If you suspect that this is an indication that that gold isn't there and the Fed has to go and buy it in the market, you may be right or wrong. It certainly looks as they are trying tro stretch it out as long as possible to avoid a gold run and to keep gold prices "controlled".
If you are seized by an urge to ran out and buy gold bars while available and at any price, take care with tungsten fake bars (pic).
19 comments:
How about "jew gold" J?
Jews have reshaped the World into their own image.
J, there is a simple explanation. The amount of gold in question is something like 700 tons. It would take years to ship that quantity across the ocean, given that the capacity of a cargo ship is only...
Oh, no wait, that's not it.
Seriously, please provide a reliable link where it says that the gold shipments are to spread over 7 years. The sources that I found did not say that.
K
Gold shipment schedules are not published. My sources are impeccable - a gold salesman told me.
The Fed does not need to steal Germany's gold. If they want money, they just print it.
K
מים גנובים ימתיקו
or so
"Stolen water is sweet".
"The Fed does not need to steal Germany's gold. If they want money, they just print it."
According to Bloomberg News (Sept 2012)Central banks all over the world are buying gold. They bought 273 tons (tonnes?) in the first half of 2012 up 34 percent from the prior year. They want gold to diversify from the dollar and as a hedge against inflation.
I don't know off hand of the U.S. Federal Reserve buys gold, but they do have gold on their balance sheet. Bernanke told Ron Paul that "gold isn't money," and the reason Central Banks hold gold and (say) not diamonds is "tradition."
I suspect that the Fed lent out or even sold Germany's gold a long time ago.
BTW the density of tungsten is 19.25 g/cubic cm compared to 19.30 for gold so the difference between the two is 0.26% or 26 parts per 10,000. So assay by weight is difficult. If the Germans ever get their gold back, they will need to do destructive assay on a random same of the bars. The price of tungsten is currently running about $44 per kilo. Gold is around $54,650 per kilo. Make a kilo gold bar 10% tungsten and you make over $5,000. Now you have to detect 2.6 parts per 10,000 which is near the limit if a fire assay.
Ben Bernanke probably personally drilled out the bars. $5,000 ain't chump change for the Fed. Oh wait, it is.
K
$5K per bar. Plus remember that the gold (or "gold") is leveraged. A small difference in the principle is multiplied manifold.
No B, the Fed's gold isn't leveraged. When you can set your own arbitrary reserve ratios, the amount of gold doesn't matter.
Oh, and that would be if the Fed actually owned gold. Which it doesn't. But for other central banks, the above applies.
Good to know. So you've gotta wonder why the Germans are taking theirs back for assays.
Why shouldn't they have custody of their own gold? During the Cold War they kept it in the US to keep the Russians from stealing it (again) but now they are not worried about this anymore. They should have asked for it back 20 years ago.
K
Indeed. Nothing to see here, move right along.
On the other hand, James McDonald thinks differently: http://blog.jim.com/economics/fed-has-no-gold.html
I see lots of hand waving and a total absence of proof that the gold is not there. If you say that the moon is made of green cheese and NASA is lying about those rocks, you have to offer some proof. Otherwise you are just a conspiracy nut. Sometimes conspiracy nuts are right too, but you can't give them any credence until they offer you a piece of cheese to taste.
K
The only proof needed is the lack of outside control. No audit for something like 5 decades.
And there were requests. Many.
Only answer: we got it. Get the frack out of here.
So after some decades of this type of behavior people start having the strange impression that hmmmm maybe just maybe .... the stuff got privatized.
In USSR after the collapse it was called looting. But US is a much more civilized place. US leadership privatizes , they never loot anything.
If I might make an estimation out of thin air.
The gold was not sold. It was lended. The type of people who have this kind of political power never pay for anything. So I'd say it was borrowed not bought.
Still zero proof.
K
You know, K, I've had numerous discussions with Russians who loved the USSR (being in its middle privileged class) where they explained to me that its crimes were likewise manufactured. Zero proof! Since I could not produce tens of millions of bodies, I had to concede their argument.
Of course, to an objective outsider, it is obvious that the gold is gone, and the US is stalling to make the payments. Oh, well-they could have learned from us Jews never to be the king's creditor. I am still betting that John Law is right, and gold will spontaneously remonetize with the collapse of the dollar driven by inflation caused by democracy and associated societal ills: http://www.safehaven.com/article/5205/why-the-global-financial-system-is-about-to-collapse
When you show me the bones of the Katynski woods in gold, I'll believe you.
K
The Khatyn bones were only uncovered due to an anomaly (the Germans taking Poland and deciding to make a big deal of it.) The bones of tens of millions were not, because they were randomly dispersed in the Ukraine, or buried further east. So with the gold-until a collapse, you can only guess where the bodies are buried.
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