This page has been archived and commenting is disabled.

This Is Where The Gold Is(n't) - The New York Fed Guide To The Most Valuable Vault In The World

Tyler Durden's picture





 

Much has been said about the secretive vault situated 80 feet below ground level at 33 Liberty street, which contains over 20% of the world's gold (allegedly*), currently estimated at over $350 billion. Some have even robbed it: with the barrier between fantasy and reality a blur, courtesy of the total farce we live in which has rendered the IPO of TheOnion impossible, there is nothing wrong with actually believing Die Hard With A Vengeance did in fact happen. But if your knowledge of the vault is limited to the perspective of one John McClane, you are missing our on a lot. Which is why the new York Fed, in those rare occasions when it is not monetizing debt, and/or telling Citadel which securities to buy, has been courteous enough to put together "The Key To The Gold Vault" - the official brochure of the warehouse where more gold is stored than at any other place in the world.

Some excerpts:

The gold stored at the Federal Reserve Bank of New York is secured in a most unusual vault. It rests on the bedrock of Manhattan Island—one of the few foundations considered adequate to support the weight of the vault, its door, and the gold inside—80 feet below street level and 50 feet below sea level.

 

As of early 2008, the Fed’s vault contained roughly 216 million troy ounces of gold (1 troy oz. is 1.1 times as heavy as the avoirdupois ounce,  with which we are more familiar), representing about 22 percent of the world’s official monetary gold reserves. At the time, the vault’s gold value was about $9.1 billion at the official U.S. government price of $42.2222 per troy ounce, or about $194 billion at the market price of $900 an ounce. At the current official U.S. government price, one of the vault’s gold bars (approximately 27.4 pounds) is valued at about $17,000. At a $900 market price, the same bar is worth about $360,000.

 

Foreign governments and official international organizations store their gold at the Federal Reserve Bank of New York because of their confidence  in its safety, the convenient services the Bank offers, and its location in one of the world’s leading financial capitals.

 

The Bank stores gold in the form of bars that resemble construction bricks and stacks them on wooden pallets like those used in warehouses. To reach the vault, the bullion-laden pallets must be loaded into one of the Bank’s elevators and sent down five floors below  street level to the vault floor. The elevator’s movements are controlled by an operator who is in a distant room and communicates by intercom with the armed guards accompanying the shipment.

 

Once inside the vault, the gold bars become the responsibility of a control group consisting of representatives of three Bank divisions: Auditing, Vault Services, and Custody. A member of each division must be present whenever gold is moved or whenever anyone enters the vault.

 

If everything is in order, the gold is either moved to one or more of the vault’s 122 compartments assigned to depositing countries and official international organizations or placed on shelves in one of the “library” compartments shared by several countries. The bars are  stacked one at a time in an overlapping pattern similar to that used to stabilize a brick wall. Each compartment is secured by a padlock, two combination locks, and an auditor’s seal.

And here is why we used a * footnote above:

Confidence results from the Bank’s being part of the Federal Reserve System—the nation’s central bank and an independent governmental entity. The political stability and economic strength of the United States, as well as the physical security provided by the Bank’s vault, also are important factors.

Good luck finding it then. And for those who want to pull a Simon Peter Gruber and have already rented out the dump trucks:

Storing almost $194 billion [ZH: at very old prices] of gold makes extensive security measures mandatory at the New York Fed. An important measure is the background investigation required of all Bank employees. Continuous supervision by the vault control group also prevents problems from arising by ensuring that proper security procedures are followed.

 

The Bank and its vaults are secured by the Bank’s own uniformed protection force. Twice a year, each federal officer must qualify with a handgun, shotgun and rifle at the Bank’s firing range. Although the minimum requirement is a marksman’s score, most qualify as experts.

 

Security is also enhanced by a closed-circuit television system and by an electronic surveillance system that alerts Central Watch when a vault  door is opened or closed. The alarm system signals the officers to seal all security areas and Bank exits. This can be accomplished in less than twenty-five seconds.

 

The gold also is secured by the vault’s design, which is a masterpiece of protective engineering. The vault is actually the bottom floor of a three-story bunker of vaults arranged like strongboxes stacked on top of one another. The massive walls surrounding the vault are made of a steel-reinforced structural concrete.

 

There are no doors into the gold vault. Entry is through a narrow 10-foot passageway cut in a delicately balanced, nine-feet-tall, 90-ton steel  cylinder that revolves vertically in a 140-ton, steel-and-concrete frame. The vault is opened and closed by rotating the cylinder 90 degrees. An airtight and watertight seal is achieved by lowering the slightly tapered cylinder three-eighths of an inch into the frame, which is similar to pushing  a cork down into a bottle. The cylinder is secured in place when two levers insert large bolts, four recessed in each side of the frame, into the cylinder. By unlocking a series of time and combination locks, Bank personnel can open the vault the next business day. The locks are under  “multiple control”—no one individual has all the combinations necessary to open the vault.

 

The weight of the gold—just over 27 pounds per bar—makes it difficult to lift or carry and obviates the need to search vault employees and  visitors before they leave the vault. Nor do they have to be checked for specks of gold. Gold is relatively soft, but not so soft that particles will stick to clothing or shoes, or can be scraped from the bars. The Bank’s security arrangements are so trusted by depositors that few have ever asked to examine their gold.

To think: so much trouble for a little tungsten...

 

 


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 01/24/2012 - 16:47 | Link to Comment Clueless Economist
Clueless Economist's picture

This is Fecking nonsense...there is more gold stored at Fort Knox Kentucky

Tue, 01/24/2012 - 16:49 | Link to Comment Clueless Economist
Clueless Economist's picture

"The only solution to the debt problem is more debt"

--Nobel winner Paul Krugman

Tue, 01/24/2012 - 17:07 | Link to Comment gmrpeabody
gmrpeabody's picture

Well..., if there were gold, there would be more gold in Fort Knox.

