The Golden Truth: Is the U.S. Gold Stock Really There?

Thursday, April 1, 2010

Is the U.S. Gold Stock Really There?

Funny how life comes full circle. I used to explain to anyone willing to listen years ago that the 8100 tonnes of gold reported as owned by the U.S. Treasury was not there - that it had been plundered thru leasing and sale transactions designed to keep a lid on the price of gold and prop up the value of the U.S. dollar.

Well now the favorite psuedo-congnoscenti blog of the market hoi polloi, Zerohedge.com, presents this:

Forget the LBMA and the threat of physical dilution - a much more relevant question is just how much of the alleged US gold holdings of 8133.5 tonnes is actually real. Surely, the question of just how much gold is there below the HSBC building in New York's Bryant Park, and below the FRBNY has never been more relevant.

Here's a link to the entire story: LINK

Those of us who have been thoroughly studying the precious metals market over the last decade have understood for many years that the U.S. Government, via the complex web of swap and lease transactions implemented by the Fed, has depleted most, if not all, of its gold reserve. And if Zerohedge knew what it ws talking about, it would know that the bulk of the supposed stock of U.S. gold was moved into "deep storage" at West Point several years ago, safely removed from sight and audit.

If the courts would ever uphold GATA's Freedom Of Information Act request and force the Fed to release all of the related documents that the Fed refuses to release, we would be able to get to The Golden Truth of this issue. For now, it's nothing but a joke, as our policy makers - and Obama himself - make a complete mockery of Obama's promise to make Government more transparent.

"There must be some way out of here," said the joker to the thief,

"There's too much confusion, I can't get no relief.

Businessmen, they drink my wine, plowmen dig my earth,

None of them along the line know what any of it is worth."

"No reason to get excited," the thief, he kindly spoke,

"There are many here among us who feel that life is but a joke."

(Robert Allen Zimmerman aka Boy Dylan)

11 comments:

Bill BrowneThursday, 01 April, 2010
My guess is that the gold is still there, but it's all been leased out 100x over 'on paper.' Do we really think 8100 tons has been picked up on a bunch of ships and carted away?

Therein lies the rub.

Say a bunch of foreign creditors demand physical delivery of said gold and it causes pandemonium in the metals markets.

Cue executive order declaring national emergency! All gold is hereby off limits and is kept within U.S. jurisdiction.

"He who HOLDS the gold makes the rules."
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Dave in DenverThursday, 01 April, 2010
I'm not opposed to the view you just laid out. And I think it's a possibility. HOWEVER, it depends on who/what is on the other side of those transactions.

Little known, and less reported on, there was a big gold depository underneath one of the WTC towers. No one has been able to account for the whereabouts of that gold.

If Rothschild/Rockefeller et al were the end-buyers of that leased gold, my bet would be that it's been moved. If sovereigns like China are the recipients, it may be still sitting wherever it's sitting. We can't even account for that because the Govt/Fed won't let anyone see it, count it, assay it.

Until then, guilty until proven innocent. Fool me once, shame on you, fool me twice, shame on me. How many times in the last 20 years has the Govt pulled the wool over your eyes...
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Bill BrowneThursday, 01 April, 2010
Fool me as many times as you like on April Fool's Day!
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Dave in DenverThursday, 01 April, 2010
LOL. Judging from the move in the metals, the joke is on the shorts!
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JoeThursday, 01 April, 2010
Gold is now giving us a breakout signal, for the 4th time this year. Let's see if it's for real this time.

As far as our Gold is concerned, I think we will find out the truth but only after a collapse of the USD forces us to go "hat in hand" begging the east for help.

Joe M.
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HopiumThursday, 01 April, 2010
My guess is that the gold is still there, but it's all been leased out 100x over 'on paper.' Do we really think 8100 tons has been picked up on a bunch of ships and carted away?

--------------

The bigger question is, do you believe that there really is 8100 tons of pure Gold there and not just coated Tungsten...that is the bigger question. Also, 8100 tons at today's prices per our defect is a mere bag of shells.
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Dave in DenverThursday, 01 April, 2010
IF, the gold is really there, WHY won't the Government let us see it, count it, verify quality/assay it? WHY? Very inexpensive to do that vs. the 10's of millions the Fed is spending to stop the audit bill in Congress.

I'm sorry but anyone who thinks ALL of the gold is there is either hopelessy naive, refuses to connect the dots (guess what, O.J. WAS guilty), or an idiot.

