Gold Withdrawals From The NY Fed Accelerate, Hit 388 Tons Since 2014

Tyler Durden's picture

First it was Germany who redeemed 120 tons of physical gold from the NY Fed in 2014; then it was the Netherlands who "secretly" redomiciled 122 tons of gold; then last May, we learned that Austria would be the third "core" European nation to repatriate most of its offshore gold, held primarily in the Bank of England, redepositing it in Vienna and Switzerland.

That was just the beginning. Thanks to the latest NY Fed data, we now know that beginning in 2014 and continuing through yesterday, the gold "bleeding" from the vault located 90 feet below street level at 33 Liberty Street  is not only continuing but accelerating.

As the chart below shows, while central banks assure the population that there is nothing to worry about when it comes to paper money, which may or may not soon be banned if certain Harvard economists have their way, they have been quietly accelerating their withdrawals of gold from the biggest centralized depository of global gold in the world: the New York Federal Reserve.

According to the Ny Fed, in the seven months ended July 2016, there were a total of 87 tons of gold withdrawals, 25% more than the 69 tons withdrawn in the same period in 2015, and 60% more than the 55 tons withdrawn in 2014. As of July 31, the NY Fed held 5,807 tons of gold in custody, well below the 6,606 "old normal" that was parked at the Fed until withdrawals started in early 2007.

Just as remarkable, since the current round of monthly withdraws from the NY Fed started in February of 2014, there has been a total of 388 tons of gold redeemed by foreign central bank holders over a span of 30 months, which is just 20 tons shy of the previous burst of withdrawals which started in March of 2007, with the emergence of the subprime crisis, and culminating in November 2008 with the bailout of AIG.

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Jim Sampson's picture

Also... Physical AG Bitchez

Infocat's picture

This is clearly a desire for Physical metal from quite a lot of people, unsurprising considering whta is about to happen to our financial system. LEts see how long they can keep it running.

Ham-bone's picture

Gold outflows are typically a sign of stress...

Consider the US gold reserves peaked in the late 1950's.  A slow trickle of outflows began in the 60's that turned into a gushing loss of gold by the late '60's.  The US gold reserves over this time fell over 60% before Nixon's big announcement in August 1971.  There was a run on US gold and the US was on track to lose it all given it's fiscal and monetary actions backed by gold.

But now, 45 years later, it may be a good time to review the then Presidents full statement because he went on say a bit more.  Full statement, "I have directed secretary Connally to suspend temporarily the convertability of the dollar into gold or other reserves assets EXCEPT IN AMOUNTS AND CONDITIONS DETERMINED TO BE IN THE INTERESTS OF MONETARY STABILITY AND IN THE BEST INTERESTS OF THE UNITED STATES."

Under what conditions and in what amounts would the US continue to allow the conversion of dollars to gold?  What interests would the US or monetary stability have with the US continuing to allow the dollars conversion to gold?  Why would the president go out of his way on national television to parse his words?  And yet, he did.

How much longer before the Fed is forced to make some kind of similar announcement precluding any further offically acknowledged withdrawals?

Dutti's picture

Ham-bone, you post the then president's statement: "I have directed secretary Connally to suspend temporarily the convertability of the dollar into gold" .....

I found the word "temporarily" also very interesting, because around the world when politicians use that word, they usually mean permanently, as in introducing an additional new tax etc.

I agree with you regarding your last question. The ones that wait and trust the longest, usually get screwed the hardest.

knukles's picture

Who was it got the load of coin bars as opposed to LBMA good delivery 440's?

abyssinian's picture

So are they saying we are 21 tonnes away from the market crash? 

abyssinian's picture

So are they saying we are 21 tonnes away from the market crash? 

Nobodys Home's picture

Doesn't matter. They just melt it down and repour it with new serial numbers anyway.

MFL8240's picture

The moneychagers hated the world over!

Kaiser Sousa's picture


guess thats why the phony paper price keeps getting dumped....


yeah, makes perfect sense dont it...


dark pools of soros's picture


They'll keep pissing it away until it is 666

alexcojones's picture

Just as long as they "Withdraw" before they Come?

Everything is alright, Right?

alexcojones's picture

So seriously, which one of these Bankster nations got Libyas stolen gold?

fukidontknow's picture


Hitlery got the gold - she's using it to weigh down the bodies of some whistle blowers and uppity journalists in the ocean.