Fixed it for ya.

Tue, 01/24/2012 - 17:14 | Link to Comment francis_sawyer
francis_sawyer's picture

...and to think they go thru all that hoopla for a barbarous relic!

Tue, 01/24/2012 - 17:47 | Link to Comment nope-1004
nope-1004's picture

No kidding.  If it were there, just open the doors and show.  Did an executive branch of the US gov't publish some "truth" about gold?

Is this the same branch that told us there was "no housing bubble" in 2006, and that the banks were "well capitalized" in 2008?

And whose President said he'd "end the senseless wars abroad and bring our troops home"?

Hell... I believe this POS. </s>

Tue, 01/24/2012 - 17:55 | Link to Comment francis_sawyer
francis_sawyer's picture

Now I'm getting it... Barry O's birth certificate is stuck somewhere in between all those gold bars and it's just too much work to go in there & fetch it out...

Tue, 01/24/2012 - 18:32 | Link to Comment flacon
flacon's picture

That brochure is anti-Asian. I didn't see one single asian man OR WOMAN in the brochure. No children either and no transexuals. Something is really amiss with our gold! There needs to be an INVESTIGATION! Pronto. 

Tue, 01/24/2012 - 18:48 | Link to Comment Manthong
Manthong's picture

If they were to add about another 15 tons of gold to the vault the whole pile would be worth almost as mucn as AAPL.

Food for thought (and not the iPads).

Tue, 01/24/2012 - 19:01 | Link to Comment jekyll island
jekyll island's picture

Exactly.  Just think how much it will be worth when faith is lost in fiat currency.  Life changing transfer of wealth opportunity straight ahead.  

Tue, 01/24/2012 - 21:04 | Link to Comment NewThor
NewThor's picture

I love Zerohedge because it makes me ask questions like....

What happens if you nuked 100 tons of Gold? Does it melt? Does it turn to ash? Does it turn into a magical element? Does it turn to Gold water? Does it turn into Gold Zombies which then eat people(Which would be ironic cuz u can't eat gold)?

Tue, 01/24/2012 - 17:54 | Link to Comment trav7777
trav7777's picture

yes...this is totally stupid.  Gold is a barbarous relic.  You can't eat it.

Why bother protecting it at all when you can digitally create eGold in an account somewhere and move it with a few mouse clicks?  Hell, you can just dial up a few trillion $ at the push of a button.

Tue, 01/24/2012 - 18:01 | Link to Comment francis_sawyer
francis_sawyer's picture

The pic in the Fed brocure is photoshopped... I have a copy of the original here...

http://3.bp.blogspot.com/-gfOZxLxL8E8/TdL-EY1dl3I/AAAAAAAADJs/u5sDA_5PEUI/s1600/EmptyVault.jpg

Tue, 01/24/2012 - 23:06 | Link to Comment Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Yes, until you can't!

Tue, 01/24/2012 - 18:22 | Link to Comment Sudden Debt
Sudden Debt's picture

I've heard that most of the gold is hidden in the Andes mountains. Embeded into the rocks

Tue, 01/24/2012 - 18:55 | Link to Comment Jendrzejczyk
Jendrzejczyk's picture

Apparently, most of it is at the bottom of lakes.

Tue, 05/29/2012 - 15:21 | Link to Comment Overfed
Overfed's picture

That's where all of mine is!

Tue, 01/24/2012 - 19:12 | Link to Comment He_Who Carried ...
He_Who Carried The Sun's picture

... follow the yellow brick road, follow the yellow brick road....

Tue, 01/24/2012 - 18:12 | Link to Comment vast-dom
vast-dom's picture

fiat may turn out to be most barbarous in the end.....

Tue, 01/24/2012 - 20:45 | Link to Comment Ropingdown
Ropingdown's picture

That would be 'barberific' with haircuts, a little taken off the top and sides, customer clipped.

Tue, 01/24/2012 - 17:43 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

@ gmr

My "Trail Guide" FOFOA doubts the conspiracy theories re NO GOLD! at Ft. Knox and related.  I am inclined to agree.  

One reason that they do not let "the public" look into the vault at Ft. Knox is security related, they do not want letting out security secrets (reference the the US Bullion link at Wikipedia's Fort Knox article).

***

I got a fact straightened out the other day.  The $11 billion that the Fed "carries" on its balance sheet (you can see this in Barron's each weekend, with nominal value of $42.22 / oz) is not gold, but gold certificates.  In 1933, .gov seized the gold, even bankers' gold.  They gave the Fed the non-negotiable, non-transferable certificates.

EDIT:

http://en.wikipedia.org/wiki/United_States_Bullion_Depository

Tue, 01/24/2012 - 23:04 | Link to Comment Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

"My "Trail Guide" FOFOA doubts the conspiracy theories re NO GOLD! at Ft. Knox and related. I am inclined to agree."

 

Agreed!  I have it from inside that there "is" gold in Ft. Knox.  Contained therein is a one gram credit suisse gold bar

sans assay card! 

Tue, 01/24/2012 - 18:36 | Link to Comment DosZap
DosZap's picture

gmrpeabody

there would be more gold in Fort Knox.

They moved it, in case of a Nuke strike, ALL would not be lost,if at Knox.

Tue, 01/24/2012 - 23:00 | Link to Comment Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

"There is zero chance that the U. S. will default because we can always repay our debts by printing more money.  However, there is no guarantee of what the purchasing power of that money would be."              Alan Greenspan   (former American, now globalist)

Tue, 01/24/2012 - 16:52 | Link to Comment slaughterer
slaughterer's picture

The "Tyler" who wrote the first paragraph of this introduction--with that lovely hypotaxis worthy of the young Hoelderlin after he had binged on Proust--is "classic Tyler"  "Intelligent Tyler" "super snarky Tyler" "difficult Tyler" all in one, and should be given a bonus for the mind he brings here.  

