Lauren Lyster Jim RickardsThe Daily Ticker’s Lauren Lyster interviewed Jim Rickards regarding the Bundesbank’s recent announcement that it will repatriate over 600 tons of German gold from the NY Fed and the Bank of France, and its implications on the gold market over the short and long term. 

Rickards stated that the Bundesbank’s gold repatriation is world historical, is massively bullish for gold, and believes that China has doubled to tripled its gold reserves since the last official statement of 1,054 tonnes in 2009!

Rickards interview on gold is a MUST WATCH!!

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Regarding the Bundesbank’s repatriation of gold from the NY Fed and the Bank of France Rickards stated:

This is a very big deal.  Now it hasn’t had much short term impact on the price of gold, but this is actually world historical in my view.  The German gold has been in New York since the early 1950′s!  After WWII Germany had no gold because it had all been confiscated.  They gradually began to earn gold through trade surpluses.  In those days, the 50′s, 60′s, and 70s you could cash in your dollars and get gold- but they left it in NY for very good reasons.  It was during the Cold War, there were Soviet attacks outside of Berlin, and they didn’t want to take their gold back to Germany.  But now, 25 years after the Cold War ended, they’re saying we want out gold back!  They waited a very long time, and they’re bringing it back in stages, but here’s the thing: gold is either money, or it’s not.  If gold is not money, you might as well leave it in NY because the storage is a pain in the neck, but if it is money, you would certainly want it back in Frankfurt, and that’s what the Germans are saying. 

Regarding the implications of the German gold repatriation for the price of gold Rickards stated:

Certainly the gold bugs are saying this is the beginning of the end, Germany’s taking their gold back and the price is going to scream.  But you have to understand that 99.9% of investors don’t get gold.  Warren Buffett comes out and says it’s just a shiny metal with no yield, gold hasn’t been taught academically for 40 years.  So we have 2 generations of scholars that anyone under the age of 50 that knows anything about gold is self-taught as they’ve stopped teaching it in the schools.  Institution allocations of gold are about 1.5%- their portfolio’s are about 40% stocks, 40% bonds, and about 1% gold, so there is an educational function that has to go on.  The gold will get there, but not all at once. 

When asked whether he was bullish short term for gold, Rickards replied:

Absolutely, but you have to pick your currency terms.  In dollar terms gold hasn’t gone up much lately, but in yen terms with the devaluation of the yen, gold is going up a lot.  Gold is a part of the function of currency wars, and you have to look around the world at who is weakening their currency the most, and that’s where gold is going up the most, but it (the currencies) take turns. 

Lyster asked Rickards how much China’s gold reserves might actually be increasing:

China’s gold reserves are going up.  We don’t know officially how much they’re going up, officially they say its 1,054 tonnes.  But when they announced that in 2009, their previous announcement was 600 tonnes in 2004.  They spent 5 years acquiring 500 tonnes secretly.  Not it’s been 4 years since then, and I’m certain they’ve been acquiring it secretly in the meantime.  In fact I know, as I’ve been to China and Hong Kong recently and spoken to the people who have been buying the gold for the Chinese account.  So we don’t know exactly how much they have, I estimate over 2,000 tonnes, but I’ve heard some estimates of 3,000 tonnes.   And they don’t have to move their gold from London, because they send it directly to their vaults in Shanghai.

Click here for Rickards full interview on gold with Lauren Lyster:

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  1. Rickards is off by a factor of 300%.  China has been buying 500 plus tons  a year  for 5 years.  They ramped it up in the last 2 years to 700-800 plus tons  per year.  China mines 300 plus tons via legal mines along with a similar amount from the illegal miners. Hong Kong has conduits of 300 tons a year.  This does not include the gold China acquired from bad bets at the bullion banks.  There is a pretty good chance China has as much as 10,000 tons in their vaults.  China doesn’t talk about their gold holdings for good reason  200 years of theft makes them reticent.  Their holdings can be inferred with some accuracy.  Jim Willie seems to have the best resources in these guessing games.  But China isn’t slowing down. It’s acquisitions of mines in Africa and other countries will increase their supply chain.

    • Exactly right, AG.  To those who keep telling us that gold “pays no interest or dividends” or “is a barbaric relic”, the question should be posed to them, “If so, then why are the rather astute Chinese collecting so much gold?”.  I would love to watch people like Buffet, Munger, and Bernanke try to fumble their way out of that one.  No MSM talking head would dare ask such a question, however, as that would end their career, and is more than sufficient reason to ignore those twits.  I would also like to see those same guys asked “If gold is such a terrible investment, why is it up 500% in the past 11 years and what other investment can you recommend that has done better?”.  Again, this is NOT gonna be asked of these guys… but it should be!
       

