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Hong Kong Completing 1,000 Ton Gold Vault

Tyler Durden's picture


From GoldCore

Gold’s Rally Short Term? Long Term Outlook Bullish

Today's AM fix was USD 1,603.00, EUR 1,321.74, and GBP 1,034.26 per ounce.
Yesterday’s AM fix was USD 1,587.50, EUR 1,309.39 and GBP 1,024.86 per ounce.

Silver is trading at $27.79/oz, €22.77/oz and £17.89/oz. Platinum is trading at $1,416.00/oz, palladium at $570.75/oz and rhodium at $1,150/oz.

Gold climbed $22.20 or 1.04% in New York yesterday and closed at $1,604.50/oz. The silver price hit a high of $27.559 and finished the day with a gain of 1.3%.

Gold was trading sideways in Asia with a slight rise and fall before the open in European trading where gold is in a tight range of ($1,601-$1,608/oz).


Gold Prices/Rates/Fixes /Volumes – (Bloomberg)

Gold ticked up again on Thursday, its 3rd session of gains, on investor hopes for additional stimulus packages to be released by central banks increased the yellow metal’s appeal as an inflation hedge. 

Gold’s recent rise was on the wave of Ewald Nowotny ‘s comments and hopes that the US would employ further action after their policy meeting next week.  

The UK’s growing recession which caused Moody’s to put their economic outlook to negative in February looks poised to lose their AAA status soon.  Britain’s 2nd quarter took a nose dive by 0.7% (far greater than Spain’s 0.4%).  

In the US, the Richmond Fed's twin indices of manufacturing and services collapsed this month.  Some analysts say this data signals the events of a deep recession.  Figures show they have dropped at a faster pace than back in 2008.  Manufacturing activity dropped 16 points from -1 to -17.  This is devastating for blue collar workers in America’s heartland.  

Market watchers wait for further clues as traders see this as a short term rally.

Cross Currency Table – (Bloomberg)

There were no major alarm bells in terms of central bank gold purchases in June according to the IMF. The biggest buyer was Russia at 6.2 tons.  Germany sold 0.7 tons.  Mexico sold 0.1 tons.  Guatemala bought 0.2 tons.  June’s net purchases were 5.6 tons versus 57.8 tons in June 2011. This shows a 38% drop in net purchases from central banks for the 1st half of the year in 2012 compared to last year. 

In Hong Kong they are completing work on its largest gold vault due to open in September which can hold 22% of the gold that is in the US facility Fort Knox.  

The new secure storage facility will compete with services set up by the Airport Authority Hong Kong in 2009 that serviced governments, commodity exchanges, bullion banks, refiners, wealthy individuals and exchange-traded funds.

The new facility is within the international airport compound and its capacity is 1,000 metric tons.

This signals the growing interest from China currently the world’s second largest consumer of gold in owning physical gold bullion.  

For breaking news and commentary on financial markets and gold, follow us on Twitter.

Gold rises for 3rd day on stimulus expectations - Reuters

Citi sees 90 percent chance of Greece leaving the euro - Reuters

Gold eases after rallying on ECB stimulus talk - Reuters


Hong Kong’s Largest Bullion Vault Signals Rising Asia Wealth – Bloomberg

Germany Lowers Gold Holdings For First Time In Eight Months - Bloomberg

Newcrest output sinks 15% in gold's record year - MarketWatch


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Thu, 07/26/2012 - 09:02 | 2652729 jeff314
jeff314's picture

i can hold all fort knox gold in my pocket....

Thu, 07/26/2012 - 09:04 | 2652735 GetZeeGold
GetZeeGold's picture



I already's as light as air.




Thu, 07/26/2012 - 09:08 | 2652752 CunnyFunt
CunnyFunt's picture

As light as Tungsten?

Thu, 07/26/2012 - 09:10 | 2652768 BaBaBouy
BaBaBouy's picture

Notwithstanding Ben Shalom, GOLD $50K.

Thu, 07/26/2012 - 09:24 | 2652790 economics9698
economics9698's picture


If the Chinese are going to be mercantilist the least they could do would be to get some gold instead of paper for their sweat.  

China had silver back in the day and it was a good system.


Thu, 07/26/2012 - 09:34 | 2652825 FEDbuster
FEDbuster's picture

The "Barbarous Relic".

