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Eric Sprott: Do Western Central Banks Have Any Gold Left?

Tyler Durden's picture





 

From Eric Sprott and David Baker of Sprott Asset Management

Do Western Central Banks Have Any Gold Left???

Somewhere deep in the bowels of the world’s Western central banks lie vaults holding gargantuan piles of physical gold bars… or at least that’s what they all claim. The gold bars are part of their respective foreign currency reserves, which include all the usual fiat currencies like the dollar, the pound, the yen and the euro.

Collectively, the governments/central banks of the United States, United Kingdom, Japan, Switzerland, Eurozone and the International Monetary Fund (IMF) are believed to hold an impressive 23,349 tonnes of gold in their respective reserves, representing more than $1.3 trillion at today’s gold price. Beyond the suggested tonnage, however, very little is actually known about the gold that makes up this massive stockpile. Western central banks disclose next to nothing about where it’s stored, in what form, or how much of the gold reserves are utilized for other purposes. We are assured that it’s all there, of course, but little effort has ever been made by the central banks to provide any details beyond the arbitrary references in their various financial reserve reports.

Twelve years ago, few would have cared what central banks did with their gold. Gold had suffered a twenty year bear cycle and didn’t engender much excitement at $255 per ounce. It made perfect sense for Western governments to lend out (or in the case of Canada – outright sell) their gold reserves in order to generate some interest income from their holdings. And that’s exactly what many central banks did from the late 1980’s through to the late 2000’s. The times have changed however, and today it absolutely does matter what they’re doing with their reserves, and where the reserves are actually held. Why? Because the countries in question are now all grossly over-indebted and printing their respective currencies with reckless abandon. It would be reassuring to know that they still have some of the ‘barbarous relic’ kicking around, collecting dust, just in case their experiment with collusive monetary accommodation doesn’t work out as planned.

You may be interested to know that central bank gold sales were actually the crux of the original investment thesis that first got us interested in the gold space back in 2000. We were introduced to it through the work of Frank Veneroso, who published an outstanding report on the gold market in 1998 aptly titled, “The 1998 Gold Book Annual”. In it, Mr. Veneroso inferred that central bank gold sales had artificially suppressed the full extent of gold demand to the tune of approximately 1,600 tonnes per year (in an approximately 4,000 tonne market of annual supply). Of the 35,000 tonnes that the central banks were officially stated to own at the time, Mr. Veneroso estimated that they were already down to 18,000 tonnes of actual physical. Once the central banks ran out of gold to sell, he surmised, the gold market would be poised for a powerful bull market… and he turned out to be completely right – although central banks did continue to be net sellers of gold for many years to come.

As the gold bull market developed throughout the 2000’s, central banks didn’t become net buyers of physical gold until 2009, which coincided with gold’s final break-out above US$1,000 per ounce. The entirety of this buying was performed by central banks in the non-Western world, however, by countries like Russia, Turkey, Kazakhstan, Ukraine and the Philippines… and they have continued buying gold ever since. According to Thomson Reuters GFMS, a precious metals research agency, non-Western central banks purchased 457 tonnes of gold in 2011, and are expected to purchase another 493 tonnes of gold this year as they expand their reserves.1 Our estimates suggest they will likely purchase even more than that.2 The Western central banks, meanwhile, have essentially remained silent on the topic of gold, and have not publicly disclosed any sales or purchases of gold at all over the past three years. Although there is a “Central Bank Gold Agreement” currently in place that covers the gold sales of the Eurosystem central banks, Sweden and Switzerland, there has been no mention of gold sales by the very entities that are purported to own the largest stockpiles of the precious metal.3 The silence is telling.

Over the past several years, we’ve collected data on physical demand for gold as it has developed over time. The consistent annual growth in demand for physical gold bullion has increasingly puzzled us with regard to supply. Global annual gold mine supply ex Russia and China (who do not export domestic production) is actually lower than it was in year 2000, and ever since the IMF announced the completion of its sale of 403 tonnes of gold in December 2010, there hasn’t been any large, publicly-disclosed seller of physical gold in the market for almost two years.4 Given the significant increase in physical demand that we’ve seen over the past decade, particularly from buyers in Asia, it suffices to say that we cannot identify where all the gold is coming from to supply it… but it has to be coming from somewhere.

To give you a sense of how much the demand for physical gold has increased over the past decade, we’ve listed a select number of physical gold buyers and calculated their net change in annual demand in tonnes from 2000 to 2012 (see Chart A).

CHART A
ChartA.gif
Numbers quoted in metric tonnes.
† Source: CBGA1, CBGA2, CBGA3, International Monetary Fund Statistics, Sprott Estimates.
†† Source: Royal Canadian Mint and United States Mint.
††† Includes closed-end funds such as Sprott Physical Gold Trust and Central Fund of Canada.
^ Source: World Gold Council, Sprott Estimates.
^^ Source: World Gold Council, Sprott Estimates.
^^^ Refers to annualized increase over the past eight years.

As can be seen, the mere combination of only five separate sources of demand results in a 2,268 tonne net change in physical demand for gold over the past twelve years – meaning that there is roughly 2,268 tonnes of new annual demand today that didn’t exist 12 years ago. According to the CPM Group, one of the main purveyors of gold statistics, the total annual gold supply is estimated to be roughly 3,700 tonnes of gold this year. Of that, the World Gold Council estimates that only 2,687 tonnes are expected to come from actual mine production, while the rest is attributed to recycled scrap gold, mainly from old jewelry.5 (See footnote 5). The reporting agencies have a tendency to insist that total physical demand perfectly matches physical supply every year, and use the “Net Private Investment” as a plug to shore up the difference between the demand they attribute to industry, jewelry and ‘official transactions’ by central banks versus their annual supply estimate (which is relatively verifiable). Their “Net Private Investment” figures are implied, however, and do not measure the actual investment demand purchases that take place every year. If more accurate data was ever incorporated into their market summary for demand, it would reveal a huge discrepancy, with the demand side vastly exceeding their estimation of annual supply. In fact, we know it would exceed it based purely on China’s Hong Kong gold imports, which are now up to 458 tonnes year-to-date as of July, representing a 367% increase over its purchases during the same period last year. If the imports continue at their current rate, China will reach 785 tonnes of gold imports by year-end. That’s 785 tonnes in a market that’s only expected to produce roughly 2,700 tonnes of mine supply, and that’s just one buyer.

Then there are all the private buyers whose purchases go unreported and unacknowledged, like that of Greenlight Capital, the hedge fund managed by David Einhorn, that is reported to have purchased $500 million worth of physical gold starting in 2009. Or the $1 billion of physical gold purchased by the University of Texas Investment Management Co. in April 2011… or the myriad of other private investors (like Saudi Sheiks, Russian billionaires, this writer, probably many of our readers, etc.) who have purchased physical gold for their accounts over the past decade. None of these private purchases are ever considered in the research agencies’ summaries for investment demand, and yet these are real purchases of physical gold, not ETF’s or gold ‘certificates’. They require real, physical gold bars to be delivered to the buyer. So once we acknowledge how big the discrepancy is between the actual true level of physical gold demand versus the annual “supply”, the obvious questions present themselves: who are the sellers delivering the gold to match the enormous increase in physical demand? What entities are releasing physical gold onto the market without reporting it? Where is all the gold coming from?

