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A Vision Of Gold

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Bribery, bullion & bullying: Former EY employee sues company for Dubai gold scam cover up
RT


Published on Jan 28, 2018
A former employee of consultancy giant Ernst & Young is suing the company for his “unlawful, unprofessional and unethical” dismissal after he blew the whistle on an alleged bribery and money laundering scheme in Dubai.

Whistleblower suing Ernst & Young over gold dealings with Dubai firm
https://www.theguardian.com/business/2018/jan/21/ernst-young-whistleblower-suing-gold-audit-Dubai

Ernst & Young whistleblower speaks out on conflict gold risks – video
https://www.theguardian.com/busines...young-whistleblower-conflict-gold-risks-video
 
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Your Weight in Gold


-- Published: Tuesday, 30 January 2018

By BullionStar

The traditional phrase “worth your weight in gold” has been used since Roman times, and is a well-known saying signifying that someone or something is very valuable, helpful, or to be treasured.

But taken literally, what ‘value’ would a person be worth if they were worth their own weight in gold?

For a given gold price, the answer not surprisingly depends on the person’s weight, so a more suitable and relevant question might be what value would an average person be worth if they were worth their weight in gold?

Since average weight will vary by gender, a practical calculation would be to run two calculations, one for the average weight of a woman, and the other for the average weight of a man.

Looking at average weight data over regions of the world by male and female yields an average weight for a man of 78.5 kgs (173 lbs), and an average weight for a woman of 69 kgs (152 lbs).

Across the world, human weight data shows the regional averages for both genders from heaviest to lightest run as follows: North America, Oceania, Europe, Latin America, Asia, Africa. Taking simple averages of these regions for men and women, the average global weight for a man is 78.5 kgs (173 lbs), while the average weight for a woman is 69 kgs (152 lbs).



At a gold price of US $1350, a world average weight of 78.5 kgs (173 lbs) for a man would mean that the average adult male would weigh approximately 1993 troy ounces, and be valued at approximately US $ 3.4 million. Note that 1 kilo = 32.1507 troy ounces.

32.1507 troy ounces * 78.5 kgs = 2524 ozs = US $3.40 million

At the same gold price, a world average weight of 69 kgs (152 lbs) for a woman would mean that the average adult female would weigh approximately 2218 troy ounces, and would be valued at approximately US $3 million.

32.1507 troy ounces * 69 kgs = 2218 ozs = US $2.99 million

Overall, an average adult across the world weighs 2371 ozs, which at a gold price of US $1350 would be valued at US$3.2 million.

Most people will be familiar with the large gold bars that are stored in central bank gold vaults, such as the gold vaults of the Bank of England in London. These ‘Good Delivery’ gold bars are standard bars in the worldwide wholesale gold market, and although they are variable weight bars, each of these gold bars usually weighs in the region of 400 ozs. Assuming one of these gold bars weighs 400 ozs, then the average adult in our global weight calculation would weigh the equivalent of 5.92 good delivery bars. Let’s call it 6 Good Delivery gold bars, which would be a neat pyramid of 3 * 2 * 1 gold bars.



An average adult weighs the same as 6 large central bank gold bars



Similarly, when measured in terms of gold kilobars, the average adult from our calculation would weigh the equivalent of 74 gold kilobars.

Gold's High Density
Density refers to the amount of mass (weight) in a given volume. Gold has a very high density, 19.3 g/cm3, which is higher than most other metals. As an example, a cubic centimetre of gold will weigh 19.3 grams. Gold’s density is also 19 times higher than water, which is why gold panning works, since the gold will sink to the bottom of the pan and separate from other materials.

Gold's high density also explains why even a 1 ounce gold bar or 1 ounce gold coin will feel heavy when held in the hand, especially for people holding one of these gold bars or gold coin for the first time. It also explains why trying to lift up a 400 oz gold bar, especially with one hand, is a lot more challenging than it first looks.

Gold’s high density also means that a significant amount of gold can be stored in a small area. And because a small amount of gold is valuable, this also means that a very high value holding of gold can be stored in a small area.

This can be referred to as gold’s value dense property, i.e. a small quantity has a high value. This also means that gold can be hidden easily. And that a small amount of gold worth a significant amount can be carried easily, i.e. gold is portable.



If measured in gold kilobars, an average adult would weigh the same as 74 gold kilobars.



Gold's high density makes it difficult to counterfeit, since few other metals can be substituted for gold as their densities are lower. One exception is the metal tungsten, which has a density of about 19.3 g/cm3, similar to gold. While tungsten is sometimes associated with gold bar forgeries, nowadays there are various tests and measurement apparatuses which can determine that a counterfeit bar contains tungsten and not gold.

In comparison to gold, silver has a density of 10.5, which explains why silver is bulkier and takes up more room to store. As the silver price is about 80 times less than the gold price, it also means that a high value holding of silver will require substantially more room to store than a gold holding of the same value. This also explains why silver storage fees in a vault are higher than gold storage fees.

The Gold Standard
Apart from the phrase “your weight in gold”, there are many other well-known idioms associated with gold which also convey gold’s high value and the esteem with which societies and civilizations have held gold in throughout history.

For example, as well as describing an actual gold standard where gold-backed paper currencies in many parts of the world up to the 20th century, the phrase “gold standard” is used metaphorically describe a standard of excellence by which other things are measured.

“Like gold dust” is a popular idiom signifying that something is very rare and of high value, and which is difficult to find because of its rarity value. This expression is derived directly from the fact that gold too is difficult to find, is rare and is of high value.

If a business or enterprise is referred to as “a gold mine”, it is because that business generates substantial profits or cash flow for the owners. Similarly, if someone is “sitting on a gold mine”, it means that they have land or property which is worth a considerable amount.

The terms ‘golden handshake’ and ‘golden parachute’ are now used widely in business to refer to generous departure terms when employees or executives leave a position of employment.

A “gold rush” is often synonymous with the frenzied pursuit of an investment opportunity or new investment sector, such as a gold rush on Wall Street, or the dot-com gold rush. Finally, to “strike gold’ is to find success or wealth through a deliberate endeavor or sometimes through luck.

Whatever the expression, the one thing that these well-known phrases have in common is that they allude to gold's high value and rarity, and are immediately accepted and understood when used in the English language.

BullionStar
E-mail BullionStar on: support@bullionstar.com

http://news.goldseek.com/GoldSeek/1517321280.php
 

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The Most Gold & Silver You've Ever Seen? Mike Maloney
GoldSilver (w/ Mike Maloney)


Published on Jan 30, 2018
Have you ever seen this much gold in one place? In this video Mike Maloney shows the remarkable images coming out of Russia that are evidence of their recent surge in gold reserves. What do they see coming? Is this a subtle challenge to Fort Knox and their ongoing lack of transparency? If you enjoyed watching this video, be sure to pick up a free copy of Mike's bestselling book, Guide to Investing in Gold & Silver: https://goldsilver.com/buy-online/inv...
 

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Gold Bullion Price Suppression To End? Bullion Bank Traders Arrested For Manipulating Market


-- Published: Friday, 2 February 2018

– CFTC fines UBS, HSBC and Deutsche Bank millions of dollars each for gold price manipulation
– Deutsche Bank ‘engaged in a scheme to manipulate the price of precious metals futures contracts’
– UBS ‘attempted to manipulate the price of precious metals futures contracts’
– HSBC engaged ‘in numerous acts of spoofing with respect to certain futures products in gold and other precious metals’
– Gold ‘experts’ continue to deny legal rulings, evidence amassed by GATA, admissions by banks and central banks including Greenspan and monetary history
– Counter intuitively, gold bullion price suppression is good news for those prudent few who look at the situation ‘holistically’, take a long term view and buy gold and silver bullion as insurance


Editor: Mark O’Byrne



Source: David Brady, CFA @GlobalProTrader

A multi-agency CFTC-led investigation that also involved the Department of Justice and the FBI has resulted in ‘criminal and civil enforcement actions against three banks and six individuals involved in commodities fraud and spoofing schemes.’

Deutsche Bank, UBS and HSBC had all been accused of engaging in manipulating the gold price and the bullion banks have now admitted they are guilty of the charges and have paid fines.

All those named in the investigation have been found to be manipulating the gold and other precious metals markets.

The banks face fines, although they can hardly be described as hefty given the size of their balance sheets and impact of their actions. Deutsche Bank and UBS have agreed to pay $30 million and $15 million respectively, while HSBC will pay $1.6 million.

The fines have been reduced as each of the banks assisted the CFTC in investigations which go back to activities as far back as 2008 and admitted the charges.

For years the idea that precious metals markets are subject to more than just free market forces has been dismissed by the mainstream media and some market commentators Many have referred to gold and silver manipulation and gold bullion price suppression as topic fodder for the conspiracy and deep web forums. This is despite many years and reams of much evidence to the contrary.

Isn’t this all illegal? Shouldn’t someone go to jail?

Yes, as part of the 2010 Dodd-Frank financial reform, spoofing is a criminal offence. What is spoofing?

Spoofing, as a reminder, involves placing bids to buy or offers to sell futures contracts with the intent to cancel them before execution. By creating an illusion of demand, spoofers can influence prices to benefit their market positions (ZeroHedge)

As explained above, the fines for UBS and Deutsche Bank are north of ten million, while the fine for HSBC is slightly less at £1.6 million. Surely traders and other connected employees should be facing prison?

As of Monday it sounds as though the authorities feel the same way. ZeroHedge via Reuters updates reported:

US authorities were set to arrest several people on Monday as part of the spoofing and manipulation probe. The individuals who are set to be perp walked, were previously employed as traders by UBS, Deutsche Bank and HSBC, and will be charged as part of the multi-agency probe,

Last August, a U.S. appeals court upheld the conviction of former New Jersey-based high-speed trader Michael Coscia who was the first individual to be criminally prosecuted for spoofing in the US, aside from Sarao of course.

Does this mean that manipulation is coming to an end?

Possibly but it is unlikely to, at least until monetary authorities including China’s PBOC wish it to. Or indeed, the media give Gold Anti-Trust Action Committee’s (GATA) allegations a fair hearing and report on the matter in a balanced manner and thereby put pressure on monetary authorities to desist from rigging precious metal prices through bullion bank proxies or indeed official partners such as the New York Federal Reserve.

Last May we brought you commentary from Jim Rickards. There he outlined how China was an active supporter of the gold bullion price suppression as it works in their short-term favour:

The price is being suppressed until China gets the gold that they need. Once China gets the right amount of gold, then the cap on gold’s price can come off. At that point, it doesn’t matter where gold goes because all the major countries will be in the same boat. As of right now, however, they’re not, so China has time to catch-up.

China has been saying, in effect, “We’re not comfortable holding all these dollars unless we can have gold. But if we are transparent about the gold acquisition, the price will go up too quickly. So we need the western powers to keep the lid on the price and help us get the gold, until we reach a hedged position. At that point, maybe we’ll still have a stable dollar.”

Gold and other markets (including bond yields) are ‘systemically suppressed’

Manipulation isn’t unique to precious metals markets. We have seen it in LIBOR most prominently but also elsewhere in the financial sphere. We must also remember that there are ‘legitimate’ forms of manipulation such as monetary policy which sees both the price and value of our currencies maniplated and indeed debased over the long term.

Manipulation is not victimless. To Joe Public a bank receiving a $30 million fine no longer seems newsworthy (it isn’t, it didn’t appear in the mainstream media) nor does the likely imprisonment of individual traders. It’s just ‘one of those things’ which we pretty much expect to go on.

But everyone is a victim. Gold bullion price manipulation, interest rate ‘setting’ and LIBOR fiddling all mean that markets are rigged. It increases the risks and skews the odds for the average saver or investor who does not have the financial awareness, acumen or power to fight back.

Twitter had some of the best comments regard the latest findings of gold manipulation. Ned Naylor-Leyland (@NedNL) put it very well on Twitter:

Gold ‘experts’ who continue to deny legal rulings, reams of physical evidence, common sense & basic monetary history by claiming

‘Well, Gold may be manipulated but it’s not systemically suppressed’ pic.twitter.com/Np8EorGiX1

Editors Note
Some considering investing in gold and silver, have asked us what is the point of investing in precious metals if there prices are suppressed by bullion banks with the consent or indeed encouragement of monetary authorities?

We have been asked this since 2003 when GoldCore was founded. The Gold Anti-Trust Action Committee (GATA) were alleging manipulation back then and indeed even then had a lot of evidence to suggest manipulation had been taking place including central bank and other insider admissions of gold price suppression.

Are answer has been consistent. Ultimately the forces of supply and demand for actual physical gold and silver bullion will determine the prices of the monetary metals in the long term. Electronic and paper suppression of prices through futures markets will shake out weak hands, deter some investors and speculators and impact both sentiment in the short and the medium term. However, ultimately the fundamentals of physical supply and demand will lead to higher prices in the long term. This was seen in the 2000 to 2011 gold bull market.

Those who are concerned should take a step back and look at the bigger picture. This presents an opportunity rather than a risk. A suppressed price means there is an opportunity for investors to accumulate more bullion at artificially depressed prices. Ironically and counter intuitively, gold price suppression is good news for those prudent few who look at the situation ‘holistically’, take a long term view and buy gold and silver bullion as insurance rather than purely for capital gains.

The key is to ensure you are holding physical bullion, outside of the paper system. Keep it safe by owning segregated and allocated gold and silver, in ultra secure vaults, in the safest jurisdictions.

Related reading

Gold and Silver Manipulation: Can It Be Empirically Verified?

