Monday, October 4, 2010

JPMorgan Reopens New York Gold Vault, Concurrently Launches Vaulting Facility In Asia (In Desperate Bid For Physical?) by Tyler Durden on 10/03/2010 19:09 -0700The key actor in the LBMA precious metal price-suppression scheme, JPMorgan, is now getting directly involved in physical gold sequestering: the FT reports that JPM has reopened its underground gold vault in New York that was mothballed in the 1990s. The timing is just a little peculiar: not ten days earlier, Jamie Dimon's bank, which has long been alleged to be the biggest shorter of the precious metal in the world via synthetic positions to the tune of 100x leverage, JPM opened a precious metals vaulting facility in Asia: "The facility, located in the Freeport area of Singapore, will provide gold and precious metal storage capabilities for corporate, institutional and retail clients in Asia-Pacific." Is JPM just seeing a terrific business opportunity in warehousing gold... or is the firm, which also happens to be gold custodian for Blackrock's IAU ETF with its 4+ tons of the metal, merely looking to find a way to transfer metal from the US to Asia, or vice versa. Or is JPM suddenly in dire need of actual physical now that gold is at all time highs, and clients are demanding delivery. What better way to unwind the ponzi than to transfer from one physical storage client who is depositing gold to one who is demanding it? Alternatively, the firm could be merely preparing the biggest mouse trap ever for when Executive Order number 6102.5 comes into play. Of course, all conspiracy theory conjecture aside, the most likely reason is simply that there is all that physical out there, which people have bought up and now are more than happy to give it to the one LBMA bank which is notorious for having a solitary purpose in life which is merely to decimate the price of gold... After all, Gordian's Knot and all that.

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