Tue, 01/24/2012 - 16:57 | Link to Comment I think I need ...
I think I need to buy a gun's picture

anyone think anything will come out of the speech tonight gold wise? Fed talks tomorrow.......hmmmmmmm,,,,,,manufacturing renaissance bitchez!!!!!!! No goods on the shelves coming to a f#ckin store near you!!!!!!!!!!!!!!!!!!!!!!!!!!!11

Tue, 01/24/2012 - 16:59 | Link to Comment Dr. Engali
Dr. Engali's picture

Ouch I think I just went blind.

Tue, 01/24/2012 - 17:04 | Link to Comment Oztralian
Oztralian's picture

must also be the "grammatically inept Tyler"

Tue, 01/24/2012 - 17:11 | Link to Comment Buckaroo Banzai
Buckaroo Banzai's picture

Note the address: 33 Liberty Street.

"33" is the most important number to Masons, Illuminati, and the dark occult.

Calling it "Liberty" street is of course a little joke at your expense. It's their Liberty, not yours, that is being secured.

"hidden in plain sight", as they say.

Tue, 01/24/2012 - 17:49 | Link to Comment nope-1004
nope-1004's picture

Tue, 01/24/2012 - 17:47 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

33, 9/11, 66, 77, shit what number don't they like?

Tue, 01/24/2012 - 17:56 | Link to Comment trav7777
trav7777's picture

42?

Tue, 01/24/2012 - 18:02 | Link to Comment Andrew Jackson ...
Andrew Jackson epitaph's picture

22K gold ?

Tue, 01/24/2012 - 19:29 | Link to Comment akak
akak's picture

i

Tue, 01/24/2012 - 23:00 | Link to Comment geekgrrl
geekgrrl's picture

No, that is their most favorite number!

Wed, 01/25/2012 - 04:15 | Link to Comment tocointhephrase
tocointhephrase's picture

22 or 24 in our pockets!

Tue, 01/24/2012 - 17:57 | Link to Comment francis_sawyer
francis_sawyer's picture

ZERO... No wait, they like that one too... They voted a ZERO President... (for the 44th one)

Tue, 01/24/2012 - 18:29 | Link to Comment zerotohero
zerotohero's picture

69

Tue, 01/24/2012 - 19:17 | Link to Comment xela2200
xela2200's picture

69?

Tue, 01/24/2012 - 20:10 | Link to Comment zerotohero
zerotohero's picture

nudge wink........please tell me your getting it now.

Tue, 01/24/2012 - 19:19 | Link to Comment Sub-MOA
Sub-MOA's picture

47...as in Ag

Tue, 01/24/2012 - 22:52 | Link to Comment gravedestruction
gravedestruction's picture

"what number don't they like?"

[this number]

Tue, 01/24/2012 - 22:57 | Link to Comment Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

#7 (the sign of the lamb)

Wed, 01/25/2012 - 08:51 | Link to Comment NoClueSneaker
NoClueSneaker's picture

Jamie & Lloyd don't like the publicity.  69 censored .

Tue, 01/24/2012 - 18:03 | Link to Comment Flakmeister
Flakmeister's picture

The great Rolling Rock mystery is now solved....

Tue, 01/24/2012 - 19:10 | Link to Comment tongue.stan
tongue.stan's picture

Bucky: you, Sir, make me proud to be an American.

Tue, 01/24/2012 - 20:52 | Link to Comment peekcrackers
peekcrackers's picture

The gold is all the vatican.. under gods great eyes . swiss army gards and the most honest truth telling  could do no wrong people on this earth.

Wed, 01/25/2012 - 00:13 | Link to Comment mofreedom
mofreedom's picture

And Soros resides on the 33rd floor of his office on 7th ave in NYC, BFD, but true!  Go drink yourself sober ande spend yourself rich you hoser, cause I am, cheers mate!

Tue, 01/24/2012 - 16:54 | Link to Comment ATG
ATG's picture

"Currently, it is reputedly the largest gold repository in the world (though this cannot be confirmed as Swiss banks do not report their gold stocks) and holds approximately 7,000 tonnes (7,700 short tons) of gold bullion ($415 billion as of October 2011), more than Fort Knox. Nearly 98% of the gold at the Federal Reserve Bank of New York is owned by the central banks of foreign nations.[8] The rest is owned by the United States and international organizations such as the IMF. The Federal Reserve Bank does not own the gold but serves as guardian of the precious metal, which it stores at no charge to the owners, but charging a $1.75 fee (in 2008) per bar to move the gold."

http://en.wikipedia.org/wiki/Federal_Reserve_Bank_of_New_York

Tue, 01/24/2012 - 16:59 | Link to Comment Big Ben
Big Ben's picture

Free storage! What a bargain for those central banks. How wise they are to trust the US government (which confiscated most of its gold from its own citizens) to safeguard their gold. Who said central bankers were stupid?

Hey central banks: I've got an even better deal for you. I will hold your gold at no charge and will even waive the $1.75 moving fee.

Tue, 01/24/2012 - 18:29 | Link to Comment sdmjake
sdmjake's picture

Ben, that is hilarious. Thanks for the chuckle...

 

Tue, 01/24/2012 - 18:52 | Link to Comment Captain Kink
Captain Kink's picture

Chase Plaza (now the Property of JPM) is linked to the facility via tunnel... I have seen it.  The elevators on the Chase side are incredible. They could lift a tank.

