A Forensic Investigation from SSJ

169
Wed, Jul 31, 2013 - 11:45am

Yesterday, longtime Turdite "StrongSideJedi" went off on a project. Inspired by the ongoing discussion of negative GOFO and a video which he had posted earlier in the day, SSJ began sniffing out the origins of the gold in the GLD. Rather than see all of his effort lost among the pages of comments, I decided to create this "guest post" out of the material he uncovered.

So this post is divided into three parts. First, after reading through all of SSJ's material, I posted my own summary and conclusions for SSJ to consider. (Frankly, his work is so extensive, I wanted to check to see if I was reading it right.) Next, there is SSJ's response to my conclusions and, finally, a full c&p that I've cobbled together from the string of information that SSJ posted through the day and evening yesterday. Please read this material and draw your own conclusions. Please also add any other information that you may think relevant. I'm sure that SSJ will be monitoring this thread and adding his further comments, too.

Before we begin, I just want to salute SSJ for his diligence in attacking this subject. As you all know, if we collectively wait for "mainstream" outlets to pursue the facts regarding gold rehypothecation and fractional reserve banking, the truth will remain hidden. It is only through the efforts of concerned individuals like SSJ that we will be able to prepare for and anticipate the next acts of the wicked central banks and their sinister bullion bank accomplices.

Alright...so let's begin at the end. Here are the conclusions I posted and asked SSJ to review:

  • GLD was "funded" with gold leased out (sold) by the BoE and SNB.
  • With everything going on, not only are those entities no longer willing to provide supply, they're actually taking their gold back before it's too late.
  • Holders like Paulson and Soros are the "fly in the ointment" as they have a GLD claim on the same gold that the BoE and SNB claim as their own "leased" assets.
  • We are witnessing a managed, slow-burn "run" on the London vaults, where supposed "allocated" gold rests for entities worldwide but this gold has instead been leased out, not only to the GLD, but sold into the market and currently dangling around the necks and wrists of Asians as well as being recast into 1Kg Chinese bars.
  • SSJ then reviewed my conclusions and posted this in reply:

    The set of conclusions you've posted above are reasonable.
    One of the key issues is that the SNB and BoE sales rates need to be cross correlated to the source of GLD ingots.
    I'm guessing and speculating that the bars sold by SNB were in London and not in Switzerland. If so, the SNB may have had 1200-1300 metric tons of gold allocated in BoE vaults. Presumably those bars were sold through LBMA anyway. Since BoE and LBMA mix their books (see BoE statement that they are "custodian" on their statements), the lack of transparency at LBMA is reaching a point that there is global economic ramification due to their gamesmanship. This is unacceptable from a geopolitical sense. Therefore, it is logical that the Chinese and others have lost confidence in the system. It is also logical that those players are removing their bars from the LBMA/BoE system. Even so, the British Empire and the LBMA clearly were the dominant player for several centuries, amassing and vaulting huge sums of gold.
    We need to do some more forensic analysis based upon reports from the other up and coming players. Dubai is one such player. The other two are Hong Kong and Singapore. So, the place I would like to go now is to look at the reports of gold shipments from London to those three places. One of the videos yesterday that I posted (Mike Maloney) attributed the market action to Chavez and Venezuela. It might be that Chavez was more of a symptom and response. Libya and Quaddafi is an interesting player due to the fact that he was killed and Libya had gold reserves in London. I've wondered if the Libya situation was due to the market needing to locate 100+ mt of gold to fulfill demands by players for their allocated gold ingots.
    LBMA's lack of transparency in gold audits is highly problematic at this point. LBMA needs to disclose their trading numbers and needs to publish regular reports on their vault. Otherwise, why believe anything coming out of LBMA?
    BoE online reports appear to combine leased and pledged gold with their own reserve in the reported line item. Therefore, you can not evaluate or tease apart the amount of hypothecation or rehypothecation in the fractional gold reserve scheme in London. I'm sure this is on purpose as GATA has so perfectly illustrated.
    When I was studying that BoE spreadsheet, it looks like the spreadsheet has fixed quantities of gold (ounces) but that other financial instruments are moving quite a bit. I've not studied the spreadsheet close enough to correlate the movement of the numbers to physical world events.
    But, the gold reserves counted by the nations should not be screwy. Otherwise, those financial analysts and political bureaucrats will be summarily penalized by their governments. The bottom line is that the disclosures by SNB and GLD are sufficient to pinpoint what is really going on even if BoE is lying. When dealing with 1000 metric tons of gold, you can not easily move that from one inventory to another. Therefore, the BoE could be completely opaque and yet the SNB and GLD disclosures were sufficient to see the dynamics over time.
    I need to extract the data from SNB annual reports. If anyone knows how to locate SNB's statements on gold reserve held in London versus Switzerland, it would be helpful. I've already located total SNB gold ounces per year. It's just that you can not tell how much was in the London versus Geneva/Bern/etc.

