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The Emperor Has No Gold

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empty vault gold The Emperor Has No Gold


 

The Emperor Has No Gold

Romania has demanded for many years that Russia return its gold.

Last year, Venezuela demanded the return of 90 tons of gold from the Bank of England.

The German high court recently ruled that Germany must audit its gold reserves held in foreign countries such as the U.S., England and France. And German inspectors will actually travel to the New York Federal Reserve Bank’s gold depository and the Bank of England to inspect their gold.

Germany will also repatriate 150 tons of gold in order to test it for purity.

As Zero Hedge notes (quoting Bloomberg):

Ecuador’s government wants the nation’s banks to repatriate about one third of their foreign holdings to support national growth, the head of the country’s tax agency said.

 

Carlos Carrasco, director of the tax agency known as the SRI, said today that Ecuador’s lenders could repatriate about $1.7 billion and still fulfill obligations to international clients. Carrasco spoke at a congressional hearing in Quito on a government proposal to raise taxes on banks to finance cash subsidies to the South American nation’s poor.

Four members of the Swiss Parliament want Switzerland to reclaim its gold.

Some people in the Netherlands want their gold back as well.

Cheviot Asset Management’s Ned Naylor-Leyland says that the Fed and Bank of England will never return gold to its foreign owners.

Jim Willie says that the gold is gone.

The fact that CNBC head editor John Carney is arguing that it doesn’t matter whether or not the Fed has the gold does not exactly inspire confidence.

Gerald Celente notes:

It’s not only Germany (who’s gold is missing), it’s the United Sates, it’s all of the countries. Nobody knows what’s in Fort Knox. They won’t let anybody in. Where’s the gold in the United States? How come we can’t go in and look in Fort Knox?

 

***

 

How come the people can’t have a reading? How come we can’t look at it? How come politicians can’t get in there? How come no one can get in there? The gold does not exist. All this does is confirm what so many of us already know, “The Emperor has no gold.”

Egon von Greyerz - founder and managing partner at Matterhorn Asset Management – agrees:

There probably isn’t anywhere near the central bank gold (governments claim they possess).

Ron Paul has called for an audit of Fort Knox, based upon the suspicion by many that the gold was sold off years ago:

 

Others allege that the gold has not been sold outright, but has been leased or encumbered, so that the U.S. does not own it outright.

$10 billion dollar fund manager Eric Sprott writes – in an article entitled “Do Western Central Banks Have Any Gold Left???“:

If the Western central banks are indeed leasing out their physical reserves, they would not actually have to disclose the specific amounts of gold that leave their respective vaults. According to a document on the European Central Bank’s (ECB) website regarding the statistical treatment of the Eurosystem’s International Reserves, current reporting guidelines do not require central banks to differentiate between gold owned outright versus gold lent out or swapped with another party. The document states that, “reversible transactions in gold do not have any effect on the level of monetary gold regardless of the type of transaction (i.e. gold swaps, repos, deposits or loans), in line with the recommendations contained in the IMF guidelines.”6 (Emphasis theirs). Under current reporting guidelines, therefore, central banks are permitted to continue carrying the entry of physical gold on their balance sheet even if they’ve swapped it or lent it out entirely. You can see this in the way Western central banks refer to their gold reserves. The UK Government, for example, refers to its gold allocation as, “Gold (incl. gold swapped or on loan)”. That’s the verbatim phrase they use in their official statement. Same goes for the US Treasury and the ECB, which report their gold holdings as “Gold (including gold deposits and, if appropriate, gold swapped)” and “Gold (including gold deposits and gold swapped)”, respectively (see Chart B). Unfortunately, that’s as far as their description goes, as each institution does not break down what percentage of their stated gold reserves are held in physical, versus what percentage has been loaned out or swapped for something else. The fact that they do not differentiate between the two is astounding, (Ed. As is the “including gold deposits” verbiage that they use – what else is “gold” supposed to refer to?) but at the same time not at all surprising. It would not lend much credence to central bank credibility if they admitted they were leasing their gold reserves to ‘bullion bank’ intermediaries who were then turning around and selling their gold to China, for example. But the numbers strongly suggest that that is exactly what has happened. The central banks’ gold is likely gone, and the bullion banks that sold it have no realistic chance of getting it back.

