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This
is a three month old story which I have been meaning to get around to for a
while. Goldseek reports on the export of 5000 Metric Tonnes of “gold
compounds”.
(emphasis mine) [my
comment]
U.S.
Gold, Going or Completely Gone?
-- Posted Friday, 29 May 2009
This past Tuesday evening I found myself reading a snippet from Enrico
Orlandini’s, DTAnalysis [DT
stands for “Dow Theory”] - where Mr. Orlandini opined,
"I believe the [U.S.] trade gap will surprise people and continue to
shrink and may even turn positive for the first time in decades.
Unfortunately, this will only facilitate the flow out of the US dollar and
bond and that’s not a good thing.”
With Enrico being “technically oriented” and me being more
fundamentally oriented, I recall how I intuitively did not believe the U.S.
Census Bureau’s published U.S. Trade numbers and how I might go
about proving that they were falsified:
My primary field of research is focused on precious metals; namely, gold and
silver, and I know that recent reports indicate that various countries are
contemplating repatriating their sovereign gold reserves. Further, the U.S.
Treasury and Federal Reserve have balked at GATA’s
recent Freedom of Information [F.O.I] requests and demands for an
independent, verifiable audit of the Sovereign U.S. Gold Reserve – thus
a little bit of forensic investigation of U.S. gold exports was in order.
I just needed to figure out how to access the relevant numbers.
The United States Geological Survey [USGS] publishes monthly Mineral Industry Surveys designed to provide a macro-import/export-overview of the U.S.
precious metals [gold] industry. The data in these surveys is supplied to the
USGS principally by industry trade groups such as the World Gold Council as
well as official sources like the U.S. Census Bureau:
source: USGS Feb. 09 Mineral
Industry Survey
I took special note of how 2,920 metric tonnes of “Gold
Compounds” had been exported from the U.S. in 2008. This number seemed
BIGGER than BIG – because the U.S is only alleged to have stockpiles of
sovereign gold of 8,100 metric tonnes while annual U.S. mine production of
gold is roughly 228 metric tonnes. This figure of 2,920 metric
tonnes is equal to 36 % of all alleged sovereign U.S. gold stocks or more
than 14 times annual U.S. gold mine production. So, I was left
wondering, “just what is/are ‘gold compounds’?
I contacted the USGS and queried a qualified individual [who had working
knowledge of this data stream] about the definition of “Gold
Compounds”. I was told that, according to the U.S. Census Bureau
– who supplies not only the definition but the actual reported numbers,
gold compounds were typified by industrial type products containing low
percentages/amounts of actual gold content – like gold paint.
I then reasoned with the USGS person, if such were the case, why would U.S.
exports have increased in 2008 to nearly 3,000 metric tonnes [when the Global
Economy was slowing and the U.S. Dollar was strong] from 2007, when
U.S. exports totaled approximately 2,000 metric tonnes [when the U.S. Dollar
was weaker and the Global Economy was booming]? I noted that this was
counter-intuitive and made no fundamental economic sense:
source: USGS Feb. 08 U.S. Mineral
Industry Survey
When confronted with reason, the individual for the USGS agreed that the
data, as published, did not make logical sense and explained that the U.S.
Census Bureau was questioned as to the veracity of this particular
line item in their data.
I asked the USGS employee if the gross weight or the gross value [not
shown in the table but known to the USGS] of the “Gold Compounds”
was queried.
The individual confirmed that their query to the U.S. Census Bureau dealt
with the gross value being assigned to these exported goods.
I responded rhetorically, “being an issue of gross value –
then let me guess that the U.S. Census Bureau is assigning an astronomically
high value to these goods. Such a high value would be COMPLETELY INCONSISTENT
with what the U.S. Census Bureau claims these items are- namely, industrial
goods. The values being reported would be more in line with these goods being
gold bullion or equivalents”.
The individual from the USGS confirmed my reasoning when he responded,
“that would be CORRECT”.
The Implications
Ladies and gentlemen, the foregoing data and discussion with the USGS
individual is proof that the United States of America [or criminal elements
within its Treasury and/or The Federal Reserve] “HAS”
surreptitiously exported physical gold - and continues to do so. It is
confirmed. The exports are likely coin melt [or gold compound, if you prefer]
from the great gold confiscation back in 1933; or alternatively, this
terminology is being used to disguise physical repatriation of foreign gold
bullion formerly on deposit with the N.Y. Federal Reserve. Such
repatriations are recorded as “exports” in U.S. Trade
data. Public acknowledgement of same would scream like a siren call that the
global financial community has totally lost faith in American financial
stewardship – hence the need to do so on the sly.