Thu, 07/26/2012 - 09:19 | 2652792 knukles
knukles's picture

Hong Kong Airport Compound.


Thu, 07/26/2012 - 09:24 | 2652807 SWRichmond
SWRichmond's picture

Putting it near an airstrip was a really really bad idea.  Easy in-out.

Thu, 07/26/2012 - 09:23 | 2652794 BaBaBouy
BaBaBouy's picture


HK Gold vault due to open in September which can hold 22% of the gold that ONCE WAS IN US facility Fort Knox.

Thu, 07/26/2012 - 09:09 | 2652756 ratso
ratso's picture

There is no place safer for your gold and valuables than a vault in the Peoples Republic of China

Thu, 07/26/2012 - 09:19 | 2652791 negative rates
negative rates's picture

Well at least you can buy it by the gram or ounce at their banks, can you say the same for the US. No, cause we have none, that's why.

Thu, 07/26/2012 - 09:24 | 2652805 Temporalist
Temporalist's picture

Well their boats are no safer:

Luxury Chinese Boat Launches, Sinks Immediately


Thu, 07/26/2012 - 10:16 | 2653007 Blano
Blano's picture

Exactly what I logged in to say.

Thu, 07/26/2012 - 10:17 | 2653011 cynicalskeptic
cynicalskeptic's picture

Ans the People's Republic oif China is the likely lication of a good amount of previously American gold..........also 'owned' by various bullion banks, Middle Eastern countries and private individuals who THINK 'their' goild is still safe and secure in NY or London.....

Thu, 07/26/2012 - 11:33 | 2653338 cynicalskeptic
cynicalskeptic's picture

I absolutely trust JP Morgan when they tell me MY 'allocated' gold is COMPLETELY safe.........       and my friend's GLD shares are just as good as gold........ (the prospectus says so... sort of... maybe?.... )

Thu, 07/26/2012 - 12:56 | 2653667 HungrySeagull
HungrySeagull's picture

22% of Ft Knox? 1000 ton?!




100% divided by 22 = 5 x 1000 =5000+ ton.


Waitaminute, where is 3000 ton for a total of 8000?

Thu, 07/26/2012 - 13:48 | 2653833 bloostar
bloostar's picture

You forgot to account for the tungsten. There's the missing 3000 tons or so.

Thu, 07/26/2012 - 09:16 | 2652784 Paper CRUSHer
Paper CRUSHer's picture

Careful there buddy don't open the-the th-that canister.............nerve gas bitchez!

Thu, 07/26/2012 - 09:06 | 2652746 otto skorzeny
otto skorzeny's picture

doesn't that  impede a rousing (arousing) game of pocket pool?

Thu, 07/26/2012 - 09:04 | 2652732 Temporalist
Temporalist's picture

Chuántong! (tradition)

Thu, 07/26/2012 - 09:04 | 2652737 achmachat
achmachat's picture

i guess this maximum capacity is for security and insurance reasons... and not because of actual volume.

1000 metric tons of gold would be 51,8 cubic meters of pure gold.


Thu, 07/26/2012 - 09:21 | 2652799 eclectic syncretist
eclectic syncretist's picture

It's at an airport, meaning it's not meant to stay there.  This is just a staging area for gold going into China.  Routing it through Hong Kong allows China to downplay and import more secretively than just having Comex ship everything they have on hand straight to Shanghai!

Comex claims to have a little less than 11M ounces (311 metric tons), so at $1600/ounce that's about 18 billion USD for the whole pile, and it would take up less than a third of this vault.


Thu, 07/26/2012 - 10:45 | 2653142 cynicalskeptic
cynicalskeptic's picture

What Comex claims to have - and whether or not anyone else has claims on the same gold is another issue.....


Thu, 07/26/2012 - 12:57 | 2653673 HungrySeagull
HungrySeagull's picture

Or roughly ten scoops with a Cat front end loader.


Hell, alot more than that based on weight.

Fri, 07/27/2012 - 04:57 | 2655685 lewy14
lewy14's picture

A thousand metric tons -> a million kilograms -> 1 gigagram. 

Less than a gram a person for China.

Thu, 07/26/2012 - 09:04 | 2652738 Inthemix96
Inthemix96's picture


You are assuming fort knox still HAS 22% of the gold it assumes it never had then?

Fuck you bernank, you baldy little dwarf.

