By SRSrocco

In a stunning development over the first seven months of the year, the United States has run up a huge gold deficit as it has exported a record 424 metric tonnes of gold.  This is indeed a significant amount when we find that the U.S. exported a total of 488 metric tonnes for the entire year in 2011.

According to the USGS July Gold Mineral Industry Survey, the U.S . only imported 188 metric tonnes of gold between Jan-Jul, but exported 424 metric tonnes leaving a huge shortfall.  Some of this deficit was made up by the U.S. domestic gold mine supply.

However, if we add up all the domestic gold mine supply plus the gold imports in the first seven months of 2012, the United States still ran a large 102 metric tonne gold account deficit.

The United States is exporting a record amount of gold and the majority of it is being sent to Switzerland, London and Hong KongThese large U.S. gold exports are likely being used to try and fill the insatiable demand for PHYSICAL GOLD by the Eastern buyers.

The U.S. produced 134 metric tonnes of gold between January & July of 2012:

NOTE: the figures are shown in kg. or kilograms.  We convert them to metric tonnes (MT) by dividing by 1,000.

As we can see from the table above (source USGS), of the total 134 metric tonnes of gold produced in the country, Nevada supplied 102 metric tonnes or 76% of the overall amount.  Alaska was second by producing 14.8 metric tonnes or 11% of the U.S. production.

If we add all the U.S. gold mine supply between Jan-Jul (134 MT), plus all the gold imports (188 MT) we get total of 322 metric tonnes.  However, the United States exported 424 metric tonnes of gold during the same period leaving a huge 102 metric tonne deficit:

To get an idea of where the United States sources its King precious metal, I put together a graph showing the top 4 countries who supply the country of the majority of its gold.  When the U.S. imports gold, it predominantly acquires it in the form of dore & precipitates, but exports it in a larger extent as refined bullion.

Here we can see that the U.S. imports the majority of its gold from its closest southern neighbor, Mexico (72.2 MT), followed by Columbia (32.7 MT), Canada (26.8 MT) and lastly Peru (16 MT).  These four countries accounted for nearly 148 metric tonnes of the total 188 metric tonnes imported into the U.S. in the first seven months of the year.  Other countries who exported smaller amounts of gold to the U.S. (but are the top suppliers of the remaining bunch), are Bolivia, Curacao, Guatemala, and Guyana.

As was stated in the headline of this article, the United States is exporting a record amount of gold and the majority of it is being sent to Switzerland, London and Hong Kong.  I would imagine these large U.S. gold exports are being used to try and fill the insatiable demand by the Eastern buyers (mostly Asian)… claimed by Jim Willie in many of his recent interviews.

Switzerland received the lion’s share of the gold importing 137.3 MT of gold from the U.S., while the U.K. came in second at 84.3 MT, followed by Hong Kong at 74.5 MT.  These three countries imported 296 MT of gold between Jan-Jul of this year.  This was 70% of all the gold (424 MT) exported from the United States during this time.  Some of the countries who imported the larger share of the remaining 30% of gold from the United States were Australia, Canada, India and Thailand.

Just to make sure I don’t cause any confusion, these figures are based on the USGS statistics of gold import-exports of the following categories:

1) ores & concentrates

2) dore & precipitates

3) refined bullion

I did not include any of the fabricated gold statistics that include waste & scrap, metal powder, and gold compounds.  Even though there is additional gold  in these fabricated categories, the more notable and important movement of gold is found in either refined bullion and dore & precipitates.

I would also like to clarify that gold recycling and gold scrap was not factored into the 102 metric tonne gold deficit…. which stands at nearly 3.3 million ounces.  The amount of metal coming into the U.S. market from these two sources could be significant.

Furthermore, these are only “OFFICIAL FIGURES”.  We have no idea of the TRUE AMOUNT of gold leaving the country from allocated accounts as stated by Jim Willie’s source in Europe.

That being said, as more gold leaves the shores of the U.S. than is either imported or supplied from its domestic mines, the deficit will continue to grow.

 

  1. Switzerland!!!!!
    Now isn’t that interesting. Switzerland is the biggest importer of US gold? I guess that mammoth of a nation, Switzerland and its economy, has become the biggest threat to the United States financial footing.

    • But Switzerland doesn’t have a very powerful economy compare to China. In my opinion, I think that China is the biggest threat to the United States because that country is dumping the US dollar and is also buying a lot of gold and silver at the same time. They also have the second most powerful economy in the world.

    • snowrider… Switzerland is just a staging ground for the movement of gold to European investors who are getting out of paper EUROS as well as the massive buying coming from the Eastern Bloc… who are mainly Chinese.