There is only one possible candidate: the Western central banks. It may very well be that a large portion of physical gold currently flowing to new buyers is actually coming from the Western central banks themselves. They are the only holders of physical gold who are capable of supplying gold in a quantity and manner that cannot be readily tracked. They are also the very entities whose actions have driven investors back into gold in the first place. Gold is, after all, a hedge against their collective irresponsibility – and they have showcased their capacity in that regard quite enthusiastically over the past decade, especially since 2008.

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
Sources:
1) http://www.bankofengland.co.uk/statistics/Documents/reserves/2012/Aug/tempoutput.pdf
2) http://www.treasury.gov/resource-center/data-chart-center/IR-Position/Pages/08312012.aspx
3) http://www.ecb.int/stats/external/reserves/html/assets_8.812.E.en.html
4) http://www.boj.or.jp/en/about/account/zai1205a.pdf
5) http://www.imf.org/external/np/exr/facts/gold.htm
6) http://www.snb.ch/en/mmr/reference/annrep_2011_komplett/source

Notes:
ECB Data as of July 2012. Bank of Japan data as of March 31, 2012.

* European Central Bank reserves is composed of reserves held by the ECB, Belgium, Germany, Estonia, Ireland, Greece, Spain, France, Italy, Cyprus, Luxembourg, Malta, The Netherlands, Austria, Portugal, Slovenia, Slovakia and Finland.
** Bank of Japan only lists its gold reserves in Yen at book value.

Our analysis of the physical gold market shows that central banks have most likely been a massive unreported supplier of physical gold, and strongly implies that their gold reserves are negligible today. If Frank Veneroso’s conclusions were even close to accurate back in 1998 (and we believe they were), when coupled with the 2,300 tonne net change in annual demand we can easily identify above, it can only lead to the conclusion that a large portion of the Western central banks’ stated 23,000 tonnes of gold reserves are merely a paper entry on their balance sheets – completely un-backed by anything tangible other than an IOU from whatever counterparty leased it from them in years past. At this stage of the game, we don’t believe these central banks will be able to get their gold back without extreme difficulty, especially if it turns out the gold has left their countries entirely. We can also only wonder how much gold within the central bank system has been ‘rehypothecated’ in the process, since the central banks in question seem so reluctant to divulge any meaningful details on their reserves in a way that would shed light on the various “swaps” and “loans” they imply to be participating in. We might also suggest that if a proper audit of Western central bank gold reserves was ever launched, as per Ron Paul’s recent proposal to audit the US Federal Reserve, the proverbial cat would be let out of the bag – with explosive implications for the gold price.

Notwithstanding the recent conversions of PIMCO’s Bill Gross, Bridegwater’s Ray Dalio and Ned Davis Research to gold, we realize that many mainstream institutional investors still continue to struggle with the topic. We also realize that some readers may scoff at any analysis of the gold market that hints at “conspiracy”. 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. As a general rule of common sense, when one embarks on an unlimited quantitative easing program targeted at the employment rate (see QE3), one had better make sure to have something in the vault as backup in case the ‘unlimited’ part actually ends up really meaning unlimited. We hope that it does not, for the sake of our monetary system, but given our analysis of the physical gold market, we’ll stick with our gold bars and take comfort as they collect more dust in our vaults, untouched.

1 http://www.bloomberg.com/news/2012-09-04/central-bank-gold-buying-seen-reaching-493-tons-in-2012-by-gfms.html
2 See notes in Chart A.
http://www.gold.org/government_affairs/reserve_asset_management/central_bank_gold_agreements/
4 http://www.imf.org/external/np/exr/faq/goldfaqs.htm
5 Mine supply estimate supplied by World Gold Council; YTD gold mine production data suggests that total 2012 gold mine supply will come in lower around 2,300 tonnes, ex Russia and China production. In addition, Frank Veneroso has recently published a new report that warns that the supply of recycled scrap gold could drop significantly going forward due to the depletion ofthe inventories of industrial scrap and long held jewelry over the past decade.
6  http://www.ecb.int/pub/pdf/other/statintreservesen.pdf

 

 


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Tue, 10/02/2012 - 18:50 | Link to Comment Flakmeister
Flakmeister's picture

Of their own? No, probably not

Tue, 10/02/2012 - 18:52 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Yeah, they probably don't.

Tue, 10/02/2012 - 19:49 | Link to Comment strannick
strannick's picture

Canada dumped its gold cause Reagan with smiling irish eyes asked Mulroney to do so. England managed to unload half its gold right at the bottom (Browns bottom) of the market.

Are Central Banks above dumping their gold to keep up the charade of paper backed by the full faith of their government? How you answer that question will determine how well you will fare in the coming financial conflagration.

Tue, 10/02/2012 - 20:12 | Link to Comment SafelyGraze
SafelyGraze's picture

word of the day: preconfiscated. (compare 'rehypothecated')

example usage: the banks do not physically possess their metal, but they virtually (and essentially) do because all their holdings exist in the form of preconfiscated metal.

Tue, 10/02/2012 - 20:29 | Link to Comment Xibalba
Xibalba's picture

Do gold receipts count?  

Tue, 10/02/2012 - 21:00 | Link to Comment SafelyGraze
SafelyGraze's picture

"Do gold receipts count? "

absolutely!

as do receipts for the receipts. which is how preconfiscation relates to rehypothecation.

example usage: we don't have the million ounces; we had receipts for those ounces, but we loaned the receipts to someone else. here is the receipt for those receipts. hence we have a million preconfiscated ounces in our vault. what did you say your name is?


Tue, 10/02/2012 - 21:46 | Link to Comment Zer0head
Zer0head's picture

The Obama tape has been released

 

http://dailycaller.com/2012/10/02/obama-speech-jeremiah-wright-new-orleans

 

listen to it all but some has been cut out

 

he clearly knows Jeremiah Wright very well and Obama clearly thought the Katrina folks got screwed

 

 

Of interest he seems to have a different accent than the fellow I see these days giving speeches, which makes me wonder in a conspiratorial sort of way if Obama is in fact Obama or is he  some impostor  see this comparison of the Two Obamas

 

http://dailycaller.com/2012/10/02/obama-speech-jeremiah-wright-new-orlea...

 

Much more important and on the topic  of impostors this now removed video from youtube of Bloomberg's favorite ego Sara (but still available here)

https://bitly.com/VbvC4Z+ 

in what can only be described as a bizarre dream involving pantys (I think there were pantys) and microhones or some other broadcast type implement

Tue, 10/02/2012 - 21:45 | Link to Comment Xibalba
Xibalba's picture

wtf does this have to do with gold reciepts?  