Silver Bullion Manipulation By Banks Proven In Traders Chats

News and Commentary

Gold dips on outlook for U.S. rate hikes (Reuters.com)

Asian Stocks Gain; Investors Adapt to Higher Yield (Bloomberg.com)

U.S. Mint American Eagle coin sales fall from prior year (Reuters.com)

UK’s Royal Mint Launches Gold-Backed Cryptocurrency (CoinTelegraph.com)

Hatton Garden jewellery raiders ordered to pay £27.5m (JewelleryFocus.co.uk)


Source: SoundingLine

Video: Former Fed Chair Alan Greenspan Sees Bubbles in Stocks and Bonds (Bloomberg.com)

We may be heading for a major dollar bear market (MoneyWeek.com)

Two-Thirds Of UK Pension Funds Are In The Red – $300 Billion Shortfall Revealed (ZeroHedge.com)

Forget Stocks, Look At EU Bonds – They Are The Real Problem (Tumluongo.me)

Bad Debt Problem in Southern Europe Is the Worst in the World (TheSoundingLine.com)

Gold Prices (LBMA AM)

01 Feb: USD 1,341.10, GBP 941.99 & EUR 1,077.98 per ounce
31 Jan: USD 1,343.35, GBP 950.29 & EUR 1,078.98 per ounce
30 Jan: USD 1,345.70, GBP 954.37 & EUR 1,083.56 per ounce
29 Jan: USD 1,348.40, GBP 955.07 & EUR 1,085.46 per ounce
26 Jan: USD 1,354.35, GBP 950.21 & EUR 1,087.41 per ounce
25 Jan: USD 1,360.25, GBP 954.35 & EUR 1,095.27 per ounce
24 Jan: USD 1,350.50, GBP 957.50 & EUR 1,093.77 per ounce

Silver Prices (LBMA)

01 Feb: USD 17.19, GBP 12.09 & EUR 13.82 per ounce
31 Jan: USD 17.23, GBP 12.17 & EUR 13.84 per ounce
30 Jan: USD 17.30, GBP 12.24 & EUR 13.91 per ounce
29 Jan: USD 17.34, GBP 12.33 & EUR 13.99 per ounce
26 Jan: USD 17.40, GBP 12.21 & EUR 13.99 per ounce
25 Jan: USD 17.52, GBP 12.29 & EUR 14.12 per ounce
24 Jan: USD 17.19, GBP 12.16 & EUR 13.93 per ounce

https://news.goldcore.com/

http://news.goldseek.com/GoldSeek/1517577600.php
 

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Bacteria Spins Gold Out Of Toxic Metals!
SalivateMetal


Published on Feb 8, 2018
This video will not go viral. But, I hope it goes bacterial!
 

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"We look forward to reporting our first gold pour"


-- Published: Friday, 9 February 2018

By Mining Journal

Northern Vertex Mining (CN:NEE) is on the cusp of being the US’s next gold and silver producer and has started stacking ore on the new leach pad at its Moss mine in Arizona.

Commissioning is continuing and production is ramping up to an initial stacking rate of 2,500 tonnes per day before building to 5,000t/day.

The company said to the best of its knowledge, Northern Vertex was the next publicly-traded company to initiate gold and silver production, which is scheduled for this quarter, in the US.

"As piping on the heap leach pad has commenced and the refinery furnace is to be commissioned next week, we look forward to reporting our first gold pour," president and CEO Kenneth Berry said.

Northern Vertex said it had achieved a high of 600t/hour through the crusher versus its nameplate capacity of 336t/h, the site power station was now online and mining contractor NA Degerstrom was continuing to optimise a 12-month production schedule.

The company expects to produce 455,125 gold-equivalent ounces over a 10-year mine life at an all-in sustaining cost of US$603/oz AuEq with initial capital expenditure of US$61.6 million, according to a 2017 preliminary economic assessment.

Last year it negotiated financial partnerships for construction and working capital with Greenstone Resources, Sprott Lending and CAT Financial, for $26 million, $20 million and $9 million respectively.

Patriot Gold (CN:pGOL) has a 3% royalty on the Moss mine.

Northern Vertex shares have ranged between C42.5c-70c in the past 12 months and were unchanged yesterday at 54c.

http://www.mining-journal.com/capital-markets/news/1311572/%E2%80%9C-look-forwardreporting-gold-pour%E2%80%9D

http://news.goldseek.com/FeaturedPR/1518181380.php
 

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Gold Rush Latin America 2018: Gold, Guns, & Security In The Danger Zone
Bone Tactical


Published on Feb 10, 2018
Brief description of the weapons at our Honduras jungle base camp.
 

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Trump Military Parade Or Fort Knox Gold?
SalivateMetal


Published on Feb 12, 2018
 

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Here's the vid mentioned above


Will you be wearing it on your face?

 

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World's Most Expensive Donut Made With 24K Gold!
SalivateMetal


Published on Feb 18, 2018
 

stAGgering

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OK just a little bit cwazy.
I did have 24K flake on a sushi order one time.
No, I did not order it that way, Keiko the sushi chef placed it upon the sushi.
Said she was experimenting.
I did not tell the chef... it's giving me wood.
Later, my girlfriend got wood too.
 

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Digital Gold Provide the Benefits Of Physical Gold?


-- Published: Monday, 26 February 2018

– Digital gold and crypto gold products claim to combine efficiencies of blockchain with value of gold
– They are yet to provide the same benefits or safety as owning physical gold
– National mints jumping in on the ‘sexy blockchain’ act
– BOE declares bitcoin ‘not a currency;’ Royal Mint launches blockchain gold product
– Digital gold, blockchain gold and crypto gold is frequently not fully backed, unallocated, pooled and unsecured gold holdings

Editor: Mark O’Byrne



At the beginning of last week Bank of England Governor Mark Carney claimed bitcoin was not a currency on the grounds that it is neither a medium of exchange or a store of value.

Scoffs aside about what this means for the British Pound, there are many out there who are trying to satisfy Mark Carney’s definition of a currency by backing digital tokens with gold.

The Royal Mint is one of them. They announced a new digital gold investment service entitled RMG back in December 2016. Interesting that a sister organisation to the Bank of England is looking at jumping into the crypto currency market by combining the blockchain with gold.

There are plenty of others doing the same thing. It is unsurprising given the recent volatility and negative press around the cryptocurrency market that there are many out there seeing opportunity in the interesting nexus that is blockchain and gold.

Is there value to be found in ‘digital’ money?



Is it possible to find ‘value’ in something which is as digital as fiat itself? For now, the jury is very much divided but there are some in the market who believe they can add value to cryptocurrency by backing it with gold (in some shape or form).

Many in the mainstream believe that this is bitcoin coming full-circle. Since its inception it has frequently been referred to as ‘digital gold’. Now, the backing of crypto currencies, or in fact just digital tokens, with gold has made the term come into its own.

Digital gold has, in fact, been around for many years. It is product offered by multiple online gold trading platforms. This involves buying ‘gold’ which is frequently pooled and the buyers locked into a closed-loop system with a single counter party. The owner does not own an actual physical gold coin or bar or coins or bars which are segregated and allocated in their name. They are captive to that particular platform with potentially poor liquidity, captive, monopoly pricing and counterparty risk exposure.

In the last few weeks there have been a plethora of announcements from both new and well-established organisations that have announced new digital gold products, either with a cryptocurrency, blockchain or just digital token angle. There is a serious danger that new investors believe they are getting decent exposure to this booming cryptocurrency market but with the security of the gold market to support them.

In truth, most of these new gold offerings are likely no better (and arguably worse) than the digital gold products that preceded them. As MoneyWeek’s Ben Judge concluded, last week, ‘my view is that so far, if you want exposure to gold, it’s better to stick with the real deal.’

Something not quite gold-standard about it all

The majority of those in the crypto space know there is something to be said for gold, hence the introduction of so many ‘gold-backed’ digital currencies. Many purport to have an advantage over more traditional means of gold ownership as there are low to zero transaction and storage fees.

This is fishy. Why store something for free and why buy something that is unallocated. We recently wrote about unallocated gold. We mentioned that whilst new gold investors might think that owning gold without having to pay storage fees seems highly attractive, it also comes with risks and, arguably hidden costs.

Unallocated gold is free to store because the bank or institution that you have chosen to buy it through, is using it for it’s own purposes. It is likely rehypotehated and loaned out. You the “investor” or “owner” is actually an unsecured creditor of multiple bank custodians.

Whilst the likes of the Royal Mint’s token is allocated, it is offering free storage. As we explained last year, this is a bit too picture perfect:

We’re all familiar with the expression ‘if it sounds too good to be true then that’s because it usually is’. The Royal Mint is owned by HM Treasury, it pays an annual dividend their way every year. It goes without saying that the United Kingdom is pretty broke at the moment and with the fallout of Brexit still playing out, against a backdrop of geopolitical uncertainty who knows how much worse it will become.

And when it does, how is the government planning on paying to keep the country going? Who knows, but it’s all happening at the same time that the government is trying to encourage you to hold gold in their vaults.

Ben Judge goes onto express our matching concerns about any national mint’s involvement in digital gold:

For many goldbugs, the Mint’s involvement might be a concern, given its ties to the government – governments have confiscated gold before (though not in the UK) and could well do so again. The Mint acknowledges this on its website, asking: “What protection against government confiscation does RMG offer?”, although it ducks the issue, as, of course, there is no protection.

Of course, this isn’t just an issue with offerings from the likes of the Royal Mint, the Canadian Mint or the Perth Mint’s soon-to-launch digital offering. It’s a common problem with many digital gold platforms, especially those purporting to be using blockchain technology.

MoneyWeek questions digital gold value



In a quick summary of the latest digital gold offerings Ben Judge addresses three of them and raises some serious concerns:

AurumCoin, for example, is creating a token that “will always be worth one gramme of pure gold”. Yet each coin is backed by just 0.75 grammes – AurumCoin claims that if each were backed by a full gramme, it would be “forced to charge a fee beyond the value of the currency”, which “defeats the idea”. The team behind it is a cagey outfit, saying that “we are obligated to operate legally and therefore we cannot reveal ourselves at this point”.

Digix, meanwhile, claims to be “fully allocated bullion”. Its DGX token represents “one gramme of 99.99% LBMA standard gold secured in Safe House vaults” in Singapore. The source of the bullion is Singaporean pawn shops. Digix will charge a transaction fee of 0.13% and a custody fee equivalent to 0.6% a year. To recast gold into 100g bars will cost 1DGX (one gramme of gold). It is slated for release at the end of the first quarter of 2018.

A third option is GoldMint, which operates “gold-backed” crypto assets, which “are 100% backed by physical gold or exchange-traded funds”. GoldMint’s physical reserves consist of gold from pawn shops around the world.

Many digital and crypto platforms claim to make the gold ownership process simple. What is simple about backing a currency with pawned gold? How many counterparties and owners are involved there? And why would you pay for one gramme when you only get 75% of it?

The jury might still be out on cryptocurrencies generally. For now, it makes sense to have a similar skepticism regarding the many new gold crytos.

Cybersecurity risk

No matter what you hear nothing is unhackable. Anything that has a presence online or is connected to a network is open to malicious cyber behaviour. All company’s, including digital gold providers, websites, servers and other technologies are vulnerable.

There is a great myth about cryptocurrencies that they are more secure than other offerings. In many ways they are but, conversely, there are many ways that they aren’t.

Internet shutdowns and cybersecurity attacks compromise our democratic freedoms. Malicious online activity is now about more than getting ahold of your credit card details or just showing off. It is about demonstrating power from one sovereign state to another.

As we recently explained in the light of the internet shutdown news, digital assets in general and digital gold is too reliant on online access to be able to offer you the security gold should offer:

When our democratic freedoms are threatened it means our financial ones are also at risk. Many savers and investors consider these threats and choose to diversify their portfolios. They spread the risk and hedge their bets against such events.

This is a sensible first step, however it can be rendered pointless if your management of your assets is reliant on internet access. Gold has been bought by millions all over the world because of its role in protecting investors during times of war, financial hardship and economic disasters. It is only recently that the idea of cyber warfare and the misuse of this power by governments has become a point of consideration.

Gold is as relevant here as it always has been. But it is specifically allocated, segregated physical gold which must be considered.

Owning gold coins and bars either in one’s possession or in allocated and segregated storage will protect people and will be accessible and liquid should an internet shutdown be triggered in your country tomorrow.



Will digital gold serve you as well the real thing?

It was with some interest that we witnessed a flight to physical gold as digital gold bitcoin and its contemporaries fell from their meteoric 2017 rises at the start of 2018.

They have begun to climb once again this week but it has made many aware that gains in these currencies must be secured by something with real value. Many investors agree that the massive price appreciations in cryptocurrencies are unsustainable and they must secure gains. They do this by investing in gold and silver, as we saw with many new clients towards the end of last year and last month.

Those we have spoken to and have assisted are selling a very overvalued asset and putting it into a still undervalued asset. Gold prices remain quite depressed, especially from where they were compared to six or seven years ago, and sentiment is still quite poor.

If you want to benefit from owning gold then own gold. Don’t faff around with something that is purportedly on a blockchain or backed by a pawn shop, a bank or (worse) a central bank.

Ultimately it comes down to investing in and legally owning actual gold coins and bars. Bullion that will serve your wealth in the same way it has served millions of people in years gone by – as an asset that is a form of financial insurance, that cannot be devalued by central banks and will not be confiscated whether through bail-ins or more forceful means.

If using gold, blockchain and bitcoin together means that investors’ portfolios can meet the above criteria then we are on the dawn of something very exciting, but we don’t believe that we are quite there yet. We are in an arguably dangerous period in the adoption bell-curve where learning and education are giving way to misinformation and misunderstanding.

Related reading

Digital Gold On The Blockchain – For Now Caveat Emptor

Internet Shutdowns Show Risk of Digital Gold Platforms

‘Digital Gold’ Bitcoin Flight To Safe Haven Physical Gold

News and Commentary

Gold recoups half of last week’s loss as dollar softens (MarketWatch.com)

Equity Rally Builds From Sydney to Hong Kong (Bloomberg.comr)

Australia’s Top Gold Miner Boosts Bets on Ecuador’s Riches (Bloomberg.com)

Markets fret over Federal Reserve’s approach under new chair Powell (Reuters.com)

Treasury secretary urges markets to shrug off worries over tax cuts, debt (Bloomberg.com)


Source: CNBC

Three Charts That Show Gold Is Going To $1,400 (CNBC.com)

ECB accuses Trump of ‘currency war’ as surging euro exposes Europe’s fragility (Telegraph.co.uk)

Lessons From the Oracle: Warren Buffett’s Shareholder Letter, Annotated (Bloomberg.com)

With rates extremely low, Fed officials fret over next recession (Reuters.com)

Here’s what rising U.S. interest rates mean for the global economy (StansBerryChurcHouse.com)

Exchange For Physical (EFP) Remain Very High – 6,600 Ton Per 30 Day Month (HarveyOrganBlog.com)

Silver; Mother of All Bullish “Cup & Handle” Patterns? (ZeroHedge.com)

Gold Prices (LBMA AM)

26 Feb: USD 1,339.05, GBP 953.00 & EUR 1,085.30 per ounce
23 Feb: USD 1,328.90, GBP 951.09 & EUR 1,079.20 per ounce
22 Feb: USD 1,323.50, GBP 952.66 & EUR 1,076.40 per ounce
21 Feb: USD 1,328.60, GBP 952.87 & EUR 1,078.16 per ounce
20 Feb: USD 1,337.40, GBP 955.97 & EUR 1,083.83 per ounce
19 Feb: USD 1,347.40, GBP 961.10 & EUR 1,085.47 per ounce
16 Feb: USD 1,358.60, GBP 964.61 & EUR 1,086.47 per ounce

Silver Prices (LBMA)

26 Feb: USD 16.67, GBP 11.88 & EUR 13.52 per ounce
23 Feb: USD 16.61, GBP 11.88 & EUR 13.50 per ounce
22 Feb: USD 16.47, GBP 11.86 & EUR 13.40 per ounce
21 Feb: USD 16.44, GBP 11.80 & EUR 13.35 per ounce
20 Feb: USD 16.57, GBP 11.85 & EUR 13.42 per ounce
19 Feb: USD 16.72, GBP 11.92 & EUR 13.46 per ounce
16 Feb: USD 16.84, GBP 11.97 & EUR 13.49 per ounce

https://news.goldcore.com/

http://news.goldseek.com/GoldSeek/1519652831.php
 

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Russia Now Has More Gold than China
Silver Fortune


Published on Feb 26, 2018
Russia continues on it's path away from the dollar, as it passes up China in total gold reserves.
 

