Mike is right on the money. You see people in America running to buy guns now, I predict they will do the same for gold and silver when the dollar collapse. The problem with waiting too long to buy is that Gold and silver is traded in the stock market. We know that it can push prices high really fast. Don't wait, with JPM Morgan and others keeping precious metals low use this as buying opportunity. The three G's, God, Guns, and Gold. Don't let the Govt take any of those away from you. It's worth fighting for.
A journalist on scene on Wall Street this evening has just sent us footage of a massive fleet of Firetrucks and ambulances in front of JP Morgan's former headquarters at 1 Chase Manhattan Plaza, with fire-fighters stating they are responding to a COMMERCIAL VAULT FIRE IN THE BASEMENT of JPM's headquarters at 15 Broad St!With JPM's gold inventory plunging 66% Friday to an all-time low of 46,000 ounces, and with reportedly over 502,000 ounces still standing against JPM for the JUNE gold contract, is the long anticipated force-majeure event in progress?
As a reminder, it was Zero Hedge who broke the news in March about the location of JPM's vault, namely that it can be found 90 feet below street level at 1 Chase Manhattan Plaza (located over half a mile away on Liberty and William Streets). Which is relevant, because as the FDNY reports, and as the video clip below vividly confirms (with the Federal Hall National Memorial distinctly visible in the background), the fire response was focused on the area on Broad street between the New York Stock Exchange and what is now the 15 Broad Street block. So did a sweeping fire "take place" (in broad daylight and in front of video camera armed streetwalkers) providing the fire brigade a pretext to abscond with JPM's gold on orders from above, or merely give JPM an alibi to say it's gold is "gone... all gone" or rather "burned... all burned" (leaving aside the propensity of a fire to propagate in the confined oxygen constraints to be found on top of the Manhattan bedrock and far below street level)? No. For the simple reason that 1 Chase Manhattan Plaza is over two blocks away from where the fire did take place. In other words, if there was a "fire" in JPM's vault, the response would have been not at 15 Broad Street, but over half a mile away at the perfectly fire-accessible Liberty Street (between the NY Fed and 1 CMP), across from the real JPM vault fire doors. It appears the confusion stems from the Fire Brigade's designation of the fire as taking place at "JP Morgan's building" which indeed is where the Fire Brigade was located. However, it is the 23 Wall Street building, also known as the "JPMorgan building" formerly owned by JPM, and subsequently owned by Morgan Guaranty Trust Company. Of course, JPM has long since moved on from its landmark location just across from the NYSE, and now can be located at its Park Avenue headquarters (with its Bear Stearns annex), and of course, at 1 Chase Manhattan Plaza. So what is now housed in the 15 Broad/23 Wall Street block to where the FDNY was responding, if not any JPM? 23 Wall and 15 Broad Street were sold in 2003 for $100 million to Africa Israel & Boymelgreen (there is likely a far more interesting story surrounding Africa Israel and Boymelgreen here than there is about the "fire in JPM's vault"). The two buildings have become a condominium development, Downtown by Philippe Starck, named for French designer Philippe Starck, one of a growing number of residential buildings in the Financial District.
Posted on 7/19/2013
For over a month, JPMorgan managed to mysteriously avoid matching up the gold held in its (world's largest) vault with the Comex delivery notice update. However, as of today, that particular can will be kicked no more. Starting yesterday, JPM reported that just under 12,000 ounces of Eligible gold (the same Registered gold that two days earlier saw its warrants detached and convert to eligible) were withdrawn from its warehouse 100 feet below CMP 1. But it was today's move that was the kicker, as a whopping 90,311 ounces of eligible gold were withdrawn, accounting for a massive 66% of the firm's entire inventory of non-Registered gold, and leaving a token 46K ounces, or a little over 1 tonne in JPM's possession. Needless to say, today's massive move which increasingly puts JPM's gold holdings in the danger zone vis-a-vis future delivery notices which just refuse to stop, has pushed total JPM vault gold to a new all time low of just 436k ounces, or a little under 14k tonnes with just 12 tonnes, or 390k ounces, of Registered gold left and rapidly draining. And to think that two years ago around this time JPM had over 3 million ounces of gold in its possession. Finally, those who believe there is a connection between the ongoing run on JPM's vault gold, the suppressed price of the metal, the redemption of Bundesbank gold, and the fact that 3M GOFO has now been negative for 10 straight days or the longest period in history it has been below zero, and indicating an unprecedented gold collateral shortage, you are correct.