Tue, 01/24/2012 - 19:10 | Link to Comment francis_sawyer
francis_sawyer's picture

That's so Jamie Dimon can walk over there and whack off over a few bars during his lunch break...

Tue, 01/24/2012 - 19:40 | Link to Comment HungrySeagull
HungrySeagull's picture

Elevators are only good to the last drop.

That where the shafts come in.

Tue, 01/24/2012 - 22:54 | Link to Comment Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Hell, even Brinks charges 1-2% per annum.

Tue, 01/24/2012 - 17:15 | Link to Comment toothpicker
toothpicker's picture

so much trouble for a useless, non-edible barbaric relic...

Tue, 01/24/2012 - 17:21 | Link to Comment knukles
knukles's picture

See, see. I toldja so.

First, the introductory fly leaf of the brochure expouses the value and utility of the gold as the ultimate currency.  (Aah hemmm) 

And then they store the shit for free, the barbarous relic, held onto out of tradition whcih has whateverthefuck no other use or so says Benji his very own little self to Congress. 
Well, other than nipple rings and clit clamps.  Jesus. 
And which costs a fucking bundle of money to store and protect.  
I'm thnking of my old Schlitz beer can collection.  Maybe I oughta get it insured?  Or have the Fed store it for me.  'Bout as useful according to the Benjamahan.

So, "Ah hah, I says to myself.  Whatta deal.  Just think of all the make work and highly paid folks to develop that nice brochure that represents teh Poeple's Look at The People's Gold."

I gotta go poop again.

Wed, 01/25/2012 - 03:21 | Link to Comment StychoKiller
StychoKiller's picture

I recommend Immodium™, continuing to take Spenditol™ is contra-indicated...  :>D

Tue, 01/24/2012 - 18:29 | Link to Comment DosZap
DosZap's picture

ATG

 I read an article a while back that said the Swiss had sold off their reserves down to less than 1100 Metric tons.

Per capita, that is still a lot, but nowhere near the 7000 tons they used to have according to your numbers.

I doubt I could find the article, as it's been months ago.

Tue, 01/24/2012 - 19:04 | Link to Comment Johnny Yuma
Johnny Yuma's picture

Maybe the Fed has rehypothicated the stored gold of other countries... 

Tue, 01/24/2012 - 17:02 | Link to Comment Money never sleeps
Money never sleeps's picture

Bernanke just told me that all the gold of United States is hidden here: http://bit.ly/A9m3f1

Tue, 01/24/2012 - 17:04 | Link to Comment MarcusLCrassus
MarcusLCrassus's picture

Yes, there's tons of gold there.  That's why they won't do a true audit of the place.  Because all that gold is there and has not been leased or rehypothecated at all. 

 

Good to know we can take Bernanke's word for it. 

Tue, 01/24/2012 - 17:11 | Link to Comment dermus
dermus's picture

Pretty sure there's more at West Point than Ft. Knox.

Tue, 01/24/2012 - 17:25 | Link to Comment Mercury
Mercury's picture

It may not have been the NY Fed but I know I saw a program/documentary about moving a large amount of gold out of NYC in regular, unmarked trucks.

It was not long after 9/11 and the original, long-time location of the AU was no longer considered secure enough so the government decided to move it to Fort Knox or wherever.  The crux of the problem was getting it from point A to point B without a lot of fuss and this was basically accomplished in broad daylight and without a massive, visable security presence.

It was one of those 60 Minutes type formats where they interviewed the truck drivers and other people involved after the fact with all kinds of maps and diagrams.

What vault could that have been if not the NY Fed?

Tue, 01/24/2012 - 17:39 | Link to Comment disabledvet
disabledvet's picture

I saw that show too. I think the moving company was called "Tyler Durden's Express Delivery Service" as well. It had a motto as I recall...i think it was "in your time of need we understand your greed." kinda catchy actually. I've never seen nor heard of this company since. I've taken note however "the price of gold has done nothing but go up since."

Tue, 01/24/2012 - 18:05 | Link to Comment SgtShaftoe
SgtShaftoe's picture

I can attest to that. I did some work at FRBNY in 07-08 and asked about the gold. I was told that soon after 9/11 they moved it to somewhere in New Jersey because it had been such a close call for them. Security in Manhattan just wasn't good enough. I didn't see it, but there was no reason for the guys to lie to me. They answered matter-of-factly and confidently. I'd bet there isn't so much as a gold eagle at FRBNY.

Tue, 01/24/2012 - 18:28 | Link to Comment Big Corked Boots
Big Corked Boots's picture

"somewhere in New Jersey"

Corzine's apartment in Hoboken?

Tue, 01/24/2012 - 18:30 | Link to Comment francis_sawyer
francis_sawyer's picture

Next to Jimmy Hoffa... & it still only takes $5 to dig it up (but a teamster has to do it)...

Tue, 01/24/2012 - 21:15 | Link to Comment DaddyO
DaddyO's picture

 

 

Meth Man can do it, no prob!!

DaddyO

Tue, 01/24/2012 - 21:24 | Link to Comment Arius
Arius's picture

dig it up for what? so you can dig another hole to dump it in ... and pay somebody to guard it???

ehhh better just forget it ... leave it there who cares ...

Tue, 01/24/2012 - 22:51 | Link to Comment Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

That brings up a very good point.  I think that one day our beloved offshore bank run government will nationalize our gold and silver mining companies  for the good of the people, of course.

Wed, 01/25/2012 - 02:02 | Link to Comment fall
fall's picture

It must've been the vault below WTC4. Not much has been reported about the case but in the worst case three quarters (770,000,000 USD) went missing (read: didn't exist).