Tue, 10/02/2012 - 22:01 | Link to Comment Bicycle Repairman
Bicycle Repairman's picture

If the western central banks have no gold, then gold standard = WWIII.

Tue, 10/02/2012 - 23:31 | Link to Comment francis_sawyer
francis_sawyer's picture

Central Banks?... Do they hold gold?...

~~~

Well ~ of course THAT'S NOT the real question here, is it?... HISTORY (if you study it ~ which you probably WON'T ~ & which is why ur a dupe) will tell you that JEWS HOLD GOLD (& in this case, JEWS own all the illicit central banks (because it is their INSTINCT to be criminals)...  Anyway... it basically means, JEWS hold gold [congrats 4 them ~ I guess they're not as stupid as you think])...

The half dozen JEW JUNKERS (who get PAID full time on ZH to 'junk' francis_sawyer comments), will get their daily SHECKLES junking this comment... Nevertheless ~ IT'S TRUE...

~~~

So what is the end resuly?

Basically, NOTHING unspectacular... THEY will continue to confiscate YOUR gold (using various means that they have developed during the ages)... As long as you are focused on LIVING... THEY will be focused on stealing your MONEY (in whatever for it takes in that moment)...

Why?... Because they're JEWS... That's what they do... That's what they've done over spans of ages... GET USED TO IT (& stop junking this type of comment simply because some OTHER lieutenant (media) jew somehow made you feel guilty...

 

 

Tue, 10/02/2012 - 23:38 | Link to Comment fuu
fuu's picture

Doesn't matter, bacteria can now produce gold.

Sell everything.

http://news.msu.edu/story/superman-strength-bacteria-produces-gold/

Tue, 10/02/2012 - 23:43 | Link to Comment francis_sawyer
francis_sawyer's picture

GREAT!!!

So I guess that means that BACTERIA = JEWS...

Thanks for clearing that matter of science up for me between your JUNKING rounds...

 

Tue, 10/02/2012 - 23:53 | Link to Comment Manthong
Manthong's picture

Of course they have all the reported gold there..

just as sure as the US government complies with the law and produces a budget every year, Fed policy is good for savers like Bernanke says, the market is fair and free to discover price and discount economic conditions, the shadow banking system is accounted for and reconcilable, and the world debt crisis will be resolved without catastrophe .

Tue, 10/02/2012 - 23:53 | Link to Comment fuu
fuu's picture

<pats francis on the head>

Wed, 10/03/2012 - 02:55 | Link to Comment Likstane
Likstane's picture

Hell yeah! I've been scraping that green stuff next to the toilet this evening and putting it in a petri dish.  I'll boil it in some fermented prunes and see if i can replicate some shiny.  Toilet bowl Gold Bitchetz.!!

Sun, 11/18/2012 - 01:20 | Link to Comment Big Slick
Big Slick's picture

Some western bankers even put the selling of the bank's gold on their resume ... oops, then remove it quickly.  Nice sleuthing ZH!

"Turns Out Dumping 1,300 Tons Of Swiss Gold Isn't A Resume Builder After All" 

http://www.zerohedge.com/news/2012-10-05/turns-out-dumping-1300-tons-swiss-gold-isnt-resume-builder-after-all

Wed, 10/03/2012 - 00:25 | Link to Comment WeekendAtBernankes
WeekendAtBernankes's picture

derp derp JUICE derp derp

Wed, 10/03/2012 - 00:25 | Link to Comment Xibalba
Xibalba's picture

biogold?  hmmm....a lil' desperate are they?

Wed, 10/03/2012 - 09:11 | Link to Comment Overflow-admin
Overflow-admin's picture

Same shit as fuel produced with (uni)corn

Wed, 10/03/2012 - 04:39 | Link to Comment BlackVoid
BlackVoid's picture

"It would be cost prohibitive to reproduce their experiment on a larger scale, he said"

Nevertheless I am happy to buy your now valueless gold for $800 / ounce.

Wed, 10/03/2012 - 12:17 | Link to Comment Thisson
Thisson's picture

Abiotic gold, bitches!

Fri, 10/05/2012 - 00:22 | Link to Comment Robsabi
Robsabi's picture

Francis, Francis...

When someone is violently homophobic, it's usually because they're compensating for something - probably recognition of their own homosexual curiosity, combined with a pathological inability to accept themselves for who they are. It's the same with you. Although it's probably easier for someone to be sure that they don't have some Jewish blood in them (though Zhirinovsky in Russia and maybe even your buddy Hitler were mistaken in this regard) you're clearly compensating for some perceived inadequacy in yourself that's ravaging you as a person.

Wed, 10/03/2012 - 00:19 | Link to Comment Schmuck Raker
Schmuck Raker's picture

"Germans?....."

"......Forget it, he's rolling."

Wed, 10/03/2012 - 03:54 | Link to Comment stuckonarock
stuckonarock's picture

they been caught with their panties down

Tue, 10/02/2012 - 23:18 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

The Central Bank of DoChenRollingBearing only holds real physical gold.  Bitchez.

Wed, 10/03/2012 - 00:30 | Link to Comment Monedas
Monedas's picture

The Central Gold Fund of Monedas (CGFM) has no physical gold .... being an honest broker .... we ship your gold to you .... we never ever hold OPG (Other Peoples Gold) for them .... it's a conflict of interest .... it's your gold .... possession is the purest form of ownership !  We have no 10 ton vault door with Do Chen roller bearing hinges !   

Tue, 10/02/2012 - 20:32 | Link to Comment FoxMulder
FoxMulder's picture

It seems that they may have lost it all in a tragic boating accident.

Tue, 10/02/2012 - 22:11 | Link to Comment mick68
mick68's picture

Come get your "Micknotes" folks. Since I'll soon have more gold than the FED, your Micknotes are more valuable than a US dollar!

Wed, 10/03/2012 - 00:20 | Link to Comment Schmuck Raker
Schmuck Raker's picture

Not the Venezuelans.

Tue, 10/02/2012 - 20:32 | Link to Comment Dr Benway
Dr Benway's picture

Preconfiscated? I like it lol.

Re gold loans. If country A has 10m oz physical gold and 90m lent to country B, and country B has 10m oz physical and 90m lent to country A, how much gold do the two countries have in total?

IMF says 200m oz, I say 20

Tue, 10/02/2012 - 21:09 | Link to Comment pavman
pavman's picture

They can't preconfiscate my PMs, they're a sovereign nation's currency other than the one I reside in. Its neither the relm of the US government nor can it be confiscated.  Or at least that's what I'm banking err hoarding on :)

DISCLAIMER: This post is for mere entertainment.  No statements contained herein should be misconstrued as to public admittance of guilt of possession by the poster or willful hoarding of precious metals in any form by the same.

Tue, 10/02/2012 - 20:13 | Link to Comment Biosci
Biosci's picture

Just Sprott talking his book again.  Premium to NAV not high enough anymore?