Thu, 07/26/2012 - 09:07 | 2652747 GetZeeGold
GetZeeGold's picture



Hey cut Ben Shalom some slack......even Superman couldn't audit Fort Knox.


Thu, 07/26/2012 - 09:09 | 2652765 Inthemix96
Inthemix96's picture


I would love to cut shalom ben, will you hold him down while I do the cutting?


Thu, 07/26/2012 - 09:22 | 2652797 economics9698
economics9698's picture

But he’s already been circumcised, are you thinking of something bigger?


Thu, 07/26/2012 - 09:27 | 2652814 Inthemix96
Inthemix96's picture

Of course Mr 9698,

Just that loose bit of flab inbetween his head and his tiny little dwarf arse.

I'm not squeamish you see, and just think of all the good I would be doing the world


Thu, 07/26/2012 - 09:04 | 2652739 fonzannoon
fonzannoon's picture

Anyone have a clue whats going on with Novagold? That guy Paulson owns a ton of it. Pretty funny.

Thu, 07/26/2012 - 09:24 | 2652809 Al Huxley
Al Huxley's picture

Chart looks like pretty much every other junior gold stock (or senior for that matter).

Thu, 07/26/2012 - 09:05 | 2652741 otto skorzeny
otto skorzeny's picture

why spend so much $ to protect a barbaric relic?

Thu, 07/26/2012 - 09:08 | 2652751 LoneStarHog
LoneStarHog's picture

Okay...for the umpteenth time:  Keynes called The Gold Standard a "barbarous relic" and NOT physical gold.

Thu, 07/26/2012 - 09:18 | 2652783 Pladizow
Pladizow's picture

Keynes was implying that which backed the standard must also be barbarous!

The only thing that is barbarous are the minds of those people who can not understand gold's importance!

Thu, 07/26/2012 - 09:37 | 2652834 Moe Howard
Moe Howard's picture

Thank you for making the effort to set the record straight.

Thu, 07/26/2012 - 09:14 | 2652758 GetZeeGold
GetZeeGold's picture



why spend so much $ to protect a barbaric relic?


It's tradition.


Thu, 07/26/2012 - 10:13 | 2652991 aerojet
aerojet's picture

So they guard the vault with double-barreled shotguns?  The ones with the external hammers you have to manually cock before firing?

Thu, 07/26/2012 - 12:58 | 2653674 HungrySeagull
HungrySeagull's picture

Careful, those old coach guns can shred you.

Thu, 07/26/2012 - 09:05 | 2652742 LoneStarHog
LoneStarHog's picture

And...right on is GoldCrap!

Thu, 07/26/2012 - 09:08 | 2652753 PatientZero
PatientZero's picture

Quiet woman, this is a MAN-THREAD.

Thu, 07/26/2012 - 09:09 | 2652764 LoneStarHog
LoneStarHog's picture

Then look between your legs and quietly exit.

Thu, 07/26/2012 - 09:13 | 2652778 GetZeeGold
GetZeeGold's picture



We'll hold the door so it doesn't hit your ass on the way out.....least we could do.


You're welcome.


Thu, 07/26/2012 - 12:59 | 2653676 HungrySeagull
HungrySeagull's picture

*Slaps... not that door, the other door for the wheelchair.

Thu, 07/26/2012 - 09:07 | 2652748 PatientZero
PatientZero's picture

*sigh* A man can only daydream of being locked in there to rub all of that gold on himself.

Thu, 07/26/2012 - 09:20 | 2652798 BandGap
BandGap's picture

Gold doesn't have the antimicrobial properties that silver has. Yes, silver is healthier for you.

Thu, 07/26/2012 - 10:12 | 2652952 SoNH80
SoNH80's picture


Thu, 07/26/2012 - 10:02 | 2652958 mick_richfield
mick_richfield's picture

Microbes, yes -- but I worry about the whole werewolf thing.

If you shoot a werewolf with a gold bullet, he will just say "Thanks!" -- if he's polite -- before he rips you apart.

If you want to invest in gold, that's good. 

But if you're walking out on the moors alone -- carry a piece of silver.


Thu, 07/26/2012 - 09:09 | 2652757 grunk
grunk's picture

The U.S. will soon need to "liberate" Hong Kong.

Thu, 07/26/2012 - 12:10 | 2653492 killallthefiat
killallthefiat's picture

We do not even have the force to liberate Syria anymore.  How the heck are we going to liberate HK?