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CoinWeek: Gold Shipwreck Treasure Worth Millions of Dollars on Display - 4K Video
coinweek


Published on Feb 26, 2018
CoinWeek travelled to Long Beach, California, to film the return of the famous "Ship of Gold".

The second exploration of the SS Central America, has made national news, as recovery efforts resulted in the collection of $40 million in gold bars and coins from the bottom of the Atlantic Ocean, where the famous steamship sank more than 150 years ago.

Many of these gold objects were on display at the Long Beach Expo for the first time ever, giving the public a chance to see what treasure awaits as these items are expected to go on sale later this year.

CoinWeek takes you there, showing you important historic coins, many of which look exactly as they did having just been pulled out of the water. Others, have been carefully and professionally restored to their original condition and now reside in custom-made PCGS coin holders.

Also shown, canvas bags called "pokes" that are filled with gold dust and a selection of important gold bars and ingots.

Project Chief Scientist Bob Evans talks to Charles Morgan about his experience working on this historic recovery effort.
 

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'Gold Corridor' From Dubai to China Sought By China

by GoldCore
Tue, 02/27/2018 - 07:39


Gold corridor from Dubai to China sought by Chinese Gold & Silver Exchange Society

- New Asian gold trading corridor could boost demand for 1 kg gold bars
- Should increase turnover for yuan-denominated gold coins and bars - President
- Secure supplies of physical gold from Middle East and Asia for China
- China positioning itself as leading gold trading and owning nation


by Karen Yeung in the SCMP

The Chinese Gold & Silver Exchange Society (CGSE), Hong Kong’s gold exchange, is in talks with Singapore, Myanmar and Dubai to establish a gold commodity corridor to promote yuan-denominated products under China’s Belt and Road Initiative, according to its president Haywood Cheung Tak-hay.


Joseph Chan Ho-lim, Undersecretary for Financial Services and the Treasury and Haywood Cheung Tak-hay, President of the Chinese Gold & Silver Exchange Society. Photo: Nora Tam

The gold commodity corridor could be formed by establishing an integrated infrastructure network by using Hong Kong as a base, and connect the proposed bonded warehouse in Qianhai with commercial users and precious metals traders in countries along the Belt and Road, Cheung said on Tuesday at an event to mark the exchange’s first day of trading in the Year of the Dog.

“The successful linkages of such a gold corridor could probably boost demand from users and investors for kilobar gold (1 kg),” Cheung said. “This may also increase the turnover of yuan-denominated products by two or three times.”

Cambodia was also likely to be involved in the discussions in the future, he added.

Turnover of Hong Kong’s gold market in the second half of the just concluded Year of the Rooster averaged between HK$150 billion (US$19.2 billion) and HK$180 billion per day, while averaging about 30 billion yuan (US$4.7 billion) to 40 billion yuan for yuan-denominated products, Cheung said.

Third time lucky for Hong Kong bourse as gold futures trading gets off to a glittering start

The proposed bonded warehouse in Qianhai free-trade zone, near Shenzhen, capable of storing 1,500 tonnes of gold, is expected to provide custodial and physical settlement services, and is likely to materialise in the next two to three months after receiving the verbal green light from the customs department recently, Cheung added.



Joseph Chan Ho-lim, Under Secretary for Financial Services and the Treasury, said that developing a Belt and Road gold industrial chain, and using the Greater Bay and Qianhai models can enhance Hong Kong’s status as an Asian and international hub for gold transactions.

“Although our economy is in an upward cycle, we need to solidify our advantages and open up new development areas,” Chan said.

CGSE offers Loco London gold based on the London Bullion Market Association, which is denominated in US dollars and typically around 400 ounces. But yuan-denominated kilobars, 1 kilogram gold bars, have gradually emerged in Shanghai, Qianhai and Hong Kong. So Cheung hopes a unified standard for gold kilobars can be created.

It was reported early this year that the World Gold Council was studying the possibility of creating a global standard for gold kilobars that can be deployed as collateral in futures markets and potentially encourage demand.

Hong Kong expands cross-border gold market with China, with 900 kilos of gold traded in Shenzhen

Gold, which typically is considered as a “safe haven" and has an inverse relationship with risker assets such as stocks, is likely to see increased in the second and third quarter of this year, said Cheung.

“I expect in the second half, the stock market may correct from highs on profit taking, and during that stock market volatility, gold is likely to pick up.”

He predicted that gold may rise towards the US$1,500 an ounce level if a support above US$1,300 can be formed.

Related Content

World’s Largest Gold Producer China Sees Production Fall 10%

China Sets Up Gold Investment Fund For Central Banks

Gold At $64,000 – Bloomberg’s ‘China Gold Price’

China To Quadruple Gold Reserves as IMF Seek Answers



News and Commentary

Gold remains bid above key technical levels ahead of Powell testimony (FXStreet.com)

Gold prices rise for second session on softer dollar (Reuters.com)

Chicago Fed index points to stalled U.S. economic growth in January (MarketWatch.com)

U.S. new home sales drop to five-month low in January (Reuters.com)

Interest rate rise of 1% would cost average UK homeowner £930 a year (TheGuardian.com)

Snow in London: Government issues health warning as temperatures plummet (CityAM.com)


Source: Statista

Gold Nearing What Could Be An Ultra-Bullish Key Level (CNBC.com)

State of Inflationary Confusion - Mauldin (MauldinEconomics.com)

Where Corruption Is Raging Around The World (Statista.com)

Russia overtakes China in gold reserves race to end US dollar dominance (RT.com)

Warren Buffett isn’t buying. Why should anyone else? (SovereignMan.com)

Italian Elections: Brace for a bumpy ride in European stocks (CityAM.com)

Gold Prices (LBMA AM)

27 Feb: USD 1,332.75, GBP 954.78 & EUR 1,081.26 per ounce
26 Feb: USD 1,339.05, GBP 953.00 & EUR 1,085.30 per ounce
23 Feb: USD 1,328.90, GBP 951.09 & EUR 1,079.20 per ounce
22 Feb: USD 1,323.50, GBP 952.66 & EUR 1,076.40 per ounce
21 Feb: USD 1,328.60, GBP 952.87 & EUR 1,078.16 per ounce
20 Feb: USD 1,337.40, GBP 955.97 & EUR 1,083.83 per ounce

Silver Prices (LBMA)

27 Feb: USD 16.61, GBP 11.91 & EUR 13.48 per ounce
26 Feb: USD 16.67, GBP 11.88 & EUR 13.52 per ounce
23 Feb: USD 16.61, GBP 11.88 & EUR 13.50 per ounce
22 Feb: USD 16.47, GBP 11.86 & EUR 13.40 per ounce
21 Feb: USD 16.44, GBP 11.80 & EUR 13.35 per ounce
20 Feb: USD 16.57, GBP 11.85 & EUR 13.42 per ounce


Recent Market Updates

- Digital Gold Provide the Benefits Of Physical Gold?
- Weekly Briefing: Currency Wars – ECB Warns Re Trump, Russia and Turkey Buy Gold and BOE Bitcoin Warning
- Russian Central Bank Buys Gold – 600,000 Ounces Or 18.7 Tons In January As Venezuela Launches ‘Petro Gold’
- Bitcoin or British Pound ‘Pretty Much Failed’ As Currency?
- Bank Bail-In Risk In European Countries Seen In 5 Key Charts
- US-China Trade War Escalates As Further Measures Are Taken
- Gold Up 3.8% In Week – If Closes Above $1,360/oz Will Be Biggest Weekly Gain In Nearly 2 Years
- Is The Gold Price Heading Higher? IG TV Interview GoldCore
- Global Debt Crisis II Cometh
- Sovereign Wealth Funds Investing In Gold For “Long Term Returns” – PwC
- Bitcoin and Crypto Prices Being Manipulated Like Precious Metals?
- “This Is Where They Completely Lost Their Minds” – Hussman
- Brexit Risks Increase – London Property Market and Pound Vulnerable


https://www.zerohedge.com/news/2018-02-27/gold-corridor-dubai-china-sought-china
 

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Is Gold Really A Hedge Against Inflation?
SalivateMetal


Published on Mar 1, 2018
 

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Mr. President, If We Don’t Have Gold, We Don’t Have a Country


-- Published: Wednesday, 7 March 2018

By Stewart Dougherty

“Passivity is fatal to us. Our goal is to make the enemy passive. … Communism is not love. Communism is a hammer which we use to crush the enemy.” Mao Tse-tung, proclaiming the founding of the People’s Republic of China, 1949

Circumstantial evidence is mounting high that there is something seriously wrong with the amount of gold reportedly owned by the United States government, or more precisely, the American people.

After nearly two generations of being brainwashed into believing that gold is a meaningless relic, western citizens have lost all concept of gold’s crucial monetary importance. If it turns out that the United States does not, in fact, possess and own the gold it claims to, the monetary, fiscal, economic, and humanitarian fallout will be unprecedented in its destructiveness. Unfortunately, the people have no idea what is at stake.

The largest corporation in the world, by far, is the United States government. No other corporation has anything even close to its $3.4 trillion in annual revenues, and $4.4 trillion in annual expenses. And no other corporation has ever suffered multiple annual losses exceeding $1 trillion dollars, nor could it have, as such losses would have financially annihilated it. To be able to print money at will and without limit, as USG, Inc. can do, has blinded it to the powerful beast called Consequences that is slowly and methodically hunting it down.

USG, Inc. employs thousands of accountants, many of whom work at the Congressional Budget Office. The CBO prepares detailed budgets, one of which looks forward thirty years, and then extrapolates the numerical trends for an additional forty-five years, for a total forward horizon of 75 years. The 2015 report examines USG, Inc.’s projected performance until the year 2090. According to that report, not only will USG, Inc. lose money every single year for the next 75 years, the losses will actually accelerate each year and total more than $300 trillion. In 2047 alone, the deficit is estimated to be $5.3 trillion, on a cash accounting basis. On an accrual accounting basis, it will be far worse, if USG, Inc. even makes it to that point in its current state, something we find it difficult to envision. It is arithmetically impossible for the dollar to avoid destruction in such a scenario.

It should be no surprise that USG, Inc.’s finances are such a disaster, because for the past generation and longer, the CEOs of USG, Inc. have never in their lives held real jobs in the productive economy, other than GW Bush’s brief stints as a member of an oil and then a baseball investor group, which is not the kind of real job we mean. Instead, these CEOs have all been professional politicians, who by definition do not contribute to the real economy, but rather, feed upon it.

This pattern was about to repeat itself in 2016, with the Deep State’s planned installation of Hillary Clinton into the CEO role at USG, Inc. Clinton, too, has never in her life had a real job in the productive economy, and has precisely zero experience managing anything even beginning to resemble a massive corporation with millions of employees and projected $1+ trillion, accelerating annual losses extending as far as eyes can see. This is exactly what the Deep State wanted: a corrupt, financially clueless, ideological figurehead, who would be oblivious as they ramped up the looting of USG, Inc. to a new level of rapaciousness while she was busy hectoring the nation’s producers and taxpayers about their deplorable selves. It is this looting that is the precise reason why USG, Inc. is now drowning in losses and debt, and is strategically paralyzed.

While anyone with any common sense would immediately understand that it would be ridiculous to expect that someone with zero education, training or experience in engineering could oversee the design of a spacecraft capable of landing on Mars, or that someone with zero medical education, training or experience could successfully conduct brain surgery, for some unfathomable reason, people think that someone with zero business education, training or experience can successfully manage the world’s largest corporation. USG, Inc.’s catastrophic financial results demonstrate the regrettable stupidity of that thought.

We previously termed the current United States operating system as one of “crony communism,” whereby the cronies have free rein to steal the nation’s current and retained earnings (the private wealth), while the people are progressively immiserated in communistic helplessness and squalor. The election of HRC would have finalized the crony communist revolution that Obama unleashed with all his might.

During the campaign, Trump claimed that the 2016 election provided the American people their “last chance” to turn the nation around. The key word was “chance;” he offered no guarantees, because he knew that the situation hung on a thread. In an upset, Trump won, and for the first time in decades, an actual businessman is now the CEO of the world’s largest corporation. Imagine that. Unfortunately, he inherited a situation so fractured and poisoned fiscally, monetarily, politically and societally that his turnaround task is virtually impossible, no matter how genuine his efforts might be.

Whether or not one agrees with Trump’s policies or style, he is now talking to the American people and the world about business topics that previous, politician USG, Inc. CEOs totally avoided, given their desire and incentive to preserve the status quo: the astronomical trade deficit; the need to bring back offshored jobs; the critical importance of reviving manufacturing; the staggering national debt; NATO’s getting a free defense ride at U.S. taxpayers’ expense; the need to slash strangulating regulations; skewed, unfair trade deals; the urgent need for GDP growth; the untenable condition of the nation’s infrastructure; the need to get massive illegal immigration, which comes at an exorbitant cost to taxpayers, under control; and all the rest.

Beyond those issues, Trump’s most important job responsibility is to restore the American spirit. Under Obama’s crony communist revolution, euphemized as his so-called “fundamental transformation of America,” a fraud he dared not call by its true name given that it was such an overt and pernicious attack on everything the vast majority of the people of this nation stand for, believe in and want, the citizens started to do, in droves, what they always do when subjected to totalitarian control: check out and shut down.

GDP and retail sales stagnated, and the economy progressively ground down. Stores closed and business owners gave up. And by the millions, the people retreated into the dead-end dependency of welfare, Food Stamps and Medicaid, while homelessness, tent city and under-bridge community numbers skyrocketed. Not coincidentally, opioid addiction, the ultimate surrender to despair and suicide, became a national epidemic. Which is exactly what the crony communist profiteers wanted: an increasingly helpless, hopeless, addicted and compliant populace that could be controlled by the actual “crumbs,” Ms. Pelosi, of subsistence government pigeon feed scattered upon the ground for the citizens to peck at.

