The ECB very recently confirmed that its gold reserves are stored across 5 international locations. However, the ECB also confirmed that it does not physically audit its gold, nor will it divulge a bar list / weight list of these gold bar holdings…
Maybe you live in Greece or Cyprus or some place where they shut down the banks.
I think that activity is coming to the US sooner than later…
If you “own” precious metals under certain types of arrangements, you may be shocked to find that you’re in a legal limbo where ownership and possession are hazy at best.
It’s not a place you want to be…
The rehypothecation of gold reserves threatens the whole shaky edifice neo-liberal capital markets.
This game of musical golden chairs works fine, until the musical economy stops.
When countries start to rack up debt and desire to sell their own gold to pay the bill, and they can’t get it, they get nervous.
Now, if the economy is going south and the price of gold is heading up because of fear, those people holding paper gold in the form of futures or just deposit promises begin to sell off for profit or out of financial need.
So long as it’s a trickle, no problem, but if it becomes a torrent….
In this 20 page MUST READ report, Tocqueville’s John Hathaway breaks down why The Fed denied Germany’s gold repatriation request, the disappearing COMEX gold (with registered inventories currently at their lowest total since 1998), synthetic vs physical gold (rehypothecation vs the real thing), dark pools of London, gold as a source of bullion bank funding, the creeping collateral grab, and why YOUR LIQUID WEALTH IS NAKED!
Do You Know Where Your Gold Is?
In the latest episode of the Keiser Report, Max Keiser delivers an epic rant on banksters, gold, & China’s commodities rehypothecation scandal.
Max delves into the tangled web of debt and deception that led to the bond market selloff in 2013, the ongoing crisis of fraud and dark pools in London and falsified gold contracts in China.
I think most of you remember the Dutch bank ABN AMRO. Last month they came out with an analysis titled: It’s Not All Gold That Glitters.
I present the translation below, from which you can read that ABN AMRO is trying to change thousands of years of history by saying gold’s safe haven status should be revised, all because the price of gold did not behave as they expected in recent years (oh, and perhaps the fact that ABN AMRO defaulted on their clients’ rehypothecated gold in 2013 might have had something to do with it) .
Thou doth protest too much methinks.
An interesting read from a paralel universe.
According to the official 2014 report, the BoE had 755 tonnes less gold in their vaults in February 2014 relative to February 2013.
However, when we look at UK’s net gold trade over this period (March 2013 – February 2014), we can see 1593 tonnes were exported.
GLD’s stock lost 451 tonnes over this period.
This leaves a gap of 392 tonnes (1593 minus 1201), which had to be supplied by additional LBMA or private vaults in London.
According to the March 2013 Press Release, ABN AMRO’s gold that was in trust for clients had been rehypothecated, nay let us not use weasel-word bankster-speak, let us use English instead.
How about: “stolen”,” illegally converted to title of another party” instead?
If you receive news that a large bank can not deliver the gold (entrusted to them by their customer clients) back to those clients upon demand, well you might think that the gold is gone, and some freshly printed notes will be offered to clients instead, whereupon the clients would have to enter the gold market and purchase “their” gold back.
It seems a reasonable and bullish way to interpret such information, doesn’t it?
Well, let us look at the gold price in the period following this news release.
Here is a chart of what happened next:
Regarding Goldman Sachs’ hypothecation of Ecuador’s 13 tonnes of gold: Ecuador has 26 tonnes in total.
You don’t manipulate the market with 26 tonnes. China withdraws over 30 tonnes per week from the Shanghai Gold Exchange. Then there’s India. Then there’s Russia. Then there’s Viet Nam (Viet Nam is the 5th largest gold importer in the world – that’s a fact). Then there’s all the other gold-buying countries. At least 50 tonnes of gold gets bought every week. This is gold that has to be delivered.
Coincidentally, or not coincidentally, Russia bought 25.5 tonnes in April.
My bet is that Goldman may have needed that gold from Ecuador to deliver to Russia.
First the Bundesbank, now the Austrians?
The National Bank of Austria is demanding a full audit of Austria’s 150 tonnes of gold reserves on deposit in London at the Bank of England- 80% of the nations total gold reserves, after succumbing to pressure from the Austrian public.
In a public statement, Ewald Nowotny, Governor of the National Bank of Austria stated: “I acknowledge the request. Any grocery store is obliged to do inventory once a year. It is the only way of getting rid of these unreasonable allegations”.
- Massive US gold exports: NY Fed stealing sovereign nations gold- Harvey states ALL CUSTODIAL GOLD AT NY FED has now been shipped to China!
- GOFO Negative & silver backwardation with huge physical premiums in Shanghai- shortage looms
- Death-blow to the dollar– Russia/China $400 B Gas deal a decade in the making is official
- Eric Dubin explains how after years of rumors, COMEX default could come this summer!