CHART B

chartb.gif The Emperor Has No Gold

This may sound like a conspiracy theory.  But the banks have already been caught raiding allocated accounts. And governments have repeatedly been caught manipulating gold prices.  And financial companies have been caught pretending they have reserves which they don’t. And gold bars have been found to have been filled with cheaper metals.

And at least one central bank – albeit a tiny one- has already been caught holding fake gold.

And as Eric Sprott points out:

We’re not talking about conspiracy here however, we’re talking about stupidity. After all, Western central banks are probably under the impression that the gold they’ve swapped and/or lent out is still legally theirs, which technically it may be. But if what we are proposing turns out to be true, and those reserves are not physically theirs; not physically in their possession… then all bets are off regarding the future of our monetary system.

 

China Is Quietly Becoming Gold Superpower

 

While Western central banks have frittered away their gold, China is quietly building up its reserves.

China is the world’s largest gold producer.

goldproduction2011 China Is Quietly Becoming Gold Superpower

And yet – according to various sources – gold bullion brokers have not seen any gold coming from China.

In other words, China is producing more gold than any other country, but isn’t exporting any of it.

As such, China is quietly becoming a gold superpower.

Note: China has a habit of being quiet for several years at a time, and then announcing big increases in gold holdings. So quoting old numbers will only mean that one is caught flat-footed as to China’s current holdings.

 

 


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Mon, 11/05/2012 - 08:30 | Link to Comment BlowsAgainstthe...
BlowsAgainsttheEmpire's picture

"Andreas Dombret, a member of the Executive Board of the Deutsche Bundesbank, the German equivalent of the Federal Reserve, called a demand by German politicians and the country's federal Court of Auditors to audit Germany's gold reserves now being held in the U.S., 'a discussion driven by irrational fears.'"

http://www.mineweb.com/mineweb/view/mineweb/en/page34?oid=161349&sn=Detail&pid=102055

See? Everyone is just being irrational. All is well. Move along.

Mon, 11/05/2012 - 05:27 | Link to Comment JOYFUL
JOYFUL's picture

You simply cannot write a piece about gold[or more precisely, the lack thereof]without bringing the world's biggest[non]miner into the equation...

all roads lead to Barrick.

Set up as a vehicle to launder stolen $, metals, and the profits of a dozen dirty globe-spanning deals, it was designed to complement JPM's missionary work in the 'markets' by buying up legitimate miners and using their cover to a)cloak the gold laundering part of the racket; b) interfere with the natural mechanics of the precious metals market by manipulations such as the hedging scam, fake accounting, shaking down shareholders, suppressing prices and dimming the prospects of the mining industry in general.

The jig is almost up. Very soon, the Bushy Bandit and his Bronfman-sponsored sidekick from Baie-Comeau will have run through the last of their Lucky Charms...and then, the Shadow Walkers will be callin in their debts.

There's no escaping the Dullahan, boyz...no matter how much gold you sprinkle in their path!

Mon, 11/05/2012 - 11:21 | Link to Comment Bay of Pigs
Bay of Pigs's picture

Barrick Gold, the poster child for fraud, corruption and mismanagemet (probably intentional). Seriously, how could they possibly run a company this badly in a 12 year Golden Bull market?

Munk and his crew are all snakes of the highest order.

Mon, 11/05/2012 - 03:21 | Link to Comment Hobbleknee
Hobbleknee's picture

If I asked the government to give back all the money they stole from me, the response would be the same.

*crickets chirp*

Mon, 11/05/2012 - 02:17 | Link to Comment Bastiat009
Bastiat009's picture

Gold: The more bullish the news, the lower the price.

