Egypt Bans Export Of Gold "In Any Form"

Tyler Durden's picture

Looks like speculation that the Egyptian Central Bank's gold stash may have been just modestly plundered is starting to play out. According to Reuters. "Egypt has issued a ministerial decree
immediately banning the export of gold in all its forms
, including
jewellery and ornaments, until June 30, the official news agency MENA
said on Sunday. "This decision, which comes in light of the
exceptional circumstances the country is passing through ..., is to
preserve the country's wealth until the situation stabilises,"
said. Egypt's currency has come under pressure after some of the
country's main sources of foreign currency, including tourism and
foreign investment, collapsed after the protests that ousted President
Hosni Mubarak erupted on Jan. 25." Obviously, this "emergency" step would not be required if the E(gyptian)CB was still in full possession of its purported stash of the inedible metal. Whether the decline is due to alleged Mubarak sequestering of the shiny metal, or by other members of the former ruling regime is unclear, but one thing is certain: the WGC is long overdue in adjusting the Egyptian gold holdings from 75.6 tonnes to their real current value... far lower. As for Egyptian fiat: that is as freely exportable now as ever. If only anyone wanted it. But yes, somehow emerging markets are manipulating their currencies lower than fair value, the conventional wisdom claims.


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UninterestedObserver's picture

Don't worry it could NEVER happen here!

Michael's picture

Enough of my other favorite subject for a while from me. Peek awareness has been achieved.

Now for the end run around strategy, engage.


Egypt has determined gold is of great value as it has always been throughout history. Gold = Enemy of Fiat.

We must now demand a US audit of Fort Knox. Where's America's gold and is it really there?

If I can get you guys to repeat the words "Fort Knox Gold", "Show me the Gold", Where's the Gold", etc over the next week about 5,000 times, The rest of the country will become obsessed with auditing the US Gold supply and force our government to show it to us.

Demand the US government show us our gold!

malikai's picture

I don't get it. I see all this audit ft knox business, but why bother?

If people find out there is 800 tons of tungsten in ft knox, what difference will it make? Bretton Woods was over so many years ago nobody even knows what it was. So who gives a shit? It's not like the soccer mom is going to think twice about it when she finds out. Will it matter to a Chinese or Arab exporter that Ft. Knox is the most expensive tungsten storage facility on planet Earth? I don't think so, since they of course, get paid in dollars.

The only gold anybody should be concerned with is their own. And the protection thereof from their peers and government.

Michael's picture

Why do people climb mountains?

Fareed Zakaria GPS of CNN interviewed Michael Lewis today discussing his book, The Big Short. It was awesome.

If someone could Youtube it for us, that would be great.

Michael's picture

Nice Housing Vs Gold Chart.

Nice Silver Vs Oil chart hear, a bit outdated. I'l ike to see an updated version. Scroll down.

Michael's picture

Thanks for the link. I needed that. There must be a much longer version talking about a lot of other things.

I heard Lewis talking about the origins of the Tea Party, why they got started and the Federal Reserve. He said no one was talking about this before the Ron Paul movement.

Careless Whisper's picture

okay, here are your choices:

a) $100 in U.S. currency (aka a "benjamin")

b) 3 ounces of silver

c) one barrel of oil (west texas crude)

right now, i'm choosing the oil.


FeralSerf's picture


a) $100,000 US (aka 1,000 benjamins)

b) 3,000 oz. silver

c) 1,000 barrels of oil

Where are you planning on storing the oil or if the merde hits the fan, how are you going to sneak out of Dodge with your stuff?  Got fire insurance?

Careless Whisper's picture

the silver is easy to store. divided into 4 locations. home and 3 safe deposit boxes in different cities. this is what 100 ounces looks like, so multiply by 30:

as for 1,000 barrels of oil, or $100,000 worth, i'll take 600 shares of XOM and 500 shares of CVX  --- same as owning oil in the ground.

my last choice is to own rapidly depreciating fiat dollars.