- Eric makes the case for a 50% upside move in silver coming in 6 months, while Harvey states that the cartel is nearly down to their last ounce of gold, & AN OVERNIGHT REVALUATION OF GOLD TO $4,000 WITH NO-BID SELLERS IS COMING IN 2014- PERHAPS AS EARLY AS JUNE!!
“The fun starts when the run on COMEX begins- $1.4 quadrillion in derivatives will burst in 2014 in a full-blown implosion! -H.O.
The SD Metals & Markets With The Doc, Eric Dubin, & Guest Host Harvey Organ is below:
Good evening and welcome to the business magazine Makro. For many people, the purchase of gold represents a safe reserve for bad times. No wonder that, at the height of the financial crisis savers were queuing up at gold dealers. Throughout history, gold has served as a promise of reliability and stability.
But today there are considerable doubts as to whether that promise remains valid, because an examination of gold prices reveals machinations fit for a financial thriller.
Gold is the opponent of debt based moneys, i.e. currencies, and in particular the US Dollar. Therefore, the US Federal Reserve has an interest in a weak gold price, and the US government protects the manipulation of the gold price by the private banks.
For years, the US Federal Reserve has served as the lender of last resort. Gold must be weak if a loss of confidence in the US Dollar is to be averted. It has been difficult to prove that this is a rigged game with a stacked deck, but if the gold market manipulations are indeed encouraged in addition to being condoned, that would explain why oversight bodies have thus far turned a blind eye to it, despite years of massive conspicuous activities in the futures markets, as with the gold fixing in London.
Much has been written lately about the influence of Chinese commodity financing deals (CCFD) on Chinese gold demand.
An often perceived analysis is that CCFD have been inflating Chinese demand/import figures and thus balance the surplus of physical gold supply in China.
Goldman (& ZH’s) argument is: “holdings increased by commercial banks to back paper products (a legal requirement in China)”. Ok, so that has got nothing to do with demand?
That gold is just brought into a vault, laying there soon to be obsolete?
No, they’re referring to Chinese buying gold on paper, that oddly enough has to backed by physical gold in China –
I know, it’s unbelievable!
Italy’s central bank, the Banca d’Italia, has recently published an important document detailing the storage locations and composition of the country’s gold reserves. The document confirms that Italy’s gold is held across four vault locations, three of which are outside Italy.
This is a significant announcement given that the Banca d’Italia is the world’s third largest official holder of gold after the U.S. and Germany. Italy officially holds 2,451.8 tonnes of gold, worth more than €72 billion (US$ 100 billion) at current market prices .
In the detailed three page report focusing exclusively on its gold reserves (and only published in Italian), the Banca d’Italia reveals that 1,199.4 tonnes, or nearly half the total, is held in the Bank’s own vaults under its Palazzo Koch headquarters on Via Nazionale in Rome, while most of the other half is stored in the Federal Reserve Bank gold vault in New York.
Although the western media at large, and especially the mainstream in the United States, remarkably never reported the event, the United States Government defaulted on Germany’s request to have some portion of its gold shipped from the Fed custodial vaults back to Germany.
That’s right – the U.S. outright defaulted.
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. –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.
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:
“There will be no easy heads-up alert on the quick changes to the gold market. When the gold price starts rising, it will mean that China no longer has been given the big wide berth in high volume cheap gold purchases. A rising gold price will internally mean that the banks are breaking, at the same time the Chinese are to be frustrated. The Boyz are stealing all the Saudi gold now, left unprotected in London and Switzerland. The Saudis (and all Arabs) are the new targeted victims for stolen wealth in order to keep the system going. A massive disruption is coming.”
The rehypothecation of official gold accounts has entered a new phase. The gold owned by defenders of the Petro-Dollar is being seized, confiscated, pilfered, and stolen for the unspoken purpose of continuing the fiat paper currency regime with the tainted debauched USDollar at the center.
The Saudi gold in London will be totally gone in a few more months. To be sure, it is going mostly to China.
The Saudis are being gutted.
Friday we published an interview by German newspaper Handelsblatt with Carl-Ludwig Thiele, Member of the Executive Board of the Deutsche Bundesbank, that was published in english on the website of the Bundesbank regarding the progress of the German gold repatriation process. This publication was clearly an attempt to convince the international audience that there were absolutely no problems in the repatriation process, apart from a slow startup. The BuBa claims to have audited all their gold in the US, as well as the shipments to Germany, the refining that took place in Europe, and claims that the bookkeeping is all according to plan…
The gold (German reserves) is being transferred to Germany for the first time. Until 1998, only 2% of our gold, or thereabouts, was stored in Germany. In the first year, we transported five tonnes from New York. This year, we will transfer 30 to 50 tonnes, or perhaps even more, from New York to Frankfurt. And there is still next year to come….We will store half of the German gold reserves in Germany by 2020 at the latest. -Carl-Ludwig Thiele, Member of the Executive Board of the Deutsche Bundesbank, 2/19/14