If Your Central Bank Keeps Gold At The NY Fed, It’s Gone

bitcoin goneAll 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.  –NY Fed website

Recall, after a couple of weeks of negotiations in the proverbial smoke-filled room, it was agreed that the U.S. would return 300 tonnes of Germany’s 1500 tonnes being kept in NY Fed vaults over seven years.  This equates to a pro rata 43 tonnes per year (approx).
First year scorecard:  the U.S. shipped back 5 tonnes and they were in the form of bars that had to melted and re-cast.  If you re-read that passage above, it should leave you scratching your head.
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Want to Know What’s in Fort Knox? Here’s The Bar List

Thanks to a tip from an SD reader, we have discovered the US’ official bar list of “Deep Storage Gold”  held at Fort Knox, Denver, and West Point, buried in a PDF file on the House Financial Services website.
Updated on Sept 30th, 2010, the document provides a full bar inventory including total bars, weights, and fineness of the US Deep Storage Gold reserves.  

For all those inquiring minds wondering how much if any of the US’ gold reserve remains, the official US Deep Storage Gold bar list is below: [Read more...]

Koos Jansen- The German Gold is Gone!

Bernanke-Dimon-Fed-TunnelWriter and researcher Koos Jansen from In Gold We Trust joins the SGTReport to talk about the shocking developments at the Shanghai Gold Exchange – and the German gold issues, including the statements from Elke Koenig, the president of Germany’s top financial regulator, Bafin who candidly stated last week that “manipulation of precious metals is worse than the Libor-rigging scandal.” [Read more...]

Chinese Gold Leasing: Hidden Danger

gold leasingBusinesses in China are using gold leasing from banks to solve their short-term funding problems in the hope of buying back the gold at lower levels to repay the lease. However they can be short-squeezed when gold moves higher.
Many Chinese real estate investment products are facing default risks, and gold lease arbitrage also faces the volatility of gold price.
If these 2 risks occur at the same time, this seemingly risk-free arbitrage could be in fact “picking pennies in front of a bulldozer.”
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Alasdair Macleod on the First Western Central Bank to Admit Gold Leasing

gold vault“Throughout these years no more than half of the gold has been invested. Gold has been invested in for example deposits similar to money market deposits and gold interest rate swap agreements. Gold investment activities are common for central banks. Risks related to gold investments are controlled with limits, de-centralising investments and limits regarding run times.” -Bank of Finland [Read more...]

Gold Bank Run Begins? Dutch Bank ABN Amro Halts Physical Gold Delivery!

empty vault*Breaking
The Cyprus/ Eurozone crisis has just intensified, as Dutch Bank ABN Amro has sent a letter to clients this weekend informing them that they will halt extradition and physical delivery of their clients’ gold holdings effective April 1st!

No worries however, Amro ensures its clients that there is no need to panic or do anything rash (such as remove your phyzz prior to April 1st:
We ensure that we have your investments in precious metals now the new way to handle and administer

Forget traditional imminent deposit bank runs in Cyprus, has a physical gold bank run begun?
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Texas to Repatriate Gold From NY Fed? Them’s Fightin Words!

fightin wordsBy Bill Holter:

There is a bill proposed to the Texas legislature that would allow various state pension plans to invest directly in PHYSICAL Gold.
The proposed bill would create the ability for the state to actually build its own depository where “state sovereign” Gold would be stored.  Can you imagine the response out of Washington if a bunch of redneck, backwoods Texans demanded their Gold be delivered?  Would Texas receive the same “7 year” waiting period response that Germany received when they requested their bullion be repatriated?  The bill would also allow for individuals to eventually store personal Gold in this depository.

If this bill passes, you can pretty much bet that “them’s fighin’ words” will be what we hear out of Washington.  I can already see the dust storm coming.  Were the federal government to spazz out and declare a confiscation and Texas was sitting on a “hoard” of Gold, this dust storm would be a bunch of military tanks rolling along on their way to make a “withdrawal” from the depository.  Say what you will but if you really think about it, other sovereign countries have been invaded and their Gold plundered many times for less.  What do you think happened to Saddam & Qaddafi’s gold? [Read more...]

FOMC Minutes Answer Eric Sprott’s Questions Regarding Source of US Gold Exports!

Bernanke-Dimon-Fed-TunnelAhead of today’s FOMC statement (and in light of Eric Sprott’s 2nd installment of Do Western Central Bankers Have Any Gold Left?), we thought it a good time to recall a conversation between Alan Greenspan and others made at a December 1992 FOMC meeting in which key secrets were revealed regarding manipulation of the gold market by Western Central bankers.

As The Doc discussed with Eric Sprott in our recent interview, the US exported $4 billion in gold in December.   Eric pointed out that $4 billion is 2.5 million ounces of gold exported in a single month, when the US produces 8.8 million ounces annually.  Eric asked rhetorically where 2.5 million ounces of gold were coming from.
Courtesy Former Chairman Alan Greenspan and the minutes from a Dec 1992 FOMC meeting, we just may have the answer for Mr. Sprott… [Read more...]

Treasury Releases Results of NY Fed Gold Audit, Inadvertantly Reveals US Gold Stores at NY Fed Are Only 466 Tons!

imagesThe Treasury Department has released the results of a gold audit on the Treasury’s gold holdings stored at the NY Fed which began in 2010. Not surprisingly, the Treasury report claims that the audit found no issues with the quality of the gold held at the NY Fed, or in any policies or procedures by the NY Fed.

The audit reportedly claims that in 3 of 367 tests of the gold’s purity, the gold was more pure than Treasury records had previously indicated, and as a result has increased the book value of the US’ gold holdings by 27 ounces.

The most newsworthy revelation in the report however was that the US (which is supposed to hold the vast majority of its gold reserves at the NY Fed) holds a total of 32,021 good delivery bars on deposit at the NY Fed:
As part of the audit, the Treasury tested a sample of the government’s 34,021 gold bars
in the New York Fed’s vault five stories below Manhattan’s financial district.

Why is this so significant?  As anyone with a simple calculator can discover, the Treasury department has just inadvertently admitted that rather than the official 8,133.5 tons the Treasury reports as the US’ official gold reserves, the Treasury’s actual physical gold stores at the NY Fed are a measly 466.57 tons!   While the Treasury does reportedly also hold gold at Fort Knox, several reports have claimed that up to half of the US Gold is held at the NY Fed!
No wonder it will take the Bundesbank 7 years to repatriate 300 tons!

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German Calls for Gold Repatriation Intensify As Fed Refuses to Allow Inspection

Calls for Germany to repatriate its 1,536 tons of gold reserves held at the NY Fed are intensifying as Der Spiegel reports the Federal Reserve has refused to allow German inspectors to even view the country’s massive gold reservesin the interest of security and of the control process“.

We have stated repeatedly that with repatriation and/or audit requests completed or in progress by Venezuela, Germany, Switzerland, and the Netherlands, The BOE and the Fed suddenly find themselves in a heap of trouble as the situation (and confidence that the Central banks actually still hold the tungsten gold reserves on deposit) is rapidly deteriorating. 
More on the Fed’s non-compliance with German requests to view/inspect their own gold below.

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