PaperWillBurn's picture

"same as owning oil in the ground." shares are not convertible into oil and paper is never the same as owning something real and useful


Careless Whisper's picture


shares of common stock is not the same as fiat money. the fed reserve does what they damn well please when it comes to printing federal reserve notes (money), but exxon isn't about to issue new shares and dilute the existing shareholders! that would require a vote of the board of directors and it is very unlikely, and if they do it, they better have a good reason. buying shares of common means you are buying a percentage of the company, although rather small at our level. buying exxon isn't exactly the same as owning the oil itself but it's the next best thing and a practical solution to owning an appreciating asset.

FeralSerf's picture

Exxon doesn't have to issue new shares. Wall St. naked shorters can do it instead.  When  the SHTF why do you think the PTB will let you have access to your safe deposit boxes without  a cop watching you (and confiscating the contents for "safe keeping").

It seems to me that Cisco shares have been created to be used as fiat currency.  Why not an oil or mining company?    I'm pretty sure that's been tried too.

I thought your first choice was oil, not silver.

Careless Whisper's picture




if oil goes up, for whatever reason, it doesn't make sense that there will be alot of money shorting XOM or CVX. if it turns in to a bubble or goes parabolic, then you might be right. although oil is my first choice, i'm bullish on silver and gold because, as you know, the privately owned federal reserve is destroying the dollar. and your advice on safe deposit boxes is noted. if things start to get really bad, the only thing left in there will be my birth certificate. some of us have one. and yes CSCO is junk but that doesn't mean all stocks are.

UGrev's picture

Did you miss the part where FIAT is worthless?

silver_serf's picture

It matters becuase when ft. knox is found empty, my gold is much more valuable.

FubarNation's picture

The gold is still there....and lots of it.

silver_serf's picture

Ehhh... there was an audit????

Nobody special's picture

It doesn't matter because Gold is not money.  Isn't that what we keep hearing?  CB's store it, history proves, and Egypt seems to know... but to the general public Gold is supposed to just be a barbaric relic nobody really needs.  The average schmoe out there could care less what's in fort Knox.

Of course, the average schmoe doesn't decide world economics now, does he.  Pretty soon, the reality of want VS need is going to be dramatically revised.  ;)

malikai's picture

This I can agree with. However, a CRIMEX default will make that point known when silver blows up, so again, there is no need for political action. There is only a need for unified physical purchasing. Something many here have been advocating for quite some time.

DoChenRollingBearing's picture

@ Michael the Nancy,

Show us the Gold!

Show us the Gold!

Show us the Gold!

Show us the Gold!

Show us the Gold!

Show us the Gold!

There's my contribution.  Thanks for the idea.

Troll Magnet's picture

what about those with gold teeth or fillings?  do they need to pull out their teeth and leave them at the airport if they want to travel?

silver_serf's picture

If departing from mexico, yes.  They may just do it for you, free of charge

Michael's picture

Thanks DCRB. I think "Our" should be the operative word on signage.

Show us our Gold!

Show us our Gold!

Show us our Gold!

Mr Pinnion's picture

Most americans are selling their gold for cash.

What makes you think they would be shocked to learn their government had done the same?

You credit your fellow countrymen with too much intelligence.



GetZeeGold's picture


Let me see if I have this straight....the country is burning.....and the first major action is about gold?


......sounds about right.



Dr. Porkchop's picture

Since Mubarak has already stolen it all, I guess this law is timely.

pacu44's picture

Did Mubarak steal it or did his puppet master?

jesse livermoore's picture

maybe he just "leased it"

Zero Govt's picture

Goldbugs Alert : scared of the US or EU Govts grabbing your Gold? Export your spangly stuff for safe storage in Egypt, they won't let it out.. sorted.

Pure Evil's picture

Well, at least not until June 30.

Troll Magnet's picture

or you can just mail them to me and i'll "store" them for you guys for FREE!!!

storing your gold with me will be so safe that neither the government nor YOU will be able to find them (or me).  it's THAT safe. :)

prophet_banker's picture

between this and the Royal Mint of Canada reporting difficulty sourcing silver, i'd say PM shortage headlines are right around the corner; though i think they can pave over the blow up in the paper market with more paper; for a while



Saxxon's picture

Bullish for gold.  The opposite of CB sales is restrictions.  New highs right soon.