Deep within the caverns of 33 Liberty Street rests the New York Fed's historic gold vault, home to probably the largest single assemblage of shiny yellow bars in the world. Seems simple enough — the tourists love it — but one theory germinating on the web the past few months alleges a vast double-counting conspiracy between the Fed and none other than Wall Street powerhouse JP Morgan Chase. Here's why. Though the United States left the gold standard long ago, the Fed still houses the precious metal. Deep below the streets of Manhattan sits a vault so impenetrable that it’s entrusted with more U.S. gold bullion than the famous Fort Knox. Security is so tight that men aren’t allowed to enter the vault; pallets are moved around by a team of robots. The bank’s security systems are so trusted that even foreign governments use it for gold storage. And – as if that wasn’t enough – a Jason Bourne level protection force watch the perimeter; their shooting range scores are so good they’re better than marksmen.
Some argue there's no point to this. The Fed has fiat power. There's really no reason in keeping sovereign gold because, theoretically, the Fed could issue IOUs to all sovereign nations whose gold it holds and then just print money should those countries ever want to redeem it. The growing concern about the gold sitting under Manhattan has become a touchy subject ever since Germany announced earlier this year plans to repatriate its gold from Fed vaults. Some have said the move signifies German mistrust of the Fed. Others argue the Bundesbank is just one of many central banks keen on rebalancing its own gold reserves.
So where does JP Morgan fit in? Months ago ZeroHedge drudged up the fact that JPM-owned 1 Chase Manhattan Plaza has, on its fifth sub-basement, the world's largest bank vault.
You know who else has five sub-basements? The New York Fed. You know what building is across the street from 1 Chase Manhattan Plaza? You guessed it: Yup. JPM's vault, the largest in the world, is possibly inches away from the Fed's gold vault. Across the street, on the same level underground.
But are the vaults physically attached? We probably won't ever know. Either way, it would seem rather advantageous for a central bank housing other nations' sovereign gold to have an underground physical connection to a bank that trades in precious metals. Which, for some, raises another conspiratorial question: Could JPM and the Fed theoretically "share" the resources if the latter were ever audited by, I don't know, the Germans? Who would ever know?
PMorgan Chase & Co. is an American multinational banking and financial services holding company. It is the largest bank in the United States by assets, and as of 2012, it ranks as the second largest bank in the world by assets (after HSBC) with total assets of $2.509 trillion. It is a major provider of financial services, and according to Forbes magazine is the world's second largest public company based on a composite ranking. The hedge fund unit of JPMorgan Chase is one of the largest hedge funds in the United States. It was formed in 2000, when Chase Manhattan Corporation merged with J.P. Morgan & Co.
Ezekiel 7:19
They shall cast their silver in the streets, and their gold shall be removed: their silver and their gold shall not be able to deliver them in the day of the wrath of the Lord: they shall not satisfy their souls, neither fill their bowels: because it is the stumblingblock of their iniquity.
National banks and individuals, families, investors are hoarding gold in more and more countries. Some stand out, others are still lagging behind, but what thing is clear: it's a trend and the situation is about to get more intense as time goes by.
Something is about to happen. Perhaps more than we can imagine, perhaps there's more to the global economic crisis than we can find out about in the media. More and more countries are rushing to repatriate their gold holdings from foreign vaults. Germany takes their gold back from the Federal Reserve's vault. So does Switzerland, the Netherlands, Ecuador and, Venezuela has already brought most of their "bricks" back to Caracas!
