View Full Version : The Disappearing Gold

01-30-2013, 12:10 PM
A fascinating and illuminating article from International Man (http://www.internationalman.com/global-perspectives/the-disappearing-gold) that clearly explains gold "leasing" and the possible consequences.

Whenever the MSM reports on this, they always trot out the lunatics who claim that Fort Knox is empty to make these stories look stupid. The gold is definitely in Fort Knox despite any claims to the contrary and why they always focus on that ridiculous argument.

What most people do not know is that Fort Knox is *NOT* the main gold storage facility in the United States. It is second to the Federal Reserve Bank of New York, which holds 7,000 metric tons (vs the 4,578 metric tons in Fort Knox). There are also US Mint held gold storage in Denver, CO and West Point NY (not coin blanks or working stock) equal to approximately 70% of the Fort Knox holdings. These holdings have most definitely been leased as described in the article.

Here's the money quote from the article "The Bundesbank is just as fearful of a run as the Fed and will be only too willing to accept the Fed’s terms."

This then is why one should never buy "paper" gold in any form. If you buy gold (or silver for that matter) buy only physical gold that is outside the influence of the US banking system or the US government.

sierra m37
01-30-2013, 5:39 PM
Good advice. Anything other is a derivative and look how that worked out.

Maltese Falcon
01-30-2013, 5:48 PM
Yep, they say it will take seven years to reallocate the physical gold requested from the US to Geman soil.

Time to rehypothecate some more PMs from unsuspecting investors.

Possession is 9/10ths ownership.


01-30-2013, 5:55 PM
Interesting article, especially having just watched Money as Debt (http://www.youtube.com/watch?v=jqvKjsIxT_8) in it's entirety last night.

Maltese Falcon
01-30-2013, 6:08 PM
My recent refinance, which obligates me to repay a monthly sum for most of my remaining natural life, was recently resold from the mortgage co. to Freddie Mac, a quasi-government agency.

They in turn, bundled it and sold it (most likely) to the Federal Reserve who created the money to buy it out of thin air in their desire to support the housing market, and keep it from collapsing like it almost did in 2008.

All this money chicanery is supposing that the US has all the Gold it says it has "locked" away and any Tresuries or MBS Bonds are backed by the full faith and credit of the US.

....but if the Gold is not there in the amounts they say?



01-30-2013, 8:07 PM
There was a report this week that Switzerland is also pulling their gold out of the Federal Reserve bank.

Couple that with the Germany story and China buying tons of the stuff and it makes you wonder what's next on the horizon.

01-30-2013, 8:18 PM
I'm not sure I'd be real crazy about someone leasing out something they were supposed to be storing for me.

01-31-2013, 9:08 AM
I'm not sure I'd be real crazy about someone leasing out something they were supposed to be storing for me.

This happens all the time. If you own any public traded stock and do not have a certificate and most people do not because they charge $50 for one to discourage it. Your stock certificate is actually held by an organization known as Depository Trust Corporation (DTC) that is run by anbd for brokers and acts as a clearinghouse. The vault was allegedly flooded during Hurricane Sandy and the certificates damaged but they can reconstruct them pretty easily.

So one someone "sells short" or "shorts the market" they go to their broker and "borrow" shares that the broker has in their account and the broker sells them for them. This has always gone on, it is pretty normal and is heavily regulated and pretty much transparent on a macro scale. There has been some problem with "naked shorts," that is sales without the underlying certificate and subsequent "failure to deliver" (FTD) done to manipulate prices but they generally police it pretty good. None of this is true of gold short sales.

And now Austria may be hopping on the bandwagon as their legislature is talking about forcing the central bank to repatriate their gold hordings from the NY Fed. But the central banker will probably go have a quiet discussion with the leadership and it will all go *poof* as will the paper gold market someday.

01-31-2013, 9:18 AM
Decent buys for silver on ebay...

01-31-2013, 9:21 AM
when it comes to metals....


Maltese Falcon
01-31-2013, 6:04 PM
Everybody in the industry knows the US doesn't have the Gold.



02-02-2013, 3:35 PM
Having a registered mining claim may make a nice bug out location.

02-02-2013, 8:02 PM
News of note,

US Government failed to renew one of its key financial gaurantees on none interest bearing deposits ( checking account ) in small and medium sized banks 12/31/12, and in related news $114 billion in cash was withdrawn from US banks in week one of 1/13, and figures since then are not yet reported.

That may not seem like a lot, but it's the most since 9/11 and we didn't have a 9/11. In 2008 banks kept about 80 billion on hand, but since the housing crunch that's been increased a little.,..to more than 2.7 trillion.

02-02-2013, 8:15 PM
Having a registered mining claim may make a nice bug out location.

That's a really good suggestion.