Thu, 07/26/2012 - 09:09 | 2652761 LULZBank
LULZBank's picture

Gold stored away in lockers is not so helpful to bring natural trade balance.

Works well for centrally planned "free" trade.

Thu, 07/26/2012 - 09:10 | 2652766 hugovanderbubble
hugovanderbubble's picture

Too much tungsten gold there

Thu, 07/26/2012 - 09:13 | 2652777 LoneStarHog
LoneStarHog's picture

Notice that when the light switch is turned on the gold lights up before the bulbs.

Thu, 07/26/2012 - 11:43 | 2653373 cynicalskeptic
cynicalskeptic's picture

China's having their 'London delivery' bars re-smelted into 1 kilo bars before taking delivery.....


This is notable for a number of reasons:

1) they are making SURE they're getting what they paid for.

2) these purchases are taken out of the western 'gold market' - not only physically removed from London vaults BUT also physically transformed. New 1 kilo bars are no longer standard 'London standard' 400 oz bars 

3) Once in this non-standard form, in Chinese vaults this gold cannot be leased out or borrowed to further the paper gold game (I suspect a number of people who THINK they own gold in London vaults will be in for a rude shock at some point).

Thu, 07/26/2012 - 09:13 | 2652779 magpie
magpie's picture

Too bad the EU banned classical lightbulbs. Could have made a nice smuggling operation with gold lights, instead of tungsten.

Thu, 07/26/2012 - 09:14 | 2652781 Doubleguns
Doubleguns's picture

So where is the silver vault.

Thu, 07/26/2012 - 09:30 | 2652817 Steel_Preacher
Steel_Preacher's picture

At the bottom of the nearest lake/river/pond.

Thu, 07/26/2012 - 09:18 | 2652787 youngman
youngman's picture

In an that for easy smuggling...or for a fast withdrawal????

Thu, 07/26/2012 - 09:19 | 2652789 Seize Mars
Seize Mars's picture


 "In Hong Kong they are completing work on its largest gold vault due to open in September which can hold 22% of the gold that is in the US facility Fort Knox."

Ok, cue the agm-158 jassm* in 5...4...3...2...


*the kind used on 911

Thu, 07/26/2012 - 09:20 | 2652793 Seasmoke
Seasmoke's picture


Thu, 07/26/2012 - 09:26 | 2652811 giggler123
giggler123's picture

I question the wizdom of keeping valuables in one large area like this because as seen from fukushima, one dirty bomb in the area could take out so much yellow stuff as no one will value it when they cant touch it for 1000+ years.  OK there is a plus side, everyone else's will be worth that much more but why take the risk.

Thu, 07/26/2012 - 11:20 | 2653284 viahj
viahj's picture

gold doesn't dissolve in water, therefore it can be washed of radiation on its surface.  maybe the best place to bury it is a nuclear accident zone unless the radiation can penetrate throughout the gold bar.

Thu, 07/26/2012 - 15:52 | 2654250 hmmtellmemore
hmmtellmemore's picture

Could a well placed bomb dropped from a B-2 vaporize a lot of Chinese gold?  

Thu, 07/26/2012 - 09:32 | 2652821 MrBoompi
MrBoompi's picture

We can't audit the Fed or the gold in Fort Knox.

Which is why our money contains the words In God We Trust, because we can't trust these motherfuckers with either our money or our gold.

Thu, 07/26/2012 - 10:20 | 2653026 zerohedgeJUNKIE
zerohedgeJUNKIE's picture

@MrBoompi Not yet, Audit the FED is going to the senate, This might be silver bullet Bernanke is waiting for.

Thu, 07/26/2012 - 11:02 | 2653213 graneros
graneros's picture

"Audit the FED is going to the senate"

Did Reid change his mind?  I just started perusing the web for daily news starting at ZH of course. As of last night Reid wasn't going to allow it to come up for vote.  If he has changed his mind it can only mean he has the votes to shoot it down cause that's the only way he'll let it see the light of day.

Thu, 07/26/2012 - 11:02 | 2653207 cynicalskeptic
cynicalskeptic's picture

Somehow 'In Tungsten We Trust' doesn't have the same cachet......  doesn't sound any better calling it Wolfram either - actually makes it sound vaguely Nazi-ish.......