Mon, 11/05/2012 - 01:47 | Link to Comment honestann
honestann's picture

Not only is China not exporting any gold, they are importing lots of gold (and silver).  While the manipulators at the federal reserve (through JPM) are holding down the price of gold and silver in order to make the dollar look much better than it is, they are also letting China (and other non-braindead countries) buy gold and silver at bargain prices.

As usual, the secondary consequences of central planning are far more destructive than the primary consequences are beneficial (to the predators-that-be).  And that's fine with the predators-that-be, because they don't care what happens to anyone but themselves.

The predators-that-be infinitely prefer to rule over a totally destitute basket-case country than be just rich, happy, prosperous folks in a free country.  Their top 10 priorities are power, power, power, power, power, power, power, power, power, power.

Mon, 11/05/2012 - 00:28 | Link to Comment DavidPierre
DavidPierre's picture

 

 

I have been trying without success to track down a story I read some years ago about stacking gold at the Federal Reserve.   I read the story on-line about 10 years ago and it was a posting from someone whose son had taken a summer job at the Federal Reserve and who had spent all of his time stacking gold bars.  The Fed had apparently wanted all of the bars stacked in a single line which went from floor to ceiling but which covered the full extent of the vault.  Behind this single line of bars the vault was mostly empty.

For the life of me I can’t find it anywhere.

http://www.lemetropolecafe.com

 

 

Mon, 11/05/2012 - 07:27 | Link to Comment pies_lancuchowy
pies_lancuchowy's picture

You should contact the 'LeMetropole' dude here on ZH. Some people say he has a contact in New York !

Mon, 11/05/2012 - 07:26 | Link to Comment pies_lancuchowy
pies_lancuchowy's picture

You should contact the 'LeMetropole' dude , he's active here on ZH.

Some people say that he has a contact in NEW YORK ! (who told him 3 months ago that silver will go 100% up i 3 months BTW)

Mon, 11/05/2012 - 01:46 | Link to Comment news printer
news printer's picture

I just watched movie at History Channel and 

it was about some young guy who's been hired to work at Fort Knox, but the rest of story is diffrent.

Anyway the guy from my story could work in one room ONLY.

 

Mon, 11/05/2012 - 01:37 | Link to Comment au_bayitch
au_bayitch's picture

Read a similar story. Believe was linked off the goldismoney2 forum about three years ago.

Sun, 11/04/2012 - 23:26 | Link to Comment Kastorsky
Kastorsky's picture

Shut up Germany!

You can't eat gold!

Eat euros and die!

Sun, 11/04/2012 - 23:02 | Link to Comment Mediocritas
Mediocritas's picture

Central banks have been running a fractional reserve gold system since the very start. Just like any fractional reserve system, if you demand to see your deposits, you'll find that they are there but what you won't be shown is the 10 other claimants who believe they have a claim on that very same gold.

Everything is fine until the bank-run starts and it looks like we're getting it now. Clients would be wise to withdraw gold holdings earlier rather than later. Simply assaying holdings in situ won't do as repositories will shuffle good metal between allocated accounts on demand to make everything appear accounted for. I hope Germany intends to regularly assay quality, track serial numbers and coordinate investigation with other claimants, if they don't intend to withdraw. Otherwise, they're suckers.

Sun, 11/04/2012 - 23:27 | Link to Comment Bay of Pigs
Sun, 11/04/2012 - 22:21 | Link to Comment tony bonn
tony bonn's picture

the only thing stored in ft knox besides tungsten is nerve gas....

Sun, 11/04/2012 - 23:17 | Link to Comment StychoKiller
StychoKiller's picture

Sure seems to make a lot of politicians more dain bramaged...

Sun, 11/04/2012 - 21:40 | Link to Comment vft2212
vft2212's picture

And gold continues it's bear market despite the cartoon bears, the rehypothecation, the arab winter lack of wheat summer & fall the dollar which hasnt made a new low in four years yada yada. If gold ever becomes a threat to any country it will become an outlaw just as in the past and subject first to 1997 style Korea government friendly pleading to its citizens to turn it in or Putinesque Rooseveltian outright confiscation. So enjoy having some gold because its shiny and provides cocktail chatter while rates remain at zero. However do not forget the opportunity cost from 1982-2000. Today's gold market hook is Ray Dalio and his claim "we all should have 10% of our money in gold as a balance." For evidence no one is perfect Einhorn is looking for $1000 on Apple stock. Ok but it isn't $705 anymore and last I looked it was closer to $575 within a matter of weeks. Math favors cash outperforms both of the aforementioned items.