Tue, 01/24/2012 - 17:28 | Link to Comment RafterManFMJ
RafterManFMJ's picture

 

 

Personally, I think what gold that hasn't been sold to suppress the price and improve the image of the dollar, was sold to screw the Soviet Union into submission; by colluding to lower the price of oil and gold, the USSR's only real way to earn hard currency, and then redoubling the arms race, the Soviets were driving to bankruptcy and breakup.

Ironically, by destroying/outsourcing our productive economy, running up large debts, and pissing away our gold, we too will drive ourselves to bankruptcy and breakup. 

Tue, 01/24/2012 - 18:12 | Link to Comment DosZap
DosZap's picture

Clueless,

No, only a quarter of the Gold is there,West Point had a quarter,NY Fed has a quarter, and one other major Bank has the balance(name escapes me at this time),this is supposed to be the total of 8100 metric tons.

Now go to Ripley's Believe it or Not..............LOL

Tue, 01/24/2012 - 18:32 | Link to Comment francis_sawyer
francis_sawyer's picture

that's a quarter "face" you're talking about, right?

Tue, 01/24/2012 - 18:56 | Link to Comment 847328_3527
847328_3527's picture

kentucky? where is that?

Tue, 01/24/2012 - 20:27 | Link to Comment stant
stant's picture

mythical place of lore , fairy tale dosent really exist.

Tue, 01/24/2012 - 21:48 | Link to Comment Buck Johnson
Buck Johnson's picture

Just think, when the economy implodes in Europe and the US we will gladly hand over their gold.  Those individuals made a horrible error putting their gold in another country.

Tue, 01/24/2012 - 22:45 | Link to Comment Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Really now!?  Were you at the last official audit of Ft. Knox in 1956 and have you stood guard there since then to make sure that no hanky panky has gone on?!

Tue, 01/24/2012 - 23:26 | Link to Comment ToNYC
ToNYC's picture

Fort Knox is only US Gold. 33 Liberty is 122 different accounts of which US is but one cell for coming and going to square accounts. In theory... but that don't mean what it once did. Theory is not lurking about a Law of Nature but rather only a convenient narrative you'll like. Sleepwalking is not a crime; it is encouraged.

Thu, 01/26/2012 - 10:29 | Link to Comment Jooles
Jooles's picture

I've been told there is a whole lot of gold-painted tungsten bars stored at Fort Knox.  But anyway...

 

How much gold did The Mad Dog of the Middle East have?  Mubarak?

 

Okay, well, nevermind.

Remember this from last year, about Libya's gold?

 

http://www.zerohedge.com/news/battle-libya-almost-over-battle-its-144-to...

 

Venezuela doesn't have much does it?  Wouldn't want to have to "liberate" them too, goodness knows.  Talkin' Jed Clampett's kind of gold.

 

note to self:  don't be oblique

 

Wed, 03/07/2012 - 23:22 | Link to Comment Falkor
Falkor's picture

Nice colored bricks.

Tue, 01/24/2012 - 16:49 | Link to Comment Dr. Engali
Dr. Engali's picture

 

"representing about 22 percent of the world’s official monetary gold reserves."

 

But Ben said gold isn't money.

Tue, 01/24/2012 - 17:18 | Link to Comment francis_sawyer
francis_sawyer's picture

the other 78% went down in the boating accident I had last week...

Tue, 01/24/2012 - 16:59 | Link to Comment ATG
ATG's picture

Was 9-11 really about COMEX Nova Scotia gold?

http://911research.wtc7.net/wtc/evidence/gold.html

Tue, 01/24/2012 - 22:43 | Link to Comment Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

No, 9-11 was a pretext to set up a police state in the U. S. as well as foment foreign wars in MENA with the end game of worldwide domination by a cadre of demon elite eugenicists.

Tue, 01/24/2012 - 16:51 | Link to Comment Stoploss
Stoploss's picture

LOL!! Ft. Knox, another myth.

Tue, 01/24/2012 - 16:50 | Link to Comment nwskii
nwskii's picture

Aliens took the gold and they replaced it with gold plated lead bars

Tue, 01/24/2012 - 17:15 | Link to Comment Buckaroo Banzai
Buckaroo Banzai's picture

Why bother gold plating, when Krylon #1000 does the job perfectly well.

http://www.krylon.com/products/premium_metallic

 

Tue, 01/24/2012 - 19:41 | Link to Comment HungrySeagull
HungrySeagull's picture

Krylon does not support human life in confined spaces and hiring kids to do it is illegal because of huffers.

Tue, 01/24/2012 - 17:19 | Link to Comment Chupacabra-322
Chupacabra-322's picture

@ nwskii, Aliens?  I read about The Annunaki too.  Read my post down below.  Guess the Annunaki needed it for thier atomosphere after all. 

Tue, 01/24/2012 - 22:04 | Link to Comment Axenolith
Axenolith's picture

Nah, they'd spray for humans first, then come pick it up.  Can't have us all boiling out of the cities mad and shooting when they come to harvest the "honey" we've collected ;-)

Tue, 01/24/2012 - 16:51 | Link to Comment Waterfallsparkles
Waterfallsparkles's picture

Still wondering where all the Gold went that was stored in Building 7 during the World Trade Center attack.

Tue, 01/24/2012 - 17:04 | Link to Comment LowProfile
LowProfile's picture

It was melted by the jet fuel (clearly, since it burns hot enough to melt steel) and ran down into the cracks in the Earth, never to be seen again...

Tue, 01/24/2012 - 18:32 | Link to Comment Wakanda
Wakanda's picture

LOL!

Only in Bizaro World!

