The Run On U.S. Gold Continues…

U.S. Gold Imports vs ExportsSo 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.


From the SRSRocco Report:

U.S. Gold Imports vs Exports

According to the USGS Gold Mineral Industry Survey (published late), the U.S. exported the majority of its gold in the first half of the year.  By the end of June, the U.S. exported 406 mt, averaging 68 mt a month.  In the second half of the year, the U.S. only exported 286 mt, averaging 48 mt a month.

The months with the largest exports during 2013 were March at 89.1 mt and April at 76.6 mt.  The total import-export figures based on three categories of gold:

1) ores & concentrates

2) Dore’ & precipitates

3) Refined bullion

The overwhelming majority of gold exported was in the form of Refined bullion (488 mt), followed by Dore’ bars & precipitates (197 mt) and ores & concentrates (7.6 mt).  If we just focus on refined gold bullion exports, the table below details which countries received gold from the U.S. in 2013:

Total U.S. Gold Bullion Exports Jan-Dec 2013

 

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As we can see, Hong Kong received the most gold bullion from the U.S. at a total of 214 mt, followed by Switzerland at 150 mt and the U.K. at nearly 29 mt.  Thus, the top three countries imported 393 mt (80%) of the total 488 mt exported in 2013.

Some interesting data points to look at were the 27 mt imported by Thailand and 11 mt China received in 2013.  If the majority of U.S. gold exported to Hong Kong and Switzerland made its way to China and other Eastern countries, we can assume that nearly 75% of total U.S. gold exports went to East… with the majority going to the Chinese.

The huge wholesale buying of gold by the Chinese in 2013, put a big damper on U.S. gold imports.  Koos Jansen at InGoldWeTrust stated that total Chinese wholesale gold demand was 2197 mt in 2013.  According to Koos, this did not include Peoples Bank of China purchases which may have put the total at 2,500 mt.

As the U.S. struggles to maintain its domestic gold production, mine supply fell from 234 mt in 2012 to 231 mt in 2013.  This may not seem like much of a decline, but if we look at a longer dated chart…. the U.S. peaked in gold production in 1998 at 366 mt.

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U.S. Gold Production

This chart published in my article, GOLD PRODUCTION WARS:  The East Slays The West,shows that U.S. gold production declined 36% since 1998.  The USGS estimated domestic production would remain flat in 2013 at 234 mt, however it fell slightly.  If you haven’t read the article linked above, I highly recommend it.

Since 1997, the year the top three Western gold producers peaked, total gold production from Australia, U.S. and Canada declined from 845 mt to an estimated 624 mt in 2013.  On the other hand, the two top Eastern producers (China & Russia) increased their produce in the same time period from 290 mt to a staggering 664 mt in 2013.

This is clearly seen in the table below:

East vs West Gold Production

Amazingly, China & Russia’s gold production now surpasses the total of the top three Western countries by an estimated 40 metric tons.  Things just don’t look good for the West.

As the West continues to print fiat currency and manufacture derivatives to keep their financial systems from imploding, the Chinese and Russians focus on increasing their domestic gold mine supply while the East absorbs whatever gold the West can deliver.

This becomes even more apparent when we look at the following chart.  Even though total U.S. gold exports in 2013 were nearly the same as they were in 2012, net gold exports increased due to a drop in imports and a decline mine supply.

U.S. Gold Exports & Net Annual Change

(figures above based 0n imports, exports and domestic mine supply)

Here we can see the United States had net gold imports of 452 mt in 2010 and 267 mt in 2011.  However, in the past two years net gold imports turned negative.  In 2012, the U.S. suffered a negative gold net import of 126 mt and increased this amount to a net loss of 148 mt in 2013.

In the past two years, the United States exported 275 metric tons of gold more than its total domestic mine supply and imports combined.  This is not a trend that can last very long or the U.S. will find its gold shelves empty at some point in the future.

I plan to publish an interesting article on the huge decline of U.S. Gold scrap exports.  There were some very interesting events that took place in the U.S. gold scrap import-export market in 2013.


Comments

  1. China says give us the gold or we dump bonds…

  2. Over the past decade, Washington City’s government seems very evidently to have stolen this gold from the world’s smaller, weaker countries like Afghanistan, Iran and Libya for example and its backstabbing credit-mongering ‘central bank’ web of commercial monopoly.