    • SRSrocco: I suppose you cannot recognize a tongue-in-cheek statement. I think I have an idea of the function of the nation of Switzerland! And you cheering section is nothing more than an echo. 

  2. Awesome article SRSROCCO!

    I think the net export of gold indicates the cluelessness of the average North American in regards to gold and the state of the financial/economic world in general.  If North Americans don’t want to buy their own gold then all the better for those buyers in Europe and Asia.  

    • Thorishere…  I totally agree.  Here in the states, our citizens are happy to acquire lousy paper investments.  They continue to buy worthless U.S Treasuries, Annuities, IRA’s, CD’s and Money Market Accounts to name a few.  We have certianly lost our way. 

      Unfortunately, the ILLUSION of WEALTH will evaporate here shortly, making for a completely stunned and surprised American public. 

  3. SRSROCCO, you posit that “the ILLUSION of WEALTH will evaporate here shortly.”  Care to elaborate?  That is, I’m very interested to hear what your thoughts are on the economy/world for the near/mid term.  Thanks! 

    • Thorishere…  the POPPING of the PAPER WEALTH ILLUSION could occur at any time.  However, the clowns and magicians running the show can postpone that for a while.  How long?  Who knows, but in the scheme of things it can take place relatively soon.

      The best thing to do is to exchange worthless paper wealth for physical bullion while there is still time.  The longer a person waits (trying to time the market), the higher the chance that they may not be able to do so when the PHAT LADY FINALLY SINGS. 

  4. @SRSrocco 

    I agree with you that “the POPPING of the PAPER WEALTH ILLUSION could occur at any time.”  Although it seems to me that it may be later rather than sooner in that TPTB are extremely powerful.  They’ve been able to prop up their petro-dollar and stock markets while simultaneously suppressing other markets (gold/silver) for years (possibly decades) and as of this post I do not see any hard evidence indicating that their shenanigans will end any time soon. Do you have any pieces of knowledge that indicate to you that this paper-paridigm may be coming to a end in the near-term?

    • Thorishere…  to me “SHORTLY” can mean within the next 6-18 months.  We must remember, we are of the species of Homo Sapiens Sapiens.  We can live upwards of 70-80 years on average.  So, in that respect, 1-2 years is a mere pittance in our lifetime.  

      Unforunately due to technology & our crazy modern lifesytles, we now view time in what I refer as the “LIFESPAN OF A GNAT”.  Which means 1-2 years seems like an eternity…. but it isn’t especially when we consider that there are children and grandchildren that follow right behind us.

  5. Yet another outstanding article bringing us hard to find and essential info.  Thanks SRSR.

    The smart money continues to accumulate physical precious metals. Makes you wonder if the current price management is for the benefit of elites who want to build up their supply of fizz without having to pay too much. Meanwhile, the propaganda machine discourages the sheep so they don’t want the fizz. Instead they are steered by their financial advisors to the GLD and the SLV, or to APPL and FB.

  6. @SRSrocco,

    I think it would be safe to say that we have similar time preferences.  :D

    As per your prediction of “the POPPING of the PAPER WEALTH ILLUSION… within the next 6-18 months.”  What makes you think this is happen in this timeframe and not later?   

  7. The Popping won’t happen until some other nation refuses u.s. script from us/walmart/etc.  BRICS could easily say “Hey! Bring me something Gold Backed and that would be the day. If the BRICS group is smart they would be piecing together a rival SWIFT system as well.

    • El Bernanko… I have not yet seen that report.  I just clicked on it and took a brief glimpse.  I am currently gathering data on the so-called NEW SHALE ENERGY PARADIGM.  In a nutshell, the actual data now coming from the well established shale gas & oil fields is not pretty whatsoever.

      I am completely amazed at the FUTURE ENERGY DELUSIONS put forth by these analysts (i.e Citigroup…etc).  Believe me, there will not be an energy revolution of shale gas or oil in the United States.  The only revolution I see coming is those by PISSED OFF INVESTORS & COMPANIES when they realize that they are left holding the bag of hugely inflated shale assets.

      Remember, I posted that there were over $8 billion dollars worth of impairments written down in the first half of 2012 from large corporations such as BHP Billiton and BP, due to overstated values of their newly purchased shale gas reserves. Expect many more writedowns in the second half…LOL

      Gosh… even T. Boone Pickens bailed out of Cheasapeake back earlier this year when he realized it was nothing but a massive debt dog.

  8. My question is where did the USA get that much gold for the exports to the Eastern buyers? I’m sure that they took them from the Fort Knox vault because this vault has not been audited for a long time and the gold inside Fort Knox isn’t used anymore since the gold standard was removed so they have to find a way to get rid of them.
     

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