Tue, 01/24/2012 - 22:38 | Link to Comment Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Are you saying those 19 hijackers whose photos went nationwide within 48 hours through  the "establishment" media used nano thermite?!  Next your gonna tell me that they used drones to fly into the towers and caused NORAD to stand down for two hours from their caves in Western Pakistan?!  Oh, and those two pristine hijacker passports that the FBI found in the rubble just after the attacks.  That was just blind luck.  Please don't make me take the red pill.  No, no no.  I love my government right or  wrong!

Tue, 01/24/2012 - 16:51 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

Why bring this up? Are the Germans and/or Dutch pulling a De Gaulle?

Tue, 01/24/2012 - 17:37 | Link to Comment TheSilverJournal
TheSilverJournal's picture

The enormous amount of purchasing power that gold is set to gain is evidenced by the size of the bond market (about to get wiped out) which completely dwarfs the size of the gold market. All of that wealth in currency will flow somewhere, likely mostely into gold. At the  minimum, the purchasing power of an ounce of gold will be equal to the amount that $10,000 purchases today.

TheSilverJournal.com

Tue, 01/24/2012 - 17:50 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

+ 1

There are a number of ways you can "calculate" a much higher future price of gold (one way I do downthread re CHINA).  Who really knows what is going to happen?

Your above point re ruin of the bond market is spot-on (see last weekend's "Subordination 101" seminal bond article at ZH).  And when the paper gold market collapses (100 paper claims on each physical oz of gold), then we are looking at "FOFOA" numbers, $10,000 per oz might be on the low side...

Tue, 01/24/2012 - 19:55 | Link to Comment Vint Slugs
Vint Slugs's picture

$50, 000.  But silver won't be able to trade much above $100.

Tue, 01/24/2012 - 20:15 | Link to Comment TheSilverJournal
TheSilverJournal's picture

Silver is going to a min. $1,000 / oz. There's very little silver and when there's a rush out of fiat, the silver price will rocket as the world rushes out of paper.

TheSilverJournal.com

Tue, 01/24/2012 - 20:35 | Link to Comment akak
akak's picture

I understand your argument about the collapse of the ponzi paper markets, but partly just to be Devil's advocate here, why should any significant fraction of that money necessarily flow into silver, or silver AND gold for that matter?  Why not platinum, or palladium, or works of art, or collectibles like stamps and coins, or real estate, or any number of other assets as well?  I think it is a given that SOME of it would certainly do so, but I don't see any particular reason why MOST of it would necessarily do so, particularly in this day and age in which the precious metals have been marginalized and attacked by just about every "mainstream" financial and political pundit, and are still not on the general public's financial radar at all --- except perhaps as the "fringe" investments of "kooks".

Tue, 01/24/2012 - 20:57 | Link to Comment TheSilverJournal
TheSilverJournal's picture

Wealth will flow into those other things and they will all do very will, except real estate. Well, farm land and productive land will do well while housing and other commercial property will get hosed because its so overbuilt. Certainly, all fiat is headed for a collapse, which is a money problem. Since we're having a money problem, I think that real money, gold and silver, will outperform almost any other asset class. Sometimes I do say "most" of the wealth will flow into gold or some such language, but really all that's needed is a strong movement in the direction of gold. The gold market is really very small when compared to other assets classes. Of course, "most" of the wealth that's moved out of fiat can't be moved into silver because the silver market is just so tiny, which is why I expect it to do so great. All that's needed is a small amount of wealth to move into silver for the price to soar. In addition, an extra squeeze gets put on silver because of the industrial demand which for the most part uses tiny amounts of silver that are necessary at almost any price for use in products. That's my basic view.

Looking into it a little further, there may be other opportunities such as diamonds or something else I may not be thinking of. Diamonds may boom in value if the world becomes so chaotic that the need grows so strong to carry vast amounts of wealth on your person and gold just won't do the trick. That's something for a future though which I hope I'll never have to dive futher into.

With the death of fiat, asia should do very well because no longer will they be trading us their real goods for fake paper currency and they'll be able to keep the fruits of their labor. There might be a double whammy opportunity with Asian art for example to take advantage of the rush into art as well of the rise of Asian wealth, as well as other opportunities of the sort playing off of Asian culture.

TheSilverJournal.com

Tue, 01/24/2012 - 21:00 | Link to Comment TheSilverJournal
TheSilverJournal's picture

Also, the fiat ponzi began through the scam of counterfeiting gold, or printing more notes redeemable in gold than actual gold exists, value was stolen from actual gold and transferred to the counterfeit notes. When the counterfeit notes become worthless, much of the stolen value will be returned to actual gold. The Fed is in control of the greatest scam ever pulled and the scam is in the process of being revealed.

TheSilverJournal.com

Tue, 01/24/2012 - 22:31 | Link to Comment Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Try trading a high priced sketch by a famous artist for a loaf of bread.

Tue, 01/24/2012 - 22:12 | Link to Comment Axenolith
Axenolith's picture

Dude, that makes a pre-65 dime worth almost $75.  There are a HELL of a lot of places I won't detect now that I would seriously consider if every freakin' pre-65 dime I found was worth $75 ;-)

Tue, 01/24/2012 - 22:26 | Link to Comment TheSilverJournal
TheSilverJournal's picture

Just think about how much fiat there is relative to how much gold there is and what traditionally happens to the gold to silver ratio when the there is a move into gold. Those dimes will be worth at least $75 of today's purchasing power.

TheSilverJournal.com

Tue, 01/24/2012 - 22:27 | Link to Comment Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Agreed.  Silver is "the poor man's gold" with a target market in the billions.  Can we say "pent up demand"?!

Tue, 01/24/2012 - 22:26 | Link to Comment Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Average daily trading volume of U. S. Bond market is $822,000,000,000.00.

