gold vaultAll central banks still report gold as one line item of “gold and gold receivables”, which allow bullion banks to increase their unallocated balances which can then be used in myriad leveraged and hypothecated ‘gold’ trading transactions.
If you think 4 LBMA bullion banks passing a parcel of central bank gold claims around between them is excessive, wait until you see 28 bullion banks doing the same thing…

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shorts-burn-fireWith A Trend Change in Gold and Silver Prices Underway Friday, Expert Analyst David Morgan Joined the Show, Discussing:

  • Morgan and Dubin Explain Why It’s Gonna Be EXPLOSIVE In the 4th Quarter! 
  • Gigantic Tidal Wave of Managed Money is Beginning to Sniff Around Gold and Silver
  • Why Morgan Thinks This Is “Going to Be the Longest and Most Bullish Move in Precious Metals History” 
  • “The Secretary Had NEVER Seen Real Silver Before!’: Risks of Unallocated (Rehypothecated) Storage vs. Offshore Allocated & Segregated Bullion Storage in Cayman Islands
  • This is A Major Concern For the Silver Shorts…

GoldCore: Bundesbank Gold Reserves The German Bundesbank released an inventory of its gold reserves yesterday in order to quell ongoing public concerns about the true amount of actual unencumbered reserves.
Coincidentally, on the same day Deutsche Bank has warned it will lose a whopping €6.2 billion ($7 billion) in the third quarter, its biggest quarterly loss in at least a decade and potentially ever.

gold vaultHSBC has likely already leased out or hypothecated most if not all of Texas’ gold bars sitting in its vault.  
While HSBC would be on the hook for the gold bars owed to Texas, Texas would be at risk for the possibility that HSBC would be unable to procure and deliver even a single gold bar.

This exact scenario happened with futures broker MF Global

A remarkable report on The Austrian State Gold from the Austrian Federal Court (ÖBRH) has apparently just revealed that as of 2009, 56% of Austria’s gold reserves “held” at the Bank of England DID NOT PHYSICALLY EXIST!!!
No wonder that Germany & The Netherlands among others began scrambling shortly thereafter to repatriate what was left of their own reserves at the BOE & The Fed! 

gold vaultThe NY Fed states on its website:

All bars brought into the vault for deposit are carefully weighed, and the refiner and fineness (purity) markings on the bars are inspected to ensure they agree with the depositor instructions and recorded in the New York Fed’s records. This step is vital because the New York Fed returns the exact bars deposited by the account holder upon withdrawal—gold deposits are not considered fungible. 

This simply can’t be true. For one, the Bundesbank succeeded to repatriate 5 mt from the NY Fed in 2013 (although they wanted to withdraw 37.5 mt that year to repatriate 300 mt before 2020). Did they get back the exact same bars they once deposited?  No, the bars were remelted. This is only logic as we know New York has a big gold leasing market which is largely facilitated by gold from the NY Fed vaults. No, gold leasing is not a conspiracy, it’s just part of the gold market.