It's not just the small guys, the speculators and the billionaires hoarding gold. Sovereign states are grabbing and taking their gold back home from foreign vaults. The largest of these is the New York Federal Reserve gold vault.
As a safety measure, a large number of states have deposited their gold at this vault. Many European countries during the Cold War era (fearing a Soviet invasion), but also countries from other continents have entrusted the USA with their gold. Why are so many countries taking their gold back?
Here are several possible causes, likely scenarios:
1. They are fearing a major currency crisis: understandable and highly likely and, it's plausible that the euro crisis will deepen further and that's part of the reason why so many European countries that have good relations with the US, have started withdrawing their gold holdings (so, a political reason could be excluded)
Needless to say if the world sees a major currency collapse, which up to this point I think most people would consider an absurd idea, it's going to spark a panic for protection. Despite stocks entering the euphoria stage of this bull market, stocks are not going to protect one from a currency crisis. Only hard assets will do that, and the two hard assets that are best at protecting one's wealth are gold and silver.
Wouldn't it be fitting that at a time when gold and silver are about to be most cherished, they are now completely loathed by the market?
2. Currency wars: many experts agree that this process has already started - check out the Prime Values article about the ongoing currency war (this should not be confused with a currency crisis, but might lead to one or, be caused by one)
The Bank of England and the European Central Bank have re-affirmed their old positions since the Fed has changed tacks. The initial reactions will be a spike in equities and a fall-off in the valuations of the Pound and the Euro to the Dollar. These, however, are first blush reactions as the color fades from the bloom.
It may well be, as Europe is in much worse financial condition than the United States, that there is a policy reason for the European positions but it may well also be a calculated move to devalue the major European currencies. Whatever the actual reasons, the European statements have certainly sounded the trumpet that the “Currency Wars” have reignited.
The impact of the Euro/Dollar at 1.25 and then 1.20 will be a positive for Europe as exports rise and a negative for America as exports fall and imports rise. The sword could be double edged though as the Fed, in response, begins to cull back on the more than $1 trillion that it has lent to the European banks. Many truths will be shrouded in mystery but the impact will be there regardless. It is a dangerous game when the world’s central banks that have been working for the last five years in unison and now they head down different paths. You may expect tears at the seams and various ripping sounds as Europe moves away from the Fed. Mr. Carney and Mr. Draghi have buddied up while poor Ben is left to wander alone.
3. The gold isn't there or isn't genuine: there have been previous cases of faked gold bars, including the famous tungsten gold bars case - previously there were "issues" with Germany's gold held at the Bank of England in London (this might have caused fear amongst other countries, which are now rushing to grab their gold) - Germany admittedly wants to test their first repatriated 150 tons for quality and weight. When it becomes widely known that all of the people who think they own gold in fact don’t own gold, that it’s been hypothecated and re-hypothecated so many times that there are 100 claims for every single ounce of physical gold, that is when the prices of gold and silver will really go berserk to the upside, and at that point the shorts will have serious problems - John Embry on King World News
4. Real wars: it's terrible to think of (hopefully nothing like that will happen), but if you knew - wouldn't you withdraw your gold from "less safe" places and move it to "safer areas" - in this case, the USA is among the least safe places for countries to hold their gold
5. New gold standard: in the past many currencies were either made from gold or backed by gold - the issue is often discussed within the stackers'/collectors' community and between economists as well (could it be that the countries are preparing (in secret) for the emergence of a new gold standard?) Why are China, India and Russia moving to increase the percentage of their reserves held in gold as opposed to foreign currencies such the dollar and euro? Could the moves of these countries to increase their gold reserves point to a possible revival of the international gold standard in some form? The answer to the first question is that these countries are nervous about the future of all paper currencies. During the first phase of the crisis of 2007-09, the dollar fell not only against gold but also against the euro. Naturally, countries increased the percentage of euros in their reserves, since it seemed like a good bet against the falling dollar.