Sun, 11/04/2012 - 22:43 | Link to Comment Bay of Pigs
Bay of Pigs's picture

Bear market? WTF are you talking about?

Are you a troll or just stupid?

Mon, 11/05/2012 - 08:15 | Link to Comment Snidley Whipsnae
Snidley Whipsnae's picture

Bay of Pigs...

"Are you a troll or just stupid?"

Probably both... nothing mutually exclusive about those occupations.

Sun, 11/04/2012 - 19:55 | Link to Comment MFLTucson
MFLTucson's picture

This makes the dollar worthless, not worth less!

Sun, 11/04/2012 - 19:28 | Link to Comment Zoltan
Zoltan's picture

Tineye is  your friend.

Would appear to be in Detroit.

http://www.thecoolist.com/abandoned-places-10-creepy-beautiful-modern-ruins/

Z

Sun, 11/04/2012 - 19:55 | Link to Comment Looney
Looney's picture

Here's a simple proof that Fort Knox is empty.

1. China and India have been buying gold hand over fist.

2. MOST of Europe has been busy trying to survive the slow-motion train-rack, a.k.a. Ewwww-RO.

3. The only guy who has the motive, opportunity, and resources to keep the price of the Yellow Metal down is Bernanke. In order to suppress the price of Gold he must SELL. Sell a lot of it. And not PAPER-GOLD, but the actual "barbaric relic".

Without his constant selling, the price of gold would've been multiples of today's price.

Fort Knox is one helluva vault - it is huge. However, it is not bottomless. One day, veddy-veddy soon, Bernanke will sell the last brick and that will be the day when there will be not enough Shit to hit the proverbial Fan. I think... ;-)

Looney

Sun, 11/04/2012 - 21:46 | Link to Comment UP4Liberty
UP4Liberty's picture

@Looney,

Good points.  One correction - Keynes was referring to the gold standard as the "barbarous relic" - not the physical metal itself.

Sun, 11/04/2012 - 20:41 | Link to Comment boogerbently
boogerbently's picture

I'll ask again, being as I keep hearing this as a theory.

What POSSIBLE benefit is it to (BenB, govt, FED) to keep the price of gold low?????

The JPMorgan "short" seems more reasonable.

AND a HUGE gold spike is the ONLY possible push after all this sovereign gold buying.

Sun, 11/04/2012 - 23:25 | Link to Comment Al Gorerhythm
Al Gorerhythm's picture

C'mon Booger. Think!

Gold is the recognised MONEY (a human construct) of the ages, everything else is an IOU or currency (more human constructs). ASK THESE QUESTIONS ON GOOGLE: "WHAT IS MONEY"?;

WHAT IS A CURRENCY AND WHY ISN'T IT MONEY?;

WHAT PROPERTIES DO HUMANS DEMAND OF MONEY THAT MAKE IT SO?

IF YOU OWNED A currency PRINTING PRESS, WHAT ADVANTAGES DOES IT GIVE YOU OVER THE GOLD MINER and MONEY earner?

QUI BONO?

Get to work.

Sun, 11/04/2012 - 21:26 | Link to Comment Manthong
Manthong's picture

Here you go..

If you listen to this very closely you will learn that gold is long acknowledged as the determinant of interest rates and bond prices.

They have to suppress it or the banks and governments will go belly up (which they eventually will anyway, but not until some unexpected perturbation of size occurs).

http://www.youtube.com/watch?v=T0jpso4jDC4

 

Sun, 11/04/2012 - 22:41 | Link to Comment Bay of Pigs
Bay of Pigs's picture

Yes, and the gold suppression has also been used to artificially boost the value and retain confidence of the USD.

