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Everybody in the Industry Knows the US Doesn't Have the Gold
Dollar Colapse ^ | Janurary 31, 2013 | John Rubino

Posted on 02/01/2013 4:59:47 AM PST by Diana in Wisconsin

In this week’s talk with National Numismatics’ Tom Cloud, he explains why Germany’s gold repatriation is just the beginning, the US Mint’s silver shortage will continue, and the big money is right about precious metals.

DollarCollapse: Hi Tom. It’s been an eventful few weeks in precious metals, though you wouldn’t know from the price action alone. Hit the high points for us.

Tom Cloud: Germany’s 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. It’s also clear that Germany won’t be the last country to bring its gold home. The Netherlands is next and then probably Switzerland. It’s 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 doesn’t have the gold and can’t deliver it. They’ve leased it all out.

It’s 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. That’s where Germany’s gold would be if the US hadn’t leased it out.

DC: Then there’s the US Mint running out of silver eagles.


TOPICS: Business/Economy; Conspiracy; Government
KEYWORDS: gold

1 posted on 02/01/2013 4:59:51 AM PST by Diana in Wisconsin
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To: blam

Ping-a-Roony!


2 posted on 02/01/2013 5:00:34 AM PST by Diana in Wisconsin (I don't have 'Hobbies.' I'm developing a robust Post-Apocalyptic skill set...)
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To: Diana in Wisconsin
Marc Faber "You Don't Own Gold And You Are In Great Danger"
3 posted on 02/01/2013 5:07:39 AM PST by blam
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To: Diana in Wisconsin

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.....


4 posted on 02/01/2013 5:09:35 AM PST by Farmer Dean (stop worrying about what they want to do to you,start thinking about what you want to do to them)
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To: Farmer Dean; blam

You both know where MY gold is...

...in my bug-out bunker...

...guarded by my Pitt Bull, aptly named, ‘Dick Cheney’!

:)


5 posted on 02/01/2013 5:16:20 AM PST by Diana in Wisconsin (I don't have 'Hobbies.' I'm developing a robust Post-Apocalyptic skill set...)
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To: Diana in Wisconsin

Yes, I’m observing right now through binoculars....


6 posted on 02/01/2013 5:19:04 AM PST by Lazamataz (LAZ'S LAW: As an argument with liberals goes on, the probability of being called racist approaches 1)
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To: Diana in Wisconsin

Why would gold be ‘leased out’?


7 posted on 02/01/2013 5:24:25 AM PST by bk1000 (A clear conscience is a sure sign of a poor memory)
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To: Diana in Wisconsin

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)


8 posted on 02/01/2013 5:25:06 AM PST by agere_contra (I once saw a movie where only the police and military had guns. It was called 'Schindler's List'.)
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To: bk1000

To make a short-term return on it.


9 posted on 02/01/2013 5:26:24 AM PST by agere_contra (I once saw a movie where only the police and military had guns. It was called 'Schindler's List'.)
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To: bk1000
Why would gold be ‘leased out’?

I think that ‘leased out’ is a technical term used in high finance that means "we gave it to China".

10 posted on 02/01/2013 5:35:33 AM PST by ClearCase_guy (Nothing will change until after the war.)
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To: agere_contra

In all seriousness, silver is where it’s going to be at! My gold will eventually be traded in for silver.

And lead. ;)


11 posted on 02/01/2013 5:38:37 AM PST by Diana in Wisconsin (I don't have 'Hobbies.' I'm developing a robust Post-Apocalyptic skill set...)
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To: Lazamataz

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!


12 posted on 02/01/2013 5:40:55 AM PST by Diana in Wisconsin (I don't have 'Hobbies.' I'm developing a robust Post-Apocalyptic skill set...)
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To: Diana in Wisconsin
In all seriousness, silver is where it’s going to be at!