    And here is the complete, unedited string of posts from SSJ. This is a simple c&p of everything SSJ posted, in the order he presented it. Please read through it yourself and then post your own conclusions into the comments section of this thread.

    TF

    Swiss National Bank - SNB - Gold reserve number
    Submitted by Strongsidejedi on July 30, 2013 - 4:00pm.

    Several URL's on Swiss banking gold
    From SNB's 2012 report:
    "Gold sales have not taken place since September 2008."
    On page 144: 2012 year end gold reserve is 1001 metric tons of gold ingots with 39 metric tons of gold coins. 2011 year end gold reserve was 986 metric tons of gold ingots with 39 metric tons of gold coins. So, SNB acquired 15 metric tons of gold ingots in 2012. (So 1001 + 39 = 1040 metric tons at end of 2012)

    From https://www.usagold.com/swissgoldwgc.html (a 1999 report on Swiss gold)

    2,590 tonnes of gold in its official reserves (1) Switzerland is the world's fourth biggest individual official holder of bullion, after the Eurosystem (2) , the US and the IMF. As of April 1999, gold forms 38.3 per cent of the reserves of the Swiss National Bank (SNB). For many people, both inside and outside Switzerland, there has long been an assumption that the strength of the country's currency and its economy owes much to its considerable reserves of gold. The link between gold and the Swiss currency has been enshrined in the country's constitution for more than a century.
    The media outside Switzerland were therefore taken aback when, on 24 October 1997, a joint group of the Swiss Finance Ministry and the SNB produced a report on reform of the country's currency laws which, among other matters, recommended that some 1,400 tonnes of the gold reserves should be sold.

    Let's do some math.
    If the 2590 mt number from 1999 is correct, then indeed the SNB sold off 1400+ metric tons.
    The 1999 gold reserve appears to be 2590mt.
    The 2012 gold reserve appears to be 1040mt.
    The balance is 1550 metric tons.
    Isn't that an interesting number?
    1550 again.

    Swiss Nat'l Bank report from 2000
    Submitted by Strongsidejedi on July 30, 2013 - 4:14pm.

    SNB report from 2000 shows the gold transactions and leasing numbers.
    https://www.snb.ch/en/mmr/reference/annrep_2000_komplett/source
    "The agreement on gold sales concluded in September 1999 between 15 European central banks (cf. 92nd Annual Report, page 45), also requires the National Bank to limit its gold lending to the previous level of 328 tonnes. It therefore kept its lending volume constant on that level; at the end of 2000, the amount of gold lent was 323.8 tonnes." - page 50

    "The National Bank sells gold no longer required for monetary policy purposes totaling 1,300 tonnes successively over a period of time on the market. The proceeds are invested in various financial assets which are managed separately from the other assets. The investment process is structured similar to the foreign exchange reserves. Within the framework of the investment strategy fixed by the Governing Board, an internal steering committee determines the detailed investment guidelines and management measures. The yardstick for success is the yield achieved on benchmark portfolios.

    The sale of the gold no longer needed began at the beginning of May. By the end of December, the National Bank had sold 170.8 tonnes of gold on the market at an average price of US dollars 275.58 per ounce. The proceeds from these sales amounted to Sfr 2.6 billion. The Bank for International Settlements (BIS) was entrusted with the sale. The sales were concluded at regular intervals and in quantities that protected the market as much as possible. They are effected within the framework of the agreement on gold sales concluded between 15 European central banks in September 1999. The agreement fixes annual sales quotas.

    The possibilities of hedging additional gold holdings earmarked for sale against an unfavourable development of the gold price in Swiss francs are considerably limited by the agreement on gold sales of September 1999. The National Bank may therefore not hedge against the gold price risk with derivative instruments. It can, however, manage the currency risk of future US dollar-denominated proceeds from gold sales. For this reason, the National Bank has concluded dollar forward sales against Swiss francs and euros to the extent of roughly one-third of the future proceeds in dollars. A complete hedge of the currency risk is not necessary because, as a rule, any weakening of the dollar against the Swiss franc regularly coincided with a rise in the dollar price of gold. Moreover, broad-based hedging could lead to disturbances in the Swiss franc forward market. In 2000, hedging transactions resulted in a profit of Sfr 82.8 million."

    from page 90:
    "Physical gold holdings, which are stored at a variety of locations in Switzerland and abroad, declined by 180.7 tonnes compared with 1999. Of this figure, 170.8 tonnes were sold and 9.9 tonnes are accounted for by lending transactions and higher balances on metals accounts.

    Claims from gold transactions
    This item relates principally to secured and unsecured claims from gold lending transactions. Transactions are effected with first-class Swiss and foreign financial institutions. At the end of 2000, there were outstanding claims of over 323.8 tonnes, corresponding to a market value of Sfr 4,685.4 million (including accrued interest) on gold lending transactions."

