China, India and Russia are hoarding Gold. HUGE demand.
Yet the price remains about the same as it costs to produce it.
So why buy gold.
The US government is perpetuating a huge scam. There is speculation that it has sold nearly all of our gold and even our allies gold stored at the NY Fed.
What evidence is there to support this theory?
Germany asked for all of its gold back and wanted it in a year. The US panicked and asked for 7 YEARS to return the gold (now 8 Years). The US needs to return 674 Tons from NY. How did the US do last year? 5 TONS. plus about 30 tons from London in some squirrelly one time only activity. What will happen next year? Soon the scam will be exposed. World leaders KNOW the gold isn't there but they don't want to spark a panic. Once again, that's my humble opinion based on the facts above.
In the past 4 years the U.S. and German gold reserves have both risen steadily. The U.S. now has over 447 trillion dollars in gold held in reserves. Figures on gold reserves are kept by the auditors at the World Bank and are in the public domain.
ReplyDeletehttp://data.worldbank.org/indicator/FI.RES.TOTL.CD
This appears to be holdings of the IMF by country... not currency or gold reserves of individual countries... nor does it indicate how or when a physical audit was done. The IMF is the third largest holder (owner) of gold behind Germany #2 and the US #1.
DeleteI don't know just what to believe about the gold flow around the world but I know that the US has been less than forthcoming about a physical audit and as far as the IMF is concerned, their is considerable speculation as to whether the IMF holds physical gold or only warrants from member countries... if the IMF has only claims against the inventory of other countries, is the gold inventory being counted twice... The IMF have never conclusively stated that they have taken possession of all the physical asset that they account for on the reserve sheet shown in your link. Note that the total for the US only shows $547bn which is a far cry from the claimed value of US gold holdings.
Gold Demand and Supply – Q3 2013
ReplyDeleteDownload full report: Gold Demand Trends Q3 2013
Third quarter gold demand of 868.5 tonnes was worth US$37bn. However, demand remained strong across most countries and sectors: after reaching record levels in Q2, consumer demand remained robust in Q3 and year-to-date is at a record-setting pace. The exceptions were gold-backed ETFs, which had net outflows of 119t this quarter, compared to 402t in Q2 2013, and India where the result of government intervention in the Indian gold market was to reduce demand by 71t compared with Q3 2012. Central banks continued to add gold to reserves, but at a slower rate.
Demand totalled 868.5 tonnes, worth US$37bn.
Finally, here is the true account from Der Spiegel, http://www.spiegel.de/international/germany/german-politicians-demand-to-see-gold-in-us-federal-reserve-a-864068.html
ReplyDeleteAnd this article proves to you.... what? The only think of any proof was that someone was allowed to see in to one of nine vaults... He didn't count it and he didn't get to see what, if anything, was in the other 8....
DeleteWell, Der Spiegel is a highly respected German news outlet and if they call something a conspiracy theory, they are probably right. It is comforting to know that our Federal Reserve keeps to their security program and doesn't give in to the fruits and nuts. I don't see any German Government official proclaiming over this issue, do you? Doesn't that tell us something?
DeleteI guess we take away what we want from material that we read.... The title of the article, “Precious Metal Abroad: Why Germany Wants to See its US Gold”, suggests no conspiracy or even the proposition that German politicians are even odd for suggesting that they want to "See its(Germany's) US held gold", which is, by the way, not an ETF traded mixed lot but a stored property … like a car or a diamond ring that are owned as presented by the depositor.
DeleteAs a matter of fact the article only mentions the words ‘conspiracy theory’ in connection with the overwhelming lack of transparency, secrecy and obfuscation on the part of the Federal Reserve with respect to countries being able to see and account for their own physical assets and indeed the pathetic excuse for an audit of US gold reserves that spawns such considerations. The letter that was mentioned, while wrongly attributed to German national gold reserves gave rise to wrongheaded thought for sure, but it should none the less raise an eyebrow by anyone who take a minute to think about the words written.
“Blessing thus promised the US Federal Reserve that he would no longer convert the colossal German dollar reserves to gold because this would have caused the currency's value to plummet.”
