I wrote twice last week and posed the question “What happens when central banks don’t trust other central banks?” It looks like we are already finding out the answer to this question. It started last week with Germany, now The Netherlands is posing the same stance making noise about repatriating their Gold. Meanwhile, Romania has again (as they have several times before) is requesting that Russia release their Gold.
I don’t want to beat a dead horse here but this is truly big stuff. It is also not that complicated and should have been expected by us “conspiracy nuts” who have for years said that 4,000+++ tons per year of demand could not be satisfied by 2,500 tons of supply. Eric Sprott may have put is best when he said, “Someone is not getting their Silver(Gold).” Paper receipts cannot take the place of a wedding ring or necklace, when all is said and done they will not take the place of real wealth.
I am surprised however that this is taking place in public view. I would have thought that the central banks would have (as they have forever) done their business behind closed doors. It is one thing for Chavez to order his Gold delivered, it is entirely another when The Bundesbank makes this request. It is also quite surprising to hear the words “audit,” “Gold” and “Central Bank” all in the same stories and used publicly, covered in the mainstream. This I believe is not by “coincidence.”
Over the summer we had a “correction” where the Gold price was absolutely locked down. I could be way off base but it is my belief that the physical Gold which backed and supplied this correction was of Libyan origin. It has now been fully used and behind the scenes, the lack of available physical metal for delivery is becoming well known.
I have a few questions that you might ask yourselves which I believe the central banks have already asked themselves. Would the U.S. sell all of their Gold to retain “monetary power?” Would they sell others’ Gold to which they are “custodians” for for the same reasons? Is the financial system (in the U.S. and globally) more “honest” today than it was 20 years ago? 50 years ago? Or how about this, if you had leased out or sold all of your Gold surreptitiously, would you have reason to to start pointing fingers at others to turn the spotlight away from you?
I will leave you with this link to King World News blog quoting James Turk who believes that the German Gold was ALL leased out and sold years ago:
This is fairly long but very important to read as it will explain the “roots” to a Gold market that has become more than 100 pieces of paper for every one real ounce of Gold. What started out as a “suppression scheme” has turned into all out fraud. I believe that initially it was thought “the Gold would be bought back and no one would be the wiser.” As in any fraudulent scheme, “paying it back before getting caught” NEVER HAPPENS!