    1999 holdings are listed as 2099.3 mt gold ingots, 175.2 mt gold coins
    2000 holdings are listed as 1918.5 mt gold ingots, 175.2 mt gold coins

    Bank of England gold sales
    Submitted by Strongsidejedi on July 30, 2013 - 4:23pm.

    SNB gold reserve is reported to be at 2100 mt in 1999, 1918.5 mt in 2000.
    Now, it's reported to be around 1040 mt.
    Therefore, about 1050 mt were sold between 1999 and 2008.
    In that same time period, Gordon Brown started the famous gold sales in London.
    How much gold did England sell?
    see the Brit's Treasury Dept. report here:
    https://www.docstoc.com/docs/28912647/Review-of-the-sale-of-part-of-the-...
    Annex A on page 28 states that 12.7 million ounces were sold.
    Convert 12.7 million ounces of gold to metric tons...
    It's 360 metric tons.
    The sales were over by 2002.

    GLD inventory as of 2009
    Submitted by Strongsidejedi on July 30, 2013 - 4:41pm.

    GLD inspectorate certificate as of 2009 list is published by GLD's trust at:
    https://www.spdrgoldshares.com/media/GLD/file/Inspectorate_Certificate_O...
    The report is interesting because the inspector clearly itemized every bar. He lists a variety of reporting errors when reconciling the inventory lists.
    Regardless, he counted 36,015,108.723 fine troy ounces of gold in 89,797 London Good Delivery bars.
    These bars were listed as being at "London Vaults of HSBC Bank USA National Association"
    I've previously published the quote from GLD that the HSBC custodian vaults are actually the Bank of England and LBMA vaults in London.
    So, how many metric tons of gold are 36,015,108.723 fine troy ounces?
    It's 1120 metric tons. The numbers are getting interesting, aren't they?
    Let's look at April 2011 near the peak.

    GLD publishes its inspectorate certificate here:https://www.spdrgoldshares.com/media/GLD/file/Inspectorate_Certificate_A...

    They note 39,167,616.813 fine troy ounces of gold held in 97,677 London Good Delivery bars.
    How many metric tons of gold in 39,167,616.813 troy ounces?
    It's 1218.25 metric tons.
    For more: https://www.spdrgoldshares.com/media/GLD/file/
    For the Internet literate, crawl it and download while you can.

    GLD inventory and SNB + BOE sales
    Submitted by Strongsidejedi on July 30, 2013 - 4:51pm.

    BoE sales were about 360 metric tons.
    SNB sales were about 1050 metric tons.
    BoE + SNB = 1410 metric tons.
    GLD at peak in April 2011 reportedly had 1218.25 metric tons.
    SNB was selling at a rate of about 1800 metric tons per year from 1999 to 2008.
    1410 - 1218 = 190 metric tons.
    The numbers are pretty obvious here. There is wayyy to close of a match between these numbers and the GLD inventory numbers.
    GLD piled together the title rights to the bars in London vaults from other central banks. Those were probably lease rights. The GLD title rights were allowed to run up to the level of nearly the entire gold sales from both Switzerland and England combined.
    The SNB report from 2000 itself says it all:

    "National Bank has concluded dollar forward sales against Swiss francs and euros to the extent of roughly one-third of the future proceeds in dollars. A complete hedge of the currency risk is not necessary because, as a rule, any weakening of the dollar against the Swiss franc regularly coincided with a rise in the dollar price of gold. "

    Sounds like GOFO right?

    @TF
    Submitted by Strongsidejedi on July 30, 2013 - 5:01pm.

    Maguire and McLeod and the rest of the gang have been right.
    Plus, you set up that analysis with your pointing me to the GLD decline in inventory.
    My guess is that the GLD inventory went back to Switzerland.
    You have to wonder if Soros was being shielded by the Swiss.
    I'm guessing the phone call is something like... "Bonjour Mr. Soros, I am calling from the SNB. We'd like to discuss your investment accounts here. Can we make an arrangement with you to keep your accounts quiet and your fund solvent? By the way, we want our gold back in London. Can you sell your gold to us at once? After all, if you don't, we'll have to work your accounts with UBS, and we really wouldn't want to do that ... right? n'est pas?"
    "oh oui oui msr."
    "Danke, Merci, and Thank you Mr. Soros, you are such the team player"
    "oh oui oui..."
    hangs up and calls London desk
    Maguire then sees what he sees....am I right?