Thu, 07/26/2012 - 09:33 | 2652822 SokPOTUS
SokPOTUS's picture

CAPTCHA: 22% of Zero is....

Thu, 07/26/2012 - 09:39 | 2652842 Moe Howard
Moe Howard's picture

I miss the math problems.

Thu, 07/26/2012 - 09:40 | 2652844 Bicycle Repairman
Bicycle Repairman's picture

Got an idea for a movie. 

A Swiss national who is obsessed with gold enlists the US army to irradiate the gold in Hong Kong's biggest vault.  They are foiled by China's best secret agent.

Where's my funding, bitchez?

Thu, 07/26/2012 - 09:53 | 2652920 Praetor
Praetor's picture


Thu, 07/26/2012 - 10:03 | 2652960 Diet Coke and F...
Diet Coke and Floozies's picture

Will Jackie Chan be playing the secret agent?

Thu, 07/26/2012 - 10:35 | 2653101 Overfed
Overfed's picture

Nah. Chow Yun Fat. Way better actor than JC.

Thu, 07/26/2012 - 10:41 | 2653126 Diet Coke and F...
Diet Coke and Floozies's picture


Thu, 07/26/2012 - 09:52 | 2652902 Temporalist
Temporalist's picture

Gold looks to be trending back to its 200 dma after crossing below it twice.  The chart indicates the last time that it rose above the 200 dma after crossing below it twice was in 2008-2009 just before it went from 800 to 1900...

Thu, 07/26/2012 - 09:59 | 2652948 covert
covert's picture

the actual value of gold is about $50,000 per ounce.


Thu, 07/26/2012 - 11:04 | 2653223 cynicalskeptic
cynicalskeptic's picture

But when gold hits that valuation, bread will cost $1000 a loaf..... Zimbabwe here we come......   there's a reason TPTB are working so hard to keep the paper money game going.....   the alternative is NOT pretty.

Thu, 07/26/2012 - 11:31 | 2653335 n8dawg84
n8dawg84's picture

For any ZHer,

The question I have comes from the varying calls of prices.  For example, I read this article this morning:

I understand that the dollar is devaluing against gold, hence the rising prices.  I also understand that gold should be much higher than it is currently.  How do people arrive at the numbers of $3k, $6k, $10k, or $50k? 

Thu, 07/26/2012 - 11:47 | 2653386 cynicalskeptic
cynicalskeptic's picture

Take the 'value' for all the $US in existence (paper and electronic) or whatever you define as 'money' and divide it by the number of ounces of gold out there .......   you can look at it as dollars vs ounces in Ft. Knox (can you divide by zero), same for other nations - currency vs. gold reseves  or ALL the world's 'money' vs all the world's gold.....    

Thu, 07/26/2012 - 15:57 | 2654275 hmmtellmemore
hmmtellmemore's picture

People think debts will be completely paid off with freshly printed dollars.  I think a large portion of the debt will simply be defaulted on.  Sure, much will be inflated away, but much will be forgiven in "haircuts".

Thu, 07/26/2012 - 09:56 | 2652932 SoNH80
SoNH80's picture

Hong Kong, from all reports, is a pretty nice place to spend a long weekend. Food, folks and fun all good.  If you're rich, fly in, deposit your gold, ride around in a chauffeured Rolls, eat tasty treats with chopsticks.  Good idea.

Hong Kongers also have a nice habit of fighting for free speech and free association.

Thu, 07/26/2012 - 15:59 | 2654282 hmmtellmemore
hmmtellmemore's picture

Hong Kong and Singapore top the list of freest economies on Earth.  

Thu, 07/26/2012 - 09:59 | 2652946 FieldingMellish
FieldingMellish's picture

Majors still pretending gold is at $800.

Juniors figure its closer to $400.

No risk appetite whatsoever which proves beyond a shadow of a doubt that gold is anything but a "risk" asset.

Thu, 07/26/2012 - 11:27 | 2653316 cynicalskeptic
cynicalskeptic's picture

Lots of shorting on mining stocks in conjunction with the naked short selling of paper gold......  MOPE is all about making sure nobody realizes the canary in the coal mine is dead and stuffed.  

