THE GOLDEN RESERVES OF GOLD AND THE US "DEEP STORAGE GOLD" VIRTUAL REALITIES
Μέ τόση σπέκουλα σχετικά με την πραγματική αξία του δολαρίου μετά την εκρηξη της δολαριακής φούσκας των παγκόσμιων μεγαλοαπατεώνων , μία “παρουσίαση” με θέμα το παραδοσιακό “καταφύγιο” του χρυσού θεώρησα οτι ηταν επιβεβλημένη. Ξεκινώντας την έρευνα για το θέμα, και διαβάζοντας διάφορους σχετικούς και εξαιρετικά ενδιαφέροντες πίνακες, εφθασα σε μία εγγραφή-γρίφο, που ομολογώ οτι ανέτρεψε το οτι γνώριζα μέχρι σήμερα για τον χρυσό.
Παρατηρώντας τον πίνακα των ΗΠΑ (στον προτελευταίο αρχείο-USA Block), υπάρχει η μοναδική εγγραφή αποθεμάτων χρυσού “ΒΑΘΕΙΑΣ ΑΠΟΘΗΚΕΥΣΗΣ”-“DEEP STORAGE” κάτι σαν ΧΡΥΣΟΣ ΒΑΘΕΙΑΣ ΚΑΤΑΨΥΞΗΣ. Δυστυχώς η περαιτέρω έρευνα γιά το θέμα “ΒΑΘΕΙΑΣ ΑΠΟΘΗΚΕΥΣΗΣ” αποκαλύπτει οτι πρόκειται για μία ακόμα παγκόσμια μοναδικότητα “δημιουργικής λογιστικής” του δαιδαλώδους μηχανισμού στήριξης του δολαρίου και ταυτόχρονης απαξίωσης και ολοκληρωτικής χειραγώγησης της πραγματικής ισοτιμίας του χρυσού έναντι του υπερπληθωρισμένου δολαρίου.
ΠΙΝΑΚΕΣ ΜΕ ΤΑ ΕΠΙΣΗΜΑ ΑΠΟΘΕΜΑΤΑ ΑΛΗΘΙΝΟΥ ΧΡΥΣΟΥ ΑΝΑ ΚΡΑΤΟΣ ΚΑΙ ΚΡΑΤΙΚΕΣ ΤΡΑΠΕΖΕΣ.
Ο τελευταίος αυτός πίνακας ειναι που αποκαλύπτει την δημιουργία ΕΙΚΟΝΙΚΟΥ ΤΟΞΙΚΟΥ ΧΡΥΣΟΥ σε μία σκοτεινή συνεργασία ενδοκυβερνητικών φορέων, κεντρικών τραπεζών, και άλλων παραγόντων της παγκόσμιας αγοράς χρυσου. Στην ουσία, εχει δημιουργηθει μία τοξική αγορά χρυσου, όπου κυβερνήσεις ανταλλάσουν αληθινό χρυσό από τα αποθέματά τους για εικονικό χρυσό που πρόκειται να εξορυγχθεί στο ΜΕΛΛΟΝ!!!….Παράγωγα και ομόλογα και ανταλλαγές χρυσού με “υποσχετικό” χρυσό…
Ας αφήσουμε όμως τον Rob Kirby να αναλύση ακόμα βαθύτερα αυτήν την διαδικασία δημιουργίας εικονικού χρυσού, και κάποιες “δύσκολες” πληροφορίες σχετικά με την ύπαρξη η οχι των αποθεμάτων που αναφέρονται σαν υπαρκτά. Το σχόλιο του :
*Deep Storage: Deep-Storage gold is the portion of the U.S. government-owned Gold Bullion Reserve that the U.S. Mint secures in sealed vaults, which are examined annually by the Department of Treasury’s Office of the Inspector General. Deep-Storage gold comprises the vast majority of the Reserve and consists primarily of gold bars. This portion was formerly called “Bullion Reserve” or “Custodial Gold Bullion Reserve.”
*Working Stock: Working-Stock gold is the portion of the U.S. government-owned Gold Bullion Reserve that the U.S. Mint uses as the raw material for minting congressionally authorized coins. Working-Stock gold comprises only about 1 percent of the Reserve and consists of bars, blanks, unsold coins, and condemned coins. This portion was formerly listed as individual coins and blanks or called “PEF Gold.”
I would particularly like to draw everyone’s attention to the highlighted part of the table above and then to consider the ‘genesis’ of the definition of Deep-Storage gold – as it’s explained in the accompanying notes at the bottom of the data.