    More on GLD gold holdings
    Submitted by Strongsidejedi on July 30, 2013 - 5:59pm.

    https://www.spdrgoldshares.com/media/GLD/file/SPDR_Gold_Trust_10-Q_(quarter-ended_03_31_13).pdf
    page 13 of the report:
    "As at September 30, 2012, the Custodian held 42,803,608 ounces in its vault 100% of which is allocated gold in the form of London Good Delivery gold bars excluding gold payable, with a market value of $76,019,208,058 (cost — $50,726,261,488). Subcustodians held nil ounces of gold in their vaults on behalf of the Trust and 339,296 ounces of gold were payable by the Trust in connection with the creation and redemption of Baskets."
    42,803,608 ounces = 1213 metric tons (in line with the estimate above).
    Also they report "In the six months ended March 31, 2013, an additional 31,800,000 Shares (318 Baskets) were created in exchange for 3,080,127 ounces of gold, 64,000,000 Shares (640 Baskets) were redeemed in exchange for 6,195,243 ounces of gold, and 84,474 ounces of gold were sold to pay expenses.
    As at March 31, 2013, the Custodian held 39,264,721 ounces of gold on behalf of the Trust in its vault, 100% of which is allocated gold in the form of London Good Delivery gold bars with a market value of $62,754,840,067 (cost — $47,757,325,849) based on the London PM fix on March 31, 2013. Subcustodians held nil ounces of gold in their vaults on behalf of the Trust."
    6,195,243 - 3,080,127 = 3,115,116 ounces net lost
    3,115,116 ounces = 88.3 metric tons lost from GLD between 9/12 and 3/13.

    And here are the Bank of England ledgers:

    https://www.bankofengland.co.uk/statistics/Documents/reserves/2012/Dec/T...

    any conclusions?
    Submitted by Strongsidejedi on July 30, 2013 - 7:03pm.

    Any conclusions by anyone else?
    Here's a few of mine
    1. It looks like the governments in the IMF certainly do align gold with SDR's and with other currencies.
    2. Gold can not be a barbaric relic when SNB and BoE ledger gold as part of their reserve.
    3. When Gold is included in the SDR "basket" at IMF, is that by "tradition" also?
    4. FRB-NY had huge outstanding debts purchased from big players in the 2009-2010 timeframe. Where's the $1.2 trillion in assets to balance that sheet? Or, are we still calling MBStuff "asset" instead of "liability"?
    5. When US Fed Reserve injects 85 billion per month on various contracts, is that supposed to provide insulation from moral hazard? Who's hazard are we really talking about here?
    6. Which rules supreme? The privacy of the FRB or are we talking about the moral hazard of the currency in the United States of America? Congress anyone?
    7. Geez, if I can put this together on TFMR, where the hell has Bart Chilton been? He gets paid by US taxpayers for this crap and he's not done squat!
    8. Soros is no idiot. That guy got something in return for relinquishing authority and title over the BoE and SNB ingots in London. Or, is it possible that Soros' analysts in London were out having tea at Piccadilly while TMFR readers were triangulating on the prospective buyers? If Au goes to 3000, then Soros' liquidation of GLD shares is a foolish mistake. On the other hand, if Au goes back to 750, then Soros' liquidation of GLD shares will look incredible. Didn't Soros scope out the numbers before he sold millions of shares?
    9. Where the hell is Bill Gross in this mix? Was PIMCO completely asleep during the GLD action? Or, is the Bill and Mo show just getting started? Too much surf and turf at Balboa Island?
    10. Where is TimG? He was at FRB-NY and had to have inside info on the Maiden Lane and the TARP/TALF/barf me with a spoon. When our national government was coughing up 400 metric tons of GLD shares, did US Treasury department consider the impact on our national trade balance? Or are the exchange of GLD allocated gold ingots in London "off ledger"?

    Notes on LBMA gold bars
    Submitted by Strongsidejedi on July 30, 2013 - 7:21pm.

    LBMA gold in vaults...mentioned in this paper.

    The Role of the Bank of England in the Gold Market

    Michael Cross

    Head of Foreign Exchange, Bank of England

    The LBMA Annual Conference 2009, Edinburgh

    https://www.lbma.org.uk/assets/cross.pdf

    Bank of England has one of the largest gold vaults in the world; to give you a broad idea of the magnitudes, there are around 400,000 gold bars in our vaults, with a market value at current prices therefore of around £100 billion. The gold in our vaults is held on behalf of our customers and they include other central banks, international financial institutions, Members of the LBMA as well of course as the UK Treasury. The Bank is not unique in its role as custodian, and other central banks do offer similar facilities, most notably the Federal Reserve, and other commercial firms in London and around the world provide custodial services, although these are most commonly provided on an unallocated basis. As you know, the Bank provides an account management service on an allocated basis. That means that our customers holding gold at the Bank have title to specific bars.

    As I’m sure you also know, owners of gold are able to mobilize those holdings conveniently by making or receiving book entry transfers between the accounts of our customers at the Bank. Transfers affected in this way are advantageous because there is [no?] requirement for the gold to be physically removed from the Bank’s vaults. Instead, the title to the bars is transferred in the Bank’s back office system. The Bank is probably unique in providing this kind of account management service on the scale that we do. The service provides an important element of the gold market infrastructure in London, which helps participants to trade in a secure and efficient way.

