US gold bullion exports to Asia have started off with a BANG in 2017:
U.S. gold exports to Hong Kong and China jumped significantly in October. Not only were U.S. gold exports strong in October, they were the second highest for the year. Shipments of gold out of the U.S. spiked in January, declined in February and March and remained subdued during the summer months.
However, U.S. gold exports Jumped 70% In September, at 50.1 metric tons (mt), with the majority going to Switzerland (15.3 mt) and the United Kingdom (13 mt).
If we look at the chart below, U.S. gold exports to Hong Kong (8.5 mt) and China (3.3 mt) placed in the third and fourth position respectively:
In the first three months of the year, Hong Kong received half of total U.S. gold exports.
This was an interesting change of events as Switzerland held the number one spot as the largest importer of U.S. gold during the same period in 2013.
According to the USGS Gold Mineral Industry Surveys, Hong Kong received 78 mt. (metric tons) of gold from the U.S., while Switzerland came in second at 51 mt.
If we look at the chart below, we can see the breakdown of U.S. gold exports for the first quarter of 2014:
The figures are out and it looks like the United States exported a record amount of gold to Hong Kong in January- a stunning 57 metric tons! Not only is this 3 times more gold exported than January 2013 (17 mt), it was 84% more gold than the record month set in August (31 mt). As we can see, gold bullion is fleeing the U.S. and heading to the East. Again… that 57 mt figure is just gold bullion.
As the West continues to play games with Monopoly money and Derivatives manufacturing, the East accumulates as much gold as it possibly can. While Main Stream Media and its Banker cohorts release bearish $1,050 price targets for gold, the Asians and Indians smile as they build the largest amount of gold stocks in the world.
So where is China getting all of its gold? One of the large sources turns out to be the United States. The U.S. experienced another record year of net gold exports in 2013. Not only were gold exports at record levels, imports into the U.S. fell nearly half compared to 2010.
If we look at the chart below, U.S. gold exports in 2010 were 383 metric tons (mt), however by 2013, they increased 81% to 692 mt. In addition, U.S. gold imports fell 48% from 604 mt in 2010 to 313 mt in 2013.
Total U.S. gold exports picked up substantially in October after a low was hit in September at 37.6 metric tons. As the price of gold declined from $1,400 at the beginning of September to a low of $1,250 in October, gold exports increased to Hong Kong & Switzerland.
Total U.S. gold exports increased 31% from 37.6 mt in September to 49.4 mt in October.
2014 may turn out to be an interesting year for gold. There are so many inherent weaknesses in the present financial system, that anything could push it over the cliff.
Compiling all the figures for the past three years, the United States has a negative 171 mt of net gold supply so far in 2013. This means that the U.S. has exported 171 mt more gold than it has produced from its mining sector and imports combined.
In 2011, the U.S. had a positive net supply of 265 mt, but due to high demand for gold abroad this fell in 2012 to a negative 127 mt. And as you can see, U.S. net gold supply continues to decline — a negative 298 mt since the beginning of 2012. While it’s no secret to anyone in the precious metal community, the majority of U.S. gold exports found their way to Hong Kong and Switzerland.
When we realize that the majority of U.S. gold exports to Switzerland and the U.K. are probably making their way to the East…. we can assume that the overwhelming majority of the gold leaving the shores of the United States is most certainly ending up in China.
There seems to be a great deal of the yellow metal heading out of the United States and into certain foreign countries lately. According to the USGS, the United States exported 129 metric tonnes of gold Jan-Feb, 2013. At this rate, total U.S. gold exports could reach 700-800 metric tonnes this year. With the recent take-down in the price of gold in April & May, I would imagine the United States is more than likely going to reach that figure.
If we look at the chart below we can see just who received all this gold:
Ahead 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…
Legendary precious metals expert Eric Sprott sat down with The Doc for an exclusive interview to discuss the Bundesbank’s gold repatriation request last month, and the correlation with massive physical gold buying in Asia.
Eric pointed out that the US government exported 30% of US annual gold production to Hong Kong in December alone, and stated that as there is no excess gold available in the US, all of his analysis suggests that the US gov’t may be exporting the German, Dutch, & Austrian gold reserves held at the NY Fed to China in an attempt to kick the can and forestall the inevitable financial collapse a little longer.
Eric Sprott’s Shocking interview with The Doc is below:
Reuters reports that US gold exports in December were the highest monthly totals since Sept 2011, up a massive 43% month over month. An astonishing 1/2 of all US Gold exports in December reportedly were shipped to Hong Kong!
We are watching real US wealth flow straight to China in exchange for a few more months of normalcy bias can kicking.