Silver Update: Gold Lies

Gold liesBrotherJohnF discusses the German gold repatriation (or complete lack thereof) as well as China’s gold demand soaring to new record highs in his latest Silver Update:
Gold Lies
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Buba Folds- Withdraws Gold Repatriation Request!

Bundesbank German goldWhat we have just discovered, and what presumably few people in the English speaking world are aware of, was that the Bundesbank had made an earlier gold repatriation request (to the much publicized 300 ton repatriation request) in the fall of 2012, to ship home 150 tons  from the US in three years (ending in 2015).  So after January 2013 two repatriation schedules co-existed. They were not mutually exclusive – meaning Germany expected to see back was 150 tons from the US by 2015 – and ultimately 674 tons by end-2020 from both the US and France.
This was the plan…
However, it appears the Buba has folded from pressure from the Fed after a mere 5 tons of Germany’s gold reserves were delivered in 2013 as the Handelsblatt reports: ”The Bundesbank no longer feels bound to the concrete repatriation commitment time table they now admit for the first time.

The Bundesbank has now withdrawn the original schedule to repatriate 150 tons from the US before 2015. [Read more...]

The Financial Times: Learn From German Central Bank and “Demand Physical Gold”

Caption Contest 1The Financial Times has told investors that they should act like the German Bundesbank and “demand physical gold” and warned that gold price “manipulation” could end “catastrophically“.
“There’s surely no chance that the Fed’s little delivery difficulty has anything to do with the cat’s-cradle of pledges based on the gold in its vaults?  As has been remarked here before, forecasting the price is for mugs and bugs.
But one day the ties that bind this pixelated gold may break, with potentially catastrophic results. So if you fancy gold at today’s depressed price, learn from Buba and demand delivery.”
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Alasdair Macleod: Germany’s Gold is the Story de Jour

goldIt transpired last week that of the 43-odd tonnes per annum the Bundesbank expects to be returned from the New York Fed, only 5 tonnes arrived in 2013.
Furthermore, of the 373.7 tonnes stored with the Banque de France, only 32 tonnes was delivered. This is little more than a morning’s delivery in the London market, so it is hard to swallow the Bundesbank’s excuses about logistics.
The burning question is why is it so difficult to get its gold back? [Read more...]

Glenn Beck Takes Gold Rehypothecation Story Mainstream- German Gold is GONE!

Bernanke-Dimon-Fed-TunnelIn the eyes of TPTB, it is one thing when a fringe financial blog such as SilverDoctors reports on and discusses the fact that the gold reserves supposedly held 5 stories below the NY Fed are likely rehypothecated and vaporized long ago.  It is another thing entirely when the former top personality on Fox News, and whose news website The Blaze is the 140th most visited website in the entire US, devotes 20 minutes of TV time discussing the German’s attempts to repatriate their gold reserves, and discusses the implications of what the Fed only returning 37 tons of re-cast gold bullion to the Bundesbank in year 1 likely means.
In Glenn Beck’s own wordsThe situation is worse than even I thought it was….There’s not alot of that gold (at the Fed) really left.  The answer is rehypothecation.
How hard is it to return the Bundesbank’s gold? It has their stamp on it!  The reason the German gold is being returned over 7 years is that a phone call came in to the Germans and said  ‘Hey, Rehypothecation, Dude! There’s not enough gold here!  We were playing a game!’
Once people demand their hard asset back, the entire thing collapses!

It appears the gold manipulation and rehypothecation story has just gone mainstream. [Read more...]

Dutch Central Bank Tight-lipped About Gold Policy

I have heard second hand information that the Dutch Central Bank (DNB) and the Federal reserve (the custodian of the Dutch gold in New York) had some correspondence in recent years about monetary gold, but the Dutch did not decide to repatriate any gold because the subject was rather sensitive, according to my source.
On December 12, 2013 I sent the Dutch Central Bank (DNB) a WOB request to inspect all correspondence, from the past 45 years, regarding monetary gold between DNB and all other central banks, mainly the Federal Reserve.
The next day I got a call from DNB in which they told me they received the request and it would be processed, confirmed by a letter four days later.
But then on December 20, 2013, I got another letter from DNB.
Translated in short: the WOB act (Dutch FOIA Act) applies for just about everything the government does, except its gold dealings. What a surprise..