As the Dutch thinker, Ronald Bernard, so incisively realized: “All the misery in the world is a business plan.”

Trump has said that his proposed tariffs on steel and aluminum are more than a matter of financials; they are also a matter of national security, because “if you don’t have steel, you don’t have a country.” This is thematically identical to the statement he has repeatedly made about illegal immigration: “If you don’t have borders, you don’t have a country.” This notion of “country” is vital, and particularly so when it comes to a nation’s monetary reserves. To steel and borders, we would add that, “if don’t have gold, you don’t have country.”

Mr. Trump is knowledgeable about gold. In fact, on January 29, 2016, he sealed a deal with Apmex, one of the nation’s largest gold dealers, for a 10 year lease of the 50th floor of “The Trump Building” located at 40 Wall Street in New York City. Significantly, at the signing ceremony, Apmex CEO Michael Haynes paid Mr. Trump the $200,000 lease deposit in gold bars.

In a statement, Mr. Trump said: “It’s a sad day when a large property owner starts accepting gold instead of the dollar. The economy is bad, and Obama’s not protecting the dollar at all. … If I do this, other people are going to start doing it, and maybe we’ll see some changes.”

Later, Trump’s press office amplified his statement by saying that “Mr. Trump has been bullish on gold due to his concerns about the value of the dollar.”

These statements demonstrate that Mr. Trump has more than a casual understanding of gold.

It is well-known that China, Russia and Turkey, among many other smaller nations, are steadily, and in the case of China, massively adding to their gold reserves. In fact, the governments of China and Turkey publicly encourage their citizens to buy gold, while Russia leads by example with its steady and well-publicized sovereign purchases. Gold is important to these nations for reasons that are well thought-out, forward-thinking and strategic.

On August 21, 2017, Treasury Secretary Mnuchin breezed into Kentucky for a visit. That morning, he spoke to members of the Louisville Chamber of Commerce, and announced, with no advance warning to the press, that after his speech, he was headed to the Fort Knox Gold Bullion Depository to check things out. Laughingly, he said to the audience, “I assume the gold is still there. It would be quite a movie if we walked in and there was no gold.”

After a short visit and cursory inspection, during which only one of the numerous Fort Knox lockers said to hold the American people’s gold was opened and eyeballed, and a few bars were handled,” Mnuchin concluded his visit and then tweeted to America and the world, “Glad gold is safe.” The insouciance of his tweet was stunning. [IRD Note: the gold remaining in Ft. Knox is largely for ceremonial display; most of the gold has been moved to what is dubiously called “deep storage” at West Point. It’s never been independently confirmed that gold actually exists or, if it does, to what extent the Fed has leased or hypothecated the gold to be used in support of the use of futures and LMBA forwards by Fed-member banks to help suppress the market clearing price of gold].

The supposed U.S. gold hoard was last audited in 1953, sixty-five years ago. The nation’s debt at that time was $266 billion, inflation adjusted. Today, it is nearly $21 trillion, or seventy-nine times greater. In 1953, the nation owned 20,000 tonnes of gold, an amount that plunged to 8,133 tonnes by 1974 [at least according to the numbers reported by the Fed]. From 1974 until now, the hoard has supposedly remained unchanged at 8,133 tonnes, despite the fact that the country’s fiscal situation has disintegrated with, in addition to the rapidly approaching $21 trillion in debt, more than $180 trillion in federal unfunded contingent liabilities; additional trillions in unfunded corporate and municipal, county and state government pensions; and annual trillion dollar plus deficits on a hockey stick trajectory projected for the next 75 years.

And yet, we are asked to believe that despite the fact that 11,867 tonnes of gold were sold and shipped between 1953 and 1974, generally strong economic years for the United States, not one ounce has been sold in the 44 year period from 1974 until now. Not one ounce has been used, for example, to guarantee China, Japan and other sovereign nations’ multi-trillion dollar investments in U.S. Treasury securities; not one ounce has been used to even fractionally settle the nation’s massive, persistent, multi-trillion dollar trade deficit that now measures $800+ billion per year; not one ounce has been used to sway foreign politicians who consistently and curiously pursue an American-dictated agenda at odds with their own national interests; and that not one ounce has been required to facilitate the largest national bailout in history, in the wake of the Great Financial Crisis. In fact, not one ounce has been needed for anything, despite the fact that USG, Inc.’s financial fortunes have collapsed since 1974. While we suppose that anything is possible, this does not appear plausible.

Mr. Trump was rightfully excited when Apple Computer announced a multi-year $350 billion investment in its U.S. facilities and operations. He has been similarly pleased by far smaller U.S. investment commitments made by other corporations. To him, every investment in America is important, no matter how big or small, and rightly so, as each has the potential to create jobs and needed tax revenues.

USG, Inc. is said to own 261.5 million ounces (8,133 tonnes) of gold. Mr. Trump could increase the price of gold by at least $1,000.00 per ounce in 10 seconds if he simply announced that USG, Inc. believes in gold, and that, similarly to Russia, China, Turkey and numerous other nations, plans to buy it on a regular basis. He could boost the price even more if he simultaneously announced that USG, Inc. would no longer tolerate the illegal rigging of gold’s price by the Wall Street profiteers and swindlers who have corrupted and criminalized the gold market for the past 40 years.

As the supposed largest sovereign holder of gold, by far, why on earth would USG, Inc. not support its price, when it would so obviously be in its direct financial interests to do so? If gold’s price increased by $1,000 per ounce, it would result in a $261.5 billion instantaneous windfall for USG, Inc. and the American citizen shareholders who supposedly own it. This would come at no cost whatsoever to USG, Inc. or to the shareholders, other than the trivial expense of setting up the press conference. And there would be no reason for the dollar to decline simply because USG, Inc. announced that as one of its many investment initiatives, from education to infrastructure to armaments, it was also going to put money into gold, in the expectation of making a profit from it. Just has China has been doing for the past twenty years, with great financial success.

$261.5 billion in profits, in 10 seconds, would be many times greater than what USG, Inc. will realize from Apple Computer’s multi-year $350 billion investment, only a small portion of which will actually trickle down to the U.S. Treasury in the form of tax revenues. So one would think there would be even more excitement about the opportunity in gold than in Apple’s planned spending. And we have not even included the significant capital gains tax revenue that would pour into USG, Inc. as a cohort of current gold investors traded their positions at a large, tax-generating profit.

USG, Inc.’s persistent silence, aside from the frivolous comments and jokes made about gold by Mr. Mnuchin in Kentucky, make no common sense. But the situation is actually deeper, and worse.

As those who study the gold market now know to be an undeniable, categorical fact, the price of gold has been illegally manipulated for decades by Wall Street profiteers who appear to operate with the full agreement and protection of USG, Inc. given that the manipulators are never prosecuted and that their criminal rigging operations continue unabated to this day.

Therefore, while foreign nations have dumped state-subsidized, underpriced steel, aluminum and other products into the United States, which we are told is terrible for our nation, Wall Street and its City of London collaborators have facilitated the dumping of tonnes of illegally manipulated, underpriced western gold into numerous countries including Russia, China and Turkey and many others. And yet western citizens are supposed to believe that the dumping of underpriced gold, including sovereign gold, which is supposed to be the people’s gold, is somehow a brilliant gambit that should be allowed to continue. In other words, the equivalent of western government cargo planes dumping gold out of their holds onto Moscow, Beijing, Ankara and other foreign capitals is presented as a smart thing for western nations to do, and of benefit to the increasingly impoverished, crony-communized citizens of the west, whose gold it is that is being dumped offshore.

Perhaps the same level of outrage that is expressed about jobs offshoring should also be expressed about gold offshoring, whose financial damage will compound over time and end up costing the nation more than the lost jobs.

It is virtually impossible to fathom the idiocy of this ongoing process of foreign gold dumping. On one hand, certain foreign nations promote their strategically important industries, such as steel and aluminum, by selling their products to the United States at low prices. On the other hand, the United States and its western counterparts facilitate the sale of their sole monetary bedrock, gold, to arch foreign competitors, for a fraction of the gold’s true price given that it is illegally manipulated by the western financial elite for their own private profit. Even if a country, say China for example, loses some money selling low-priced steel to the United States, by using the revenue they generate from such sales to buy western gold at a fraction of its true price is a no-brainer deal the artistry of which even Trump would have to admire. While they might lose a few pennies per pound on the steel, they stand to earn thousands of dollars per ounce on the gold.

If USG, Inc. actually owned and possessed 261.5 million ounces of gold, why would it allow Wall Street profiteers to wantonly crush its price, and directly facilitate its outflow to and enrichment of foreign countries with which it competes, and by which it is systematically being destroyed in trade wars it has been losing for decades?

We can understand Clinton, Bush and Obama not knowing the first thing about the strategic national importance of gold, and being clueless about how Wall Street has manipulated the gold market for nearly 40 years, at a profit to themselves that we have estimated exceeds $1+ trillion dollars to date. As mentioned previously, none of those persons has ever had a real job in the productive economy, or understands the first thing about competitive business tactics, capital markets, or national financial strategy. But Trump is a businessman and, as we have shown, is knowledgeable about gold. Yet while he has focused on far smaller opportunities than the enormous USG, Inc. balance sheet windfall he could engineer by simply talking up the price of gold, he does the exact opposite: he allows its price trashing and foreign dumping to continue.

We can reach only one possible, logical explanation for this stance: USG, Inc. stays silent about gold, because its gold is gone, either in large part, or altogether. And even if a portion of it is still housed at Fort Knox, West Point and Denver, it is pledged to and owned by others. Therefore, if USG, Inc. were to talk up the price of gold, the financial benefits would accrue not to USG, Inc., but to its national competitors such as China, Russia, Turkey and the other governments that have strategically purchased gold in large quantities at the bargain basement prices extended to them by the private Wall Street and London City manipulators and profiteers.

USG, Inc. will lose more than $1 trillion this fiscal year. To fully offset that loss, the price of USG, Inc.’s reported gold reserve would have to rise by $3,842.00 per ounce. Keep in mind, this price increase would be required to offset just one year of USG, Inc.’s deficit (aka, loss), namely that of Fiscal Year 2018. This price increase would do absolutely nothing to neutralize or ameliorate the roughly $20 trillion of pre-Fiscal Year 2018 debt, or the upcoming 75 years’ worth of $1+ trillion, steadily increasing annual deficits. The price of gold would have to increase by $4,000 and progressively more each and every year from now on just to offset USG, Inc.’s upcoming annual losses, which are currently projected to extend into perpetuity.

The consequences of Gold Truth, such as it is but has not yet been revealed, are beyond sobering. If the Gold Truth is that USG, Inc. does not possess and own the gold it has promised the world it does, every last shred of monetary, fiscal, financial, economic and moral authority that USG, Inc. still possesses would be destroyed in a matter of seconds. And it is impossible to see how the U.S. dollar could survive such a revelation without plummeting. A sudden, sharp dollar revaluation would wreak havoc on the global monetary system, financial markets, and economy, and let us all hope it never happens, even though the epic mismanagement of USG, Inc. indicates that it could happen.

The consequences of fiat currency destruction are currently on disturbing and heart-wrenching display in Venezuela. Many westerners look down their noses at Venezuela, as if it is some kind of freak, outlier nation whose suffering people are on a different planet from ours. But those people are not; they are here on earth, just like the rest of us. And if we are correct about our concerns that the actual gold balances at USG, Inc. are not what is being reported, the Venezuelization of the United States would become a likely, if not a guaranteed outcome.

President Trump is doing his best to be the agent of change so desperately needed in the United States. [IRD Note: whether or not you agree with the way Trump is going about effecting change is another matter]. At the same time, Truth is doing its best, as it always does, to be the same: an agent of revelation and change. History conclusively proves that Truth always wins in the end. When people are ahead of a dangerous truth, they can work with and even tame it by honoring and respecting its righteousness and force. But when a dangerous truth is ahead of the people, and expresses itself on its terms and schedule, it almost always cloaks itself in fury, and metes out destruction to those who have stood in its way and dishonored it.

We believe that it is vital for President Trump to now get ahead of and tell the people the truth about USG, Inc.’s gold situation, while there is still time to do so constructively. If the gold is gone, then as a national priority, USG, Inc. must figure out how to buy it back, at least to some degree. A monetary world in which China, Russia, Turkey and other nations own gold, but the west does not would yield invincible monetary and financial superiority to the west’s competitors. If the gold is there, then USG, Inc. should revel in and leverage the enormous fortune and financial opportunity it represents.

http://investmentresearchdynamics.com/mr-president-if-we-dont-have-gold-we-dont-have-a-country/

Stewart Dougherty is the creator of Inferential Analytics, a forecasting method that applies to events proprietary, time-tested principles of human instinct, desire and action. In his view, forecasting methods not fundamentally based upon principles of human action are unlikely to be reliable over time. He is a graduate of Tufts University (BA) and Harvard Business School (MBA). He developed expertise in strategic analysis and planning during a 35+ year business career, has traveled to and conducted research in over 25 countries and has refined Inferential Analytics into a reliable predictive instrument over a period of 17+ years.

http://news.goldseek.com/GoldSeek/1520428800.php
 

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Gold's Lackluster Performance Anticipates Price Drop
SalivateMetal


Published on Mar 12, 2018
 

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HISTORY OF GOLD & MINING FROM MARIE LOUIS XVI TO COMSTOCK LODE 1930s FILM 54874
PeriscopeFilm


Published on Mar 13, 2018
This black and white educational film about gold was produced by Academic Film Company Inc. and adapted from a John Hix “Strange As It Seems” that was originally segment shown in theatres. It was narrated by Robert Sherwood. The film begins with a re-enactment of Louis XVI’s financial woes. Marie Antoinette and Cardinal de Roahn visit an alchemist to make gold to save France but it is a scam (:37-3:30). December 3, 1848, a soldier arrives at a telegraph office in New Orleans with a message to send from Governor Mason to the President. He drops a handful of gold on the desk, proof that California should be admitted to the Union, and the gold rush in on (3:32-4:42). Coloma Valley is shown, where gold was first discovered by James Marshall on January 24, 1848 (4:44-5:03). Mark Twain lived in a cabin at Jackass Hill in the gold town Angel’s Camp (5:04-5:15). Virginia City is shown as a crumbling ghost town (5:17-5:33). The Comstock Lode in Nevada in 1859 yielded both gold and silver ore (5:34-5:49). One mine required a tram line to be built to haul the gold out and supplies back in using buckets as the mountains were too steep for train tracks (5:50-6:32). The Empire Mine in Grass Valley was one of the deepest gold mines in the world. Miners cling to the ore cars as they are lowered into the shaft. The ore is dumped into electric railroad cars and transported to a facility to be treated and the gold recovered (6:33-7:00). There are thousands of feet of railroad also below the surface (7:01-7:13). Another mining method is to use giant dredges to plow their way through the gravel (7:14-7:39). Hydraulic mining is also used by forcing water through large nozzles sprayed on the gravel walls. The runoff is caught by sluice boxes, where the gold sinks to the bottom. It is then passed over plates saturated with mercury to which the gold adheres, forming gold amalgam, which is shown being treated in a furnace (7:40-8:25). This bullion is formed into gold ingots, shown up close (8:26-8:44). Men pan for gold in a stream (8:45-9:05).