    So, can’t we be open-minded enough to release ourselves from politically ensnared sensibilities and wonder why the Chinese government and its bankersenables … this robbery through an appearance of ‘market demand’? Consider that the object of Ruse-a-veldt’s so-called ‘gold confiscation’ and prohibition against any significant private ownership of it, was to take it from circulating among The People in competition against banknotes. By using the ruse of China’s ‘market demand’, the same effect is accomplished globally, without the odious ramification of ‘confiscation’. Take the gold in exchange for Plantation Scrip. What’s REALLY the systemic difference here? Only the superficial ‘difference’ if another banknote called ‘renminbi-yuan’, rather than ‘dollar’, or ‘pound’ that had preceded it.

    Governments work in surreptitious collusion (by deference or force) for survival of their own ‘justification’, as dictatorial ‘Lords’ over their Peoples’ lives. By recognizing this timeless fact-of-life, we’ll discern a more accurate view of unfolding events … and crucially … devise means of getting all governmental jack-boots off our necks.

    • @PatFields
       
      “Consider that the object of Ruse-a-veldt’s so-called ‘gold confiscation’ and prohibition against any significant private ownership of it, was to take it from circulating among The People in competition against banknotes.”
       
      That would be one interpretation of it.  Another would be that the banksters were up to their usual inflation / deflation crack-the-whip game and were hoarding gold, which was money at the time, and not circulating it into the economy via making new loans or investments.  The American people did not own most of the gold.  The banks did.  They were the target of this forced sale move, IMO.  It was interesting that this move on FDR’s part was telegraphed by a month, giving wealthy people in the US plenty of time to move their gold elsewhere… which many did.
       
      I am reminded of the great Thomas Jefferson quote on this very subject:  “I believe that banking institutions are more dangerous to our liberties than standing armies.  If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”
       
      Clearly, the banks had engaged in their inflation play (Roaring 20s) and their deflation play (Great Depression) and were in the middle of their plan to defraud millions of Americans out of their property via calling in their loans during bankster-induced hard times when such repayment would have been difficult if not impossible.  I am not convinced that FDR’s death was from “natural causes”.  While that is certainly possible, it also seems a long shot, given the bankster penchant for eliminating people who mess with their plans.  I further note that FDR’s successor and VP for 6 months, Harry S. Truman, had no trouble with the banksters.  This also fits the pattern, such as with both Lincoln and Kennedy.
       

    • Ed_B … “The American people did not own most of the gold. The banks did.  … I am reminded of the great Thomas Jefferson quote ,,, “I believe that banking institutions are more dangerous to our liberties than standing armies. … Clearly, the banks had engaged in their inflation play”

      Ed, I think your “interpretation of it” is the same as mine. Everything you lament above was accomplished through pure credit stamped on slips of paper. Banks didn’t start out owning “most of the gold”. They’re fiduciary bailiffs … clerks in other words … charged with mere safekeeping and accounting for their customer’s money. Where I might differ from Mr. Jefferson, is in more certain recognition, that whether foisted by banks or governments, the result of circulating credit is the same. It destroys optimal Price Discovery, which is the paramount function of Money and Markets.

      Regarding Ruse-a-veldt, Lincoln and Kennedy … I suggest Presidents are figureheads, but the real ‘Power of Government’ (in the case of Washington City) is in Congress. Legislatures make … or repeal … statutory accommodations to banks and businesses once they’ve commandeered legal control over commerce generally (such as by falsely distorting authority to create INTER-GOVERNMENTAL money, into an illusion of that authority to also circumscribe private money according to Common Law). When a President becomes a ‘loose cannon’ in defiance of Congressional ‘policy’, is when the ‘daggers’ are plunged into ‘Caesar’. Senators learned their lesson from that infamous event … ever since, imposing the deed on sycophants and dullards to suffer The People’s wrath.

  3. “In the past two years, the United States exported 275 metric tons of gold more than its total domestic mine supply and imports combined.  This is not a trend that can last very long or the U.S. will find its gold shelves empty at some point in the future.”
     
    A good argument could be made for the idea that the US has already found its gold shelves empty, else they would have given the Germans the gold that they requested be repatriated and that was supposedly held on deposit for them at the NY Fed.
     

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