Steve St. Angelo of the SRS Rocco report put out a beauty Thursday night:
U.S. Exports A Record Amount Of Gold To Hong Kong In January: SRSrocco Report
It turns out that the U.S. exported 80 tons of gold in January. As you might guess, the bulk of it (57 tons) was sent to Hong Kong and then followed by the Swiss. WOW, 80 tons! A lot of gold right? Well yes but some perspective is needed to understand just how much this really is.
Before going any further in the “perspective” department, I would be remiss if I didn’t mention Germany and their “request” for THEIR OWN gold to be returned. They “requested” last year that 300 of their 1,500 tons be sent back from the N.Y. Fed… and only received 5 tons, but as Jeffrey Christian assures us…Germany isn’t worried and “they don’t really want their gold back.” Really? Why then did they even ask for it? Was it some sort of joke? “Who” was the joke on? I’m no rocket scientist but if we actually did send 80 tons of gold overseas in the single month of January, could we not have sent the Germans “just a little” bit more…of THEIR gold back to them?
OK, for perspective what exactly does these 80 tons of exported gold in one month mean? The U.S. exported a total of 488 tons last year so 80 tons would represent more than 16% of last year’s total. If this were to become the new “run rate” for the next 12 months we would end up exporting nearly 1,000 tons! To be honest with you, I am not sure why these numbers are even published. I say this because allowing us “nut jobs” to see exports only gives us more dots to connect. Forget about Toto, this is like the Wizard pulling the curtain back all by himself!
We can look at past exports and compare them to current exports but this is like comparing one car that’s doing 50 mph versus this year’s model doing 100 mph… in a 25 mph zone. The mines collectively in the U.S. only produce 240 tons of gold per year so this is the “perspective” to look at. How can we be exporting more gold than we actually produce? Where is it coming from? As I’ve been harping on for several months now, “it has to come from somewhere, right?”
There are of course other questions that need to be asked (rest assured that they will not be “officially” answered). Questions as simple as “why?” Why are we exporting more than we produce? What are we getting in return? Are we getting “dollars?” This would be really dumb as we can (and have) printed bazillions of these and done it for free…why would we need more of them? Are we getting oil in return? If this were the case then “shooting oneself in the other foot” would come to mind as “oil for gold” is taboo and several “rulers” have even lost their lives for even having this thought.
I’m not going to play dumb here and keep asking a bunch of questions to get you to think, no, I’ll give you the answer flat out. We are sending gold (and lots of it) mainly to China because if we don’t…they will pull the plug on our financial system. I have written to you all along that once the flow of gold to China stops…they will view it as a default. China will not pull the plug as long as we continue to send gold because they want as much as they can get …but more importantly they want to know that “we are out”…completely.
On several occasions I have written about the Russian gold that was hitting the world markets back in 1989 and 1990. The bars that were surfacing had the “Czar’s stamp” on them which meant they were fabricated before 1917. This was an absolute tell that the Soviet Union was at the very bottom of their gold barrel. They were forced to sell the last of their gold, gold which had been fabricated at least 70 years prior. I mention this because James Turk told us last Tuesday that U.S. gold with fabrication dates going back to the 1960’s has recently been turning up on global markets. Why? Why now? Connect your own dots if you’d like but to me this says that we are digging pretty deep into the pile to make delivery. I will remind you that the Soviet Union broke apart roughly 6 months after the “Czar bars” started to turn up.
Back to the 80 tons worth of exports in Jan. and 488 tons for all of last year. These numbers are far more than we produce. If you add in the 500 tons that GLD bled out last year we get a total of 750 “extra” tons that hit the market. When you add in the other side of the ledger, “imports,” we know where much if not ALL of this gold went to. It went to China and it came from the U.S. with 5 total tons falling off the plane in Germany.
This really is big news folks. It is news that tells you something as to timing. “Timing” as in “soon” because the U.S. consumes ALL 240 tons that is mined +++ for jewelry and mintage which means that all (488+80=) 568 tons had to come from somewhere over the last 13 months. It also means that our “hoard” got 568 tons “lighter” over the last 13 months. This represents 7% of what he have “said we have” for the last nearly 70 years…in just 13 MONTHS! You can of course ask questions like how long have we been exporting more than production. How much has the leakage been? Please keep in mind that GOFO rates are in a backwardation that theoretically cannot happen. We are almost negative all the way out to one year now. This is a phenomenon that had almost never ever happened before last year and now we are in our 4th or 5th bout of backwardation. This simply tells you that the gold market is in fact tight…which is why the GLD bleed and our growing exports of gold… It’s all about “perception” now and getting the markets open for tomorrow. Watch how fast the world will change once gold is no longer delivered.
Do you now understand why there has been no audit of our gold reserve since the 1950’s? It’s OK, everyone knows that everyone knows…and it’s been this way for a while but it sure was one hell of a party wasn’t it?