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,, 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)


  1. 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."

  2. 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...

  3. Fool me as many times as you like on April Fool's Day!

  4. LOL. Judging from the move in the metals, the joke is on the shorts!

  5. 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.

  6. 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.

  7. 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.

  8. any doubts? read this:

    then read this:

  9. Dave,

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

    Joe M.

  10. 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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