The bond bubble is the biggest bubble in the history of mankind.

Sun, 11/04/2012 - 20:06 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

To my knowledge Bernanke cannot sell gold from Ft. Knox, as that gold is owned by the Treasury, not our central bank (the Fereal Reserve).  To say your three steps are proof that there is no gold at Ft. Knox is is clearly incorrect.

It is possible that there is no gold at Ft. Knox, but it would be highly unlikely that Bernanke sold it.  It could have been sold (or leased, etc.) off to others, but for that, you would have to ask recent Treasury Secretaries and/or Presidents.

Sun, 11/04/2012 - 22:31 | Link to Comment Fred C Dobbs
Fred C Dobbs's picture

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/10/31_Is_This_The_Black_Swan_That_Will_Make_Gold_Skyrocket.html

The above article is from kingworldnews.  Quoting Bill Haynes. 

“Eric, you know the United States gold has not been audited, other than by the Treasury Department, since Eisenhower was President. We don’t know where our gold is either. So we don’t know where our gold is or how much is there. But we also don’t know who truly controls the gold. Who has legal title to the United States gold?

 

The IMF reports the US gold is owned by the Federal Reserve System. As KWN readers know, the Federal Reserve is a privately owned organization, which is owned by the banks. So the banks (US & foreign) own the US gold. We don’t even know if the US Treasury has a secondary certificate of title claim on this gold.”

 

 

Sun, 11/04/2012 - 21:25 | Link to Comment LawsofPhysics
LawsofPhysics's picture

The last act of any government is to loot the treasury. Who "sells" the gold again?

Sun, 11/04/2012 - 23:02 | Link to Comment Al Gorerhythm
Al Gorerhythm's picture

The last act of government is to cover it up.

Sun, 11/04/2012 - 19:26 | Link to Comment Joebloinvestor
Joebloinvestor's picture

Wasn't a lot of this started by a raid on KITCO?

Sun, 11/04/2012 - 19:22 | Link to Comment Bansters-in-my-...
Bansters-in-my- feces's picture

Fuck YOU Bernanke...!!!

Sun, 11/04/2012 - 23:24 | Link to Comment Kastorsky
Kastorsky's picture

Why? why are you so mean to Shalom?

Bernank is the best friend of phys. 

He's tripled my retirement fund in just 6 years!

Sun, 11/04/2012 - 19:21 | Link to Comment knukles
knukles's picture

The following has me confused:

"The fact that CNBC head editor John Carney is arguing that it doesn’t matter whether or not the Fed has the gold does not exactly inspire confidence."

Am I (1.) to correctly conclude that it being said by an Editor of CNBS that it therefore does not inspire confidence or (2.) that it doesn't matter if the gold is there or not?

I'll take the former.
He's with CNBS so who cares....

(CNBS plays a very important social role, a quick daily check to find what the party lin, group think of the day is supposed to be...)

PS, John.  You got any gold I can have and you can pretend its still yours, it'll make no difference by your inimitable logic.

Sun, 11/04/2012 - 19:16 | Link to Comment Fix It Again Timmy
Fix It Again Timmy's picture

Gold in Central Bank vaults is just as plentiful as WMDs were in Iraq....

Sun, 11/04/2012 - 22:28 | Link to Comment Long-John-Silver
Long-John-Silver's picture

Assad is now using WMD shipped to him from Iraq on Syrian rebels.

Sun, 11/04/2012 - 19:13 | Link to Comment bank guy in Brussels
bank guy in Brussels's picture

Chart above spells a country's name as 'Uzbeckistan' ... Is that near GlennBeckistan?

---

Someone tried to ask 71-year-old gold-guru Jim Sinclair about the 'Freegold' theory and the famous 'FOFOA' ('Friend of a Friend of Another') Freegold blog

Sinclair replied:

« What is FOFOA? Is that something like FUBAR? »

Sun, 11/04/2012 - 20:02 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

I would be very surprised if Jim Sinclair did not really know about FOFOA.