Tue, 10/02/2012 - 21:12 | Link to Comment Better_late_tha...
Better_late_than_never's picture

You would rather Ben Bernanke talk his? How much are you making off his premium?

Wed, 10/03/2012 - 02:09 | Link to Comment The Malamute Kid
The Malamute Kid's picture

Erics funds are "Good as gold".  If you invest in them, you can go to Toronto and see the physical silver and gold that backs his funds.

Wed, 10/03/2012 - 02:25 | Link to Comment prains
prains's picture

Bioscidmark

 

your trollyism is so weak it makes my nut sack genuflect in your general direction but thanks for coming out once every two years

Tue, 10/02/2012 - 22:28 | Link to Comment Buck Johnson
Buck Johnson's picture

The question is who is buying when the central banks dump?

Wed, 10/03/2012 - 02:17 | Link to Comment Dr. Sandi
Dr. Sandi's picture

 The result depends on who has more gold, me or the central banks. I'm betting I do.

 

Wed, 10/03/2012 - 04:40 | Link to Comment giggler123
giggler123's picture

You'll probably find they are doing it to complete the failed system - if you had a fall back on say physical gold than the NWO previous planned might not go your way.  In that case it makes every sense to deplete your last hope...

Tue, 10/02/2012 - 20:34 | Link to Comment Silver Bug
Silver Bug's picture

Eric Sprott is one of the true great Gold and Silver Vigilantes out there. Another great article.

 

http://ericsprott.blogspot.ca/

Tue, 10/02/2012 - 19:30 | Link to Comment SILVERGEDDON
SILVERGEDDON's picture

Do the banks have any gold ? 

Is the Pope Catholic ?

Does a bear shit in the woods ?

Can Ben Bernanke even spell " rehypothecate " ? 

Did Snooki burn her muffin waxing it off for her Playmate photo shoot ?

What is " gold " anyway ?

Isn't that just a term for software bookeeping ?

Sheep won't give a fuck - they just want another GMO corn dog, and Iphone 5. 

Tue, 10/02/2012 - 19:35 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

There is gold in that there iPhone 5.

Tue, 10/02/2012 - 20:30 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

.

There is gold in that there iPhone 5.

...just don't look too closely if you're at all familiar with iron pyrite.

Tue, 10/02/2012 - 20:30 | Link to Comment francis_sawyer
francis_sawyer's picture

does the pope shit in the woods?

Tue, 10/02/2012 - 21:12 | Link to Comment pavman
pavman's picture

does the pope shit in the woods?

sometimes.

Tue, 10/02/2012 - 21:16 | Link to Comment iamgogi
iamgogi's picture

does shit pope in the woods?

Wed, 10/03/2012 - 01:41 | Link to Comment wee-weed up
wee-weed up's picture

Popes don't shit.

Wed, 10/03/2012 - 02:05 | Link to Comment UGrev
UGrev's picture

No, they do; but they are "Holy Ghost" shit's. 

Wed, 10/03/2012 - 02:45 | Link to Comment _ConanTheLibert...
_ConanTheLibertarian_'s picture

so holy shit

Tue, 10/02/2012 - 22:44 | Link to Comment HungryPorkChop
HungryPorkChop's picture

Yeah right, there's probably $2 worth of gold in the iPhone 5 and it would cost $50 to have it processed and reclaimed.  So in other words, you are hosed. 

 

Now please send me the $48 I just saved you.

Wed, 10/03/2012 - 09:39 | Link to Comment Urban Redneck
Urban Redneck's picture

No, actually it costs a LOT less than the $2, pus you can also recover the Steel, Copper, Aluminum, Silver, Platinum, Palladium, Rhodium, Cobalt, Indium, Tantalum, Lithium, Gallium, Tin, Zinc, Nickel, Lead, and Plastics.

 

www.swissreduxgroup.com

Tue, 10/02/2012 - 21:10 | Link to Comment Golden Balls
Golden Balls's picture

surely fruit flys are healthier than normal flys?

who on the chicken farm decide who will be roast chickens and who will become chicken salt?

Tue, 10/02/2012 - 20:29 | Link to Comment FL_Conservative
FL_Conservative's picture

Probably every bar in Fort Knox is filled with tungsten.

Tue, 10/02/2012 - 22:19 | Link to Comment palmereldritch
palmereldritch's picture

On the street they call those a Rubin sandwich

http://www.youtube.com/watch?v=Tz79A8EXHlI

Tue, 10/02/2012 - 22:27 | Link to Comment Slightly Insane
Slightly Insane's picture

Just AUDIT the Fed!

 

We Could get that answer ..... and then what happens?

Tue, 10/02/2012 - 22:29 | Link to Comment Slightly Insane
Slightly Insane's picture

Just "Show me da Money"!  Not the paper stuff, the Gold!

Wed, 10/03/2012 - 04:31 | Link to Comment No Euros please...
No Euros please we&#039;re British's picture

It is believed that some 60% of Germany’s gold is stored outside of Germany and much of it in the Federal Reserve Bank of New York.

-Goldcore

OOPS!

Tue, 10/02/2012 - 18:51 | Link to Comment CH1
CH1's picture

Are you questioning our righteous overssers?

You must be a terrorist.

Tue, 10/02/2012 - 19:25 | Link to Comment DeadFred
DeadFred's picture

I believe the technology exists to detect the gold from above ground and outside the building. Anyone who investigated that possibility and planned to put it into action, now he/she would be a terrorist bent on destroying orderly society.

Tue, 10/02/2012 - 21:12 | Link to Comment pavman
pavman's picture

Dam now I have to add lead to my PM collection.  Thanks alot Peewee!

Tue, 10/02/2012 - 18:53 | Link to Comment jaap
jaap's picture

There is still enough in the Black Eagle Trust fund to keep shorting

Tue, 10/02/2012 - 18:55 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Is that the Hitler family's?

Tue, 10/02/2012 - 19:21 | Link to Comment putaipan
putaipan's picture

cough....bush.

Tue, 10/02/2012 - 20:44 | Link to Comment Sabibaby
Sabibaby's picture

Hitler was doing the world a favor until the banksters paid the rest of the world off.

Wed, 10/03/2012 - 02:19 | Link to Comment Dr. Sandi
Dr. Sandi's picture

I assume you're referring to the buzz bombing of London.

Wed, 10/03/2012 - 04:16 | Link to Comment NidStyles
NidStyles's picture

Isn't interesting how all of these meglomaniacal dictators always seem to be bastard children and have no remaining family? Sort of like they were made up out of of thin air.

 

I'm absolutely convinced that 80% of the shit the Government's put in their history books is fabricated.

