Tonnes of Gold Removed From the Major ETFs and the COMEX Since January 1

Considering the theory that the purpose of this market operation was designed to take the price of gold lower since the first of the year, and to free up bullion to relieve certain stresses in delivery, I was wondering if we could quantify the results of it in any way.

With the help of Nick at Sharelynx.com, the keeper of records and master of charts,  I was able to calculate the approximate number of tonnes of inventory that were released into the market, or some private storage area perhaps, from the top funds and exchanges in the western world. The time period is from the beginning of this year through 26 June.

If this is correct, and the hypothesis is correct, then it is 'mission accomplished.'

There should be no excuses for not delivering Germany's gold.  And plenty of other bullion has been made available to solve those other pesky failures to deliver that seemed to be cropping up.

So one may presume that the bullion is in the mail to its rightful owners, in care of the Herr Weidmann at the Deutsche Bundesbank. The NY Fed sends its special regards.  Ich liebe dich.

Unless of course it has been rehypothecated to those barbarian buyers in Asia and the Mideast, yet again.

C'est la guerre des monnaies. Quelle dommage!

I have also included Nick's personal wave count for gold and silver, although I am not an adherent to the waves theory per se. And his long term confidence range for the gold bull market.

The stars seem to be aligning, with perhaps a few more antics and end of quarter shenanigans.  But boys will be boys, and they can't keep their hands off their toys.  So who can say what will happen next.  How about another round of bailouts?

Dubai: Not Enough Space On Flights To Carry Gold From West To East

Dubai is a hub for gold flowing from West to East.

But no gold for Germany can be found.

Could it be an unofficial bail-in? 

Curiouser and curiouser.

The National UAE
Gold rush 2013 style has Dubai scrambling
By James Doran
Jun 28, 2013

There is not enough space on airlines flying in to Dubai to meet the rapidly rising demand for physical gold in the emirate since the price plunged to record lows this week.

The price drop led to a rush of buyers for Dubai gold from the Middle East, South East Asia, the Balkans, Turkey and parts of Europe according to Tarek El Mdaka, the managing director of Kaloti Gold in Dubai.

"I cannot find a place for transporting gold on Emirates, on BA on Swiss Airlines this weekend," Mr El Mdaka said. "I am shipping in one-and-a-half to two tonnes of gold every day and it is going straight out...."

Read the rest of the story here.

Gold Daily And Silver Weekly Charts - End of Quarter, Stealth Confiscation

There is intraday commentary here.  I think it is important.

One remarkable thing about today's market action was the rebound in the miners even as gold underwent another waterfall bear raid of selling down to the 1200 level. 

While one can assign any motives they wish to the speculation about if and why there is a stealth confiscation happening, I do believe that the trigger for this was the request from Germany to have their sovereign gold returned, and the refusal of the custodian in New York to do so until 2020.

That is huge.  It is almost incomprehensible.

Any fails to deliver or difficulty in obtaining supply at the LBMA or the Comex is most likely a secondary effect to this request.

The scramble is on to find bullion, because a failure to deliver on a legitimate request from a sovereign nation to have their gold bullion returned at the insistence of their citizens, who actually own it, is stunning. I am surprised that more has not been made out of this, and that the German people took this so blithely.

A default on an exchange can be covered up with forced cash settlements. A rehypothecation of customer assets by an MF Global can be sectioned off and minimized with the right PR campaign, localized to the investors whose property has been misappropriated and will not be replaced, except in discounted cash.

But for a central bank to release another country's bullion to their cronies in the market and then be unable to replace it without roiling he markets and sending a shock into the financial system is almost unbelievable.

This is what has happened in my opinion, and why the 'dogs of the market' were released by the financiers on their own people to try and hide what must be an embarrassment of the first order.

And if you believe I am mistaken, or engaging in some obtuse conjecture, I have only one response.

Prove me wrong. Make the markets more transparent. And return Germany's gold.

"Truth never damaged a cause that is just."

Mohandas K. Gandhi

This has become a badly done shell game of rehypothecated assets that cannot be unwound except with much higher prices which are viewed as an embarrassment and an impairment to a few of the TBTF Banks.   Well, they have had plenty of opportunity to cover their massive short positions, and free up bullion from the big ETF.

The initial misdeed may have been minor, but as it always seems to happen, the coverup is growing like some gothic structure.  This is MF Global on steroids.

I think these fellows are playing for time, perhaps hoping for some 'big event' that will allow them to reset the markets and the rules of the game, for themselves and their cronies, once again.

Maybe there will be a rationale,  a fairy tale, that this was a way to pressure Iran, who was rumoured to be resorting to gold payments when their currency was blocked in the international payments system. The American people might believe this. I doubt the rest of the world will.

Show us the truth while they is still an honorable way out. Make the markets honest and transparent again. Stop stonewalling on the investigation of the silver market.  Fulfill your oaths.

Stand and deliver.

SP 500 and NDX Futures Daily Charts - Back Up to the Trend Channel Top

The market has been rallying ever since it made that very precise hit on the Fibonacci retracement level that I pointed out just before it happened.

This is the end of the quarter, and so I would not be surprised to see the paint applied to the tape in liberal doses 'unless something happens.'

What else do they do in a kleptocracy.