Submitted by SD Contributor SRSRocco:

Gold Eagle sales in the first half of the year were 343,500 ounces (down 40% yoy), while U.S. gold net exports were over 3.3 million ounces from Jan-Mar 2012.  If this trend of U.S. gold exports continues, half year figures could reach 5-6 million ounces.  This would mean that retail Gold Eagle demand may only account for 6-7% of the forecasted 5-6 million ounces of U.S. gold net exports.

This proves the case that the majority of Americans are still quite clueless when it comes to understanding gold’s role as money.  As the world financial system continues to crumble, the large Eastern buyers and a small minority of Europeans are rapidly exchanging fiat paper notes for gold.

At some point in time the GAME OF MUSIC GOLD CHAIRS will end and the public may not have the opportunity to buy physical gold…. even if they had the means to do so.

GOT GOLD??

Something very interesting took place in the first three months of 2012.  Last year, the United States was a net importer of gold during the first quarter.  However this year, the U.S. became a huge net exporter of gold during the same time period.  This information was acquired from the latest USGS Gold Mineral Industry Surveys.

Below, we can see the actual data:

I have focused on the first three categories as these are the predominant sources used in the gold bullion trade.  This first chart lists the amount of gold imported during the first quarter of 2012.  If we look at the bottom highlighted figure we will see that 75.1 metric tonnes of gold were imported into the U.S. between January and March (These figures are listed in kilograms).  The top highlighted figure (507 metric tonnes) shows the total amount of gold imported in 2011.

The chart below displays the amount of U.S. gold exported during Jan-Mar:

Here we can see that during the first three months of 2012, the U.S. imported only 75.1 metric tonnes, but exported 178 metric tonnes.  Thus, the United States was a net exporter of 103 metric tonnes of gold during the first quarter of 2012.

The reason why this is interesting is due to the fact the U.S. was a net importer of 38 metric tonnes of gold during the same time period last year.  The next chart reveals just how much gold is leaving the U.S. continent.

What a difference in a year – the tide has indeed changed.  This turns out to be a net export difference of 141 metric tonnes of U.S. gold compared to last year – or 4.53 million ounces of gold in just three months.  When the USGS releases the next Gold Mineral Industry Survey, it will be interesting to see how much more gold is leaving the country.  Not only is gold leaving the continent, look at the drop of gold imports during this time period.

U.S. Gold Imports

Q1 2011 = 172

Q1 2012 = 75.1 (difference of 97 metric tonnes)

So where is all this gold going?  That’s a good question.  If you look up at the Gold Export chart above, you will notice that top three countries receiving U.S. gold were Hong Kong, the United Kingdom, and Switzerland.

Of the total 178 metric tonnes of gold exported from the U.S. during Q1 of 2012, Hong Kong, the United Kingdom and Switzerland acquired 161.7 metric tonnes or 91% of the total amount.  If the rumors are correct, the majority of this gold is being shipped to these countries and being purchased by the Big Eastern Buyers.

Of course this information is from a U.S. governmental agency and it can’t be a guarantee of complete data, but at least this gives us a good idea how the situation has changed from the prior year.

RETAIL INVESTMENT DEMAND IS A MERE PITTANCE

As I have mentioned before, retail investment demand is not a good barometer for the precious metal market.  If the figures are correct, the U.S. had net exports of 103 metric tonnes (3.3 million ounces) of gold during the first three months of 2012.  If we look at the chart below, we can see how little Gold Eagles sales are compared to overall U.S. gold exports:

Gold Eagle sales in the first half of the year were 343,500 ounces (down 40% yoy), while U.S. gold net exports were over 3.3 million ounces from Jan-Mar 2012.  If this trend of U.S. gold exports continues, half year figures could reach 5-6 million ounces.  This would mean that retail Gold Eagle demand may only account for 6-7% of the forecasted 5-6 million ounces of U.S. gold net exports.

This proves the case that the majority of Americans are still quite clueless when it comes to understanding gold’s role as money.  As the world financial system continues to crumble, the large Eastern buyers and a small minority of Europeans are rapidly exchanging fiat paper notes for gold.

At some point in time the GAME OF MUSIC GOLD CHAIRS will end and the public may not have the opportunity to buy physical gold…. even if they had the means to do so.

GOT GOLD??

  1. AGXIIK… I totally agree.  We just don’t know the REAL OVERALL FIGURE.  As Jim Willie states (from his European source) there has been over 5,000 metric tonnes of gold going into the Big Eastern Buyers in the last several months.  There are probably a great deal of gold bullion sales that are taking place outside the normal market place.

     

     

  2. SRSrocco Thanks for the report… Do you know if the supplied numbers include recycled gold?
     I’m sick and saddened of the export of gold from the US then to have it end up in the east… It’s as though the west is the laughing stock of the world… We send over our resources and get back junk fiat all the while there laughing there asses off at us… Just like our scrap iron and other recycling products… They in the east buy it on the cheap then they sell it back to the west and make a super profit… I just don’t get what it will take for the US to wake up…

  3. Danno… the figures do not include either mine supply or recycled gold.  I would imagine that the total figure could be signficant as domestic mine supply was 56.5 metric tonnes Q1 2012.  However this does not change the fact that the NET DIFFERENCE from last year is a staggering 141 metric tonnes of gold net exports.