'All is well!, All is well!... nothing to see here... move along..... keep on buying T-bills... (the Fed can't buy ALL of the new issues)......  Look at Greece!  OMG!!!! no, no, NO!  do NOT go looking at California!!!! Look back ovder there at Italy!... The EURO is the problem!!!  The DOLLAR IS FINE!   Put your money in US DOLLARS, not gold..... that 'relic' isn't safe!......No! No! NO!   do NOT go buyoing GOLD you fool!....... SEE... gold just dropped to $1600 an ounce.... THAT isn't safe!  (even if it's double what it was a few years earlier) fact iif you're REALLY smart you'll run out and sell us any gold you have while it's still so high... the price may drop even more.....

Thu, 07/26/2012 - 16:07 | 2654316 hmmtellmemore
hmmtellmemore's picture

I'm honestly befuddled by something I experienced recently.  My bank (Chase) is willing to lend me $100,000 at a few percent interest for 30 years mortgage.  I would think of all companies JP Morgan Chase would know the danger (inevitability) of a massive dollar devaluation sometime between now and 2042.  Would I lend out dollars at that price for 30 years?  The idea is absurd to me.  It seems obvious that in the next 10 years we will see at least 20% devaluation in the dollar, probably some weekend.  With all the debts and unfunded liabilities, it will probably be a 80% devaluation by 2042.  JP Morgan Chase is not going to see any profit, yet banks are still lending at teeny interest rates.  I just don't get it.

Thu, 07/26/2012 - 17:31 | 2654738 Likstane
Likstane's picture

It's possible you don't understand banking.  Anything you give them is more than they lend you.  They lend you unicorn farts and you give them value in the form of collateral or more unicorn farts earned by your labor.   Whatever they get is a bonus, even if you only pay back a tiny fraction of the unicorn farts.  

The absurdity is the value assigned to unicorn farts.

Thu, 07/26/2012 - 10:12 | 2652988 bankonzhongguo
bankonzhongguo's picture

A reserve currency is balanced on top of a gold hoard and a population that uses machines.

People are beginning to figure out that the gold is more symbolic of long term success, but Americas declining manufacturing is the factor that realitivizes the dollar - even if other currencies are "in worse trouble."

If the Age of Diamond springs up on 3D printers in every American home then maybe there is a new industrial revolution over the horizon - but also in every rich paddy worldwide - no big exports.  Somehow the larger economy feels a little more 1930's.

When China's gold is forever gone from US shores, then all those bilateral trade agreements will unify.

Thu, 07/26/2012 - 11:15 | 2653253 cynicalskeptic
cynicalskeptic's picture

The only REAL backing remaining for rthe $US as the world's reserve currency is copper jacketed 5.56mm lead and depleted uranium cored artillery and tank rounds.    But even force of arms can't force the world to keep supporting the $US and the cost of our military is only hastening our bankruptcy.

Ultimately we depended on a financial equivalent of the nuclear MAD -'mutually assured destruction'; support the $US or we'll take the world's economy down with us.... problem is we've already tanked the world's economy (at least the US and Eurpopean components) - the rest of the world is looking to extracate themselves form the current system while still preserving SOME value in their $US holdings - converting paper $$ into tangible assets before their value goes to zero.  THAT is the only reason we haven't seen a rapid collapse.  Maybe we cut a deal with China under the table to LET them buy up gold on the cheap to kick the can down the road a few more years....  

Of course it could be we thought we could con them - convince them to keep 'their' gold in London or NY... but it seems the Chinese caught on and are taking delivery... and what are we going to do, tell them they can't HAVE the gold they paid for?  THAT scam only works for GLD shareholders, MF Global clients and hedge fund customers...  

Thu, 07/26/2012 - 11:27 | 2653311 viahj
viahj's picture

a lot of that gold in NY was theirs to begin with and taken from them in the 30's by the US to "protect" it from the Imperial Japanese.

Thu, 07/26/2012 - 11:49 | 2653393 cynicalskeptic
cynicalskeptic's picture

Yeah... like we're 'protecting' the gold owned by Germany and other nations......    oops... we 'lent' that stuff out.... let me call up Yang, Dmitri or Sanjay and ask for it back......

Thu, 07/26/2012 - 10:20 | 2653024 Never One Roach
Never One Roach's picture

When one of the directors of the University of Texas Retirement System was asked why the Univeristy of Texas bought $1 Billion in physical gold bars he reportedly answered, "Gold never goes to zero."