Mon, 11/05/2012 - 00:19 | Link to Comment Imminent Crucible
Imminent Crucible's picture

Sinclair once said that he does not read any other gold analysts, because he thinks they will only serve to cloud the issues or weaken his resolve to stand fast against the onslaught of fiat zombies and their machinations.
I don't know if he still holds to that. I've been following him for about seven years.

Sun, 11/04/2012 - 23:58 | Link to Comment caustixoid
caustixoid's picture

Seriously bgib, this is your second post paraphrasing or outright bastardizing Jim Sinclair.  Maybe you could, like, provide references?  Or maybe you could keep typing stuff like "Jim Sinclair once told a reporter that investors should have at least half of their assets in fiat currencies and the other half in European bonds."  Because on ZH, just saying shit is asking for much ruder responses than this.

Mon, 11/05/2012 - 03:28 | Link to Comment stacking12321
stacking12321's picture

the quote by bgib is an actual quote of sinclair, if you check jsmineset for the last few  days you'll see it.

a few days previous to that, jim had posted that he gets 300 emails a day and tries to answer everyone, so don't send him emails asking what he thinks about A's, B's, or C's ideas on the gold market.

the next day someone did exactly that and hence his reply.

Sun, 11/04/2012 - 19:09 | Link to Comment petolo
petolo's picture

I'm puzzled. How could such substantial amount of gold be moved around without some menial labourer taking notice of it and gossiping it around. What is the disclosure policy of couriers, e.g,...Brinks? Although i am a believer in conspiracy it stretches my credulity how the bastards cankeep the lid on. Just occurred to me: dead men don't talk.

Sun, 11/04/2012 - 23:51 | Link to Comment Real Estate Geek
Real Estate Geek's picture

When motivated, governments can be pretty good at keeping secrets.  Thousands worked on the Manhattan Project and that was kept secret. 

Sun, 11/04/2012 - 23:12 | Link to Comment StychoKiller
StychoKiller's picture

How does one go about eating an elephant?  Answer:  ONE bite at a time.

Sun, 11/04/2012 - 18:51 | Link to Comment sgt_doom
Sun, 11/04/2012 - 18:46 | Link to Comment disabledvet
disabledvet's picture

that's 2,500 tons of gold produced annually. and Australia which has a tiny population sure looks like the "gold superpower" under than metric. Obviously China will never back its currency with gold so the idea that "Chinese gold" has any greater value than anyone else's is ridiculous. Australia in theory could...but usually you need to have a large and dynamic economy...Germany and USA starting in the late 1800's and Great Britain throughout much of its history. Doesn't hurt to have the rule of law either...which no country on earth has right now..and which devalues gold MASSIVELY as it cannot be "monetized" to "scale" unlike say...oil. still...interesting article. methinks "the great copper bubble" is about to burst...along with the commodity bubble complex in general...courtesy of Sandy. I would recommend going long "wool blankets." the only bailouts are for bankers...and they don't/haven't lend/lent money...to ANYONE other than the Federal Government. this could very well lead to a wave of default at the State and Local levels in very short order. We shall see...

Mon, 11/05/2012 - 08:13 | Link to Comment jackthelad
jackthelad's picture

We dig it out of the ground and sell it. AU govt actually has NO gold...

Mon, 11/05/2012 - 04:21 | Link to Comment SoundMoney45
SoundMoney45's picture

The more than 2500 fiat currencies in history have lasted around 30 years on average.  Thus, a nation desiring to create an empire that will last hundreds or thousands of years must adopt sound money, if history is any guide at all.  

Sun, 11/04/2012 - 21:10 | Link to Comment DosZap
DosZap's picture

Why JUST the focus on Ft.Knox?.

The SUPPOSED 8,133 tons, is held in FOUR locations.

Ft Knox/West Point/FRBNY/ and one more I cannot recall.

And at  the official Gub valuation of$42.xx per ounce may as well be half a barrel of oil.

Funny how it's only worth that amount, because they charge a hell of a lot more for Eagles, don't they?.

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