Tue, 10/02/2012 - 20:34 | Link to Comment FeralSerf
FeralSerf's picture

"HERE ARE MY FAVORITE GOLD SECRETS

Probably the most famous secret gold stash is the "Nazi Gold" that was confiscated from Hitler after WW2. Hitler plundered many European nations of their gold as well as countless individuals. Nobody knows the actual figures but estimates are in the 2,000-50,000 ton range much of which has been used secretly by the military industrial complex and banking cabal to fund their dirty operations. Information and theories on what happened to the Nazi Gold can be found all over the internet...some sites present clearly fanciful theories but others are loaded with facts, figures and motives that are very believable.

http://www.bibliotecapleyades.net/sociopolitica/esp_sociopol_gold02a.htm

Another golden stash of even greater volume is Yamashita's Gold that was plundered by the Japanese for decades from conquered Asian countries. In order to hide the gold from the US it was hidden in caves in the Philippines but the US found the gold and it has been using it to fund covert operations ever since. This secret gold stash is claimed to be in the 100,000-300,000+ ton range but again nobody really knows. The Sterling and Peggy Seagrave book Gold Warriors gives a detailed account of this gigantic treasure. They also have mountains of documentation backing up their claims of the existence of this secret gold stash and the ramifications are stunning.

Imagine the implications if this secret gold stash was ever to be made "officially" public. The price of gold would likely crash (although only briefly) and then, once the world understood the reasoning behind hiding this treasure, every country and investor in the world would try to get their hands on some gold. In the aftermath of the market chaos the world would want answers as to where the gold was sold, who got the money, who covered it up, who has it now, who does the gold legally belong to and why is gold so important. All are very, very good questions but the answers would implicate some of the most powerful people in the world. The covert use of Yamashita's gold has changed the world in the last 70 years and when disclosed to the public it will change it again.

http://en.wikipedia.org/wiki/Yamashita%27s_gold

A third is the rumored Chinese Imperial Gold that Benjamin Fulford has claimed to have knowledge of. This treasure is so vast that Fulford's contacts has put the total of above ground physical gold in the world closer to 1,000,000 tons instead of the official number of 160,000 tons. The basic fact is that Eastern countries have coveted gold for centuries and it makes sense that most of the gold ever mined in the world is located somewhere in Asia. Even today, India imports around 33% of all the gold mined in the world and have been the largest gold importer for years.

Maybe the largest unknown store of physical gold in the world is the Vatican Gold. For nearly two thousand years the church has been hoarding gold gained from wars and conquests in the name of God. Throughout the ages people have been shoveling vast amounts of gold into the collection trays every Sunday. The Vatican gold hoard is a closely guarded secret but I believe that it may be the largest collection in history if you take into account all the gold used in the artwork, crosses, trinkets, coins and cups owned by the church. The Vatican is all about privacy, secrecy and power and I guarantee you they know the true value of gold.

These are just some of the above ground Secret Gold Stashes that may be out there. When I add it all up and do some "conspiratorial guess work" I come up with a vast store of gold in the neighborhood of 1.5M tons of above ground gold or 10x the gold supply "accepted" in the mainstream gold markets.

Of course this may be very far off...both to the upside or the downside. The point is that the "Accepted" above ground gold numbers are completely dismissing the vast hoards of secret gold that are both rumored to be circulating and/or are very well documented as fact.

Dispute it all you want…the truth is that YOU DON'T KNOW EITHER!"

http://www.roadtoroota.com/public/181.cfm

Tue, 10/02/2012 - 21:14 | Link to Comment iamgogi
iamgogi's picture

Still pales in comparison to the unknown trillions of fiat in circulation

Tue, 10/02/2012 - 21:27 | Link to Comment BigInJapan
BigInJapan's picture

Dude, you so lost me at Benjamin Fulford.

That guy is a nutjob of the highest order. Probably the single most fucked up person in Japan - and that's no easy feat.

Ask him sometime about when the ninjas jumped him and he escaped... or when he found some symbiot living inside his body... 

 

Benjamin Fulford. the man, the lunatic. The comeplete and utter loser:

http://www.youtube.com/watch?v=kdvS4SEQGEg

Tue, 10/02/2012 - 21:51 | Link to Comment FeralSerf
FeralSerf's picture

I don't know about Fulford.  I haven't read anything about him except this.

But the Seagraves' book is very well documented and very credible.  They appear to have proven beyond a reasonable doubt that the so-called Yamashita gold was well in excess of 100,000 metric tons.  This doubles world supply.  It appears to have gone down the CIA rabbit hole to be used for who knows what.  The people that confiscated it don't appear to have deposited any of it in official channel.   It is likely being used to finance all sorts of nefarious operations.

Tue, 10/02/2012 - 22:47 | Link to Comment cynicalskeptic
cynicalskeptic's picture

Yamashita's treasure is one more reason for the Chinese (and a good part of the rest of Asia)  to be pissed off at the US.  Much of that gold was confiscated from China, Korea, Malaysia and all the other countries conquered by Japan.  Post WWII - when China went Communist the US was hardly going to do the right thing and give it back.  Seems like a good aprt of it was grabbed by Marcos - though the CIA grabbed some back from him.

But do you really think that gold is still in US possession?  Likely that the CIA squandered it - using the 'barbarous relic' to bribe warlords in SE Asia, autocrats in Central Asia and Central America and god know what else....I always wondered about those pallet loads of $100 bills shipped to to Iraq - are they out of anythign 'better' to bribe the locals?

Bix wewiur seems to think there's a wel thought out plan to 'crash the system' and reclaim the worldfrom the bankers.  I don't see it......I DO see CHina and Asia working to undermine the US and the rest of the West - revenge for the past few hundred years.....  Sadly the West has willingly gone along - thinking tey were outsmarting the Chinese - when reality seems to be the opposite.  The Chinese are PATIENT.  They plan for the long trem - the West can;t see past the next quarter.

Tue, 10/02/2012 - 23:22 | Link to Comment FeralSerf
FeralSerf's picture

According to the Seagraves, substantially all of the gold was confiscated from Marcos and much of it was dug up by CIA people but didn't appear to go into official accounts.  I don't think any of it really ended up in "US possession".  It appears to have ended up in personal accounts of people on the top -- above the president -- to use as they saw fit in their campaign to rule the world.

It appears that many of those $100 bills that went to Iraq were off the record, i.e. very good counterfeits, so good they were probably made at the Bureau of Engraving and Printing.  More money to bribe and also to fund personal fortunes of the criminals at the top.  The U.S. gov't. appears to not want all those $100 bills back into the country.

I'm not as optimistic as Bix is either.  The bad guys running the show are very well financed and entrenched.

Wed, 10/03/2012 - 01:23 | Link to Comment Vlad Tepid
Vlad Tepid's picture

The book is poppycock and "well-researched" ponly in that they cobble together  tons of unsupported musings in one book.

Notwithstanding that 100,000 tons of gold being held/used by the US and it's proxy arms would throw off Sprott's whole analysis (which says that the way the market is acting means they are running dry), the premise of there even BEING any "Yamashita's gold" is dubious at best.  There certainly was not 100,000 tons that the Japanese had access to in their conquests and they would have had no reason (or ability) to hide their new asset.

While you're in the fiction department there are several books claiming the Chinese discovered America that I suggest you slobber over.