I’d like everyone to take note that sovereign U.S. gold stocks used to be titled, “ Bullion Reserve .”
As James Turk points out, early in the year 2001 – these stocks were initially renamed “Custodial Gold Bullion Reserve.” In his article titled, What Is Happening to America’s Gold , Turk points out the ‘then discrepancy’ between the gold accounts on the Treasury’s versus the Federal Reserve’s balance sheets were NECESSARILY due to clandestine activity [trading of gold] by the Exchange Stabilization Fund [ESF]. In Turk’s own words at the time,
“We know that the ESF is active in the gold market because the Federal Reserve says so in its report of the US Reserve Assets.”
Additionally, despite the Treasury’s continued denials – Turk reported that previously published reports were changed,
“The US Reserve Assets report now excludes all reference to the ESF, and previous reports already published have been changed. Not only were the figures adjusted, but all reference to the ESF has been eliminated.”
In citing an essay by Reg Howe , it was further explained,
“… the figures could not be changed without a change in description , proof that the earlier discrepancies were indeed on account of gold held by the ESF.”
Turk then documents the queerest development of all – in June of 2001 – all of U.S. sovereign gold stocks were reclassified – adopting the moniker of “ Deep Storage Gold .”
Put Down the Shovels or Dig Deeper?
So there you have the ‘short and sweet’ of it; numbers were altered, previously published reports were changed – all by officialdom – with nary a mention by the mainstream financial press.
To think; folks have wondered how Enron, World Com or Parmalat could have ever possibly happened? I would offer that these guys were merely “pikers” compared to the REAL DEAL – their role models in fanciful fraud over at the Fed and Treasury.
I revisit and bring all of this up for a very good and important reason. Last October – I penned an essay, A SWAP STORY: BORROWED FROM THE BANK OF ENGLAND , where I documented that the U.S. has undoubtedly been engaged in gold quality swaps with the Bank of England.
I am now going to pose the question; what is Deep Storage Gold? While I have no real expectations of a sudden gust of honesty flowing from either the Fed or Treasury in this regard – let’s just stop and think about this for a moment – and apply a few grains of logic – shall we?
deep(d p) KEY ADJECTIVE: deep•er , deep•est
Extending far downward below a surface: a deep hole in the river ice.
All of us can readily look up the dictionary definition of the word ‘deep’. I’ve taken the liberty of doing so [above]. As for me, I’m led to the conclusion that ‘deep’ – as it pertains to storage and gold – can only mean that this gold is located beneath or in the ground.
Now, if we ‘factor in’ the evidence that the U.S. is already involved in gold quality swaps and we then consider this little “nugget” supplied to us by none other than the Bundesbanks’ Axel Weber,
Bundesbank’s Weber Comments on Central Bank Gold Reserves 2006-10-05 By Simon Kennedy
Oct. 5 (Bloomberg) — Bundesbank President Axel Weber comments on the central bank’s plans for its gold reserves. Weber, who didn’t comment on monetary policy, was speaking to reporters in Paris. “We are not envisaging gold sales for the third year” of the current agreement with other central banks, Weber said. “ We have been asked to negotiate with other central banks” about potential swap deal involving gold . He refused to discuss which central banks may be interested.
If we add all of the above to the position outlined in, A Tale in Three E-Mails , where I presented a plausible case that all sovereign U.S. [above ground] gold stocks have, indeed, already been squandered or sold – one can only conclude that the U.S. Treasury or Fed is or has been conducting gold quality swaps – exchanging deliverable bars for gold that has yet to be mined.
The Very Deepest of Do-Do
So what does all of this really mean?
If the Treasury’s gold reserves are, in fact, ‘yet to be mined’ or deep storage gold – this has ENORMOUS implications for the gold equity markets. If significant amounts of ‘yet to be mined gold’ have been sold forward by the Fed and/or U.S. Treasury – this raises SERIOUS questions as to priority claims on yet to be mined gold. Specifically, would any Fed or Treasury claims [via swap agreements] pre-empt gold company equity shareholders?
Stockholders – folks who own equity in gold mining concerns – always [too quickly, perhaps?] point out that their shares represent “ownership or de facto” claims and hence a direct [leveraged] call on gold. Most proponents of share ownership would argue – absent hedging – share ownership represents indirect but unencumbered ownership on gold through ownership of a producing entity.
But consider for a moment, if the amount of ‘yet to be mined gold’ sold forward by Central Banks or Treasury – in aggregate – exceeds the callable inventory of the gold hedgers?
What do we mean by callable inventory? Let us first consider the notion of inventory – in a physical sense – and whether or not any exists, because I’m questioning its very existence. The U.S. Treasury claims to have physical gold bullion inventory. They either do – or they do not.
