We had several news items last week that boggled the mind. The most astonishing was the Bundesbank doing a 180 degree U-turn and saying that the gold that was delivered to them last year was not refined in the U.S.; it was done in Germany after the arrival. This of course raises many more questions than already existed.
Originally when it was “told” that the U.S. refined the gold, the simple question of “why?” was out there. This was passed off by Germany by explaining that these bars needed to be “LGD” (London Good Delivery) 400 ounce bars. This really did not pass the smell test but it was what it was. Questions arose that maybe this gold was “coin melt” and commentators speculated that Germany needed to take the heat off of the Fed by making their “refined in the U.S.” statement. This now is apparently not the truth as Germany now says that they refined the gold?
But now there are more questions. Where in Germany was it refined? Could we maybe see some sort of “chain of custody” or bill of lading showing the movement of the gold? Why hasn’t anyone come forward and cleared this up, someone surely at the refinery or a part of the transport plans could step up and “swear” that they touched the gold, handled the gold or even “saw the gold?” But no, so far no one knows nuthin.’
As I explained in my article last week “Monkey Business,” gold has a fingerprint if it is not 99.999% pure. Based on purity and whatever other elements are mixed in, its origin or previous ownership can be narrowed down quite precisely. THIS is the problem that Germany is attempting to avoid (for the Fed) by making and then reversing their statements. Obviously by reversing their statement, “credibility” now comes into question…because the gold was both refined in the US…or in Germany but…it can’t be both and in reality if it was the SAME, original gold, it shouldn’t be either one! By reversing their statement they announced to the world “we are liars.” One of the two statements is a lie by common logic, which one you ask? Does it matter? They can’t even fall back on the old “it was a mistake” line because we are not talking about whether this gold was in “the front right pocket or left pocket.” Do you realize the logistics that had to have been undertaken? 37.5 tons? 75,000 pounds? 2 billion dollars? The guards and armored trucks involved? The chain of custody? And they want us to believe that “oops we made a mistake,” it was refined 5,000 miles away in a different country, different continent, different time zone in a different refinery? Oops! Really?
Getting to the meat of the matter and forgetting that when you lie once you’ll need to lie bigger and then even BIGGER to cover the first lie(s), why did this gold even need to be refined? Again, because it apparently had a “bad” fingerprint. “Bad” meaning it was not the original fingerprint, shape or size that this German gold was originally delivered in. It’s really quite simple, it’s NOT the same gold that was originally delivered and you don’t have to be Sherlock Holmes to come to this conclusion.
So…what’s the big deal, they got this gold back right? Well, us conspiracy nuts were screaming a year ago when the deliveries were originally announced that there was no way it could take 8 years to get 20% of their gold back…if it was really there and held in the NY Fed’s vault. Right now it’s looking pretty good for the conspiracy nuts huh? In a nutshell, Germany’s gold is obviously not there any longer…something has happened to it. Was it leased out? Sold? Melted down and given away as Valentines gifts? Who knows? It really doesn’t matter; the only thing that absolutely positively does matter is that the NY Fed did something it wasn’t supposed to do with the gold, the wealth of another sovereign nation that they were entrusted to the safekeeping of…period, end of story.
Of course there are a few other nagging questions like “this was only 37.5 tons, what about the other 262.5 tons that are supposed be shipped?” Oh, yes I know, the real whackos might even ask, “What about the OTHER 1,462.5 tons that are supposedly ‘held’ in safekeeping?” Did Cupid get a hold of any (all?) of this gold and go on a “giving spree?” I have to ask, why are the Germans blowing their credibility to cover for something that they didn’t do? It IS THEIR gold after all. They didn’t do anything wrong except deposit the gold in the first place and now are making false statements.
As with pretty much any and all lies, this one will come to a head. 2014 will be all about “deliveries” or the lack of. It won’t matter whether it’s COMEX, the LBMA, GLD or anywhere else. A failure can be hidden or swept under the rug depending on “whom” it is that gets failed to deliver to, the Germans are a prime example. The Chinese however are a different story and most probably one that we will hear about very loudly!