    The system has grown up organically over a long period of time rather than by specific design – and very much in response to representations from participants in the London market. We certainly value the dialogue on this and on every other aspect of the gold market in London. As a parallel with the government’s gold lease facility on the Bank of England’s side, which grew out of our role as custodian, is that we used to accept gold unsecured deposits from other central banks and then on place them in the market in our own name at a price that took into account the operational and credit risk involved. However, like the government’s gold reserve, given historically low lease rates, the Bank is no longer able to on place gold deposits at a margin that justifies the credit or the operational risks involved. As such, we don’t currently accept gold deposits from other central banks for on placement.


    For all those Turd beaters
    Submitted by Strongsidejedi on July 30, 2013 - 7:32pm.

    We all know who the guys are that show up here and talk their negativity in this forum.
    https://www.lbma.org.uk/pages/?page_id=152&title=forecast_2013
    Well, maybe the Turd mashers can go read the official forecasts posted at LBMA for 2013?
    Somehow, despite this being a PM blog, and despite the blogosphere being so small, NOBODY went to LBMA and posted the actual forecasts from EVERY major player in the LBMA!
    NONE of the analysts predicted the correct low. All were off by 20% and NONE forecasted the gold sales from Jan to June 2013.
    Want to conjecture why?
    Because NONE of those analysts on the LBMA and looking at physical really understood the relationship between GLD and the title to the bars in the LBMA and BoE vaults.
    And, NONE of those analysts work for Goldman Sachs or JPMChase (the "cartel" as TF puts it). One analyst works for HSBC, but he was way off in his estimates.
    If the world at LBMA is going to sit at St. Andrews enjoying the 3 PM hole 19 tea, maybe they can get into their offices and actually post a LBMA inventory report that is able to match to GLD's postings.
    After all, it's the same vaults!
    And, if you really have 400,000 GD bars there, GLD already counted some 80,000 of them...right? Right?

    @Kcap- may the force be with you!
    Submitted by Strongsidejedi on July 30, 2013 - 10:30pm.

    @Kcap
    Look what I just found:
    https://www.gwb.com.au/gwb/news/banking/rothchild.html
    "To this day, N.M. Rothschild & Sons of London still lists as its primary business the selling and buying of treasuries and gold bullion. N.M. Rothschild helps fix the price of gold in London each day through the LBMA. A recent London Times articles explained that the gold price fix ceremony where five men (including a Rothschild) talk on their phones for 10 minutes, then lower tiny Union Jacks sitting on their desks, thereby fixing London's gold price each day. This ceremony takes place at 10:30 a.m. and 3 p.m., like clockwork, the same way, in the same place, and with mostly the same firms participating since the first gold fixing was enacted at Rothschild in St. Swithin's Lane on Friday Sept. 12, 1919. The company's name is also associated with many gold mining companies (e.g. Trillion Resources Ltd. and other Canadian mining companies)."
    There is a reasonable rationale to argue that the arbitrary nature of setting international gold price at LBMA is posing a national security threat to the United States.
    The video I posted earlier discussed fractional gold reserve banking. The video caused me to dive into the SNB annual reports and to identify that Swiss gold reserves were sold for ten years. The fact that those same quantities of gold (plus the gold sold by the UK in the exact same time frame) appear to have ended up in GLD is rather intriguing.
    JPMC is wise to get out of that business. If JPMC remained in that business, you would have US government interests running in opposition to the interests of the Rothschild's and the LBMA. Is there really any question why Jes Staley ended up in London? There really shouldn't be at this point.
    More significantly, these observations regarding gold reserve movement between sov's also explains the departure and schism between Germany and the UK pre-WW2.
    Let's rewind the clock by 150 years and take a closer look at the end of the reign of the Hanover clan. The House of Hanover included King George II, King George III, and ended with Queen Victoria. Sorry to the Brits who may be reading, but I'm decidedly American and will not be following any royal honorifics at this point. It is rather disappointing that the Queen and the House of Windsor would choose these paths. But, as an American and a patriot, my loyalty is to these United States and not to her financial encumberance on world gold supply.
    Queen Victoria's father may have been Prince Edward, but her mother was princess of Coburg. Victoria's mother was Prince Albert of Saxe-Coburg in northern Bavaria. The house of Windsor was formerly the House of Coburg in Germany's Bavaria. In many ways, the German defeat in WW-1 was to the house of Saxe-Coburg/Bavaria. By then, the family renamed themselves the House of Windsor. But, one can already see the impact of Victoria and Albert by going to the city square in Coburg, Germany (still standing despite both world wars).
    Perhaps I "doth protesteth too much" but my allegiance and birth are decidely American. I take great offense to the stealing of my fellow countrymen's wealth by Mr. Soros' schemes, Mr. Rothschild's quiet orchestration, or Her Majesty's feigned ignorance.
    When citizens globally and more specifically investors in the United States (because GLD is uniquely available on NYSE) are taken for an ride by the BoE, you would think that large holders of GLD would be irate.
    I wonder if we can find who the biggest holders of GLD are?
    Who will we find among those still holding bigger investments in GLD?