We encourage viewers to add comments and, especially, to provide additional information about our videos by adding a comment! See something interesting? Tell people what it is and what they can see by writing something for example: "01:00:12:00 -- President Roosevelt is seen meeting with Winston Churchill at the Quebec Conference."

This film is part of the Periscope Film LLC archive, one of the largest historic military, transportation, and aviation stock footage collections in the USA. Entirely film backed, this material is available for licensing in 24p HD, 2k and 4k. For more information visit http://www.PeriscopeFilm.com
 

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Gold Cup At Cheltenham – Gold Is For Winners, Not For the Gamblers



-- Published: Wednesday, 14 March 2018

– Gold Cup at Cheltenham – ‘The Olympics’ of the European horse racing calendar

– Gold Cup trophy contains 10 troy ounces of gold – worth £9,000

£620 million bets on horses, 230,000 pints of Guinness will be drunk, 9.2 tonnes of potato eaten

– Since the 5th century BC, gold has been the ultimate prize to award champions and gold has been constantly and universally awarded as top prize

– Gold, like the summit of human achievement, is very rare and hence precious

– Gold is a great prize and a good bet but works best as store of value and better to take a ‘punt’ on gold than gamble on the horses



Cheltenham Gold Cup – Wikipedia

The Cheltenham Gold Cup race takes place this Friday, March 16 at 3.30pm. The Gold Cup is the finale of the Cheltenham Festival, the Olympics of horse jump racing, which runs from yesterday to this Friday.

This week 65,000 people have been gathering in Cheltenham for the 28 races which will be raced over the four day gathering with over £4,600,000 of prize money will be handed out this week at Cheltenham Festival.

The Gold Cup is the most prestigious of the most prestigious of all National Hunt events and it is sometimes referred to as the Blue Riband of horse jump-racing. The race takes place over 3 miles 2½ furlongs (5,331 m) and includes 22 fences to be jumped.

The prize for winning the Gold Cup is £600,000. and the beautiful Gold Cup trophy made with 10 ounes of gold.

The prize for those who turn up to watch the world famous event? The chance to experience the excitement and fun of race day and likely lose a few bob – with a massive £600 million staked on the outcome of the races. As we know the bookie nearly always win.

10 ounces of gold and over half-a-billion British pounds of cash surrounding one event. What does this say about the state of our economy today and how we award our sporting heroes?



Wikimedia

The Greatest Show on Turf

It is nearly 200 years since the most exciting race in the UK calendar was first run in 1819. 230,000 people are expected to attend this year, with 10,000 of them expected to make the special trip from Ireland in order to celebrate their jockey riders, amazing horses and indeed St. Patrick’s Day week – Saturday being March 17th.

And what comes hand in had with horse racing? The big spending, gambling and lots of drinking.

Over 230,000 pints of Guinness will be drunk, 9 tonnes of potato eaten and 3 tonnes of smoked salmon enjoyed. Cash machines will be working hard to keep up with everyone’s spending as they churn out £2.2 million of notes and assist punters to place over £1 million of bets per race.

And what are they all there for? They’re there for the run up to or the main event itself that is the Cheltenham Gold Cup, a near 200 year old race that is the darling of the racing calendar.

What makes it so exciting is that it is the only major race that is not run on the flat. Whilst the predecessor to the Gold Cup race was first run flat in the 19th century it wasn’t until 1924 that there was the “introduction of a level weights extended three mile steeplechase, called The Cheltenham Gold Cup”.

The Gold Cup is a chance to see the best in horse racing. It is so prestigious that it is rarely cancelled, and is considered to be the most important of steeplechase races. For race-goers the event is a chance to win big, ever hoping that the bookies get it as wrong and misplace their odds.

For the riders, trainers and owners the race is not only about the honour that comes with winning but also about getting their hands on the prize money and the prestigious Cheltenham Gold Cup trophy.

I’ve got a golden ticket cup

On Friday, 30 horses and jockeys will run the race of their lives in the hope of bringing home 10 ounces of gold, neatly melted into the form of a small trophy.

As with the Olympic medals and the Oscars, a new gold cup is made each year for the owners. But a gold cup hasn’t always been the reward for this infamous race.

The owner of the first winner, Spectre, received 100 guineas. At the time, the coins would have contained a quarter ounce of gold akin to British gold sovereigns, so 25 ounces of gold in total.

The gold price in 1819 was $19.39, so this prize in gold terms would have been worth $484.75. That same amount of gold today is worth $30,750. Not bad for a prize that was received nearly 200 years ago.

There is less gold in today’s prize cup than there was in that stash of guineas nearly 200 years ago, but 10 ounces is nothing to be sniffed at. With less than 50% of the gold that was on offer when the race was first run in 1819, this year’s cup is worth £9,950.

Is this why we reward the best of the best with gold?

Because it will serve to reward them in decades to come? Really, no one will care about a piece of paper that says they won but a gold coins, a gold bar or indeed a beautiful gold cup will be valued and stand the test of time.

Gold gives value to our winners

Whether it’s spending on your ‘gold card’, or competing for a gold medal, receiving a Nobel Prize or even travelling Gold Class, the yellow metal is still believed to be the best.

We can go back to the early days of gold’s discovery that we regarded gold as the ultimate way to recognise our champions. In his play Plutus, even the comic playwright Aristophanes wrote in 408BC of how Olympians should be awarded with gold.



Olympic first place medal from the Athens Games of 1896 (obverse), from the collection of the Olympic Museum (IOC via Wikimedia)

“Why, Zeus is poor, and I will clearly prove it to you. In the Olympic games, which he founded, and to which he convokes the whole of Greece every four years, why does he only crown the victorious athletes with wild olive? If he were rich he would give them gold.”

Whilst the Greek playwright was joking, his point was a valid one and one that still strikes a chord today. We crown the most talented amongst us with gold. Even when the headlines have died down, even when no-one can remember who won a famous race four years ago, the winner is still left with a timeless piece of gold that will always have a value.

This is more important than ever in a world that places far greater value on material stuff – many frequently superficial and disposable things – that really do not deserve it.

A prize is no better than jewellery or fancy coin

Whilst the cup might contain a whopping ten ounces of gold (more than an Olympic gold medal or Academy Award), this doesn’t mean the price of the metal is reflected in the perceived value of the prize.

In 2010, the 1988 Cheltenham Gold Cup owners had their prize stolen from them . At the time of winning (assuming the make-up of the Cup is the same as it is today) the cup’s gold content was worth £2,446. Today, that same cup is worth £9,950. To the winners, however they could not be objective about its real value. To them, it was understandably worth a lot more.

When it was stolen, the owners offered £15,000 for its return. At the time, the Cup’s owner told the BBC, ‘”What’s the point in melting it down? To me it’s worth a fortune. It’s the sentimental value, not the monetary value that’s at play here.”

This is where prizes are similar to collectible coins or jewellery, the price beyond the underlying metal content is purely subjective. Whilst you might buy a commemorative coin for a few thousand dollars, the market may well disagree with you in a few years’ time and deem it only to be worth the few grams of gold that it really is.

The same can be said for jewellery which receives a huge markup when it arrives on the market and also attracts VAT and sales tax – unlike tax free gold coins and bars and VAT free silver coins.

Whilst one might argue that the Cheltenham Gold Cup is worth more than its weight in gold, this is only the case for the winners and the small market that is interested in horse racing memorabilia.

The beauty about owning 10 ounces of pure gold bullion is that you know it will only ever be priced according to the value of the precious metal content and that the market is highly liquid. You will not go from one buyer to the next wondering if you are getting a fair price, or if you will be able to sell it at all.

Gold is for winners, not for the gamblers

Of course, there is only one Cheltenham Gold Cup to be won this week, but there are plenty of opportunities for punters to win big (and lose) at the bookies. For the £600 million plus that is at stake this week, we wonder if some of those gamblers might be better to take a leaf out of the competitors’ book and ‘go for gold’ instead.

Gold is a form of insurance to protect you when this game goes wrong and the house of cards collapses as it did in 2008.

When it comes to gold, you’re doing the opposite of gambling, you’re buying insurance for the times when others make a bad bet playing with your money. You are taking some of your hard earned ‘chips off the table’ of the global financial casino.

Rather than punting on horses, punters would be better served also having a safe haven punt on gold.

Bullion – News and Commentary

Gold logs biggest 1-day gain in a week after Trump replaces Secretary of State Tillerson (MarketWatch.com)

Gold claws way back into the black after Trump sacks Tillerson (Reuters.com)

What you can learn from the 1987 stock market crash (MarketWatch.com)

Trump fires top diplomat Tillerson, taps CIA’s Pompeo (Reuters.com)

Stocks Decline as Trump Cabinet Turmoil Deepens (Bloomberg.com)



Will Inflation Burst the Everything Bubble? (GoldSeek.com)

The Real Retirement Crisis: The Elderly Are Broke (ZeroHedge.com)

So Much for That Financial Early-Warning System (Bloomberg.com)

Central Banks Are Looking for New Ways to Meet Inflation Targets (Bloomberg.com)

Gold Prices (LBMA AM)

14 Mar: USD 1,324.95, GBP 949.59 & EUR 1,071.35 per ounce
13 Mar: USD 1,318.70, GBP 948.94 & EUR 1,069.60 per ounce
12 Mar: USD 1,317.25, GBP 950.66 & EUR 1,069.87 per ounce
09 Mar: USD 1,319.35, GBP 955.21 & EUR 1,072.50 per ounce
08 Mar: USD 1,325.40, GBP 955.08 & EUR 1,070.39 per ounce
07 Mar: USD 1,332.50, GBP 960.07 & EUR 1,071.86 per ounce

Silver Prices (LBMA)

14 Mar: USD 16.61, GBP 11.88 & EUR 13.42 per ounce
13 Mar: USD 16.51, GBP 11.88 & EUR 13.38 per ounce
12 Mar: USD 16.46, GBP 11.88 & EUR 13.39 per ounce
09 Mar: USD 16.49, GBP 11.92 & EUR 13.40 per ounce
08 Mar: USD 16.48, GBP 11.89 & EUR 13.31 per ounce
07 Mar: USD 16.65, GBP 12.01 & EUR 13.42 per ounce

https://news.goldcore.com/

http://news.goldseek.com/GoldSeek/1521034024.php
 
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100 Years Of Gold Prices Proves Its Worth!
SalivateMetal


Published on Mar 17, 2018
 

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Gold LITERALLY Falls From Sky In Russia!!
SalivateMetal


Published on Mar 17, 2018
 

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RT publishes detailed report by Ronan Manly on gold price suppression

By: Chris Powell


-- Published: Monday, 19 March 2018

Dear Friend of GATA and Gold:

Gold researcher Ronan Manly, whose work is regularly posted at Bullion Star and publicized by GATA, has provided to Russia Today a detailed report on the history and mechanisms of gold price suppression by major governments and central banks.
While its details will not be new to those who follow GATA, Manly's report may be most significant for establishng again that the government of Russia, which owns RT, knows all about the gold price suppression scheme and has known at least since the deputy chairman of the Bank of Russia, Oleg Mozhaiskov, addressed the London Bullion Market Association about GATA's work during a speech in Moscow in 2004:
http://www.gata.org/node/11723

Presumably if Russia knows all about gold price suppression and is acting on it by remaining a steady buyer of the monetary metal, nations friendly to Russia also know and may be acting on it, and denials of gold price suppression by Western sources are utter disinformation.

Manly's report is headlined "Central Banks Manipulating and Suppressing Gold Prices -- Industry Expert to RT" and it's posted at Russia Today here:

https://www.rt.com/business/421618-central-banks-manipulating-suppressin...


CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org

* * *


Join GATA here:
Mining Investment Asia
Monday-Wednesday, March 26-28, 2018
Marina Bay Sands, Singapore
https://www.mininginvestmentasia.com/




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Tuesday-Friday, April 3-6, 2017
Hong Kong Convention and Exhibition Centre
https://asia.minesandmoney.com/


* * *
Help keep GATA going
GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:
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To contribute to GATA, please visit:
http://www.gata.org/node/16



http://news.goldseek.com/GATA/1521460800.php
 

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Why the World’s Central Banks hold Gold – In their Own Words



-- Published: Wednesday, 21 March 2018

By Ronan Manly
https://www.bullionstar.com/

Collectively, the central bank sector claims to hold the world’s largest above ground gold bar stockpile, some 33,800 tonnes of gold bars. Individually within this group, some central banks claim to be the top holders of gold bullion in the world, with individual holdings in the thousands of tonnes range.

This worldwide central bank group, also known as the official sector, spans central banks (such as the Deutsche Bundesbank), international monetary institutions (such as the Bank for international Settlements) and national monetary authorities (such as the Saudi Arabian Monetary Authority – SAMA).

These institutions hold gold as one of their reserve assets. Any gold held by a central bank as a reserve asset is classified as monetary gold. In addition to monetary gold, central bank reserve assets include such things as foreign exchange assets (such as US Dollars) and IMF Special Drawing Rights (SDRs). In general, reserve assets held by central banks are managed according to the criteria of safety, liquidity and return.

Note that most of these central banks don’t own the gold they hold, but merely hold it on behalf of their nation states. See “Who Owns the World’s Largest Gold Hoards? – Not the Central Banks!” on the BullionStar website for a discussion of official gold reserves ownership.
Given that central banks don’t generally divulge the gold that they lend, swap or otherwise use as collateral, the question as to whether the official sector actually holds 33,800 of gold, or far less than that amount, is debatable. But for the purposes of this discussion, the amount of gold that the central banking sector holds is not important.

This discussion focuses on why central banks hold gold. This discussion also uniquely draws on actual responses from many of the world’s largest central banks as to why, in their own words, they hold gold. While the common reasons for central banks holding gold range from store of value, to financial insurance, to asset diversification, we thought its best to let the actual gold holding central banks state their case.