Wow72's picture

Its what everyone has been buying.

Squid-puppets a-go-go's picture

and who got Ukraine's gold, too ?

Yen Cross's picture


  Both au and ag are getting ready for another leg higher. Looking at daily and even weekly charts, both of the metals have turned neutral to slightly oversold.

  The usd/jpy still has a lot of room to run higher. That doesn't mean certain commodites can't move higher. [ it's partially rebalancing oversold $usd and the fear trade]

  We've seen multiple times this year, gold and silver run higher on a stronger $usdx trade. [ I'm also seeing that article-50 divergence in eur/usd and gbp/usd, and like it] ;-D

 Things are going to get more exciting in September, when Vol picks up.

Treason Season's picture

TZ over at BULLBEARTALK.COM says $1275 along with Sophia. Don't know myself, don't trade, just long term AU myself but I like to follow them as they have a proven track record. Poly = Bob Loukas is bit over the top regarding his tribe once in awhile but overall it's the best trading forum I've come across, everybody keeping their opinions and emotions in check. Tex, Poly, DG and Pivot are the real top dawgs over there. IMHO you should check it out YC.

Hulk's picture

Its as if other countries no longer trust us ...

Fisherman Blue's picture

Venezuela gold is gone.

jm's picture

Well, the price of bullion has bottomed out since 2014.  I've always taken it as a truism that central bankers were the most price insensitive buyers and sellers in the world.  Maybe they aren't so stupid after all.

Father ¢hristmas's picture

"There's gold in the Federal Reserve and they stole a shit ton of it!"

Funny, Germans used terrorist attacks in that movie to cover for a gold heist.

Nah, probably nothing.

yogibear's picture

LOL, US dollar fiat backed by Yellen and 12 Fed presidents and the US military.

Otherwise it's intrinsic value  is zero!

Reichstag Fire Dept.'s picture

The US$ is backed by good ole' fashioned violence...nothing more.

Hillarys Server's picture

And if Hillary wins, the US dollar also be backed by Hillary, a giggling psychopath with launch codes and a red button on her mahogany desk.

And she's scary. Even more scary than the clown holding a baloon in Stephen King's IT.

"It floats, ha ha ha ha (cough, cough, cough). Take this glass ceiling (pushes button) ha ha ha ha ha (cough cough) ha ha..."

Nobodys Home's picture

Where has RadicalMarijuana or a name of that sort been lately? I'm sure he'd have something to say on those lines.....Money, Power, backed by violence... I miss his rants.....If you could read through the umpteen million words and repetition he really had decent insight.

luna_man's picture



All I got to say...INSPECT THAT GOLD, you're getting from them CRIMINALS!


they're CRIMINALS, but they ain't dumb CRIMINALS

Seasmoke's picture

Lower the paper price. Remove the physical. So easy , every Tribe member knows it. 

Nobodys Home's picture

That's my plan, and I'm a goyim.....

No matter the price I dump a little into it when I can,,,,just bought this nice lil coin and lost it in a boating accident already:

JMbullion is pretty good...once you buy a bit from them they'll set you up with an echeck account although they don't show that option to the casual buyer. They are reliable and timely. ...I'm Not an affiliate, just a satisfied customer.


silverer's picture

So let's see...that leaves about 262 tons?

bugs_'s picture

it would be interesting to know the re-deposit number - we are all assuming that 388 tons left.  Could it be that the numbers are much smaller - say 10 tons withdrawn and then re-deposited by another entity - rinse repeat - make it look like there is quite a lot of gold moving when there really is not.

cat-foodcafe's picture

Feds are just trying to re-stock Ft. Knox.  Going to be some photo-ops soon in KY....keep the peasants at bay.

Nobodys Home's picture

My checking account charges me $10 if I don't deposit anything in a month.....I just deposit $50 cash and then take out $1500.... No fees. Soon I'll have it down to the bare bones and when the bailin happens I won't care.

Stormtrooper's picture

Ah, but the poor Germans got screwed and will never get their gold back.

sinbad2's picture

And all the other countries, that thought the US Federal Reserve was a trustworthy bank.

If the US does lose its power to order the world around, those countries will want justice. The US will spend the next 100 years repaying the money it stole.