Wed, 10/03/2012 - 01:53 | Link to Comment Cosimo de Medici
Cosimo de Medici's picture

Kudos for having the patience to remain in the control tower and try to help the moonbat land safely.

A hundred thousand tons, you say?  Are those metric, hopus, or hocus pocus tonnes?

Wed, 10/03/2012 - 02:27 | Link to Comment akak
akak's picture

This idea that there is one (or more!) "secret" stashes of 100,000 tons of gold floating around is so ludicrous, it is difficult to know where to start to show the fallacy and absurdity of it.  But just let me start with the question: where did all that gold come from? 

Gold is (mostly) not just found in nuggets lying conveniently around, it has to be mined, at great labor and expense, particularly at great expense of energy.  Most people have utterly no conception of the HUGE advances in gold mining and extraction that have occurred within the last 100 years, and even within the last 30 years (cyanide heap leaching, for example, which has doubled and tripled annual gold production just since the 1970s).  Prior to the Industrial Revolution, the amount of gold extracted annually on a global basis was only a minute fraction of what it is today --- maybe one-hundreth the amount.  So in order to mine 100,000 tons of gold (and remember, this is in ADDITION to that which is generally acknowledged), 4000 years would have been required to amass this 100,000 tons of gold. 

Furthermore, there is simply no way that such a vast additional quantity of gold could have been kept hidden for literally millenia -- and what motivation would anyone have had for doing so in the first place?  Remember, gold is, and most especially WAS, money, and both people and governments have a habit of NOT sitting on vast amounts of stagnant money, particularly over centuries.  But even granting, hypothetically, that such a vast golden fortune had been amassed, does anyone really think that it would have been kept intact both during and in the aftermath of WWII --- or that its disbursement would NOT have radically impacted world gold markets for the worse?  Gold would be $35 an ounce, or less, in TODAY'S dollars if this much gold were in existence.

Wed, 10/03/2012 - 21:33 | Link to Comment Au Shucks
Au Shucks's picture

Sorry to be the bearer of bad news AKAK, but you are making a naive, generalized and illogical argument.  Gold has been mined for WELL over 4000 years, and the gold of 4000+ years ago was much easier attained than most of today's mined gold.  The Egyptians had gold in EVERYTHING, EVERYWHERE.  The amounts of gold found, as immense as it was, was but a fraction of the gold that was plundered or remains undiscovered throughout ancient Egypt.   Same goes for Rome, same for the Spanish empire, on and on and on.  You dismiss the ability for such wealth to remain "hidden" for millenia, yet this is precisely what has happened with SO MUCH ancient wisdom.. it has been centralized and placed beyond the reach of the public... I could go on and on, but something tells me (very obviously, in fact) that you have a closed mind and lack the motivation to consider otherwise.

Wed, 10/03/2012 - 12:24 | Link to Comment Thisson
Thisson's picture

The total quantity of gold in existence does not matter for monetary purposes.

Tue, 10/02/2012 - 18:55 | Link to Comment Tango in the Blight
Tango in the Blight's picture

It thrills me to think that I might have more gold than Fort Knox and the NY Fed. :P

Tue, 10/02/2012 - 19:09 | Link to Comment BKbroiler
BKbroiler's picture

damn, better get a boat soon

Tue, 10/02/2012 - 19:17 | Link to Comment Tango in the Blight
Tango in the Blight's picture

I bought my ticket for the maiden voyage of RMS Titanic II.

Tue, 10/02/2012 - 19:46 | Link to Comment Jendrzejczyk
Jendrzejczyk's picture

The Titanic = giant canoe accident.

Tue, 10/02/2012 - 20:30 | Link to Comment francis_sawyer
francis_sawyer's picture

same as WTC7

Tue, 10/02/2012 - 19:51 | Link to Comment max2205
max2205's picture

You mean QE II

Wed, 10/03/2012 - 00:03 | Link to Comment Raymond_K_Hessel
Raymond_K_Hessel's picture

Could someone recap the boat story for me, please?

Wed, 10/03/2012 - 01:50 | Link to Comment Temporalist
Temporalist's picture

Don't pack all of your precious metals into a boat as you're likely to lose it all.  Apparently boats are unstable and heavy objects sink and disappear in water forever.

Wed, 10/03/2012 - 10:14 | Link to Comment El Diablo Rojo
El Diablo Rojo's picture

It's an ongoing theme/ inside joke here on ZH.  Whenever anyone mentions they have PM's (precious metals) they also mention that they have it safely stored in a boat.  Why?  Conspiracy.  They are sure that this site is being watched and farmed by CIA counter intelligence and that if in fact their ZH account information were to be hacked, that no less than 8 black armor clad jackboots would be speeding toward their general direction with only the thought of confiscation of said PM's on their minds.  So the boats are inevitably made from cement, with chewing gum patching up the holes, or bolsa wood, or Haitian engineered bathtubs.

Tue, 10/02/2012 - 21:18 | Link to Comment iamgogi
iamgogi's picture

This admission will earn you FEMA camp one day

Wed, 10/03/2012 - 04:20 | Link to Comment stuckonarock
stuckonarock's picture

I have a metal detector.  Its a minelab sovereign, i think it will prob go down to about 2 feet on a box of gold coins!   Military spec detectors prob go much deeper!   If i had a few coins I would prob bury at over 4 feet to be on the safe side!

Wed, 10/03/2012 - 08:05 | Link to Comment ZeroPoint
ZeroPoint's picture

I own 10+ acres. I am afraid it will never be found because I lost it on the way to Grandma's house in the woods....

Tue, 10/02/2012 - 22:47 | Link to Comment HungryPorkChop
HungryPorkChop's picture

So you have more gold or more gold coated tungsten?  Please be specific.

Tue, 10/02/2012 - 18:55 | Link to Comment Robslob
Robslob's picture

Welcome to "My Military is Bigger than Yours" negotiations.

See...it is really lead that has been undervalued all this time!

Tue, 10/02/2012 - 19:05 | Link to Comment Flakmeister
Flakmeister's picture

It has been that way for a long time, why do you think USD still buys oil?

Actually, depleted Uranium speaks louder than Lead....

Tue, 10/02/2012 - 19:19 | Link to Comment Tango in the Blight
Tango in the Blight's picture

All empires which are about to fail have a kickass army.... until they can't afford them anymore. No-one is impressed by the Roman Army or the Royal Navy anymore.

Tue, 10/02/2012 - 19:19 | Link to Comment Flakmeister
Flakmeister's picture

Ask the Argentinians about that one....

Tue, 10/02/2012 - 19:29 | Link to Comment Tango in the Blight
Tango in the Blight's picture

They might just take back the Malvinas, the Royal Navy of 2012 is a shadow of the RN in Maggie's years.

Tue, 10/02/2012 - 21:00 | Link to Comment BigDuke6
BigDuke6's picture

 

Thats The Falkland Islands to you, cuntfucker.

Tue, 10/02/2012 - 21:26 | Link to Comment Umh
Umh's picture

You went over his head.

