After months of dragging their feat and claiming it was necessary for national security reasons to keep the info classified (sounds like an freedom of information request to the Fed) The Bank of Mexico has been forced to comply with the Federal Transparency Law and release information revealing where the Central Bank’s gold reserves are held.

In what will not be a surprise to any SD reader, the report reveals that The Bank of Mexico holds less than 5% of it’s gold reserves within Mexico, while the remaining 95% of it’s ‘physical’ gold reserves are held in the US and London (translation- nearly the entirety of Mexico’s gold reserves are held at the Bank of England and the NY Fed basement, and have likely been rehypothecated more times than an MFG client’s assets).

Our friend Eric Sprott recently pointed out in his monthly newsletter Do Western Central Banks Have Any Gold Left? the likelihood that the Western Central banks have largely leased out the gold they are supposedly holding as reserves.
In effect, Mexico just admitted that their actual, tangible gold reserves are 1/20th of the stated total.  Perhaps Mexico should consider hiring Hugo Chavez as their gold reserves consultant.

Got PHYZZ?

Last year the story went around the world: Banco de México (Banxico) refused to reveal in what country its reserves of gold were stored. Mexico was on the world stage as regards gold, after it purchased 93 tonnes, and rose in the global ranking of gold reserves calculated by the World Gold Council.
Today, thanks to the Federal Transparency Law, Banxico has become perhaps the first central bank to reveal in writing the amounts of its gold holdings as well as the names of its custodians and the locations where it s gold holdings are supposedly held.
It was quite difficult to obtain this information, for the Bank refused again and again to hand over the information until compelled to do so by a ruling of its own “Department of Management for Rules Control”, which is the entity in charge of dealing with appeals presented as “Appeals for Revision”.
The wrangling went on for four months, during which Banxico insisted that it was necessary to classify as “Reserved” all information referring to its gold position; it claimed that revelations might “harm the financial, economic or monetary stability of the country”.
Once the four cases were resolved favorably, the Liaison Unit of the central bank notified this journalist  through the following documents: REF.: 22.25.2012, I22.27.2012, I22.28.2012 y REF.:I22.29.2012, as follows:
  •    “At month’s end, April 2012, Banco de Mexico maintained a position in fine gold of 4,034,802 ounces, of which only 194,539 ounces are located in the territory of the United Mexican States.”  [Our emphasis]    
  •  Banxico “has been informed and knows the specific location of the gold position that forms part of its reserve of International assets”
  • The countries where these reserves are located are “United States of America, England and Mexico.”  And also, “the acquisitions of gold during March and April 2012 are under custody in England”. 
  • And besides, it is precisely there in “the city of London, England, where more than 99% of the  gold which the Bank of Mexico maintains outside the country is presently under custody…
The distribution would be: in England ˃94.23%; México, 4.82%; United States ˂1% Voilá.

Though the figures refer to past April, they are still current.

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  1. To all stackers of phyzz especially those with very small stacks (myself included). Feel good knowing that if you are holding 10oz of phyzz in your hand, when the SHTF you have more wealth than a paper millionaire :) or an allocated or unallocated holder of precious metals. Sweet.

    • Putting your money, jewelry, collectables, stamps, gold, silver, and marriage certificate in the bank is as intelligent as putting you cat in the dog kennel. If fact, your cat would be safer in the kennel than your money in a bank.

    • The only reason why I have a bank account is because my workplace needs to make a direct deposits for my paycheck and it’s an obligation or else, I might never open a bank account. I always withdraw from my account whenever I receive some cash.

  2. Mexico, holding its gold in England, where things can be re-hypothecated to infinity, is thus complicit in the manipulation of the gold market.  The citizens of Mexico ought to demand re-patriation of their nation’s gold, so that their true wealth in gold can be revealed, and to safeguard against the destruction of fiat paper ‘money’.

    • Just as in the United States.  The people of Mexico have no say in matters like this and are left to be railroaded by the bankers who caused the problem.

  3. @ UglyDog – Not as far as I can determine. Once had a discussion with the curator of the RBA Museum at the RBA HQ, on this topic and he was adamant that it was solely Australian government owned, unlike the US Fed :-) 

    I love the fact the RBA Museum has a 19th Century gold scale in a glass cabinet as it is no longer needed. 

    Photo 

  4. this really makes you wonder just how insightful venezuela was in bringing the gold home …. when mexico asks for theirs will there be any left and when the next country requests their gold will all other countries be watching with just a little fear …

    • The other funny thing is that an individual who owns physical gold is richer than Canada after its collapse because Canada doesn’t have any gold reserves. Why Canada why? X(

  5. There’s gold in London. Lots of gold. But there’s going to be a run on the vaults. First come, first served. We’re pussies. We’ll do the Right Thing.

     Chavez didn’t have his gold in the States. We Brits had it. So he politely asked for it back. And we gave it to him.

  6. @RocketsRedGlare  Um… Can you think of something the Americans didn’t take from Mexico in the first place? By rights, everything from the Dallas Cowboys to the Goose Creek oil field should belong to them.  ;)

    Then again, they did swipe most everything they got from the Aztecs…  

    • @Tawnyard: Please show me ANY LEGITIMATE CLAIM BY MEXICO! TEXAS for instance! How about California! The entire South West! It was a time of illegitimate conquest and they lost!!! It never belonged to the Spanish or French or Austrian… It was ALL Indian land! The Indians and Americans have the ONLY legitimate claims! The Indians signed peace treaties or were physically conquered! The Spanish and Mexicans never did either. The Spanish may have conquered the Aztecs but never the Apache, Comanche, Navaho or any other North American tribe!! OR US! Mexico is lucky to have the land they still have! We took everything N of Mexico City in the Mexican American War and then gave most of it back!

    • @Tawnyard

      While you’re at it, why don’t you also state that the right thing to do is to send the descendents of the American slaves back to their ancestral countries and make reparations?

    • I don’t care to go back to ancestral Germany at this time unless they offer me a high enough paying job at the Porsche factory. I am happy being a slave in this country.

  7. Someone needs to tell the Mexican government that “If you don’t hold it, you don’t own it”. In my opinion, I think that the US and the UK already sold the golds because they wanted to reduce the Eastern demands which is also known as manipulating gold’s price.

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