 

"$500! and some in gold.  That's a tidy sum!"       Colonel Mortimer (The Bad)   --The Good, The Bad & The Ugly

Tue, 01/24/2012 - 16:53 | Link to Comment Wakanda
Wakanda's picture

Yet another "feel good" - "open and honest" publicity stunt as the OWSers circle Liberty Street, and Ron Paul gets stronger in the polls.

Nice try Ben.

How about a real audit?

Tue, 01/24/2012 - 16:53 | Link to Comment oldschool
oldschool's picture

It gets worse (surprise, surprise).  From jsmineset, lifted from Debka:

"India is the first buyer of Iranian oil to agree to pay for its purchases in gold instead of the US dollar, DEBKAfile's intelligence and Iranian sources report exclusively.  Those sources expect China to follow suit. India and China take about one million barrels per day, or 40 percent of Iran's total exports of 2.5 million bpd. Both are superpowers in terms of gold assets."

Tue, 01/24/2012 - 16:55 | Link to Comment Tyler Durden
Tyler Durden's picture

Please no quotes from the numerous unsourced voices in Debka's head on Zero Hedge.

Tue, 01/24/2012 - 16:58 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

It was on RT as well but I'm not sure that helps...

Tue, 01/24/2012 - 19:40 | Link to Comment SixFeetFromTheHedge
SixFeetFromTheHedge's picture

RT quoted it from DEBKAfile as well so I guess it doesn't help.

Tue, 01/24/2012 - 17:18 | Link to Comment Smiddywesson
Smiddywesson's picture

Given Debka's location, I would even question sourced information.

Tue, 01/24/2012 - 17:22 | Link to Comment Gunther
Tue, 01/24/2012 - 18:06 | Link to Comment oldschool
oldschool's picture

Didn't know of the Debka ban.  Wouldn't have guessed it from the context either.

Not pumping them by any stretch.  It is what it is, like everything else on the web, including ZH and its comments.  Maybe it pans out, maybe not.  

Not worth looking into?  I disagree.  I think adults can figure these things out for themselves.

Tue, 01/24/2012 - 21:15 | Link to Comment crazyjsmith
crazyjsmith's picture

For what it is worth, Debka was a month ahead on the secret Israeli bombing of the super secret Syrian Nuclear facility. They were a week ahead of the details about the "missing" Stealth drone, even had information about how the drone was recovered, in which i thought was way too far fetched until the full story was picked up They are usually way ahead of most trusted sources that are tracking the killings of the Iranian scientists and mysterious bombings going on there.

Not to say they don't have an agenda, they obviously do, but a lot of the information seems to be right on a week or so later. We'll just have to see it play out

Wed, 01/25/2012 - 09:34 | Link to Comment Archduke
Archduke's picture

-1. that sounds dangerously close to editiorial control, tyler.

this said, feel free to blast debka to your heart's content.

Tue, 01/24/2012 - 17:16 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

@ oldschool

India and China would be stupid to trade their gold for oil.  They should pay for as long as possible with fiat, whatever Iran would accept.

Tue, 01/24/2012 - 17:36 | Link to Comment flattrader
flattrader's picture

Yeah.  I thought the same and called BS on this story.  It's a little early in the global crisis to pay in gold for oil.

Iran may be hard up enough soon enough to trade oil for plastic rice from China to go with their curry from India.

Tue, 01/24/2012 - 18:10 | Link to Comment oldschool
oldschool's picture

I agree.  Either there's more to the deal or it is probably wrong.  Both seem possible.  Time will tell.  I understand Debka has an agenda, but how does flat out falsehood advance it?  

As mentioned, I just saw this on jsmineset, which I look at periodically.  I'm not a Debka follower.

Tue, 01/24/2012 - 19:43 | Link to Comment KK Tipton
KK Tipton's picture

Front page link on Drudge right now:

http://www.forexcrunch.com/gold-for-oil-india-and-iran-ditch-dollar-report/

 

Blatant generated propaganda?

Tue, 01/24/2012 - 23:16 | Link to Comment oldschool
oldschool's picture

FWIW, it's in Casey's daily dispatch today too.

Wed, 01/25/2012 - 01:43 | Link to Comment merizobeach
merizobeach's picture

Can you spare a moment for consideration of the math underlying the thesis you keep referring to here?  Specifically, how much gold do India and China have?  How much oil could they buy with all of that gold?  And for how long would that much oil be sufficient to sustain their countries?  Please do the fucking math, and then you'll realize that this suggestion is completely preposterous.

Tue, 01/24/2012 - 19:41 | Link to Comment ali-ali-al-qomfri
ali-ali-al-qomfri's picture

perhaps Iran will end up with the 'HOT POTATO' tungsten bars

Tue, 01/24/2012 - 22:16 | Link to Comment Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Think outside the box.  China is not only buying today's oil but also "future access"!  Also, they are setting a payment standard that the bankrupt west cannot match.

 

Is Iran selling its oil for gold or is Iran buying gold with its oil?

Wed, 01/25/2012 - 01:28 | Link to Comment merizobeach
merizobeach's picture

Really?  How much gold does China have?  And India?  At what value are they trading that gold for oil?  Because, by the way, if it was some ratio like US$1700/oz and US$100/barrel, then for all of their reported gold reserves, they would buy less oil than they use in a year.

Tue, 01/24/2012 - 16:54 | Link to Comment dwdollar
dwdollar's picture

IMO, there's more evidence for UFOs than either of the "deposits" at Fort Knox or the New York Fed.

Tue, 01/24/2012 - 17:21 | Link to Comment francis_sawyer
francis_sawyer's picture

I've heard that they shipped all the gold from both places to AREA 51...

The aliens are guarding it for us...

Tue, 01/24/2012 - 17:49 | Link to Comment dwdollar
dwdollar's picture

Fantastic... where can I pick up my approx. half a troy ounce of gold being I am a US citizen?

