How will JPM Settle June's Comex Delivery Notices?Submitted by dducks on Wed, 06/26/2013 - 10:54
With June's window of Comex gold future's contract deliveries shortly closing (ends June 30th), JP Morgan, who's dealer account has not seen a deposit since the beginning of 2013, should see its last 12.17 tons leave its vaults and still be short 85,890.97 oz. From Harvey Organ's Blog:
Now for JPMorgan's dealer side and what the inventory should be:
On June 11.2013 we reported that 4935 contracts have been issued by JPMorgan's house account since first day notice and not yet subtracted out of inventory.
You will also recall two weeks ago on Saturday (and again on that following Monday night,) I reported that JPMorgan had 470,322.102 oz in it's dealer account. From that day until now, 61,613.07 oz was either withdrawn or adjusted out, leaving the dealer side at 408,709.033 oz where it sits tonight.
On the dealer side here are the last 13 trading sessions as to notices issued from JPMorgan's dealer side:
Wednesday : 0
Monday: 0 .
Thus, 4946 notices have been issued by JPMorgan (dealer side) so far in June for 494,600 oz and these ounces have yet to settle from JPMorgan's dealer side.
JPMorgan's dealer vault registers tonight 408,709.033 oz.
Somehow we have a huge negative balance as i) the gold has not left JPMorgan's dealer account and has yet to settle
ii) it is now deficient by 85,890.97 oz (408,709.03 inventory - 494,600 oz issued = 85,890.97 oz)
In other words, the entire 408,709.03 oz must be first transferred out of Morgan's dealer category ( in the same format as in the customer category) leaving it with zero, plus the 85,890.97 of additional deficient gold
JPMorgan has not had any deposits in gold in quite some time. As a matter of fact, zero ounces has entered on the dealer side from the beginning of 2013.
How will JPMorgan satisfy this shortfall??
This could be interesting.
UPDATE June 26, 2013:
No Change. Four more days until the end of June gold deliveries.
UPDATE June 27, 2013:
JPM is now deficient by 92,722.51 oz that needs to be delivered or settled TODAY, the 28th, since the 29th and 30th fall on the weekend.