in holdings of the banksters’ paper-called-gold and “official” Comex inventories. But before readers can grasp the significance of this new information, it’s necessary to first visit the silver market – and revisit an old-but-familiar form of inventory fraud which has been covered extensively in previous commentaries.

Long-time readers of my commentaries are familiar with the charts below:

What we notice first is the dramatic, and unprecedented collapse of (Western) silver inventories. In a mere 15-year span (1990 – 2005); we see inventories plummet by more than 90%, from approximately 2.2 billion ounces to (roughly) a mere 200,000.

The second thing we notice is that the two charts (from the same source) don’t match. The original (and more detailed chart) shows very clearly silver inventories hitting bottom in 2005. The second chart (put out a mere one year later) shows this supposed bottom occurring in 2003, or perhaps even 2002 – it’s impossible to determine, as the time-scale has been deliberately made more vague.

Why did the bankers engage in this small, yet clumsy-and-obvious fraud? Naturally, it’s to attempt to cover-up a much larger, clumsy-and-obvious fraud. It all centers on one line, posted prominently on both charts:

Inventories Include Silver Backed Exchange Traded Funds (ETF’s).

There it is. Not nearly the largest of the One Bank’s frauds (in an era of multi-trillion dollar mega-swindles), but perhaps the most incompetent. “Inventories include silver backed exchanged traded funds.” Just howdoes that work?

In the real world; if one buys an ounce of real silver from a real dealer, the dealer’s inventories fall by precisely one ounce. Yet in our Wonderland Matrix, and the paper-fraud markets of the bankers; when one buys an ounce of their “silver”, official inventories rise by one ounce.

Understand that it would be an obvious fraud if someone were to (supposedly) purchase an ounce of silver, but inventories were merely unchanged. Obviously if a purchaser now has legal title (supposedly) of one ounce of “silver”, there must be a corresponding decline of one ounce from the inventories of the vendor. This is arithmetic simple enough for any five-year-old child, but apparently a concept beyond the intellectual grasp of the “regulator” of this market, the CFTC.

So when holders of the i-Shares Silver Trust (SLV) and/or other holders of the banksters’ fraudulent paper-called-silver think they are buying an ounce of silver, but “silver inventories” actually rise by one ounce, we are seeing a double-fraud. Yet this is still something which remains invisible to the so-called regulators, and the dim-witted drones of the mainstream media.

Revisiting the charts above; it was only when the One Bank created SLV (in 2005), and began this massive, but incredibly obvious inventory-fraud that the bankers were able to fabricate a “reversal” in the decline of silver inventories. Every “ounce of silver” which has been added to inventories since 2005, and likely millions more ounces of this “silver” are nothing but a gigantic paper-fraud.

It is with this context in mind that we can now look at new developments (and new coincidences) in the gold market. As previously noted; Comex gold inventories and GLD holdings suffered massive and synchronized collapses in total “ounces” of gold. What we are seeing now is a second synchronization, as Comex inventories and GLD holdings both stopped falling and both began rising at virtually the same time.

To the best of my own knowledge; there has never been any official declaration of inventory-fraud in the gold market as there has been in the silver market – meaning that every time someone buys an ounce of ETF-gold, inventories go up by one ounce (in an obvious fraud), rather than down by one ounce (as would occur in any legitimate market).

However, what we are now seeing in the empirical evidence is the apparent duplication of the same inventory-fraud in the gold market as has been going on in the silver market since 2005. Seeing Comex inventories suffer their most-dramatic declines in history at precisely the same time that GLD holdings suffered their most-dramatic declines in history was an extraordinary coincidence.

Seeing Comex inventories and GLD holdings cease their unprecedented collapses, pivot, and begin rising at precisely the same time is simply an obvious fraud. In legitimate markets; Comex inventories and ETF-holdings would always move in an inverse manner to each other. As more people bought GLD “gold”; inventories would fall. As more people sold GLD “gold”; Comex inventories would rise.

Instead, we see Comex inventories and GLD-holdings performing in this orchestrated fraud like a “synchronized swimming” duo. And it raises the equally obvious question: is there any real gold in the Comex’s supposed “inventories”, or are we now dealing with the same kind of “gold” that is claimed to be in Fort Knox (but which no one has seen in over 50 years)?
The total amount of “gold” supposedly held at the Comex is now roughly 8 million ounces. Total holdings of “gold” which GLD-holders think they own is over 25 million ounces. If we assume the same one-for-one fraud which the banksters have reported in the silver market; this would put total Comex inventories somewhere in excess of -17 million ounces of gold.
In other words, at some point in the past (perhaps the distant past) the Comex actually “defaulted” (at least in the technical sense) on its gold inventories. We’ve simply never heard of this default because of the serial lies/fraud of the bankers, and the see-no-evil, hear-no-evil, speak-no-evil complicity of the regulators and operators of these markets.

Paper-gold holders did “flee” from their fraudulent paper, in a stampede of epic proportions, which began in the spring of last year. But if they fled into gold, it wasn’t into Comex gold – because there was never any gold there, to begin with.
This article is brought to you courtesy of Jeff Nielson From Bullion Bulls Canada.