Then came the sovereign debt crisis in Europe that assumed acute form just a month or so ago. The euro plunged against the dollar. But the dollar is not looking too good itself. While the dollar was soaring against the euro, it was slipping against gold, the money commodity. For the first time, the dollar price of gold inched above $1,200. Unlike paper currencies, gold is a commodity. And like all commodities, its value is determined by the amount of labor socially necessary to produce it under the prevailing conditions of production. With the world’s gold mines facing growing depletion, the value of gold for the foreseeable future seems a little more certain than the future value of any paper currency, whether the dollar, euro or yen. No matter how bad things get, gold cannot be “run off the printing presses.” New gold can be produced and the existing supply increased only by the slow process of the labor of workers in the gold mines and in the gold refining industry.
Does this mean that the international gold standard is about to be restored? The answer for the immediate future is a definite no. The three countries that are reportedly moving to increase their gold reserves are not imperialist countries. Indeed, these countries have few gold reserves. The great bulk of the gold that is held by governments or central banks is held by the governments of the United States and the European satellite imperialist countries such as Germany, France and Italy. According to the Bank for International Settlements, in the the third quarter of 2009 the U.S. government was by far the world’s biggest holder of gold with a hoard exceeding 8,000 tons. Germany was a distant second at a little more than 3,000 tons, followed by the U.S.-dominated International Monetary Fund, or IMF, which also held a little more than 3,000 tons of gold. Italy and France each had a little more than 2,000 tons of gold.
China, on the other hand, had only about 1,000 tons of gold, about the same as Switzerland. Russia, though it is a major gold producer, had a smaller gold hoard than tiny Netherlands, at well under a thousand tons. India, with a population of over a billion, had a smaller gold hoard than Portugal. Even Japan, despite the fact that its GDP is second only to the United States and it maintains a formidable position in world trade, had a gold hoard of well under 1,000 tons.
Two years ago Steve Forbes, two-time candidate for nomination for president by the Republican Party and editor of Forbes magazine, predicted “a return to the gold standard by the United States within five years ... [because it would] help the nation solve a variety of economic, fiscal and monetary ills.” It’s now two years into his prediction and articles explaining how such a return would work, and why, are beginning to appear in the media.
The most likely and closest to happen would be a currency crisis and currency wars (either as a result of- or, as a "preventive measure" of a currency crisis). If either one of them or both (consecutively) occur, then you have to prepare yourself to save your wealth.
If currency crises kick in, it will be too late - money starts devaluing and you will lose a large part of your wealth. If you have a family, then the situation is even worse.
Partly this is the reason why Prime Values was created - to offer advice on saving wealth.
Check the article about how precious metals can save your wealth during crisis to learn more about why these rare metals constitute a great hedge against currency devaluation.
Of course: Prime Values is not encouraging you to put all your wealth in precious metals, just make sure you own a significant amount.
Jan 23/2013
The global trend of nations “repatriating” their gold reserves from the custodial vaults where it has long been stored continues. The issue, as WealthCycles has reported extensively, is the near certainty that not all the gold recorded to be held in the bullion banks is really there. Much of it has been pledged and repledged against the debt that keeps the world’s monetary system afloat. The more physical gold that is reclaimed and delivered to sovereign treasuries, the less that remains to back up all the pledges. When the chips are called in, many of those who believe they own gold will find themselves holding nothing but pieces of paper. At that point, “price will solve everything.”