 

Tue, 10/02/2012 - 22:24 | Link to Comment Hulk
Hulk's picture

Is cuntfucker supposed to be an insult? Just askin...

Tue, 10/02/2012 - 23:17 | Link to Comment Flakmeister
Flakmeister's picture

I was scratching my head about that one too...

Tue, 10/02/2012 - 22:51 | Link to Comment cynicalskeptic
cynicalskeptic's picture

Failing empires are big on mercenaries... look at the paid 'help' employed by the US in Iraq and Afghanistan....lots of foreign former special forces types.... South America, South Africa, all over the place.....   nevermind the foreigners promised citizenship in exxchange for military service

Didn't that cause some serious problems for Rome.... the Goths resented their second class status in the Roman Army... keep in miond that most of the 'barbarians' than invaded and looted Rome had been in Rome's employ at soem point.

Tue, 10/02/2012 - 18:56 | Link to Comment BlackMagician
BlackMagician's picture

Western leaders liars? Why they wouldn't lie to their people now would they. Of course if it's not in the vaults...they will simply take from the sheeple...for their own good of course.

Tue, 10/02/2012 - 18:56 | Link to Comment Dre4dwolf
Dre4dwolf's picture

you could probably guess how much of w/e gold they have is actually tungsten, im willing to bet that about 45% of the gold in all bank vaults around the world is tungesten, most of the good gold has already gone into private hands.

Tue, 10/02/2012 - 21:35 | Link to Comment Seer
Seer's picture

I'd add that it would be prudent to watch the volumes on physical tungsten, and, though I figure it would be pretty hard to trace, who is buying...

Tue, 10/02/2012 - 18:59 | Link to Comment Gringo Viejo
Gringo Viejo's picture

A "Federal" judge just killed CFTC regs. limiting speculative, PAPER positions? Of course there's no gold left!

Tue, 10/02/2012 - 19:20 | Link to Comment Manipuflation
Manipuflation's picture

CFTC= WWE referees

Tue, 10/02/2012 - 20:04 | Link to Comment The Fonz...befo...
The Fonz...before shark jump's picture

More like nfl replacement refs..... They make wrong calls with dubious authority

Tue, 10/02/2012 - 22:27 | Link to Comment Manipuflation
Manipuflation's picture

True that, but that NFL replacement ref meme has worn thin for now.  I opted for the WWE because the manipulaton is so obvious.  Oh wait...nevermind.  +1

Tue, 10/02/2012 - 19:00 | Link to Comment ginunn
ginunn's picture

If the central banks through the sales of their gold, have been manipulating markets and if they are finally out of gold, market manipulation should end. Right?

Tue, 10/02/2012 - 19:05 | Link to Comment Manipuflation
Manipuflation's picture

No.  Au and Ag will continue to be manipulated through the futures markets.  The banks might not have any gold but the bankers themselves no doubt do.

Tue, 10/02/2012 - 19:07 | Link to Comment ebworthen
ebworthen's picture

The banks don't need gold, they have central banks and the taxpayer of the world by the balls.

And, when the FDR Gold confiscation scheme is resurrected to "save the nation" who do you think will get the gold?

They're not getting mine as it's at the bottom of Lake Superior but...

Tue, 10/02/2012 - 19:27 | Link to Comment jimmytorpedo
jimmytorpedo's picture

which part of lake superior?

please be precise

Tue, 10/02/2012 - 20:58 | Link to Comment SmallerGovNow2
SmallerGovNow2's picture

lat and long please...

Tue, 10/02/2012 - 21:02 | Link to Comment ebworthen
ebworthen's picture

GPS unit went overboard with the Gold just as I was about to write it down.

No shore or buoys in site; anyone's guess, though the I.R.S. is welcome to send out divers.

Somewhere in the middle.

Tue, 10/02/2012 - 21:19 | Link to Comment akak
akak's picture

 

 

Superior, it's told, never gives up her gold

when the gales of debasement come early.

Tue, 10/02/2012 - 22:26 | Link to Comment Hulk
Hulk's picture

Thank you Akak Lightfoot !!!

Tue, 10/02/2012 - 23:14 | Link to Comment NeedtoSecede
NeedtoSecede's picture

Only at Zero Hedge.  Where global finance and comedy collide!  If the world weren't so fucked up this would really be funny...

BTW Mine all fell through the ice.

Tue, 10/02/2012 - 23:00 | Link to Comment HungryPorkChop
HungryPorkChop's picture

Great song!  Time to launch the air and sea search. And it's almost November when the gales came early... 80 mph winds and 25 ft waves.  I think this describes the current gold market.

Wed, 10/03/2012 - 04:26 | Link to Comment stuckonarock
stuckonarock's picture

if you say its somewhere near the middle, that prob means its somewhere near the sides.  Im off to get my metal detector !

 

Tue, 10/02/2012 - 21:10 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

.

which part of lake superior?

The wet part.

Tue, 10/02/2012 - 19:02 | Link to Comment Gringo Viejo
Gringo Viejo's picture

These short COMEX fucks are about to smother under their own mountain of paper. I'm looking forward to it!

Tue, 10/02/2012 - 19:06 | Link to Comment Flakmeister
Flakmeister's picture

Sorry, they won't.... that is not how the game works, I would have thought you had figured it out by now...

Hint: read the fine print....

Tue, 10/02/2012 - 20:26 | Link to Comment knukles
knukles's picture

COMEX gold futures can be settled in GLD shares.
GLD holds all gold in form of LBMA good delivery.
Physical or warehouse receipts.
GLD does not assay any gold held under is auspices since its LBMA good delivery
If LBMA gold has ever passed through the City, ever, it can has been rehypothecated.

Any more questions?

Wed, 10/03/2012 - 08:08 | Link to Comment ZeroPoint
ZeroPoint's picture

The central controllers have already shown their hand. They will shut off the markets if they can't control the price. If you do end up selling precious metals, it's going to be a localized transaction, and you may not get the same price as the same deal going down in the next town over.

Tue, 10/02/2012 - 19:02 | Link to Comment AUD
AUD's picture

The RBA only has 2.57 million ounces, most, if not all, probably in London, where it is 'lent to participants in the gold market'.

Interestingly enough, the RBA's gold lending has fallen significantly since 2007-08. Most loans were short term & now gold on loan from the RBA is negligible. The rate of interest on short term gold loans for the last several years has been 0.2 - 0.3%.

This is all in the RBA's annual report, free for all to look at www.rba.gov.au

Tue, 10/02/2012 - 19:04 | Link to Comment yabyum
yabyum's picture

I would  be a bit 'noid if I owned lots of big bars. Lucky for me it is in small coin. I mean very small, and very wet, like in the bottom of the lake.

Tue, 10/02/2012 - 19:30 | Link to Comment jimmytorpedo
jimmytorpedo's picture

let me guess Ya-bum

the bottom of lake superior?

Tue, 10/02/2012 - 20:33 | Link to Comment yabyum
yabyum's picture

The wreck of the Ella Fitzgerald.