Herdee's picture

More demand keeps coming in on the pullbacks.That's why the smart money that billionaire's have is buying into Gold.This little thing called uncertainty is gaining strength because of election uncertainty and its' ramifications on a number of global issues.For instance,European Regulators are setting themselves up on the bad side of politicians in Washington.How will that play out?Volatility is setting up for something big,it's been too low for too long.Volatility is going to really pick up for Sep/Oct.

Nobodys Home's picture

"tungsten..." Good stuff! Wolfram:

Cemented carbides, also called hardmetals, are the most important usage of tungsten today.  The main constituent is tungsten monocarbide (WC), which has hardness close to diamond.  Hardmetal tools are the workhorses for the shaping of metals, alloys, wood, composites, plastics and ceramics, as well as for the mining and construction industries. 

We need tungsten to get gold!

Dark Daze's picture
Dark Daze (not verified) Aug 30, 2016 9:50 PM

So, that's an average of 80 tonnes a year. That isn't much in a global production market of 3,500 tons.

Nobodys Home's picture

Barbarous Relic!  It's NOT money! Do as we say. Not as we do!


Nobodys Home's picture

Kellys Heroes...goin for the gold!

Have a litttle faith baby!

Why don't you dig how beautiful it is out here?

Always with those negative waves!

cognitive dissident's picture

meanwhile blowhards like Harry Dent are telling folks to sell phys/miners cuz "deflation" is coming first... then inflation... then hyperinflation... fuck all the pundits and shills, I gots mine, good luck getting yours.

Nobodys Home's picture

Cash....then's gonna work! I can feeel it!'s good too. Lighters, fuel, tp, tampons, soap, booze, cigs, ammo, batteries and chargers, med supplies, h2o filters, and so forth....

yep I'm paranoid! ..and you're going to want what I have!.....I'm going to be Nobodys Home Soros!...MWWuahHahhHahhahhHAAAAA....not really. I have nothing. Move along.

Clock Crasher's picture

so what your saying is that after the Global Financial Crisis and the approaching Global Currency Crisis there has been a 12% draw down in vaulted gold in Manhattan? the span on a decade


I'd call that winning

Nobodys Home's picture

Well....That's because we beefed up the stockpile by reallocating it from Ukraine, Iraq, Libya, Venezuela and moved it from the World Trade Center.........Winning...sort of.....

Nobodys Home's picture

Rhodium, palladium and platinum will probably be an attractive PM investment in the next year or two. (if things don't go south)....

Platinum has been weird the last couple years.

For quite a while it was about $140 or so more than gold. Not now....even with all the autos manufactured last year, it continued to sit around $150-200 less than gold. Just sayin...worth watchin.

truthalwayswinsout's picture

Do not make that mistake. Commodities of all types will reach historic lows as the depression we are in deepens. The only things that will increase in value are US Treasuries and Dollars. Every thing else is toast.

Debt creation is inflation and debt destruction is deflation. It is that simple. All the rest of the "analysis" is absolute bovine scatology designed to confuse you and make sure you make the wrong decisions at exactly the wrong time for you because you are the target and the bigger fool that must purchase the useless assets up for sale by the smart money.

Look around and see all the massive loans that have been made going bad from consumer to corporate. Look at the record corporate debt and falling sales just about everywhere. Once the election is over I am sure that some of the real information will come out that we are in fact in a recession that is quickly growing.  Oil will probably hit $10 and gold will be hard pressed to stay above $300 and on and on and on.



Hillarys Server's picture

If there's only a deflationary depression, then gold would probably go down like you say.

But won't the governments' reaction be to try to print their way out of the problem and keep the banks afloat?

And if there's worry about currency itself, won't gold not only act as a normal commodity, but as a hedge against currency collapse?

Gold and silver are limited, especially silver, so if there's panic that everything will fail, won't lots of people rush in to gold and silver to preserve the value of their wealth?

And wouldn't even a little amount of that money pouring into the limited supply of gold and silver be sufficient to send it really high?

I have no attachment to any opinion, I just wand to know so my life savings doesn't disappear and I end up working at Taco Bell at 70.

In the Peter Schiff Harry Dent debate, it seems lto me like Peter Schiff wins.

LoveTruth's picture

 Why in  the world a country should store its gold in a foreign country, especially US?

US is known to freeze other countries assets for quite some time.