Taking the list of official sector gold holders compiled by the World Gold Council (which uses IMF data sourced from the individual banks), the Top 40 gold holders on this list were identified. While most of the Top 40 gold holders are national central banks or equivalent, there are also a small number of international monetary institutions in the Top 40, namely, the Bank for International Settlements (BIS), the European Central Bank (ECB), and the International Monetary Fund (IMF). A similar question was sent out to each bank and institution. The question was:

“in the context that central banks hold gold as a reserve asset on their balance sheets, can Central Bank X clarify the main reasons why it continues to hold gold as a reserve asset?”

The central banks which responded to this question with constructive or definitive answers were as follows:



The world’s largest central bank gold holders – World Gold Council list

Germany
Germany’s Deutsche Bundesbank, which is most famous recently for repatriating gold from New York and Paris, but which still stores gold in London and New York, placed a particular emphasis on gold’s high liquidity, as well as gold’s powerful role in financial crises and emergencies:

The part of the Bundesbank’s gold reserves which is to remain abroad could, in particular, be activated in an emergency. Therefore one part will remain in New York following completion of the relocation – the United States has the most important reserve currency in the world – and one part in London, the world’s largest trading centre for gold.

In the event of a crisis, the gold could be pledged as collateral or sold at the storage site abroad, without having to be transported. In this way, the Bundesbank could raise liquidity in a foreign reserve currency. However, these are purely precautionary measures as we are not expecting this kind of contingency scenario at the current time.

Gold is a type of emergency reserve which can also be used in crisis situations when currencies come under pressure.”

Austria
In neighbouring Austria, the Oesterreichische Nationalbank (OeNB), Austria’s central bank, also mentioned the liquidity characteristics of gold, its benefits in a crisis, and also gold’s diversification benefits. The OeNB also recently made headlines when it too repatriated some of its gold back from storage in London. The OeNB told BullionStar that:

Gold is an essential part within our strategy for crisis prevention and crisis handling and is held as liquidity reserve but is also a means to diversity our investments.

Switzerland
Staying in the region, Switzerland’s central bank, the Swiss National Bank (SNB) highlighted the diversification and risk optimisation benefits of gold, responding that the National Bank holds gold because:

“As part of a good diversification of currency reserves, a certain proportion of gold can help reduce the balance sheet risk. The Swiss Federal Constitution, art. 99 stipulates that the SNB has to hold a part of its currency reserves in gold.

See also the speech given by Fritz Zurbrügg, Vice Chairman of the Governing Board of the SNB; it contains comments on the role of gold in the SNB’s currency reserves: .”

Article 99 of the Swiss Constitution in part says that “the Swiss National Bank shall create sufficient monetary reserves from its profits; a part of these reserves shall be held in gold“.

Fritz Zurbrügg’s speech cited by the SNB, which was mostly a politically loaded SNB attack against the 2014 Swiss gold referendum more than anything else, says in part that gold reserves can be used in crisis management and that the SNB’s gold is “stored in multiple locations for reasons of risk diversification“.

Poland
The Polish central bank, Narodowy Bank Polski (NBP), provided a very detailed answer to BullionStar covering gold’s lack of credit risk and counterparty risk and its finite supply, as well as gold’s safe haven and diversification benefits: The NBP said that:

Gold, due to its attributes is a quite specific asset, and traditionally has been an important component of central bank’s foreign reserves.
The main features which support the unprecedented role of gold at the same time constitute the rationale for holding gold within central bank’s reserves. These are: lack of credit risk, independence from any country’s economic policy, limited size of the resource, physical features such as durability and almost imperishability.


Additionally, gold has been constantly perceived as a safe haven asset, and is particularly desirable in crisis times, when gold prices increase while other core assets’ prices have a downward tendency.

Sweden
Moving north to Sweden, the Swedish Riksbank, the world’s oldest central bank, responded to BullionStar with an explanation that its holds gold for liquidity, foreign exchange intervention, and diversification reasons:

“In brief, gold is a financial asset that, like the currency reserve, aims to ensure that the Riksbank can carry out its tasks. The gold can, for example, be used to fund liquidity support or foreign exchange interventions.

The main reason why Sweden still has a gold reserve is because the value of gold does not normally follow the same pattern as the value of the currency reserve. Consequently, the combined value of the gold and currency reserve is more stable than the value of the gold reserve and the currency reserve separately.”

Greece
Elsewhere in Europe, the Bank of Greece, Greece’s central bank, told BullionStar that it holds gold because of its safe haven and high liquidity characteristics during crises, crises which notably the Bank of Greece has faced plenty of in the recent past:

“The two main reasons central banks, including the Bank of Greece (typically prudent-oriented organisations), choose to include gold as a reserve asset on their balance sheets, are: 1) its recognition as a safe haven asset during periods of markets’ unrest and 2) the ability of instant liquidation in case of emergency.”

Portugal
The Bank of Portugal, the Portuguese central bank, kept its answer generic, and seemed to speak on behalf of central banks in general, covering the main arguments why central banks as a group hold gold:

Gold reserves are kept by Central Banks mostly for safety, liquidity, return and as a diversification strategy. Gold compares extremely favorably to other traditional reserve assets with high-quality and liquidity helping Central Banks to preserve capital, diversify portfolios, mitigate risks and on the medium/long-term Gold has consistently outperformed the average returns of other alternative financial assets.



A Bank of England Gold Vault

UK Treasury
The United Kingdom’s official gold holdings are held in the name of HM Treasury, and not, as sometimes thought, in the name of the Bank of England. The Bank of England is custodian of the HM Treasury gold as well as custodian for the gold of many nations, including many of the central banks mentioned in this article. HM Treasury told BullionStar:

“The Government’s official holdings of international reserves comprise gold and foreign currency assets, and (IMF) Special Drawing Rights (SDRs).

HM Treasury appoints the Bank of England as its agent to carry out the day-to-day management of the international reserves. The Bank of England’s ‘Handbook on Foreign Exchange Reserves Management’ sets out the traditional reasons for countries holding gold in their foreign exchange reserves.”

Looking at this Bank of England Handbook, a section titled “The Role of Gold” sums up the UK’s traditional reasons for holding gold:
  • the “war chest” argument – gold is seen as the ultimate asset to hold in an emergency and in the past has often appreciated in value in times of financial instability or uncertainty;
  • the ultimate store of value, inflation hedge and medium of exchanges – gold has traditionally kept its value against inflation and has always been accepted as a medium of exchange between countries;
  • no default risk – gold is “nobody’s liability” and so cannot be frozen, repudiated or defaulted on;
  • gold’s historical role in the international monetary system as the ultimate backing for domestic paper money.
While the BoE author (John Nugée) questions if gold is suitable for the reserve management strategies of all central banks, he concludes that:

“The traditional view of gold as the ultimate asset still carries weight, and gold also provides an excellent diversification for currency assets; over the very long run there is a significant negative correlation between gold and other assets and a portfolio containing gold will show lower volatility over several business cycles.

Moreover central banks can increasingly manage their gold holdings to enhance returns through gold lending, gold swaps, collateralised borrowing, and so on. “

Notably, apart from South Africa’s answer below, the Bank of England paper is the only reference to gold lending and gold swaps in all the correspondence and references generated by these central bank responses. But it is not surprising that the Bank of England mentions gold lending and gold swaps, since the Bank of England is the world’s centre for these particular central bank activities.

Australia
Responding from Sydney, the Reserve Bank of Australia (RBA) told BullionStar that it views gold as financial insurance and to some extent as a form of asset diversification:

“The principal reason the Bank continues to hold some gold is as a contingency against unforeseen events. You may be aware that in 1997 the Bank sold 167 tonnes of gold, reducing its holdings from 247 tonnes to 80 tonnes after it was concluded that the gold holdings provided fewer diversification benefits than some other reserve assets.”

Romania
Romania’s central bank, the National Bank of Romania (BNR) advised consulting its 2016 annual report:

“We suggest you to consult our website at the address http://www.bnr.ro/Regular-publications-2504.aspx, Annual Report 2016, pages 152-153, where you may find useful information regarding your concern.”

From this annual report, there are a number of reasons stated as to what the National Bank of Romania holds gold as a reserve asset:

The gold reserve is meant, inter alia, to enhance confidence in the stability of the Romanian financial system and of the leu, being particularly useful in times of heightened economic turmoil (domestically or abroad) or geopolitical tensions.

Unlike other asset types, gold has no solvency risk attached, because it is not “issued” by an authority (such as a government or a central bank).

Philippines
Bangko Sentral ng Pilipinas, the Central Bank of the Philippines, also highlighted the themes of gold as a safe haven asset and as a portfolio diversifier, as well as an inflation hedge:

“The BSP, like other central banks, holds gold as reserve asset for the following reasons:

Diversification. By diversifying its reserve assets to include gold, the BSP is in a better position to manage risks and promote stability since gold is not directly influenced by economic shocks and policies. Moreover, its supply and demand are independent from the factors affecting the value of other reserve assets components.

Security. Gold is a real asset and bears no counterparty or credit risk. In times of uncertainty, gold is considered a safe-haven asset.
Inflation hedge. When inflation and inflation expectations are high, gold is considered a hedge against accelerating asset prices. Central banks buy gold to protect their currencies’ purchasing power in the event of an inflation.


Moreover, since the Philippines is a gold-producing nation, the BSP can purchase gold from small-scale miners, refine and cast these into gold bars (good delivery bars) that would qualify as reserve asset. Therefore, it can build up its gold reserves without relying too much on external purchases that would have to be paid for in foreign exchange.”

South Africa
The Reserve Bank of South Africa (SARB) provided what is probably the most comprehensive answer of all the central banks polled, possibly a model text book answer. SARB said that:
  • the SARB as a central bank can be viewed as a “traditional gold holder” which has inherited gold reserves as part of a legacy and has over time kept its level of gold reserves unchanged to support a broad country strategy. South Africa being one of the main gold producers in the world, it is appropriate for the SARB to hold part of its official reserves in gold to confirm the country’s confidence in the metal.
More in general and similar to many other central banks, the rationale for SARB [holding gold] remains:
  • Gold acts as a store of value in times of crisis and is therefore seen as a safe-haven for capital preservation
  • Gold acts as a hedge against inflation. In other words, the price of gold tends to increase as inflation rises
  • Gold provides some diversification to official reserves – it’s rather low correlation with government bonds and money-market instruments
  • Gold has an intrinsic value and as a result it is nobody’s liability. As a unique asset class, it is not influenced by a country’s economic policy and outlook
  • Although short-term gold lending rates are currently very low, this has not always been the case and these rates may increase again, suggesting that it may not forever remain a non-income earning asset. In addition, when investing for longer time periods, gold loans earn positive, albeit low, returns when compared to other asset classes
  • Gold reserves can be regarded as insurance against unlikely, but extremely damaging events, such as the collapse of financial systems or debt default by major sovereign nations

Brazil
Banco Central do Brasil, the Brazilian central bank, referenced reserve diversification and store of value in its response to BullionStar:

“The asset allocation of the Brazilian foreign reserves, including Gold, is a strategic decision of the Board of Governors. But, according to some Central Banks best practices, Gold as a commodity may be used as storage of value and to diversify their foreign reserves portfolio.”

Libya
While there is some skepticism as to how much gold the central bank of Libya actually has in the aftermath of its recent invasion, the Banque du Liban provided an interesting response on why it still holds gold, i.e. that its prevented by law from selling its gold holdings:

When the LBP [Libyan Pound up to 1971] was very strong versus the USD in the early seventies ,Banque du Liban bought a large portion of its gold reserves what was very wise as the ounce price was around 42 USD.

Then after the turmoil that plunged the country into war and chaos and in order to preserve the reserves, the parliament issued a law preventing Banque du Liban from trading on gold and consequently from selling the existing reserves. The law is still in force and Banque du Liban is holding now the 15th largest gold reserves worldwide.

European Central Bank (ECB)
The ECB responded to BullionStar’s question without actually addressing the question and by citing references which not not address the question either. This deflection strategy is not unknown in ECB press conferences. The ECB said that:

We would like to refer you to our related press releaseECB and other central banks announce the fourth Central Bank Gold Agreement as well as to our web page Foreign reserves and own funds.”

The only reference the 4th central bank gold agreement (which was between the ECB and European central banks) makes to gold reserves is that “Gold remains an important element of global monetary reserves“, but does not say why. Interestingly, the ECB’s ‘Foreign Reserves and own Funds” page states that “The ECB’s foreign reserves [which include gold] ensure that the ECB has sufficient liquidity to conduct foreign exchange operations if needed.”

These “foreign exchange operations” are, according to the ECB, mainly foreign exchange interventions, which can be unilateral or concerted (ECB member banks together), and can be centralised (directed by the ECB) or decentralised (carried out by the member banks on behalf of the ECB). So is ECB gold being used as liquidity in foreign exchange operations? The Swedish Riksbank mentioned this use of gold, so it might be an operational tactic of the ECB also.

A number of banks, although they responded, said that they could not comment on the reasons they hold gold. This secretive approach isn’t very logical and is even more surprising given that some of the banks which took this approach are all from otherwise progressive and advanced OECD economies.

Spain
The Banco de España, which is a member of the ECB’s Eurosystem alongside such central banks as the Portuguese, German and Austrian central banks, seemed to be particularly secretive as to why it holds gold, and told BullionStar:

“We do not make public comments on the reserve assets policy of the Banco de Espana so unfortunately we cannot help you in your query.”

Singapore
Likewise, the Monetary Authority of Singapore (MAS), which is located in walking distance of BullionStar’s office, responded that:

As a matter of policy, we do not comment on our reserve composition. Hope you can understand.

Japan
Similarly, the Bank of Japan (BoJ) took a secretive approach:

“Regarding your inquiry on our gold asset, we cannot disclose any information other than the information published on our website due to our confidentiality policy.”

However, looking at the Bank of Japan website, there is nothing material on the site addressing why the BoJ continues to hold a very large amount of gold.

Bank for International Settlements (BIS)
The BIS, headquartered in Basel, Switzerland, is commonly known as the central bankser’s central bank. The BIS is also infamously known for organising and plotting gold price suppression and gold market interventions through its various Gold Pool cartels. As well as holding gold in its own name, the BIS holds gold on behalf of other central banks. Perennially secretive, it was not surprising that the BIS refused to answer BullionStar’s question directly, but at least they replied. The BIS said:

We do not comment on specific accounts/holdings of central banks or of the BIS. Please see our latest Annual Report and the monthly financial statements on our website for details on gold. Further information can be gleaned from central banks directly and there is some discussion of gold reserves in BIS Paper 40 (Section 2) and BIS Paper 58.