Nations currently repatriating gold: Venezuela, Germany, Ecuador, Azerbaijan, Making noise: Switzerland, Belgium, Ireland, Netherlands, Romania. JP Morgan, one of the bullion banks that acts as a custodian, will see 15mt of gold leave its London vaults over an undisclosed period of time, according to the state oil fund of Azerbaijan. Brink’s was hired to take care of delivery, and so far 1mt has been delivered in Baku. No word if Brink’s took a truck through the chunnel, driving the whole way to the Caspian. What is clear is that the remaining 13.9mt will be “gradually transferred,” and that the fund will also continue buying 10,000 ounces a week in gold for 56 more weeks. While the amounts presently outstanding, 8.77mt undelivered to Ecuador, and 13.9mt undelivered to Azerbaijan, are not on the level of the 930mt brought back to Germany a decade ago, concern is undeniably high in markets that supply is tighter than expected. Why there is a hair-trigger around this subject? Hedge fund manager William Kaye, who runs The Pacific Group explains:
"All you actually need for a major upward revaluation of gold is for a small fraction of people to physically reclaim from major central banks or other depositories that are holding your gold and using it for their purposes. Gold, the way we look at it, is anywhere from being undervalued to being seriously undervalued… We’re in the early stages, in our judgment…"
Dylan Grice, who wrote the following on gold before his departure from Societe Generale:
"If you look back through time at inflationary crises—from ancient Rome, to Ming China, to revolutionary France and America or to Weimar Germany—you'll find that uncontrolled inflations are caused by overleveraged governments which resorted to printing as the easiest way to avoid explicit default (whereas inflation is merely an implicit default)"
The IMF says five different too-big-to-fail (TBTF) banks can take down up to 12 others in the first round of contagion if 2008 repeats (it will). This is not surprising with derivatives already levered over 1000x against a pool of assets claimed by many, yet which is shrinking as the assets age, and default.
Germany announced plans to repatriate its gold from Fed vaults.
Published: January 16, 2013
FRANKFURT — Nearly half of Germany’s gold reserves are held in a vault at the Federal Reserve Bank of New York — billions of dollars worth of postwar geopolitical history squirreled away for safe keeping below the streets of Lower Manhattan. Germany recently counted and tested all of the thousands of gold bars it keeps in foreign banks. Now the German central bank wants to make a big withdrawal — 300 tons in all. On Wednesday, the Bundesbank said that it would begin moving some of the reserves, the second-largest stock in the world after that of the United States. The goal is to house more than 50 percent of German gold in Bundesbank vaults in Frankfurt by 2020, up from a little less than a third today, the bank said. Citing security reasons, Carl-Ludwig Thiele, a member of the Bundesbank, declined to say how the transfer would be accomplished or to estimate the cost. But he said the Bundesbank had plenty of experience moving large sums of money. More than two-thirds of Germany’s gold reserves, valued at 137 billion euros, or $183 billion, is abroad, stored in vaults in New York, Paris and London.
The new policy will include the complete withdrawal of 374 tons of German gold stored at the Banque de France in Paris, about 11 percent of the total. Bundesbank officials were quick to note that the decision was not a reflection of French trustworthiness. Rather, because France and Germany now share the euro, there is no need for reserves as insurance against currency crises.
“The gold in Paris is in the best of hands,” Mr. Thiele said on Wednesday. “We are thankful to the Bank of France for storing it.”
German reserves peaked in 1968 at about 4,000 tons, several years before the collapse of the so-called Bretton Woods system of fixed international exchange rates, which was underpinned by gold reserves. The end of Bretton Woods in 1973 eliminated some, though not all, of gold’s importance as a universal currency. The total has fallen to about 3,400 tons after Germany transferred some of its treasure to international institutions in which it participates, including the European Central Bank and the International Monetary Fund. Even after Germany completes the transfer at the end of 2020, half of its gold will remain abroad — about 37 percent in New York. The Bundesbank does not plan to move any gold out of the Bank of England, which will continue to store 13 percent of the total. The Bank of England charges about 550,000 euros a year for storage, Bundesbank officials said.
March 23, 2013
Call it the Rick Perry gold rush: The governor wants to bring the state’s gold reserves back from a New York vault to Texas.
http://youtu.be/Q0ZKH9wgl-U
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