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Long & Wrong? Ned Naylor-Leyland on The Last Little Trickle of the Gold Repatriation Game

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Quilter Cheviot Investment Director & precious metals expert Ned Naylor-Leyland joins The Doc & Eric Dubin on this week’s SD Weekly Metals & Markets for an in-depth discussion on gold & silver.
Ned discusses the German investigation into precious metals market manipulation- and why unlike the CFTC, the German’s have the motivation to conduct a real investigation.
We cover the Bundesbank’s attempts to repatriate its gold reserves: why NNL is “da*n sure” the Germans knew their gold was gone, and that after only receiving 37 tons in year 1, Ned almost wonders whether the Germans will get ANY more, and states that we are likely seeing the last little trickle of the repatriation game kicked off by the Venezuelans.
Naylor-Leyland believes it is difficult to say the price of gold has really fallen when you see such a complete divergence between demand for the underlying and the price on the screen and that redemption for precious metals investors may not be far off:
We’ve all been long and wrong for awhile, but with the kind of premiums in India- the same kinds of premiums that broke the London Gold Pool last time around- the same 20% ish arbitrage opportunities.  The physical is swirling around madly, and I see a change taking place very soon.

The MUST LISTEN SD Weekly Metals & Markets with Ned Naylor-Leyland is below: [Read more...]

Italians Value Gold Reserves – EU Deposits To Flow To Gold

gold vaultA survey for the World Gold Council found that just 4% of people in Italy would back plans to sell the nation’s gold reserves according to Bloomberg.
Some 52% of citizens and 61% of business people would support the use of the nation’s gold reserves to reduce debt costs, the World Gold Council said. The study by Ipsos MORI surveyed 1,009 Italian citizens aged 16-70 and 300 business leaders.

Whether to sell Italy’s national gold reserves is an interesting question. A perhaps as interesting question and more important question in the light of the Troika expropriation of bank deposits is will Italians begin to diversify some of their savings in Italian banks into gold bullion?
The answer is almost certainly yes and the recent trickle of Italian money flowing into gold bullion, including into vaults in Switzerland, is likely to become something far more substantial in the coming weeks.
Capital flows out of periphery European banks and into gold has been quite low up until now but with deposits not safe now in the European Union that is likely to change and gold is likely to be one of the beneficiaries of the huge uncertainty that the Troika has managed to create about the banks in many European countries. [Read more...]

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...]

Jim Willie: France & US Liberating Mali Gold to Meet Bundesbank Repatriation Request!

mali goldThe Golden Jackass Jim Willie sat down with The Doc for a MUST LISTEN interview regarding the markets, gold & silver, and a coming European banking collapse.

Willie made explosive allegations regarding the banking cartel, stating that the US & France launched an invasion of Mali in order to utilize Mali’s gold production to meet the Bundesbank’s 300 ton gold repatriation request.
Wille states that there is a huge shortage of the metal, and that a massive gold rush will soon be ignited, resulting in an epic short covering rally and a 50% explosion in the price of gold.

Jim Willie’s full MUST LISTEN interview with The Doc is below:
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BANK OF MEXICO BUYS PAPER “GOLD”, SELLS PHYSICAL!

goldTwo years ago Banxico bought 100 tons of gold, and in 2012, added 20 more tons. Last February, its total holdings amounted to 124.5 tons, equivalent to just 4% of Mexico’s international reserves.

However, this position has been reduced in recent months because the Mexican central bank has been consistently selling part of its gold for at least nine consecutive months (May 2012 to January 2013).
This wrong decision is compounded by the fact that the gold sold was part of the very small amount of physical bullion that Mexico had in it’s possession; bars that had been stored in Banxico’s vaults.