The reclamation of 35 dollars of gold for 35 dollars of paper would in no way cause the ‘value of a currency to plummet’. That is a zero sum transaction and until the US severed itself from the Breton Woods treaty, remained, by agreement, at 35 US dollars per ounce. The exchange would have done only one thing… forced the US to remove millions of paper dollars from circulation but would have had no effect on the pre agreed international value of the paper currency. The only thing that would cause the dollar’s value to drop is if it came to light that the US was circulating more paper dollars than the amount of gold held in reserve… Of course the US’s hail merry departure from the Breton-Woods left little doubt about US intent or indeed the REAL diminished value of the paper.
Just because, as the article says "German central bankers have contented themselves with written affirmations from their American colleagues…" does not mean that others, like the real owners, might not want a real audit. Nor does it mean that central banks, who regularly collaborate in secret, should be trusted with what is essentially the people’s wealth.
Thiele’s use of the word ‘Groteusque’ was in with regards to the insanity of repatriating gold back to Germany when the ECB is doing its best to strip Germany of its Bundesbank held assets and redistribute them to the other member nations and the logistical difficulty’ of moving that much gold and not that positive knowledge of the gold's disposition was necessarily wrong. He, himself stated “I would like more transparency on the issue…The Americans are very sensitive, though, when it comes to security procedures in their gold storage facilities." Doesn't sound like outlandish conspiracy to me.. just concern, like I have about what the US federal reserve is really up to and what its real status is after some 100 years of secrecy.
Continued….
You cite an article written in Oct 2012 and attribute the request to ‘fruits and nuts ’. Three months later Germany (the whole fruity lot of them) officially decided to repatriate all of its gold from France and some of the holdings in the US… A year on and this isn’t going as swimmingly as one might have thought. The fed has concluded that it would take 7 years to return the requested 300 tons of 1500 tons held in the US … I have to ask… Why? Of course Germany is now one year into the transfer and has received 5 tons from the US of what it requested, not a schedule that will allow for all of it to be transferred in the already hideously long 7 year time frame. At this rate if Germany wanted all of its gold returned it would take 300 years!
DeleteThe reason… Gold stored for Germany is not in what is known as a "London Good Delivery" standard. That is, the old bars, though serial numbered and assayed, were not in the 12kilo beveled sided format… and the fed feel the need to smelt it before delivery of course this was all in agreement between the two central banks… Not the German government. This smelting process, by the way, removes all ability to chemically determine the origin of the original gold. Germany is perfectly capable of smelting its own gold into whatever shape and size it desires (It already has with gold it holds internally. This prevents anyone from knowing if the FED is doing a ‘madoff’ with the world’s gold supply… this couldn’t have anything to do with the so called ‘backwardation of the gold market’ could it?
From the FED’s own web site: http://www.newyorkfed.org/aboutthefed/goldvault.html
See any discrepancy between words and deed their?
The second excuse of course is that transport from the US is much more difficult than from Paris. Of course BIS (Bank of International Settlements) somehow managed to safely shift over 600 tons of gold in 2011. I mean are US and German war ships incapable of securing such a small cargo? I wonder what the fed will say when Nederland formally asks for its gold back? Venezuela, Switzerland and even Texas are making noises in that direction….
Regardless of conspiracy theory, (I didn't actually read that Der Spiegel proclaiming the desire for an audit as a 'conspiracy theory') if I have a safe deposit box full of gold, I would want access to it from time to time just to be self assured that if there ever came a time when I just couldn't live without it... I didn't open the box and find it emptied...and when it is returned, I want it to look just like it did when I had it stored.
Security is fine but proving that you are the upstanding business that you say you are sometimes requires a little forthrightness and proof... particularly when you are looking at forward debt obligations of well north of 100 trillion dollars that shouldn't be too much to ask… even if the property owner is a board certified conspirasist[sic?]….
So why buy gold? So you can keep it 10 years and lose your ass again?
ReplyDeleteThe price of gold on the commodity markets is dependent upon speculation. That in itself is a dangerous thing which leads to uncertainty and volatility, not what you want in a monetary standard. To return to the gold standard would be the height of folly, as world economists recognize.
ReplyDeleteAs opposed to a fiat money system? Gold, silver, copper, nickel are all commodities and should be treated as such since they are hard currencies. I would prefer that all U.S. dollars were backed by something other than faith in the Federal gov. since every society since the foundation of civilization has fallen with out of control inflation and currency destruction.
DeleteRome........
Germany......
Venezula.............
Etc................
Nixon screwed our monetary system and you are going to be the product of a sucker taking from the government while being screwed in retirement.