There has been so much outcry for the Govt to prove it and yet the Govt refuses.

Sorry, guilty until proven innocent. And it's not like 8100 tonnes was shipped all at once. This has been going on for decades. The gold hasn't been independently counted and verified since Eisenhower was President.
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Dave in DenverThursday, 01 April, 2010
any doubts? read this:

http://www.huffingtonpost.com/nathan-lewis/its-ponzimonium-in-the-go_b_519893.html

then read this:

http://dollarcollapse.com/articles/the-coming-precious-metals-short-squeeze/
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JoeFriday, 02 April, 2010
Dave,

Fed meeting on Monday morning. Is this QEII or maybe a FFR increase due to all these bad Treasury auctions?

http://www.federalreserve.gov/boarddocs/meetings/2010/20100405/advancedexp.htm

Joe M.
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Dave in DenverFriday, 02 April, 2010
Good question. I was thinking they were going to print a huge NFP number and use that as excuse to hike the discount rate Monday in order to slap down gold. And we know the discount rate is meaningless, but the market reacts to the announcement short term.

Obviously the NFP report was a disappointment so I can't imagine they'll even hike the imaginary interest rate.

You could be on to something in terms of them announcing some kind of disguised QE program, given that it was pretty obvious that the Fed, via the primary dealers, sucked down 50% of last week's auctions.
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MichaelSunday, 16 December, 2012
It is a good idea to invest money in buying gold. The price of gold is increasing day by day and hence the return on investment will be good.

US Gold Bureau
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Add comment

Why Gold?

Gold is the world's oldest currency. You exchange your fiat currency (dollars, euros, yen, yuan) into gold as an insurance policy against catastrophic Central Bank and Government policies which serve to destroy the value of fiat currencies and destroy democracy.

Gold can ONLY be considered an investment to the extent that it remains significantly and historically undervalued in relation to the fiat currencies against which its value is measured. Otherwise it remains the world's oldest currency and is completely free from the counterparty risk associated with currency by Government fiat (i.e. fiat currencies rely on a Government's "full faith and credit.")

Quote Of The Month Courtesy of "Jesse"

Unfortunately for Larry Summers, Ben Bernanke, and their friends at the BIS, they have not yet figured out how to print physical gold, silver, and other essential commodities, and the world is reaching the point where it might simply start ignoring the New York based markets with respect to essential commodities such as basic materials, oil, foodstuffs, and the like, as they become increasingly irrelevant, fraudulent, and Orwellian. And then where will the financial engineers be, except with no more excuses and no place to hide?

Here is the link to his entire commentary, well worth a read:

http://jessescrossroadscafe.blogspot.com/2010/07/gold-daily-chart-shock-and-awe-for.html

Great Quote From Jim Rogers On Govt CPI Reporting

JR: I mean, we have inflation now. If you go to the shop, whether it’s groceries, or education or insurance or health care, prices are going up for everything. The government lies about it in the US. Some countries lie, many countries don’t: Australia, China, India and Norway. Many countries don’t lie about it and acknowledge that we have inflation. Others lie about it, the UK and the US, but if you go shopping you know prices are up.

Q: Are you saying that the American Consumer Price Index (CPI) published by the US Bureau of Labor Statistics is a lie?

JR: In my opinion, yes, of course it is. Have you looked at it? They’ve changed their accounting several times in the past few decades. When housing was 20% to 25% of the CPI and housing was going up, they didn’t count it, saying rents weren’t going up, and then when home prices started going down, they counted it. It’s the same with many things. It’s staggering some of the tortuous reasoning that the BLS has used over the past 25 or 30 years. When the price of gasoline goes up, they say it’s not really going up because it’s better gasoline, better quality, therefore you’re getting more for your money. I mean, it’s endless, the stuff that they say and for some reason people sit there, although more and more people are catching on, and accept what the government says.

source: www.clusterstock.com

Quote of the Week

"The primary function of a Central Bank is to engage in the massive transfer of wealth from the middle class to the wealthy elite. The Federal Reserve was set up to do this with the blessing and support of Congress." - Dave in Denver

If you refuse to believe the above, please read "The Creature From Jekyll Island: A Second Look at the Federal Reserve" by G. Edward Griffin and then explain to me why the Senate voted down the Vitter Amendment and Congress refuses to pass a law requiring a full audit of the Fed, even though the Fed is using taxpayer-backed money to bailout Wall Street and Europe.