Tue, 10/02/2012 - 22:42 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

The wreck of the Marriner Eccles.

Tue, 10/02/2012 - 19:03 | Link to Comment dick cheneys ghost
dick cheneys ghost's picture

Did the Saudi's get a "gold-kicker'' as partial payment to keep the oil at a cheap $ price? If so how much gold was involved?

 

 

Tue, 10/02/2012 - 19:10 | Link to Comment Flakmeister
Flakmeister's picture

The Saudis export ~7 mmbpd of oil or roughly $875,000,000 every day (minus costs)... They could buy out ABX, NEM in very short order if they wanted gold..

Dick Cheney would be embarrassed that his ghost would lack the most basic of analytic abilities....

Tue, 10/02/2012 - 19:57 | Link to Comment dick cheneys ghost
dick cheneys ghost's picture

Great point, but if you were sitting on all that oil, would you trade it for paper, knowing that one day, the oil would be gone?

Tue, 10/02/2012 - 21:21 | Link to Comment pavman
pavman's picture

trade it for paper

Really depends on the paper...

Tue, 10/02/2012 - 22:55 | Link to Comment cynicalskeptic
cynicalskeptic's picture

Lots of rumors that the oil crisis was ended by an under the tabel deal to pay the Saudis in gold - may be why there are rumors of tungsten filled bars in Ft Knox.... we used up that gold to pay for oil over the past 30 years.

Tue, 10/02/2012 - 23:24 | Link to Comment Flakmeister
Flakmeister's picture

Compute the amount of oil the US has imported since, say 1969, taking into account a typical ratio, 1oz gold = 15 barrels, you will soon realize that the gold has been gone for 25 years...

Assuming that Saudis demanded gold, which is very doubtful...

Wed, 10/03/2012 - 08:11 | Link to Comment ZeroPoint
ZeroPoint's picture

Kissinger once admitted he had drafted a plan for Nixon to go into Saudi Arabia to 'secure the oil' if they didn't come to an agreement.

What's interesting now is that the House of Saud is apparently losing control. If they are toppled, prepare for even more chaos.

Tue, 10/02/2012 - 21:02 | Link to Comment SmallerGovNow2
SmallerGovNow2's picture

9 mbpd...  hate to nit pick over 2 million barrels per day but....

Tue, 10/02/2012 - 21:20 | Link to Comment Flakmeister
Flakmeister's picture

You did notice I said exports....

http://mazamascience.com/OilExport/

Select Saudi Arabia.....

Wed, 10/03/2012 - 10:04 | Link to Comment Urban Redneck
Urban Redneck's picture

But it's that growing amount of oil that isn't exported that is so interesting... if you believe the Cunts and Cuntettes at CNBS the Saudis have a big air conditioner that consumes millions of barrels of oil a day (mathematically enough to cool the entire planet).  Petrodollar "recycling" into the has been primarily a fiction for years, except to pry American manufacturing enterprises out of American hands and off American shores.  The Saudi's even burn oil (which they can otherwise sell for 100 Bernanke clown bucks a barrel) to make toilet water, that's how shitty they think US fiat is.  It's not like they couldn't afford a-nuclear-a-week out of their petty cash if the wanted to go green, or like GE hasn't been trying to sell nukes (in plant form) to everyone on the west side of the bathtub for years. 

Tue, 10/02/2012 - 19:04 | Link to Comment kito
kito's picture

so is this a purposeful coordinated move whereby the globalists are purposely transferring the gold to the east before they collapse the west????..............................

Tue, 10/02/2012 - 19:40 | Link to Comment killallthefiat
killallthefiat's picture

You're right.  Coordinated.  China is the model.  Even if the BRICs have all the gold, they are so populated that the average Joe is not rich anyhow. 

Tue, 10/02/2012 - 21:24 | Link to Comment pavman
pavman's picture

Its one last turn 'em all into Communists attempt.  Or we can hope that there's some sort of US haha in there to make all these other nations look like idiots for buying at the top, but that's alot of hope and we're kind of thin on it these days.

I find it ironic that China, and a number of other third worldish countries, are setting themselves up to be the creditors of the 21st century.  What a fubar'd planet we live on.

 

Tue, 10/02/2012 - 19:57 | Link to Comment Jendrzejczyk
Jendrzejczyk's picture

I smell a setup.

Tue, 10/02/2012 - 21:41 | Link to Comment Seer
Seer's picture

Jim Rodgers has been telegraphing this for several years...

Tue, 10/02/2012 - 19:05 | Link to Comment Dexter Morgan
Dexter Morgan's picture

Wow, that was heavy.  Great article.

Tue, 10/02/2012 - 20:10 | Link to Comment RockyRacoon
RockyRacoon's picture

I figger you have to scroll about this far down in the comments to find somebody who has actually read the article.  The majority of the primary comments above are from folks who just want to push through the crowd and gawk from the front row.  Yes, it was a good article.   I suppose a bit farther down will be the comments about how it's too long and all that could have been done in a paragraph.   They walk among us... and they're allowed to vote!

Tue, 10/02/2012 - 21:56 | Link to Comment SillySalesmanQu...
SillySalesmanQuestion's picture

+1

Tue, 10/02/2012 - 22:36 | Link to Comment saulysw
saulysw's picture

Gold is, after all, a hedge against their collective irresponsibility – and they have showcased their capacity in that regard quite enthusiastically over the past decade, especially since 2008.

Made me laugh, so true and a nice turn of phrase. Overall the article resonated strongly with me, although I think this might be a stretch ...

Our analysis of the physical gold market shows that central banks have most likely been a massive unreported supplier of physical gold, and strongly implies that their gold reserves are negligible today.

Negligible? Hmmmm, not sure about that. Overreported, sure.

Other pieces in the puzzle might be -- Where does all that "cash for gold" go? The next MF Global / Bear Stearns is?

Tue, 10/02/2012 - 21:04 | Link to Comment hedgehog9999
hedgehog9999's picture

My guess  is they mostly have Tungsten filled or coated bars.... that's why they seldom appear in the open market. They are all locked up. But they vehemently oppose an audit. 

It is the borrowed or leased gold that is the real thing....a lot of it has been melted and rejigged into brand new bars......or stored away in private vaults.

Tue, 10/02/2012 - 19:09 | Link to Comment Atlantis Consigliore
Atlantis Consigliore's picture

Tyler; Stop Monkeying around with my M F Gold, I know its all there the

Muppett Statement from the Bankster,  sez so

and its under Regulatiion by the Regulators, Larry, Curley and Schmoo,

so who s the Sap?  

stop Monkeying I got the Washington Monkey here to tie you up.

if you dont stop with this hypothecating and stealing and Tungsten, salting, 

Ill tye you up in court with my Monkey Shemp;  hes good with shoelaces

bad with bankruptcy trustees they only stop after bleeding the case out

only after 10,000 billable hours.  Whos the Sap now Sap?

see?   http://youtu.be/GXdZjiSmx8E

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