147 million troy oz. supposedly stored at Fort Knox / 307 million US population

Hangar 18 or Area S4?

Tue, 01/24/2012 - 18:07 | Link to Comment francis_sawyer
francis_sawyer's picture

just drive by the book depository & wait for further instructions...

Tue, 01/24/2012 - 22:10 | Link to Comment Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Ft. Knox has not been officially audited since 1956 but who am I to question "authority"?  (grovel, grovel)

Tue, 01/24/2012 - 16:53 | Link to Comment Spider
Spider's picture

Hmmm what happens if an Earthquake damages the power/infrastructure?  Does that mean we just lost 20% of the World's Gold Reserves? 

Good luck for the Fed trying to get that gold out in the case of a major natural disaster...

Fri, 01/27/2012 - 21:37 | Link to Comment smiler03
smiler03's picture

I was thinking of what Stuxnet could do.

Tue, 01/24/2012 - 16:53 | Link to Comment Waterfallsparkles
Waterfallsparkles's picture

What happens if there is an Earth Quake in NY and the Island splits off into the sea?

Tue, 01/24/2012 - 17:07 | Link to Comment Spider
Spider's picture

I can just see the headlines - "Major Earthquake hits New York and NY-Fed gold is inaccessible - Gold price jumps 20% overnight"

 

Tue, 01/24/2012 - 18:08 | Link to Comment francis_sawyer
francis_sawyer's picture

What happens if the sun explodes into a supernova and the entire inner solar system is vaporized?

Tue, 01/24/2012 - 18:43 | Link to Comment Kali
Kali's picture

What happens if someone nukes and irradiates it?  What happens if the Annanuki come back and want it?  Lol.  What ifs can drive one crazy.

Tue, 01/24/2012 - 19:52 | Link to Comment akak
akak's picture

Our sun does not have nearly enough mass to ever go supernova.  In fact, it is exceedingly unlikely that an intelligent species, or perhaps even multicellular life itself, could ever develop on any planet orbiting a star which is fated to go supernova, as their much greater mass inevitably results (counterintuitively) in a much smaller potential lifetime for any such star, relative to our own, as well as for any planets surrounding them.  Ironically, it is the smallest, dimmest stars which will live the longest --- some existing red dwarf stars will still be burning (feebly) one trillion years from now.

But not to worry --- our sun will one day, about five billion years from now, swell into a red giant star and vaporize the inner solar system (including earth) anyway.  So you still have that to look forward to.

Tue, 01/24/2012 - 21:02 | Link to Comment NewThor
NewThor's picture

LOL

You humans and your "The sun will last 5 billion years..." talk.

You checked the Sun's gas tank, kicked its tires and took it for a spin?

I'd say we know a whole hell of a lot less about the Sun than we think we do.

Tue, 01/24/2012 - 23:48 | Link to Comment akak
akak's picture

You checked the Sun's gas tank, kicked its tires and took it for a spin?

I did!

1)  gas tank: 90% hydrogen, sitting between "3/4" and "1/2" --- check.

2)  tires: well, could only kick them metaphorically, as they consist of ionized plasma, but tread looks to be about 50-60% --- check.

3)  "took it for a spin": why do you think its equatorial regions rotate so much faster than its poles?

 

:-)

Fri, 01/27/2012 - 21:43 | Link to Comment smiler03
smiler03's picture

I go with your figures but have you ever seen Professor Manuel's theory that the sun is mostly iron? ;O)

http://www.ballofiron.com/ 

Tue, 01/24/2012 - 21:51 | Link to Comment Pope Clement
Pope Clement's picture

Yeah the nuclear fusion powered sun pretty much belongs to the dark age of 20th century physics along with the big bang, black holes, dark matter, space/time continuum etc. The cutting edge paradigm is that the sun is externally electrically powered i.e.  a positive anode on a galactic and super galactic circuit. So pretty much impossible now to determine how long it will continue to shine.

 http://www.electric-cosmos.org/

Tue, 01/24/2012 - 22:07 | Link to Comment Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Yes, but why are we here and where did we come from?

Wed, 01/25/2012 - 08:57 | Link to Comment Pope Clement
Pope Clement's picture

Au fond that is the great mystery - will it ever be answered or even answerable ? But less fundamentally judging by our orientation to the ecliptic of the Milky Way we are likely aliens captured from the Saggitarian galaxy that is colliding with the Milky Way. Those peoples with the longest racial memories even recall a golden age when we had another sun that was also remembered as the god who went away. The name of that sun is many such as Atum Ra, Shamash, Shang-ti the yellow emperor, Brahma, El, Yahweh, Shalem, Baal, Kronus etc. and the ancients testify that they all refer to the once brown dwarf star we call Saturn. Lots of hints all around us that point back to that time i.e. Jerusalem means City of Saturn and until Emperor Constantine changed it, the sabbath was Saturday, the Saturnalia was the high Roman holiday and the seven hills of Rome were originally named after Saturn, King David named all three of his sons after Saturn etc. etc. As  the French say La Realite depasse la Fiction, n'est pas ?

http://www.maverickscience.com/saturn.htm

Tue, 01/24/2012 - 22:51 | Link to Comment TerraHertz
TerraHertz's picture

Nice to see someone else aware of that.

Some more links: http://everist.org/archives/links/!_Electric_Universe_links.txt

Tue, 01/24/2012 - 22:05 | Link to Comment Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Gold would go up $100 overnight but fall back with the NYMEX open the following day!

Tue, 01/24/2012 - 17:09 | Link to Comment MarcusLCrassus
MarcusLCrassus's picture

We call Kurt Russell and have him come over and kick some 4ss. 

Do NOT follow this link or you will be banned from the site!