Thu, 07/26/2012 - 10:29 | 2653070 ObungaBoy
ObungaBoy's picture

Fort Knox is empty

Thu, 07/26/2012 - 10:33 | 2653094 Bay of Pigs
Bay of Pigs's picture

Where's Jon Nadler to tell us this is bearish long term?

Thu, 07/26/2012 - 10:34 | 2653098 Magnum
Magnum's picture

I'm sure Israeli "security companies" are bidding for contracts to get involved in that one.

Thu, 07/26/2012 - 10:43 | 2653132 The Continental
The Continental's picture

There is no gold bullion at Fort Knox. Rubin and Summers leased all the gold into the market as part of the strong dollar gold price suppression scheme of the 1990s. Summers decided to beat Gibson's paradox by cheating - the markets fundamentals were always intact. Now the US stores nerve gas at Fort Knox and the US federal corporation is insolvent and bankrupt. Far and middle eastern nations have imported 6,000 metric tons of gold bullion out of the Anglo-American metals exchanges and banks since February 2012. Western bullion banks are short 40,000 metric tons of physical allocated gold from private accounts furtively and illegally as their last ditch efforts to cap the gold price are now reaching their end. The West is thoroughly busted, insolvent and bankrupt. The LIBOR scandal will be the catalyst to bring all of the government-bank corruption and collusion to light. Gold will be the only safe place for wealth to hide as the paper wealth system implodes. Gold will begin the next price run in August, an epic run that will carry gold to $10,000 and silver to $250 within the next 3 years.

Thu, 07/26/2012 - 11:53 | 2653415 cynicalskeptic
cynicalskeptic's picture

Thanks for cheering me up, though I suspecct you're correct.........   I'm starting to think 5.56 and 12 ga rounds may be far more valuable in the immediate future.


The real questiuon though is:  How much will a loaf of bread cost in $US when gold hits $10,000 an ounce?

My Zimbabwe currency collection is quie impressive - TRILLIONS of $ZIm, none of it goos for buying anything.

Thu, 07/26/2012 - 10:58 | 2653194 cynicalskeptic
cynicalskeptic's picture

China - as a nation and people - has a LONG memory.  They still rankle at the Opium Wars, fought to impose addiction on thier populace (and reverse the flow of silver from Britain to China).  I suspect they also have their doubts about just how 'lost' Yamashita's treasure actually was (the gold and silver looted by Japan from Asia - primarily China and Korea).  There are a lot of rumors that Marcos and the CIA recovered much of it (and used it for their own purposes instead of returning it to its rightful owners).  China - to a large dregree with cause - views the last few hundred years as an abberation, an unwelcome interruption in their pre-eminence when the western barbarians somehow managed to dominate the world.  They feel like they got screwed - and have gradually been working to reverse the situation.  They were smart enough to get the west to GIVE them an industrial base in exchange for cheap labor - transferring fsacotries lock, stock and barrel to China (instead of paying the bankers a fortune to finance industrialization - as the US did).

It would make the current situation in the gold markets even MOTRE absurd ot a few thousand tons were secretly sold into global markets over the last 50 years by the US yet we're STILL looking at empty vaults in Fort Knox and the NY Fed.....   but then there are also rumors that the US bought its position as a global reserve currency (or at least prolonged it) by agreeing to funnel gold to the Saudis and others in exchange for continued oil flow (you didn't think they were really so dumb as to keep taking paper dollars  ad infinitum, did you ?  After all they finallly were smart enough to throw out the seven sisters and nationalize their oil fields.


But then - long odds - Bix Weir may be right and a select few have plotted to destroy the current banking system after hoarding wealth in the US to rebuild a far more stable sysstem afterwards (somehow I can't buy into such altruistic asperations - if a fortune was around, TPTB would grab it - just as they did with the US strategic reserve of silver - a few billion ounces bought at fire sale prices).

Thu, 07/26/2012 - 11:20 | 2653281 Monedas
Monedas's picture

Those Taels (?) of gold .... you know the sheets of gold that weigh about 1.2 troy ounces .... would really lend themselves to air transport .... you could spread them around the cargo bay to maximize the load of a cargo jet .... avoiding weight distribution problems ! They could be cushioned between aluminum sheets of condoms !           Monedas        1929         Comedy Jihad To Bring Back The Taels And Increase The Awareness Of The Advantages Of Traffic Circles

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