To be precise, the Bank of Mexico released about 36,000 ounces of gold in just a matter of months. 36,000 oz is nearly a fifth (18.5%) of the only 194,539 oz. that were in the country until April 2012, according to its own figures. 
In other words, Banxico purchased 120 tons of paper “gold”, and sold a very important part of the real metal it held! [Read more...]

Jim Willie: Gritty Questions on the Historic Collapse

collapseBy Jim Willie, GoldenJackass.com

The typical articles over the last many years have featured a particular theme. In the last few months, the central theme in Jackass articles has been the isolation and demise of the USDollar, how it is happening, why it must happen, and its importance in the restoration of the global financial structure. But this week, a sudden urge has come to address an overwhelming list of critical gritty questions. They crop up with clients, colleagues, and friends.

More than a crisis, it is more accurately described as a collapse of a corrupt inequitable monetary system, and a desperate defense by the major Western bankers to preserve their power over nations and their governments, alongside a vile vicious violent attempt by the United States to maintain its privilege as owner of the vast USDollar counterfeit machinery, as controller of vast banking pillars of paper columns, and as commander of a vast military.

THE UNITED STATES IS PREPARING TO FALL INTO THE THIRD WORLD.

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MEXICO’S FEDERAL AUDIT DEMANDS PHYSICAL INSPECTION OF SOVEREIGN GOLD HOLDINGS HELD AT BOE!

Bank of Mexico*BREAKING
Guest Post, by Guillermo Barba

Today we have an exclusive note on this blog: the Mexican Superior Audit of the Federation (“ASF” in Spanish), in its Report of Supreme Audit Results of the 2011 Public Account” delivered last week to the Chamber of Deputies, gave a stern “recommendation” to the Bank of Mexico (Banxico) to audit the Bank of Mexico’s gold reserves held in London at the Bank of England.

The reason is one of the most important issues we have addressed here: the gold reserves of Mexico.
As you may recall, last year we informed that after four months of legal wrangling with Banxico, it was forced to give us the information about the supposed physical location of Mexico’s sovereign gold holdings.  In the disclosure, we discovered that 95 percent of the Mexican gold reserves (about 125 tonnes) were abroad, and almost all (99%), in London, England.The ASF has determined that Mexico should “make a physical inspection with the counterparty that has the gold under its custody, in order to be able to verify and validate its physical wholeness and thecompliance with the terms and conditions of dealing with this Asset…” It was verified by the ASF that this has never been done by Banxico.

What Germany’s Gold Repatriation Means for Global Gold Market

goldrepatriationGuest Post

Venezuela, Switzerland, Libya, Netherlands, Iran…

The announcement by the Bundesbank, the central bank of Germany, saying that it would repatriate 300 metric tons of gold held by the New York Federal Reserve raised many concerns. First, Fed attorney Scott Alvarez told Congressman Ron Paul, R-TX, during a House Subcommittee meeting in June 2011, that the Federal Reserve does not and has not held any gold bullion since 1934.  Second, it appears overall trust in the United States and the global monetary system in general is waning faster than the value of the U.S. dollar.  Germany also plans to repatriate all of its 374 metric tons of gold stored at the Banque de France in Paris. It is unclear what effect the Bundesbank’s move will have on the price of gold, but history tells us to prepare for a spike. [Read more...]

Swiss Banks Begin Offering Allocated Gold & Silver Accounts

Swiss banks, UBS and Credit Suisse, have moved to offer allocated gold and silver accounts to their clients – including high net worth, hedge funds, other banks and institutions.  The move allows these entities to take direct ownership of their bullion in allocated accounts. According to the Financial Times, the banks say that they are making the move in order to reduce exposure and risks on balance sheets and in an effort to be more transparent.  “Under more common “unallocated” gold accounts, depositors’ bullion appears on the banks’ balance sheets, forcing them to increase their capital reserves. Like their global peers, UBS and Credit Suisse are under pressure from regulators to reduce capital-intensive activities ahead of the introduction of new Basel III global banking rules.” It is more likely that the banks made the move to allocated storage due to an increased preference from their investors who are weary of continuing systemic risk. [Read more...]