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:

    Countries like Germany asking for their re-hypothecated Gold back
    Basel III being fully adopted with Gold as a tier I asset.
    A crippling shortage of physical silver for industrial use.
    Japan's citizenry and pension funds putting 1% of their assets in physical precious metals

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.

13 posted on 02/01/2013 5:54:19 AM PST by agere_contra (I once saw a movie where only the police and military had guns. It was called 'Schindler's List'.)
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To: Diana in Wisconsin
And if you’re within range of the kitchen, make yourself useful and go make me a sandwich!


14 posted on 02/01/2013 6:02:15 AM PST by Lazamataz (LAZ'S LAW: As an argument with liberals goes on, the probability of being called racist approaches 1)
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To: Lazamataz

Nicely played! :)


15 posted on 02/01/2013 6:07:46 AM PST by Diana in Wisconsin (I don't have 'Hobbies.' I'm developing a robust Post-Apocalyptic skill set...)
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To: Diana in Wisconsin

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.


16 posted on 02/01/2013 7:06:23 AM PST by Lazamataz (LAZ'S LAW: As an argument with liberals goes on, the probability of being called racist approaches 1)
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To: Diana in Wisconsin
The Mint's silver shortage could be as simple as having no US-made material at the moment (which is required by law) or having some sort of bottleneck on production of acceptable planchettes. Or it could be that a real shortage is actually at hand. But not having hundreds of tons of gold is heart-stoppingly huge. (To say nothing of not having several thousand tons of gold.) The repatriation rate for Germany's gold corresponds to having a single Cessna 152 flight per day, loaded to capacity (but making an allowance for the weight of the pilot). I'd love to tag along on one of the flights - but of course I weigh enough that hardly any gold could come on that flight, the '152 being a rather small 2-seater aircraft.


17 posted on 02/01/2013 7:12:04 AM PST by coloradan (The US has become a banana republic, except without the bananas - or the republic.)
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To: Diana in Wisconsin

18 posted on 02/01/2013 7:15:54 AM PST by COBOL2Java (Fighting Obama without Boehner & McConnell is like going deer hunting without your accordion)
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To: Diana in Wisconsin

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.


19 posted on 02/01/2013 7:27:20 AM PST by Georgia Girl 2 (The only purpose of a pistol is to fight your way back to the rifle you should never have dropped.)
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To: bk1000
Why would gold be ‘leased out’?

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.

20 posted on 02/01/2013 7:29:22 AM PST by KarlInOhio (Choose one: the yellow and black flag of the Tea Party or the white flag of the Republican Party.)
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To: Georgia Girl 2
I sympathize and agree wholeheartedly with all of your points - except one.

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.

21 posted on 02/01/2013 7:38:29 AM PST by agere_contra (I once saw a movie where only the police and military had guns. It was called 'Schindler's List'.)
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To: agere_contra

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.


22 posted on 02/01/2013 9:01:48 AM PST by yefragetuwrabrumuy (Best WoT news at rantburg.com)
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To: Farmer Dean

Or who are we going to be at war with for stealing their freakin’ gold?


23 posted on 02/01/2013 9:15:40 AM PST by Little Ray (Waiting for the return of the Gods of the Copybook Headings.)
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To: KarlInOhio

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...


24 posted on 02/01/2013 9:39:17 AM PST by bk1000 (A clear conscience is a sure sign of a poor memory)
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To: bk1000
Even if they do physically have the gold, they don't have enough once short selling occurs. Let's say person A deposits 100 ounces of gold. Person B borrows it and sells it to C. Then person D borrows C's gold and sells it to E. Now A,C and E all "own" that same 100 ounces of gold even if it has never actually moved off the shelf in the vault. If A shows up at the bank and demands his gold back the whole house of cards will collapse. And heaven forbid if A, C and E all demand their gold at the same time.

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.

25 posted on 02/01/2013 10:54:38 AM PST by KarlInOhio (Choose one: the yellow and black flag of the Tea Party or the white flag of the Republican Party.)
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