  2. Jim Rickards is a smart man and smooth talker, but he is a Zionist shill and a CIA asset.   I remember hearing him on KWN about 2-3 years ago and he was PARROTING ALL THE BS WAR PROPAGANDA regarding Iran/nukes.   He would suck the Devil’s dong for another gold bar and his children would never see the theater of war, I can guarantee you that.    I used to like him because he’s smart and affable and witty, but he is DEAD TO ME NOW.   He can FOAD (f off and die.)
    2000-3000 tons?   THAT IS VERY LOWBALL!!!   Hell, they are importing 100 TONS PER MONTH at times!    And they are #1 producer and keep all that gold too?!   That 1050 ton number was from 2009 and China was probably lowballing then.   There is no doubt in my mind China will surpass USSA gold holdings before Obomber is out.   It’s not a stretch for me to see Chinese being the dominant WRC (world reserve currency) and sooner than everyone thinks.   They will certainly have the gold to back it in just a few more years.   Then the PRC will have more gold than USSA.    That’s a scary thought, the 2 richest countries in the world being run by Commie dictators.
    It’s an understatement to say that I DOUBT the USSA has any gold left.  It’s all been leased, sold, and resold a hundred times over.   There’s no doubt about that imo.   I think they DO have a lot of gold in the vaults, BUT it isn’t wholly owned with clear title!   My take is that USSA will just steal all of the gold from any of the countries who were dumb enough to store it with the Zionists.    They will instead get paper settlement!  Maybe shares in GLD and SLV LOLOLOLOL

    • Talking about paper settlement….it seems to me there will come a day when PM prices will plummet as the paper gets flushed from the market.  Or else there will be a two tier market for a time. This will be the time to hold on tight in the middle of the maelstorm and not worry about price changes.
      Does anybody see any other outcome as paper gets settled?

    • “Does anybody see any other outcome as paper gets settled?”
       
      Yes, actually, I do.  I believe that as the economic collapse approaches us, there will come a divergence between the real price of physical PMs and their paper prices.  Paper will become less and less credible and people less and less willing to risk their money in such a shady bet.  Unlike today, buying futures specifically to stand for delivery and acquire physical metals will become the norm rather than the exception.  Eventually, the paper market will be abandoned rather than collapse.  It’s not that it will collapse so much as it will simply cease to be relevant any more.   As Rickards says, though, it will be an educational experience, as there are 2 generations of investors out there with no idea of the real value of gold or its true position in the financial pyramid.  

  3. “It was during the Cold War, there were Soviet attacks outside of Berlin, and they didn’t want to take their gold back to Germany.  But now, 25 years after the Cold War ended, they’re saying we want out gold back!  They waited a very long time, and they’re bringing it back in stages,”

    Perhaps someone could explain to me why the germans want their gold back after 25 yrs? And why will it taken seven yrs to get a small fraction back? Why not all of it?

    Could it be that the gold is long gone and now the fed is out buying it back but if so, why wait 25 yrs? Blackmail? Escrow for a “free world”? Payback for the holohoax?

    • The Germans are either getting it all back secretly is one scenario.  The other could be the US has to go out and buy it and give it back to the Germans so as not to move the price up.  Or maybe the US will just commandeer all the gold and use force majore to tell the Germans just keep buy t-bonds or gold certificates.  The US has done it in the past and will most likely to it again.

    • Maybe Germans are going to get it back now, and the 7 years thing is a dog and pony show, so if anyone else comes along with that demand they can say,”no problem, you’ll just have to wait 7 years like Germany did.”    Naah!   Probably the reality is that Germany will be lucky to get their “fractional” amount of gold in 7 years.   Basically Western central banks are going to have to compete with all the other accumulating central banks to satisfy these “redemptions” for the next several years is what it looks like to me.   All these so-called market analysts who are calling for gold to fall back a few hundred dollars in a couple more years aren’t playing with a full deck.    The number of mines that would be shuttered at that price?!  Wow.  Practically everything in South Africa with $1000 cash costs and all these shitty juniors that can’t even make a profit at $1600 gold.

    • My bet is that any nation that does not recover their gold within the next 3 years isn’t going to get it at all.  By that time, I fully expect the derivatives nuke to have detonated and completely destroyed the world financial system.  Any country holding anyone’s gold at that time will not be giving it up and The Great Reset will be on.
       
      “All these so-called market analysts who are calling for gold to fall back a few hundred dollars in a couple more years aren’t playing with a full deck.”

      I think it more likely that they are just reading from the script they have been handed by TPTB.

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