This is being done in a vain/desperate/losing battle to satiate “off
the charts” global demand for physical gold bullion arising from the
profligacy of the American Empire’s two previous Administrations and to
prop up the failing U.S. Dollar.
Over the course of 2007 / 2008 – more than 5,000 metric tonnes
of “Gold Compounds” have been exported from the United States of
America representing more than 62 % of reported sovereign U.S. gold
reserves or about 24 times annual U.S. mine production.
5000 metric tonnes = 160 753 733 troy ounces [$128 billion+ at
today’s prices]
The fact that industry funded trade groups like the World Gold Council and
other professional gold consultancies, who shall remain nameless, have not
reported these facts negates their credibility and illuminates them as dupes
or willing shills. These fraudulent or ignorant organizations deserve to be shuttered
and disbanded.
U.S. Trade Data Is Bogus
The value of these bullion exports significantly “skew” the
doctored U.S. Trade numbers [coincidentally, also prepared by the U.S. Census
Bureau] in an attempt to convey a picture that the U.S. financial position is
improving.
The reality is this, when gold exports are backed-out, the U.S. Trade
picture is decidedly worse.
The United States of America claims to possess a little more than 8,100
metric tonnes of sovereign gold stored principally at Fort Knox, Kentucky,
West Point, N.Y., the Denver Mint and The New York Fed. The sovereign
U.S. gold reserve has not been independently audited since the 1950’s
during the Eisenhower Administration. GATA’s freedom of information
requests are all about ensuring that the 8,100 metric tonnes of U.S.
sovereign gold is still owned by the U.S.
In April, 2008 the Federal Reserve responded to GATA’s
request, releasing hundreds of pages of worthless information with
significant portions redacted. They also claimed that they were withholding
hundreds of additional pages of documents. The status of the withheld
documents is currently under appeal.
These stonewalling tactics – withholding details - are eerily similar
to those employed by Messer’s Bernanke, Paulson and Geithner refusing
to divulge frank details as to “who” the beneficial recipients
were of TARP and TALF funds.
No credible audit of the Sovereign U.S. Gold Reserve will EVER be allowed
– because the gold is simply not there.
Hope you have some.
My reaction: US
has exported 5000 metric tonnes of "gold compounds" over the last
two years
1) 2,920 metric tonnes of "Gold Compounds" had been exported from
the U.S. in 2008.
2) The U.S is only alleged to have stockpiles of sovereign gold of 8,100
metric tonnes while annual U.S. mine production of gold is roughly 228 metric
tonnes.
3) 2,920 metric tonnes is equal to 36% of all alleged sovereign U.S. gold
stocks or more than 14 times annual U.S. gold mine production.
4) An individual for the USGS agreed that the data, as published, did not
make logical sense and explained that the U.S. Census Bureau was questioned
as to the veracity of this particular line item in their data.
5) The U.S. Census Bureau is assigning an astronomically high value to these
goods.
6) The values being reported would be more in line with these goods being
gold bullion or equivalents.
7) foregoing data and discussion with the USGS individual is proof that the
United States of America has surreptitiously exported physical gold - and
continues to do so.
8) Public acknowledgement of these gold exports would scream like a siren
call that the global financial community has totally lost faith in American
financial stewardship
9) Over the course of 2007 / 2008 - more than 5,000 metric tonnes of "Gold
Compounds" have been exported from the United States of America
representing more than 62 % of reported sovereign U.S. gold reserves or about
24 times annual U.S. mine production.
10) No credible audit of the Sovereign U.S. Gold Reserve will EVER be allowed
- because the gold is simply not there.
U.S. Trade Data Is Bogus
1) The value of these bullion exports significantly "skew" the
doctored U.S. Trade numbers
2) When gold exports are backed-out, the U.S. Trade picture is decidedly
worse.
Conclusion: Until someone explains to me what these “gold
compounds” were, I am going to assume that they were half the US gold
reserves leaving the country.
Eric
de Carbonnel
Market Skeptics
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