    Uglydog… while the Chinese may be purchasing a great deal of Alaska gold production, it is not a whole lot in the scheme of things.  If it was from Nevada, that would be a different story altogether.  The chart below shows that only 5.4 metric tonnes of gold were produced in Alaska during Q1 2012.  We can see that Nevada is by far the majority of gold production for the United States at nearly 77% of total overall production.

  4. US gold leasing is counted as exports if I’m not mistaken.  Which is to say that gold gets counted in the real world as leaving the US, while maintaining the accounting standard fiction of still owning that gold.  The US pretends that at some point it will be “paid back.”   If the US really has leased over half of it’s official gold there’s no way to get back that much gold from the open market even if the US tried.  

    GATA fleshed-out this thesis well over a decade ago.  They’re going to be proven right.

  5. UglyDog:

    Very good point about ore.  I’ve read a number of stories of China taking partially refined ore from a number of mining companies.  Their efforts seem to be most aggressive in Africa and Latin America.  The Chinese report finished and fully refined gold flowing through Hong Kong but that’s about it.  All these other flows – ore included – are not getting officially counted.   Probably in about three years the Chinese government will declare having bought 10,000 to 15,000 tons over the last few years and they’ll only come public with the info when they’re getting close to using that gold to elevate global faith in Renminbi.

    SRSrocco:

    Great stuff!  Thanks for pulling it together.

  6. Must confess that this and other articles/interviews have me consolidating
    and waiting for a big break low around the end of the month. If when the new
    margin requirements for ALL commodities smack the markets in about five
    weeks—I want to be “lying in the weeds” ready to pounce on a few of these!
  7. 2 OZ.  Said:
     And the illusion that gold is not money continues. What a
    bunch of dummies. I’ll keep mine and buy more when I can. Thanks for the
    update.

    It will be interesting to see what happens with the BIS trying to make gold a Tier-1 asset.   The banks in Europe don’t have any money-good assets.   So adding gold to the list would help them and the pressure is on to do it.   But of course the FED and US Treasury don’t want that.   I expect the decision to be delay indefinitely.

    But if it happens…   It will be easier to see gold for what it is:   Performing the ‘Store of Value’ function of money.

  8. If they make gold a tier one asset, then the logical assumption would be that, when, in the future, the need arises to refill the “lost” gold the government will likely start confiscation of gold.  If it is really bad, they might even consider taking the silver as well. 

    If you don’t hold it, you don’t own it and if the government knows you hold it, they will want it.  So the dilemma is how to hold it, but not physically have it in your possession. 

    An article I read about a cache of roman era coins being found in a farmer’s field on an island outside of Great Britain’s jurisdiction.  Seems like the problem of the government taking the people’s money has been going on for centuries!

  9. Ordinary Joe,
    If they want to confiscate, let them go to each house and try. They’ll lose more money trying to get it than if they just let it be. Yes, the may start a program to scare people and there will be those that give it up willingly for fear of going to jail (or worse), just like the weak hands are flushed out when a margin call drops the price.. The strong hands will not give it to them. This was evident when they tried that during the depression. You make an excellent point though as some will give in. Not me, not now, not ever.
    They can delay that decision all they want HD but the fact is (IMO), the markets will ultimately decide whether gold is real money or not. The bankers and government has no control over that. Let’s watch and play their game. We do have the upper hand as long as we hold the phyzz.

  10. I really see a Gold backed currency coming our way and our stupid government is paying off our debt by selling our gold. Yes I Said Ours. But I believe the Federal Reserve thinks it’s theirs. God I hate these Banksters. Grrrrrrrr

  11. 2oz I’m with you… As well as many of you… Let them knock and search… First off they aren’t getting my physical assets!!! Secondly even if I said take it, they won’t find it… Thirdly refer back to rule #1… THEY AREN’T GETTING IT!!!
    Should I loose what I have I have nothing… So you NEED to defend what is yours!!! NO ONE ON THIS EARTH HAS THE RIGHT TO WALK AWAY WITH ANY GOODS THAT YOU HAVE WORKED, EARNED AND SACRIFICED FOR!!! If I can’t have it, NO ONE CAN!!!

     Unless you give it everything you got you’ll never know if you got what it takes…

  12. Hey 4oz I’ve been eying a couple of those beauties up too… And maybe a Perth Kangarooooooo and maybe another Gold Maple….. Hmmmmmmmmmmm…………..Well there’s 240 oz of silver right there…. DAMN…. Maybe I should wait for Gold/Silver ratio to ease up…. 57 – 59 to 1 is a bit steep…. But damn it would sure free up some space and there SOOOOOOOOOOO cute… Hehehe

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