Skip to comments.Everybody in the Industry Knows the US Doesn't Have the Gold
Posted on 02/01/2013 4:59:47 AM PST by Diana in Wisconsin
In this weeks talk with National Numismatics Tom Cloud, he explains why Germanys gold repatriation is just the beginning, the US Mints silver shortage will continue, and the big money is right about precious metals.
DollarCollapse: Hi Tom. Its been an eventful few weeks in precious metals, though you wouldnt know from the price action alone. Hit the high points for us.
Tom Cloud: Germanys gold repatriation is obviously a game changer. They got all their gold back from France right away. But the US government put them off for 7 years, probably by offering them some kind of premium to take their gold back slowly. More gold, Treasuries, no one knows what exactly but clearly it was a big inducement. Its also clear that Germany wont be the last country to bring its gold home. The Netherlands is next and then probably Switzerland. Its become a game of musical chairs. No one wants to be caught when the music stops. And make no mistake, it will stop. Everybody in the industry knows the US doesnt have the gold and cant deliver it. Theyve leased it all out.
Its important to understand that there are two big stashes of gold in the US. Fort Knox supposedly holds the gold that belongs to us. And the New York Fed holds gold that has been deposited by other countries for safe keeping. Thats where Germanys gold would be if the US hadnt leased it out.
DC: Then theres the US Mint running out of silver eagles.
So our government leased out other countries gold without their knowledge or consent?Who’s going to prison over this?
Better question would be,who’s gonna get killed in car accidents,etc.....
You both know where MY gold is...
...in my bug-out bunker...
...guarded by my Pitt Bull, aptly named, ‘Dick Cheney’!
Yes, I’m observing right now through binoculars....
Why would gold be ‘leased out’?
Don’t rock the boat Germany! Give the rest of us time to buy physical at these ludicrously cheap prices!
I am up to a paltry 50 Kg of bullion silver now; hidden away in my volcano fortress. I need a few years to catch up with your colossal pile of treasure :0)
To make a short-term return on it.
I think that leased out is a technical term used in high finance that means "we gave it to China".
In all seriousness, silver is where it’s going to be at! My gold will eventually be traded in for silver.
And lead. ;)
I thought I felt a cold finger down my back...*SHIVER*
And if you’re within range of the kitchen, make yourself useful and go make me a sandwich!
Absolutely agree. I expect a price of at least 300 GBP/450 USD per troy oz of Silver before we are through. That's in today's currency, unadjusted for inflation.
I imagine that the likely trigger-event that will finally launch the PMs towards their true values will be one of the following:
My guess is that the Japanese trigger will be the one that does it. In the 3rd quarter of this year Japan's current account balance will go negative, according to Kyle Bass.
Nicely played! :)
Thanks. It’s a Lazamataz Original, inspired by our exchange. I’m working on a best-copy version, watermarked with my name, and hope it recieves wide distribution.
There hasn’t been any gold in Ft. Knox in 25 years. This country is broke and heading for a total collapse. If you don’t have gold or silver and plenty of food your life is going to be difficult.
To sell it short. I borrow gold from you, sell it and at a later time I have to buy it on the open market and return it to you. If the price goes down I make money from selling high and buying low.
The tricky part is when I just borrow it from your broker/storage company without your permission based on the idea that the broker has enough gold in his possession where if you want it back he can always give you some. Now if more people want their gold than he physically has anymore you might get a run on the bank. That is the house of cards of fractional reserve banking.
I believe that there is plenty of Gold in Fort Knox and (also) that it isn't tungsten. Just like there is plenty of Gold at the Bank of England.
However in both cases a very great deal of the Gold does NOT belong to the State that is housing it.
Moreover: each gram of Gold plausibly has multiple owners and/or multiple liabilities against it.
Disclaimer: I have no proof to back my assertions, and Fort Knox might really be empty.
Truthfully, I believe the bulk of US gold has not been at Fort Knox for a long time, instead mostly kept at the major New York banks.
However, I would not be surprised if it was all long ago looted and sold off to who knows what kind of Auric Goldfinger types. Much I imagine is kept by the IMF and other internationalist organizations to back their schemes.
Or who are we going to be at war with for stealing their freakin’ gold?
Thanks. That likely explains then why they are taking seven years to return the gold. They ain’t got it! Shame I lost all of mine in that tragic boating accident...
With currency, the bank can hem and haw for long enough to borrow some more cash from the Federal Reserve or the government can even print some more to cover the run. Other than trying to sneak in some tungsten (it's as heavy as gold, so it's just as good), there is no way to just create gold out of nothing to end a run. The fact that Germany has agreed to wait for seven years means that we were likely a hair's breadth away from a total run on the gold market. What will happen to the gold prices when they have to deleverage the market over the next few years to free up the German gold, I have no idea.
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