A third party audit would solve this dilemma – but none will be forthcoming.
Moving on; the U.S. Treasury and/or Federal Reserve has entries on their books which we are told are physical gold.
Yet we know, for a fact, that Central Banks do ‘double count’ swapped gold – gold which has left the vault is accounted for as still being gold on hand, like it never left the vault. This has been documented – beyond a shadow of a doubt – as acceptable Central Bank Accounting . The I.M.F. has told us this is fact.
This raises the question as to the veracity of Treasury’s/Fed’s claims to possess physical gold. It raises questions as to the make up of any gold held on the books; is it custodial – if any is physically present at all – or is it simply paper promises? If one supposes the Treasury does not have any physical gold inventory and, in fact, has swapped promises to deliver gold at a future date – this could pose a systemic problem if miners’ collective ability to produce gold over a given time period was exceeded by Treasury’s promises to deliver.
Such a case would beg the question; who really owns gold all the gold being mined then? I would suggest that all of the gold currently being mined in much of the world – might possibly have been sold twice. That would quite possibly infer that at least one class of owners has actually been sold a bill of goods [or down the river, perhaps?].
U.S. monetary authorities have confiscated their nation’s gold in the past. This is a fact.
What makes everyone so sure they haven’t effectively already done so again – utilizing derivatives [gold quality swaps] with a planned “nationalization” of mining concerns when their cover is finally blown?
This would go a long way to explaining exactly why – after years of conjecture whether or not it would EVER happen – precious metals ETF’s were finally allowed to form. Could it be they served as a convenient means of aggregating metal for just such a purpose?
Treasuries National and Central Banks have been involved in swindles from Roman times to the Napoleonic misadventures of John Law to the fiasco in Weimar, Germany right up to the failure of the London Gold Pool and the closure of the gold window by President Nixon in August of 1971. So ask yourself this; do serial criminals re-offend?
If monetary authorities were really on the ‘up and up’ – they could debunk everything presented here in a N.Y. minute – by simply opening the vaults of Ft. Knox and West Point to a proper, independent, third party audit.
But I’ll say again; they won’t do that, will they? Everyone should and deserves to know that this has not occurred since the Eisenhower Administration in the 1950’s.
That’s why I prefer my metal physical – in hand.
By Rob Kirby
The Manipulation Of The Gold Market
Submitted by Bill Murphy on Wed, 2005-11-16 08:00. Section: Essays
The key to understanding the manipulation of the gold market, this enormous scandal and fraud, is that it can be compared to a murder trial. In the United States a murderer can be put to death if he is found guilty beyond a reasonable doubt. Many times murder defendants are convicted based solely on “circumstantial” evidence because a reasonable person could reach no conclusion other than guilty.
For seven years GATA has discovered one piece of evidence after another supporting our long-held contention that the gold market is managed by certain central banks and their agents, the bullion banks. It is a price-fixing case involving some very powerful people and institutions … in fact it is a Gold Cartel. The U.S. attorney handling the Samsung conspiracy conviction said in an interview this fall that the United States had experienced an “epidemic” of price-fixing cases in the late 1990s. All GATA has done is uncovered one of them, the grandest of all.
For one to appreciate how this can go on and on and not be brought to the attention of the public, one need only to reflect on Enron and Refco. Before its initial public offering of stock, Refco was audited by the most highly regarded firms on Wall Street and nothing wrong was discovered. Yet look at what was really transpiring behind the scenes. Now the company is bankrupt and under criminal investigation.
That said, GATA does have its “smoking gun.” It has to do with derivatives and central bank gold. The mainstream gold world says the central banks have nearly 32,000 tonnes of gold in their vaults (minus a small amount that has been sold in recent years or is on loan to gold producers for their hedging operations). GATA says the central banks have less than half of that — the difference being what was clandestinely fed into the market to suppress the gold price over the last 10 years. The work of three respected GATA consultants — Reg Howe, Frank Veneroso, and James Turk — each using different methodologies, supports GATA’s contention of vastly diminished central bank gold supply.
Veneroso made a presentation at GATA’s African Gold Summit in Durban, South Africa, on May 10, 2001, laying out why the central bank gold loans are far higher than generally believed. This presentation, “Facts, Evidence and Logical Inference … A Presentation On Gold Supply/Demand, Gold Derivatives and Gold Loans,” may be reviewed at:
Howe and Turk have done the same at their Internet sites:
http://www.goldensextant.com/ and http://www.goldmoney.com/.