While there is some discussion of gold in BIS Papers 40 and 58, there is no discussion for the reasons why central banks hold gold as a reserve asset.



Bank for International Settlements (BIS) – The central bankers’ central bank

Survey Methodology
The cutoff point for this survey was the Top 42 gold holding central banks in the world, as this allowed the inclusion of Australia and Brazil, both of which are large gold holders and both of which are also large domestic gold producers. Between them, these 42 central banks and monetary institutions claim to hold 32,075 tonnes of gold, which is 95% of the 33,790 tonnes of gold claimed to be held by the 100 central banks on the World Gold Council list.

Of the central banks and institutions contacted, 21 replied with definitive responses. Arguably, this is quite a high response rate given that it was surveying a diverse cross-section of central banks from around the world on a subject which central banks are traditionally quite secretive about. Of the central banks in the Top 42 list, emails were sent to all of those that were contactable by email. In a few cases a web contact form was used.

Five central banks were not contactable as they did not have any obvious email address or web contact form. These banks were from Lebanon, Venezuela, Mexico, Taiwan and China. The Chinese People’s Bank of China is notoriously difficult to contact, even for BullionStar which has been writing about the PBoC and the Chinese Gold Market for years.

Four central banks had a bounce back on the email addresses stated on their websites. These were the central banks of Algeria, Egypt, and Indonesia. None of the three banks contacted by web form responded. These were the central banks of India, Turkey, and Saudi Arabia.
Not surprisingly, banks from more developed and democratic countries have a more transparent means of being contacted and they maintain media and communications staff. Therefore it is logical that these banks are more likely to have responded.

Of the 9 central banks and institutions which did not respond within a reasonable time-frame, they were then re-contacted, asking them had they had time to look at the query. Nearly all of these banks still did not reply. These institutions were the US Treasury, and central banks from the Russia Federation, South Korea, Kuwait, Kazakhstan, Belgium, Netherlands, Thailand, and Italy.

Its notable that the US Treasury, which claims to have the largest official gold reserves in the world, 8133 tonnes of gold, did not respond as to why it supposedly holds the largest gold reserves in the world. These supposed US gold reserves are as large as the gold reserves of the next three countries combined (Germany, Italy and France).

The IMF, headquartered in Washington DC, sent a generic reply to say that they had received the query, but they never responded. The Central Bank of Iraq received the query, forwarded it to their operations department, but there was no subsequent response.

Some of these non-responding banks have ‘reasons we hold gold’ sections on their websites or in their annual reports, so for anyone interested, those information sources could be consulted.

Conclusion
In their own words, the reasons central banks hold gold in large quantities are many fold, however there are consistent themes in the central banks’ explanations. Many of the respondents cited gold’s ability to be mobilized in a crisis, that ‘gold holdings can be activated in an emergency’, that gold is an ‘emergency reserve in a crisis’, ‘a contingency against unforeseen events’, a form of ‘insurance’, or as the Bank of England says ‘a war chest’ and the ‘ultimate asset to hold in an emergency’. As such, nearly all central banks referred to gold as a safe haven asset.

Many central banks mentioned gold’s high liquidity, and some referred to the ability to use their gold to raise liquidity in a foreign currency, even for foreign exchange intervention.

Gold’s role as a hedge against inflation was cited in a number of the central bank answers, which explains why central banks look to the gold price as a barometer of inflation expectations.

Many of the banks also pointed out that because of the unique attributes of physical gold, such as limited supply and mined into existence, gold does not have any counterparty risk or credit risk, and because it is not issued by governments, it has no default risk.

The return generating potential of gold was also cited by a few central banks via the use of gold lending, gold swaps and the use of gold as collateral. Interestingly, very few of the banks that responded directly mentioned gold lending, although many of these central banks do engage in gold lending. This in itself highlights the absolute secrecy surrounding all data relating to the gold lending market which is centred in London at the Bank of England and also through the Swiss National Bank in Berne and the Banque de France in Paris.

Many of the respondents also highlighted gold’s portfolio diversification benefits. Because its price is not affected by economic events in the same way as the prices of financial securities, the gold price is not highly correlated with the prices of other assets. Gold therefore brings stability to a reserve asset portfolio.

With such widespread support among the world’s central banks for holding physical gold, as a safe haven, as an inflation hedge, and as a form of investment diversification, their enthusiasm for gold in 2018 looks as strong as it has ever been in any decade of the modern era.

Ronan Manly
E-mail Ronan Manly on: ronan.manly@bullionstar.com

http://news.goldseek.com/GoldSeek/1521637147.php
 

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Audits Of US Monetary Gold Severely Lack Credibility
By: Koos Jansen
According to the United States Treasury its 261 million ounces (± 8,100 tonnes) in official gold reserves are fully audited and accounted for. Because for many decades rumours are making rounds this gold has been covertly sold, in this essay we’ll thoroughly scrutinise the audits – indirectly evaluating the accuracy of the gold claims by the Treasury. What we’ll encounter is a wide range of problems in the audit documentation obtained through Freedom of Information Act requests submitted at the US government.
 

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The Relationship Of Gold To The U.S. Debt
SalivateMetal


Published on Mar 31, 2018
 

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The Golden Triangle Mines Rise, Fall & Rise Again (excites loan scammer at the end)
SalivateMetal


Published on Apr 16, 2018
Loan scammer calls me while I record this video and hilarity ensues.
 

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What Is Gold Doing That We Haven't Seen In 5 Years?
SalivateMetal


Published on Apr 17, 2018
 

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Turkey Takes Possession of 220 Tons of Gold Repatriated from Federal Reserve

-- Published: Friday, 20 April 2018

By Rory Hall

This is about as underreported as it gets. A tiny, almost nonsexist report appeared in Trend.az news service on Thursday April 19 announcing that Turkey’s Central Bank had moved 220 tons of gold out of the Federal Reserve System to take possession in Turkey. Trend is also reporting that an additional 95 tons of gold is being moved out of the Federal Reserve and back to Turkey.

Remember, gold is not money and more akin to a barbarous relic that is only held by Central Banks as a tradition. Right. Then why are some central banks repatriating their gold out of the Federal Reserve as Turkey just did?

In an article by Rufiz Hafizoglu and published at Trend.az, a news service located in Azerbaijan, the Turkish government has reportedly taken possession of 220 tons gold that was repatriated from the Federal Reserve. Trend did not specify a government official nor a government agency simply reporting Turkey’s Central Bank has transferred its gold reserves stored in the US Federal Reserve System to Turkey. Turkey’s total gold reserves was the entire 220 tons Turkey reported to have taken possession of on April 19, 2018. The total current value represents approximately $25.3 billion.

In the report Trend cited an additional 95 tons of gold that two different Turkish banks acquired, Ziraat and Vakifbank, but it is unclear to us wether this 95 tons is in addition to the reported 220 tons or is included in the overall.

Sputnik News is reporting slightly different amounts of gold being repatriated and citing different sources.

Local media cited government sources as saying that the Central Bank of the Republic of Turkey (CBRT) has transferred its gold reserves from the US Federal Reserve System to Ankara.​

In March 2018, the CBRT’s gold reserves were worth 25.3 billion dollars; 220 tons of Turkish gold was stored in the US, according to the sources.​

The largest private Turkish banks also withdrew their gold reserves from abroad, responding to President Recep Tayyip Erdogan’s call “to get rid of exchange rate’s pressure and to use gold against the dollar.”​

In particular, the Halk Bankasi bank transferred 29 tons of gold to Turkey, according to the Turkish newspaper Milliyet. Source

It seems nations making request to have their gold returned is being treated much differently these days and only being reported AFTER the gold has been shipped and accepted at the final destination.

Back in 2012 Venezuelan was one of the first nations to step up and make a lot of noise about wanting their gold repatriated. Several mainstream news articles and lots of fanfare from Venezuela ensured the world was watching.

The Bloomberg News story appended here reports on the arrival in Caracas on January 30, 2012, of the final shipment of Venezuela’s gold, 14 tonnes carried on a single flight. Bloomberg quotes the president of Venezuela’s central bank, Nelson Merentes, as saying: “In two months we’ve brought 160 tons of gold valued at around $9 billion back to Venezuela.”​

By contrast, the Bundesbank first planned to take seven years to recover 300 tonnes from the New York Fed. If Venezuela’s pace had been adopted, the Bundesbank could have recovered those 300 tonnes in four months, and, if it has been so inclined, could have recovered its remaining 1,200 tonnes at the New York Fed in another 15 months or so. Source

After Venezuela, Germany’s repatriation story went off the rails and the news stories brought into question the Federal Reserve having any gold at all and brought into question why the Federal Reserve has not conducted a full audit since 1954. Germany had requested 300 tons – of Germany’s gold – be returned and the Federal Reserve explained it would take 7 years to return Germany’s gold back to Germany. There are, to this day, serious questions surrounding the German gold repatriation. Peter Boehringer has his doubts and he is the chief architect of the entire German gold repatriation movement.


As GATA Reported in mid 2014

FRANKFURT, Germany — The 300 tons of gold that Germany is bringing home from a New York strongroom is being transported little by little and will take until 2020 to complete, the German central bank said Thursday.

Emotions have regularly flared in Germany about why 45 per cent of the country’s 3,391 tons of gold bars is stashed deep beneath the Federal Reserve Bank of New York in Manhattan.​

The original reason was that West Germany earned it through trade surpluses in the 1950s and 1960s and never moved it out of the United States to ensure that it did not lose the lot in the event Germany was invaded by the Soviet Union.​

In the middle of all the news surrounding Germany’s gold the Netherlands called home 122.5 tons of gold with no issues and no fanfare. The Netherland’s gold repatriation, like Turkey’s today, was reported in hindsight. Fewer question, fewer eyes to see what happened or didn’t happen.

So, it’s not surprising that a little known news service in the middle of Eastern Europe, the Heartland, is reporting on this latest gold repatriation. Seems like mums-the-word is the go-forward approach to the Federal Reserve returning gold to it’s rightful owner.

https://thedailycoin.org/2018/04/20/turkey-takes-possession-of-220-tons-of-gold-repatriated-from-federal-reserve/
 

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Types of Gold Standards

-- Published: Tuesday, 24 April 2018

This blog post is a guest post on BullionStar's Blog by the renowned blogger JP Koning who will be writing about monetary economics, central banking and gold. BullionStar does not endorse or oppose the opinions presented but encourage a healthy debate.

People often throw out the phrase "gold standard" into conversation, but it's worth keeping in mind that there have been several iterations of the gold standard over the course of history. This article describes each type of gold standard using historical examples for clarity.

1. The Gold Coin Standard, or Specie Standard
-Bimetallic Coin Systems-
Medieval coinage systems were typically bimetallic, relying on both gold and silver. To ensure the realm was well-supplied with coins, the monarch maintained a network of mints. Mints in the medieval times operated very differently than they do now. According to the principles of free coinage, access to these mints was available to anyone. By bringing their stash of raw precious metals to the mint, members of the public could ask the mint master to turn it into a specified number of coins, albeit for a fee.



English gold noble, half noble, quarter noble, silver groat, and silver penny (source)


To ensure that a variety of large and small transactions could be made by the public, the mint typically produced a range of small and large coin denominations. In England's case, by the 1500s it was issuing pennies, farthings (1/4 pennies), groats (4 pennies), testoons (12 pennies), half crowns (30 pennies), gold nobles (100 pennies), and more.

Minting low denomination coins like farthings and pennies out of gold was generally not a feasible option because the resulting coin would be tiny and easily lost. Twinning gold with a large amount of base metals like copper might have resulted in a larger and more manageable low-denomination gold coin, but then it would be susceptible to counterfeiting. As for high denomination silver coins, they would be large and bulky. Thus bimetallism amounted to a sensible sharing of the monetary load by both gold and silver coins.

-Accidental Monometallic Gold Coin Systems-
Bimetallic standards sometimes careened off course and became what are known as monometallic standards, with either gold or silver dominating. Thus emerged the first true gold standards, albeit entirely by accident. The mechanism underlying this muddling into monometallism was rooted in the fixed price between the two metals as enforced by the monarchs' mints.

To illustrate how this fixed price worked, consider that in August 1464 anyone could bring raw silver to the London Mint and have it minted into English pennies that contained 0.72 grams of silver. The mint would also turn raw gold into English nobles which contained 6.69 grams of gold. Since law stipulated that a noble was worth 100 pennies, that meant that the mint effectively valued a fixed amount of gold at 11 times the same amount of silver. (I get this data from John Munro [pdf]).




Gold guinea, 1664, which replaced the British unite coin


When the mint's chosen gold-to-silver ratio diverged too far from the global market ratio of gold-to-silver, then one of the two metals would begin to be ejected from the domestic monetary system. The reason for this is that a divergence effectively meant that the monarch was undervaluing one metal and overvaluing the other, and since no one who owned gold (or silver) coins wanted their property to be less than its true worth, the undervalued metal would be taken off the market.

For instance, if the mint was undervaluing silver, then anyone who purchased £1000 worth of raw silver and brought it to the mint for conversion into coins would get less purchasing power than if they had bought £1000 worth of gold and bought it to the mint. So the flow of silver to the mints would grind to a halt. Furthermore, any high quality silver coin already in circulation would be sent overseas in order to take advantage of the true gold-to-silver ratio. At this point a gold standard had emerged.

England stumbled onto a monometallic gold standard in the 18th century after having operated on a bimetallic basis for centuries. The gold-to-silver ratio used by the mint in the later 1600s and early 1700s undervalued silver and overvalued gold, so England's silver coins were steadily being shipped to the continent, causing silver coin shortages. Isaac Newton, the famous physicist who was appointed Master of the Mint in 1699, counseled the government to bring the ratio in line with the market. But when he finally moved to fix the problem in 1717, he undershot the amount of adjustment necessary, so that silver remained undervalued and the export of silver coins continued. Thus England was pushed onto a gold standard.

-The Hybrid Circulation of Coins and Paper Money-
By the 17th century, banknotes had joined coins in circulation. Paper money was originally convertible into a fixed amount of coins, issuers holding enough reserves in their vaults to ensure that ready convertibility was possible. A banknote is far easier to carry and handle than a coin, and since the public generally trusted the issuers of these notes, gold coins were pushed out of circulation and into bank vaults or non-monetary uses like jewellery. By the 1800s, it was rare to see a gold coin circulating in England.