FunkyMonkeyBoy's picture

You can't export what you don't have.

Milton Waddams's picture

Another example of the state "preserving wealth"...

16.896 Sale or contractual operation of state−owned heating, cooling, and power plants. (1) Notwithstanding ss. 13.48 (14) (am) and 16.705 (1), the department may sell any state−owned heating, cooling, and power plant or may contract with a private entity for the operation of any such plant, with or without solicitation of bids, for any amount that the department determines to be in the best interest of the state. Notwithstanding ss. 196.49 and 196.80, no approval or certification of the public service commission is necessary for a public utility to purchase, or contract for the operation of, such a plant, and any such purchase is considered to be in the public interest and to comply with the criteria for certification of a project under s. 196.49 (3)

GoinFawr's picture

Are you sure that's not just a nice translation of Ecuadorian legislation?

So when can I invest in privatizing breathable air? I mean once the public has built all the underlying infrastructure to support such an industry, that I can pick up for pennies on the dollar in a depressionary environment, of course... Heh, I imagine works of that scale would be way too expensive to manufacture privately.

disabledvet's picture

note to self:  "wheat" as a form of "currency" is a bad idea..."especially when in need of import" in order to it eaten?  Interestingly "M1A2 battle tanks" apparently aren't so bad...people even put flowers in them!  i'll need a bigger garage for starters.   Banker!  Banker!  Come hither!

traderjoe's picture

But, can't eat it...?!

midtowng's picture

And you can't buy groceries with it. And its only worth what someone else will pay for it...oh yeah.

Arch Duke Ferdinand's picture

""But, can't eat it...?!""

""And you can't buy groceries with it. And its only worth what someone else will pay for it...oh yeah.""

In a month or two.....Billions of India, China and Asian citizens will be selling their gold for FOOD.

Canada's four Western Provinces...with a plethora of natural resources and only 12.5 million citizens, led by gateway city, Vancouver BC...

DoChenRollingBearing's picture

Someone here at ZH yesterday made a good case for New Brunswick, as it is milder in climate than interior W. Canada and cheaper as well.  Cheap farmland.

Pseudo Anonym's picture

the WGC is long overdue in adjusting the Egyptian gold holdings from 75.6 tonnes to their real current value... far lower.

at least some will be left; unless the good ol' US of A invades egypt. Then it will be adjusted to zero, as the zionist usa is best known for plundering real assets of every nation it invades.

bugs_'s picture

of course this wealth does not belong to individuals it belongs to the state, the new democratic paradise created in just 9 days!!!

Oh regional Indian's picture

This is something I've always wondered about. if the world is balkanized to it's pre-globalized form, governments will be free to pass laws such as this, essentially leading to massive inter-country arbitrage and a very very unstable price for all commodities (PM's especially). india already has massive precedent for blocking trading, especially futures on essentials without notice. Investor eats his loss, force majure. Part of thsi end-game fascination. No idea what is coming tomorrow.


DoChenRollingBearing's picture

Good observation ORI.

Such arbitrary trade restrictions have hurt India a lot in the past.  And that this kind of thing could become a much bigger problem in the future.

Me too re no idea what is coming tomorrow.  NAFC!

Hook Line and Sphincter's picture

Not to be crude, but... I know exactly what's coming tomorrow. I have a date with Robo's avatar.

On 'a nuther' note, do we really want Ft Knox to be audited? Price of Au would likely launch skyward, but finding tungsten or nothing at all would force the gov to do things they elsewise wouldn't have actually sealing the borders so no one goes OUT for cap controls, and self-defeating house to house searches (with accompanied gun fire). This wouldn't be the case if it's existence was left unknown, where gov plausible denial is left intact, and only confiscation by means of 'paper gold' is prevalent.

asotavb's picture

this article states that gold is wealth.  this is news to me and the rest of the msm as dollars are the only wealth we know.