    JPMC politics
    Submitted by Strongsidejedi on July 30, 2013 - 10:51pm.

    https://www.prnewswire.com/news-releases/james-e-staley-to-join-bluemoun...
    https://blogs.wsj.com/deals/2012/05/11/ina-drew-the-london-whales-boss-l...
    https://www.bloomberg.com/news/2013-01-08/jpmorgan-s-staley-quits-to-joi...

    Somebody needs to fill us in on the London Whale.
    What was the trade and where was the guy situated?
    Don't tell me that the Whale was at LBMA, was he?

    Big holders of GLD
    Submitted by Strongsidejedi on July 30, 2013 - 11:48pm.

    https://www.nasdaq.com/symbol/gld/ownership-summary
    You have to love United States corporations and markets.
    The Bank of England and LBMA apparently feel that opaque gold reserves are a part of business.

    Owner Name Date Shared Held Change (Shares) Change(%) Value(in 1,000s)
    PAULSON & CO INC 03/31/2013 21,837,552 0 0.00 2,805,470
    JPMORGAN CHASE & CO 03/31/2013 10,155,833 36,559 .36 1,304,720
    BANK OF AMERICA CORP /DE/ 03/31/2013 10,021,350 10,979 .11 1,287,443
    NORTHERN TRUST CORP 03/31/2013 6,903,210 (9,104,784) (56.88) 886,855
    MORGAN STANLEY 03/31/2013 6,651,476 315,646 4.98 854,515
    CREDIT SUISSE AG/ 03/31/2013 6,247,052 153,100 2.51 802,559
    UBS AG 03/31/2013 5,717,581 1,806,219 46.18 734,538
    BLACKROCK ADVISORS LLC 03/31/2013 3,117,748 (3,451,284) (52.54) 400,537
    ALLIANZ ASSET MANAGEMENT AG 03/31/2013 2,887,943 (1,028,817) (26.27) 371,014
    FIRST EAGLE INVESTMENT MANAGEMENT, LLC 03/31/2013 2,622,208 30,698 1.19 336,875
    WELLS FARGO & COMPANY/MN 03/31/2013 2,139,671 (90,880) (4.07) 274,884
    SCHRODER INVESTMENT MANAGEMENT GROUP 03/31/2013 2,085,283 2,084,023 165,398.65 267,896
    LAZARD ASSET MANAGEMENT LLC 03/31/2013 1,972,699 (148,735) (7.01) 253,433
    SCS CAPITAL MANAGEMENT LLC 03/31/2013 1,859,787 193,611 11.62 238,927
    SUNTRUST BANKS INC 03/31/2013 1,827,282 (100,504) (5.21)
    234,751






    INSTITUTIONAL HOLDERS



    Owner Name Date Shared Held Change (Shares) Change(%) Value(in 1,000s)
    JPMORGAN CHASE & CO 03/31/2013 10,155,833 36,559 .36 1,304,720
    BANK OF AMERICA CORP /DE/ 03/31/2013 10,021,350 10,979 .11 1,287,443
    NORTHERN TRUST CORP 03/31/2013 6,903,210 (9,104,784) (56.88) 886,855
    MORGAN STANLEY 03/31/2013 6,651,476 315,646 4.98 854,515
    CREDIT SUISSE AG/ 03/31/2013 6,247,052 153,100 2.51 802,559
    UBS AG 03/31/2013 5,717,581 1,806,219 46.18 734,538
    BLACKROCK ADVISORS LLC 03/31/2013 3,117,748 (3,451,284) (52.54) 400,537
    ALLIANZ ASSET MANAGEMENT AG 03/31/2013 2,887,943 (1,028,817) (26.27) 371,014
    FIRST EAGLE INVESTMENT MANAGEMENT, LLC 03/31/2013 2,622,208 30,698 1.19 336,875
    WELLS FARGO & COMPANY/MN 03/31/2013 2,139,671 (90,880) (4.07) 274,884
    SCHRODER INVESTMENT MANAGEMENT GROUP 03/31/2013 2,085,283 2,084,023 165,398.65 267,896
    LAZARD ASSET MANAGEMENT LLC 03/31/2013 1,972,699 (148,735) (7.01) 253,433
    SCS CAPITAL MANAGEMENT LLC 03/31/2013 1,859,787 193,611 11.62 238,927
    SUNTRUST BANKS INC 03/31/2013 1,827,282 (100,504) (5.21) 234,751
    CTC LLC 03/31/2013 1,786,676 (2,034,331) (53.24) 229,534

    Elementary my dear RationalMind...elementary!
    Submitted by Strongsidejedi on July 31, 2013 - 12:08am.