Meanwhile the International Monetary Fund has instructed central banks to lie about their gold reserves — to count gold loans and swaps as gold in their vaults. So as not to be so audacious without backup to validate our more than dramatic claim, let me explain. Canadian GATA supporter Andrew Hepburn posed the following question to the IMF in October 2001:
Why does the IMF insist that members record swapped gold as an asset when a legal change in ownership has occurred?
The IMF responded:
“This is not correct: the IMF in fact recommends that swapped gold be excluded from reserve assets. (See Data Template on International Reserves and Foreign Currency Liquidity, Operational Guidelines, para. 72, http://www.dsbb.imf.org/guide.htm“
(For more on this, see http://groups.yahoo.com/group/gata/message/904. The IMF link mentioned above is no longer operating. It was in 2001 as noted in the GATA dispatch.)
Yet a footnote on the Internet site of the central bank of the Philippines contradicts the IMF’s claim and reveals it to be bogus:
“Beginning January 2000, in compliance with the requirements of the IMF’s reserves and foreign currency liquidity template under the Special Data Dissemination Standard (SDDS), gold swaps undertaken by the BSP with non-central banks shall be treated as collateralized loans. Thus, gold under the swap arrangement remains to be part of reserves and a liability is deemed incurred corresponding to the proceeds of the swap.”
The European Central Bank and other central banks corroborated exactly what the central bank of the Philippines declares about counting gold loans the same as gold in the vault.
The “smoking gun” part of this has to do with the gold derivatives on the books of the Bank for International Settlements in Switzerland. The gold establishment says the gold derivatives on those books have been associated with gold producer hedges. Yet in the last four years gold producers have reduced their hedges by more than 2,000 tonnes of gold, or more than 50 percent of their hedging at its peak. Consider this excerpt from a Reuters report from November 8, 2005:
“LONDON — …. The Hedge Book report produced by Haliburton Mineral Services and industry consultants Virtual Metals said the so-called hedge impact of the global book fell by 1.0 million ounces to 52.8 million ounces. … The global hedge impact in the July-September quarter was just more than half its level in the same quarter of 2001 when it peaked at 102.8 million ounces.”
Meanwhile, gold derivatives have gone up during that period of time, not down. While these are complicated and technical, Howe updated GATA’s evaluation of the BIS gold derivatives in a report he posted at GoldenSextant.com in June, “Gold Derivatives: Skewing the World”:
“On May 20, 2005, the Bank for International Settlements released its regular semi-annual report on the over-the-counter derivatives of major banks and dealers in the G-10 countries for the period ending December 31, 2004. The total notional value of all gold derivatives rose from $318 billion at mid-year 2004 to $369 billion at year-end. As subsequently detailed in table 22A of the June issue of the BIS Quarterly Review, released June 13, 2005, forwards and swaps increased slightly from $129 to $132 billion while options rose dramatically from $189 to $237 billion.”
Howe’s report can be found here:
http://www.goldensextant.com/commentary29.html#anchor3776The only explanation for the dichotomy between the reduced hedges and the increased gold derivatives on the books of the BIS is undisclosed lending of gold and writing of central bank call options associated with the price suppression scheme.
There is one other anecdotal point to make proving how right GATA has been all along and what it means for gold investors in the years to come. For years GATA has claimed that the key to the eventual surge in the price of gold was the rising physical demand for gold amid the diminishing supply of central bank gold used to suppress the price. The gold establishment has associated the rise in the price of gold over the years with the weakening of the U.S. dollar. GATA has claimed otherwise.
We said the Gold Cartel was using the action of the dollar for price-rigging purposes. GATA has said over and over that the price of gold could rise hundreds of dollars per ounce and the dollar do nothing relative to other currencies. We said it would happen when the gold cartel began to lose control of its price manipulation scheme.
The euro came into existence on January 1, 1999, at $1.17. The price of gold that day was $284. As this is written in mid November 2005, the euro approached $1.17 again while gold has rocketed $194 per ounce since the beginning of 1999.
Here’s more that helps to prove GATA’s case about the gold market. At the beginning of 2005 gold was $420 and the euro was $1.30. In mid November the euro was trading at $1.17. But the price of gold was $478. The argument that gold is tied to the dollar has gone the way of the Dodo bird. Of course, should the dollar crash, which it should, this can only help the gold price.
The price of gold is headed to well beyond $2,000 per ounce. GATA knows why.
Now you do too.
Bill Murphy is chairman of the Gold Anti-Trust Action Committee and proprietor of http://www.LeMetropoleCafe.com, an Internet site devoted to financial commentary with emphasis on the precious metals.