Even as banknotes came to dominate, the British standard effectively remained a gold coin standard. Since a banknote was convertible into a fixed amount of coin, the note's purchasing power was regulated by the value of the coin itself. If there was any divergence between the two, say notes became more valuable than underlying coins, than arbitrageurs would push them back into line by buying coins for 99c and converting them into $1, earning 1 cent in risk-free profits.




The Bank of England's first 5 pound note, 1793


Substituting out metal with paper resulted in a cheaper payments system. Adam Smith was one of the earlier writers to comment on this, describing gold and silver coins as a highway that "carries to market all the grass and corn of the country." Bank-provided paper money was a more superior sort of thoroughfare, in Smith's words a "waggon-way through the air." The replacement of gold by paper money allowed the nation to convert barren highways - its metallic coinage - into goods pastures and cornfields, thus increasing the annual produce of the country.

2. The Gold Bullion Standard
If gold coins weren't used much in trade, might it be possible to cease minting them altogether yet remain on a version of the gold standard? This was the idea behind the gold bullion standard, first conceived by the famous English economist David Ricardo in early 1816 and eventually adopted in Britain some one hundred years later, in the aftermath of WWI. Under a bullion standard, an issuer of paper money promised to redeem its banknotes not with gold coins, or specie, but for a given amount of raw bullion.

At the same time, the mint ceased to allow free coinage of gold, effectively closing itself to the public. Existing gold coins were called in and demonetized. The mint now focused its resources on providing the government with low denomination token coins for use as small change. The value of token coins wasn't regulated by the metal inside of them. After all, a token coin with the face value of $1 might contain just a few cents worth of silver, copper or nickel. Rather, a $1 token circulated at its face value of $1 because the monetary (or fiscal) authority promised to buy those tokens up at their face value.

The adoption of a gold bullion standard resulted in a reduction in the costs of running the payments system. By pushing gold coins entirely out of circulation and replacing them with a combination of token coins and paper money, gold was conserved and could be put towards better uses. It was one step forward towards Adam Smith's waggon-way through the air.

3. The Gold Exchange Standard
A gold exchange standard takes the principle of gold conservation even further. Where the shift onto a gold bullion standard meant that any institution that issued paper money was now obligated to redeem their notes with raw bullion rather than coins, under a gold exchange standard these same issuers could no longer redeem their notes with raw bullion but were required to offer notes of a second-party issuer that was itself on a gold coin or gold bullion standard.

A number of nations adopted this sort of standard in the 1800s and early 1900s, including the Philippines and India. But perhaps the most famous example was the Bretton Woods system that dominated after WWII up until 1971. Under the Bretton Woods system, the U.S. Treasury promised to redeem its notes directly for gold. Most other nations in turn agreed to redeem their notes with a fixed quantity of U.S. Dollars. So while French Francs and Japanese Yen and Canadian Dollars weren't directly redeemable in gold, they were indirectly convertible.

4. A Partially Convertible, or Limping Gold Bullion Standard
Limping standards originally emerged when bimetallic coin standards were adjusted in such a way that the mints continued to allow free coinage of one of the metals, say gold, but ceased to freely coin the other, say silver. The silver coins were not removed, however, and continued to circulate along with gold coins, the silver coinage "limping on" so to say.

But we are more interested in the limping standard's more modern incarnation, a partially-convertible gold bullion standard. Rather than allowing everyone the ability to redeem paper banknotes for gold, a central bank (or any other issuer) imposed conditions on who could convert their banknotes. In 1934, for instance, the U.S. ceased allowing private individuals and businesses to convert their notes into gold, limiting this feature to foreign governments and other large government-sponsored entities.




Evolution of the promises on a Federal Reserve banknote (source)


Partially-convertible systems are more convenient for issuers to maintain since they reduce the infrastructure costs involved in maintaining universal convertibility. We see this same principle applied to modern-day Exchange Traded Funds (ETFs), for instance. Although ETF units are convertible into an underlying instrument (say the S&P 500 or gold), only a few select authorized participants have permission to invoke this convertibility option. As long as these authorized participants are motivated by profits, the value of the ETF units will never diverge very far from the value of the underlying instruments. If ETF providers were required to allow everyone to redeem their units, they would have to build out and maintain the requisite infrastructure, the resulting costs pushing up fees.

Likewise, partially-convertible gold bullion standards such as the one that the U.S. ran from 1934 to 1971 could, in principal, lever the financial expertise of a few authorized participants to achieve the same fixedness to gold as a regular gold bullion standard or an old-fashioned gold coin standard, but at far less cost to society. Complicating matters in the U.S.'s case was the fact that only foreign governments could convert dollar banknotes into gold, and these governments were not as efficient as profit-minded ETF authorized participants in policing the link between gold and dollars.

In Summary...
There have been a number of different gold standards over the last thousand or so years. Each iteration brought with it a reduced role for the monetary metals, the resulting reduction in storage and handling costs and the diversion of gold to better uses being a net gain to society.
At the same time, even though gold has had a smaller role to play, the purchasing power of the nation's monetary units throughout this evolution continued to be tethered to the yellow metal rather than being dictated by some more arbitrary force. Put differently, from one version of the gold standard to the next, society benefited from the price stability afforded by a link to gold while being liberated from some of the metal's inconvenient physical burdens.

JP Koning
E-mail BullionStar on: support@bullionstar.com

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Russia Buys 300,000 Ounces Of Gold In March – Nears 2,000 Tons In Gold Reserves

-- Published: Tuesday, 24 April 2018

– Russia buys 300,000 ounces of gold in March and nears 2,000t in gold reserves
– Russia now holds just over 1,861 tonnes, more than officially reported by China at 1,842t
– Both Russia and China have the power to destabilise US dollar by dumping dollar-denominated assets
– Turkey has removed all gold held in the U.S. opting for Bank of England and BIS
– Turkey follows trend set by both Germany, Netherlands and others to remove gold reserves stored in the United States
– Central bank decisions regarding gold reserves are examples of countries becoming nervous about the outlook for the dollar under the Trump administration




Russia bought another 300,000 troy ounces of gold in March bringing Russia’s total gold reserves to 1,861 tonnes or 60.8 million troy ounces as of the start of April, the central bank announced loudly at the weekend.

The continuing robust and steady accumulation of gold reserves continues and it was notable how Russian media channels loudly (more loudly than usual it seemed with many outlets covering) pronounced the continuing diversification into gold bullion by the Russian central bank. It suggests that gold is being used as a bulwark to protect Russia from the stealth financial, trade and currency wars which appear to be deepening.



Russia is not the only country diversifying into gold and many other countries are doing so as they seek to protect themselves from the coming devaluation of the US dollar and U.S. dollar hegemony. This is evidenced both by gold purchases and also in many strategic decisions regarding the storage of national gold reserves.

While Russia was adding to its gold reserves, taking it above China’s holdings, Russia’s new ally Turkey was busy removing all gold bullion reserves held in the United States.

Both are clear moves against US dollar hegemony. Gold reserve changes combined with the news that Russia and China have agreed to settle some trades in ruble and yuan is a clear step that the world’s super powers are looking to reduce dependence on the US dollar and the increasing move away from the US dollar as global reserve currency.

Whilst it can be difficult to look past the Western media rhetoric regarding the likes of Russia, Turkey and China, there are lessons to be learnt by the everyday investor and saver.

These moves have also been seen by western nations such as the Netherlands and Germany who recently made the decision to bring some (if not all) of their reserves back to Europe.

The Gold Mission
Putin has long been on a mission to build up the country’s gold reserves after previous Russian governments ran the country’s reserves down to less than 300 tonnes.

The current president has made it clear that the country should be holding gold, rather than US dollars. For many years, the Russian central bank has consistently bought gold, driven by Putin’s believe in the financial sovereignty offered by gold and its protection against geopolitical and economic risks.

“Under the instruction by President Putin, the Bank of Russia has been implementing the program of increasing the absolute share of gold in the gold and currency reserves of Russia for many years.”
First Deputy Chairman of the Russian regulator Sergey Shvetsov

Putin first came to power in 2000 and since then the country has had more months than not, when it has purchased gold bullion. A large jump in reserves was seen in 2014 after Western sanctions were imposed and Russia has been the world’s largest gold buyer ever since. It is now the fifth largest gold holder after the United States, Germany, Italy, and France.

Russia is also the third largest producer of the precious metal. As a result, the majority of its purchases are locally sourced, giving the country an additional edge when it comes to protecting its finances. This is something that China is also wise to. It does not allow the export of any gold mined in the country, further evidence of the desire to protect the country’s financial system and economy and position the yuan as an alternative to the dollar in the long term.

The golden noose?
The build-up of gold reserves by non-Western countries is something which could end up tipping the scales of the global order.

Many believe that should bad relations continue between the US and these nations then US-denominated assets currently held in forex holdings by the relevant central banks, could be dumped for alternatives. Nations may opt to diversify into the Chinese yuan (in the case of Russia) but also gold. Most likely it would just take either Russia or China to do this, before many others followed suit.

We know from recent comments by the likes of Erdogan and Putin that this is a possibility not far from their minds:

“With the dollar the world is always under exchange rate pressure. We should save states and nations from this exchange rate pressure. Gold has never been a tool of oppression throughout history.” Turkish PM Erdogan, April 2018

At the same conference Erdogan explained how he was pushing for international loans to no longer be made in dollars, but instead gold:

“I made a suggestion at a G20 meeting. I asked: Why do we make all loans in dollars? Let’s use another currency. I suggest that the loans should be made based on gold.”

When loans are made in dollars, the debtor is instantly taken hostage by the issuing central banks’ policies. The central bank determines the price of dollar through monetary policy and it’s value thanks to currency printing. Were loans to be issued in gold these huge counter party pressures would no longer be a feature of the largely dollar based debt-system.


Hands off our gold


China for many years has made it clear that gold purchased in China is to stay in China. Russia and Turkey are of the same belief.

The news broke last month that Erdogan’s central bank had decided to call back its gold reserves held in the United States. There were reportedly 220 tonnes stored in the country. The move was followed by the country’s largest private banks also moving their gold from the country. One example was Halk Bankasi bank which transferred 29 tons of gold back to Turkey

The decision followed Erdogan’s call to “to get rid of exchange rate’s pressure and to use gold against the dollar.”

Speaking to RT about Turkey’s decision to repatriate its gold from the US Federal Reserve, Anatoly Aksakov (chairman of the State Duma Committee on Financial Markets) said: “We do not have a gold reserve in the US, we have only Forex (foreign exchange) reserves abroad. No one can lay hands on our gold.

By removing gold from one jurisdiction to another you are making one very loud and political statement – we can look after our gold and we don’t want you anywhere near it.

Decisions by both western and non western countries to repatriate their gold tells the US that they will no longer have power over their foreign reserves and that they do not trust them to look after them.

Conclusion – Be your own central bank and take delivery or own in safest vaults, in safest jurisdictions in the world
Russia and increasingly Turkey and China are countries that are increasingly seen as threats to the West, in one form or another. As a result various measures have been taken against them to make international trade and negotiations very difficult.

Whether through sanctions or trade tariffs countries are beginning to really feel the weight of the US and its allies’ powers. As a result, they are using gold to protect themselves and to protect their foreign exchange reserves and hard earned national savings.

Investors can learn something here. Fiat currencies will always have a counterparty that is far more powerful than the saver or pension holder.

There is rarely little interest by the fiat issuer to take note of how it’s currency management is affecting the individual’s savings and investments.
Gold removes this risk. Central banks are unable to impact the supply or holding of physical gold that an investor holds legal title to and stores in a safe jurisdiction.

The likes of Russia, Turkey and China recognise the financial independence holding gold bullion can bring, they also understand the importance of storing it at a location that cannot be compromised by western sanctions, central bank screw-ups, political targeting and nationalisation of gold assets and gold companies.

Investors should follow suit and act as their own central bank. Prepare financially by having a sensible allocation to physical gold so that it is protected from central banks massive monetary experiment that risks destroying all hard earned wealth.

Gold also serves to protect in times of heightened geopolitical risk, terrorism and war. Follow the same steps as these aforementioned countries – own physical gold, store in a safe jurisdiction and ensure you have legal title to your bullion through allocated and segregated bullion ownership.

Recommended reading
Gold Bullion Is “100% Guarantee from Legal and Political Risks” – Russia
Turkey, Gold and the End of US Dollar Hegemony
China, Russia Alliance Deepens Against American Overstretch


News and Commentary
Gold steady but buoyant dollar, Treasury yields weigh (Reuters.com)
U.S. existing home sales rise; inventory remains tight (Reuters.com)
Trade war negative for economy says Fed’s Williams: El Pais (Reuters.com)
After Weeks of Chaos, U.S. Throws Aluminum Industry Lifeline (Bloomberg.com)
Deutsche Bank’s Bad News Gets Worse With $35 Billion Flub (Bloomberg.com)



Image source: US Investors

Trump Stress-Tests the World Economy (Bloomberg.com)
Oil Rises on Flaring Geopolitical Risks and Shrinking Stockpiles (Bloomberg.com)
The Pension Crisis Gets A Catchy Name: “Silver Tsunami” (DollarCollapse.com)
SWOT Analysis: Hindu Celebration Could Push Gold Price Higher By 10 Percent (GoldSeek.com)
ECB Capitulates On Defusing Eurozone’s “$1 Trillion Ticking Time Bomb” (ZeroHedge.com)


Gold Prices (LBMA AM)
23 Apr: USD 1,328.00, GBP 950.45 & EUR 1,085.64 per ounce
20 Apr: USD 1,340.15, GBP 953.52 & EUR 1,089.14 per ounce
19 Apr: USD 1,347.90, GBP 950.54 & EUR 1,090.59 per ounce
18 Apr: USD 1,346.55, GBP 949.59 & EUR 1,088.95 per ounce
17 Apr: USD 1,342.95, GBP 937.24 & EUR 1,084.57 per ounce
16 Apr: USD 1,344.40, GBP 941.21 & EUR 1,087.62 per ounce

Silver Prices (LBMA)
23 Apr: USD 16.94, GBP 12.14 & EUR 13.85 per ounce
20 Apr: USD 17.11, GBP 12.15 & EUR 13.91 per ounce
19 Apr: USD 17.20, GBP 12.09 & EUR 13.91 per ounce
18 Apr: USD 16.95, GBP 11.93 & EUR 13.70 per ounce
17 Apr: USD 16.63, GBP 11.60 & EUR 13.44 per ounce
16 Apr: USD 16.60, GBP 11.61 & EUR 13.42 per ounce


https://news.goldcore.com/


http://news.goldseek.com/GoldSeek/1524571200.php
 

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Mother Lode Found
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Repatriated German Gold On Display! U.S. Gold Hidden From Public!
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Published on Apr 24, 2018