    It appears that Mr. Paulson may have rights to more gold than the rest of the planet understands.
    If the gold ingots in BoE vaults are as hypothecated and rehypothecated as Mr. McGuire believes, then I would say that the US government has ever reason to "encourage" our British friends to clearly allocate the ingots owned by GLD.
    That would leave the rest of the world banks to argue over the scraps in London vaults.
    And, it would leave Mr. Paulson's fund and Mr. Fink's fund (Blackrock) able to request delivery.
    They are both gentlemen and would not seek to embarrass the crown in such a fashion.
    But, then again, maybe President Obama's faux-pas when in attendance of her majesty wasn't such a spontaneous err.
    Maybe the President knows what's up and that the crown of England should be eating a few more hot dogs for good times sake.

    Libyan Gold reserve discussed by IMF
    Submitted by Strongsidejedi on July 31, 2013 - 10:22am.

    For some reason the 140-180 mt number keeps coming up. It's like a magic number.
    And, note the dateline... March 2011
    IMF apparently discussed the Libyan gold reserve as being in the ballpark of 140 mt.

    https://www.bbc.co.uk/news/business-12824137

    22 March 2011
    Libya holding huge gold reserves IMF data shows
    By Andrew Walker Economics correspondent, BBC World Service
    "The IMF data show Libya's reserves to be 4.6 million ounces, a figure of nearly 144 tons. At current market prices the value is over $6bn.
    There are twenty countries with larger gold reserves. But, with the exception of Lebanon, they are all much richer or much larger in population.
    Britain for example has twice as much gold, but ten times the population and an economy more than 30 times the size.
    A closer comparison is Algeria, which is, like Libya, a North African oil producer - it has 20% more gold reserves, but more than five times the population."

    THAT'S ALL FOR NOW. THANKS AGAIN, SSJ!

    About the Author

    Founder
    turd [at] tfmetalsreport [dot] com ()

      169 Comments

    realitybiter
    Jul 31, 2013 - 11:24pm

    Summers / stagflation

    The last time Obama gave Summers a job the HUI went up 37%, including the day before the announcement (the leak, of course)....Nov 24, 2008...two huge days

    ...Obama does not care at all about his legacy. In his mind it is a lock. He's the greatest American President ever. He killed the world's worst terrorist. He brought the economy back from the edge of the abyss. He learned how to golf and his wife learned how to snowski.....His worse case is to blame it all on the other guy....and forever, he will continue to say how bad it would have been otherwise, comparing his record to hyperbole...."Manbearpig....Excelsior!!!"....and of course, all bankers will sing his praises (can you imagine how much he will make speaking to them for YEARS!!! he'll make Clinton look like a rookie).

    Stagflation and pm negative....really? 70's were the creators of the term stagflation...no/low growth, rising prices. In the mid 70's stocks fell hard, recovered it all, then went nowhere for 5 years and gold and all other commodities soared...

    we'll see.....

    someone mentioned Dalio and the "beautiful deleveraging" true enough...that is his thesis and he is one of the best and brightest hedge fund mgrs.....he is also long gold and recommends all own at least 10-20% of your net in gold....

    zman
    Jul 31, 2013 - 11:29pm

    @JAW

    "QE is inflationary" 

    In theory, but it's not the reality. Look at Japan, they are doing QE on steroids, 3 times the US levels, and the latest report shows DECLINING what little inflation they have today. This is what Sinclair is admitting, QE is not inflationary, he though it would be for 5 years, today he changed his outlook, I respect him for admitting his thesis was wrong, I was wrong as well.

    "Rising prices are the symptom, which some will argue we are seeing" 

    Well, for the last 2 years, the CRB index is down a lot, all the food commodities are down, same with cotton, metals, nat gas, only oil is holding its ground. We are not seeing it, despite what some are arguing.

    "The velocity of money will eventually go up."

    There is no evidence of this at all, that is pure speculation. High unemployment, declining real wages, and tight credit from the banks all leads to a very low velocity of money in the future. You can't force bankers to loan money to people who are a bad credit risk, and that live in very dangerous economic enviornment.

    "and people will spend"

    Whatever money they have just to survive, just like today, discretionary money or income is not there for the bottom 90% of the population.

    "The simple fact is long term rates are negative and that is inflationary. Assets will rise."

    I agree, interest rates are slightly negative today, but that does not mean people are not hoarding cash, because they are today, and they are accepting of a -3% to -4% yearly return, so it's not inflationary and it is not strong bet that "assets will rise".

    Why is the demand for physical silver and gold so weak that even with silver at $20, there is plenty around? The only thing that would create that demand would be massive negative interest rates (-8 to -12%), and the real fear of non-stop inflation, that hasn't happened, and may never happen.

    And yes, and I am also enjoying the exchange of ideas, I really thought Sinclair's words would have more people engaged about this subject, nobody in the PM world seems to care that "Mr.Gold" is rethinking his thesis on QE.

    realitybiter
    Aug 1, 2013 - 12:05am

    zman Sinclair

    Help me out. Where is Sinclair's admission that he is wrong and gold is not the right place to invest?

    thx

    Iceberg Slim
    Aug 1, 2013 - 12:14am

    Inflation

    If you're looking for inflation you don't need to look any further than the US stock market. it's all right there. staring at you right in the face. tons of inflation. just waiting to go somewhere. and someday, it will.

