Comex gold inventories collapsing - looks like a 3rd wave down

Today's GATA email linked to this story which points out a very interesting chart.  The gold colored line at top
is of course the gold price.  The dark and light green charts below it represent the physical metal on hand at the COMEX (Commodities Exchange) warehouses of the NY Mercantile Exchange.  COMEX is the major metals market place in the US if not the entire world. 

In the news we have been hearing about the repatriation of gold by everyone from Argentina to Germany to the state of Texas.  What you are seeing in this chart is the repatriation of physical gold by the banking and investment community.  The significance of this could turn out to be of historic degree.  If this trend continues (and from the looks of the double top, and declining double top charts, it looks like it very easily could), it would mean that people are really losing confidence in having others hold onto their property. 

In these blog pages I have reminded readers many times that one sign of the Ponzi collapse will be the mass recognition that possession is 9/10ths of the law.  Importantly, you can see that the COMEX gold withdrawals began even before the Cyprus bank grab.  So the rich and powerful already knew what was going to happen – what had to happen – as the debt Ponzi continued to spiral downward out of control.  Their reaction was and continues to be to grab their gold and head for the door.  They are now more concerned with return of their capital than about return on their gold investment (for what is COMEX to these people other than a place to loan out their gold trying to make a interest fee based profit from its ownership?).

The collapse of a Ponzi is not recognized by the market participants until enough of the players pull out of the game leaving nothing for the remaining suckers to have.  There is no doubt that COMEX has sold far more gold than it has on hand.  It is certainly a fractionally reserved scam, just like our entire global banking system is.  People think they have value stored in the system when in fact there are more outstanding promises than goods to pay off the promises with.

Thanks again to GATA for calling these things out so that the public can know that these things are happening.  I'm quite sure the money elite already fully understand what is going on, where it has to lead and what the likely consequences of it will have to be.  Meanwhile, the average person is just living day to day, oblivious that all of this is happening and completely unaware that someday it will affect all of us in a very significant way.