    Inflation is purposely being created to support rising equity prices, by DESIGN. that is the whole point of QE, admittedly stated by the Bernank himself via his purported "wealth effect". It's just a matter of time for when the inflation significantly spreads or shifts elsewhere, and it has already been leaking all over the place, regardless of what the CPI says. Inflation does not require a government economist to tell you whether or not it exists.

    Right now, inflation is primarily going into stock market because that is the easiest, most convenient, and most lucrative place for the primary dealers to put all the brand new money that is freshly doled out to them via POMO days, so that is where inflation's effects are the strongest and most notable (for the time being): in highly inflated and overvalued equity prices.

    Ron Paul said it best, inflation benefits those who get the new money first the most.

    Irene
    Aug 1, 2013 - 12:36am

    @zman

    Your conclusions don't follow from what Sinclair has said. 

    As for no inflation, (especially no food inflation) hahahahahahaha. Are you really that clueless about the CPI?

    Strongsidejedi Winter
    Aug 1, 2013 - 12:41am

    @Winter - adding up

    @Winter - could you please be more specific with your comment.

    What did you mean by "something"?

    Are you referring to the GLD shares, the SNB inventory, or the BoE position?

    Strongsidejedi
    Aug 1, 2013 - 1:05am

    Max Keiser interviews Mr. MacLeod

    Video unavailable

    Mr. MacLeod explains BoE's gold reserve changes observed over the past year.

    Remember that BoE numbers report leased gold and allocated reserve gold simultaneously.

    LBMA/BOE will not tell you if the gold ingot bar is being hypothecated or not.

    donnojackshit
    Aug 1, 2013 - 1:27am

    Sensory Overload

    Sensory Overload defined as too many new "things" (events) happening in a short space of time for you to accurately assimilate and recall at a later date.

    The quantity of top notch Turd articles, TFMetal's posters and financial community's articles seems to be in overdrive recently.

    I am not coping with the reading nor the digesting of the vast amount of material available.

    I usually spend at least 8 hours a day reading posts here plus about 50% of the referenced financial community's articles.

    This week I am barely getting through 5% of these articles.

    I know a lot is going on lately, particularly with analysis and detective conjecture on GOFO and where the gold is, but does this portend a tipping point or cataclysmic event about to unfold?

    Maybe the banksters will simply notice that we are onto much of their games, and simply change the rules without us noticing?

    Whether we slowly grind away with the gold price oscillating within set limits for many more months, or we experience a paradigm changing seismic event, these are very interesting times.

    There is no better precious metals analysis anywhere in the World at the moment than the community here.


    Aug 1, 2013 - 1:45am

    I know a lot is going on

    I know a lot is going on lately, particularly with analysis and detective conjecture on GOFO and where the gold is, but does this portend a tipping point or cataclysmic event about to unfold?

    Nobody really knows. Could be significant for the price of gold short term or not. Could mean Lindsey Lohan is in rehab again and Kim Kardashian is pregnant again. Don't worry about the overload. My guess is it's epidemic. It might be in the stars (literally)

    Roger Rocker
    Aug 1, 2013 - 2:18am

    Holy Cats

    This place is better than ever! Like dunnojackshit says it is hard to keep up, I need a reader's digest version.

    Stack-on!

    PS

    And many thanks to humans who are thinking like I, and take the time to DIG.

    Please find the primary cause, I know the truth is close, and truth is gold!

    Spartacus Rex
    Aug 1, 2013 - 2:28am

    Gold Investing –

    Are The 7 Fundamental Drivers And Negative Real Rates Still Intact? Gold Silver Worlds | July 31 The latest investment research paper from the World Gold Council analyzes three topics in detail. The first part contains an in-depth analysis of the true relationship between gold and US real interest rates disproving common misconceptions and exploring gold’s portfolio performance during different interest rate environments. The second part is an examination of the seven primary factors influencing gold’s performance, including currencies, inflation, interest rates. The third part contains a study exploring the benefits of having gold as an integral component of retirement portfolios, focusing on the Mexican pension fund experience.

    The content of each of the three topics is summarized below. We do not have sufficient rights to publish the paper here. The full version of the paper is available here.

    Chapter 1: Gold and US interest rates: a reality check

    As the US economy starts to show signs of rebalancing, paving the way for monetary policy normalisation, we explore the misconceptions surrounding the relationship gold has with real interest rates. We demonstrate that higher real rates are not unconditionally adverse for gold, as the effect of other factors needs to be considered. Thus, gold’s portfolio attributes are not compromised by a return to a normal interest rate environment. In addition, we find the influence US real interest rates have on gold has receded over the last few decades as demand has shifted from West to East.

    Our analysis discusses the traditional link between gold, interest rates, and US investment markets and explains the different reasons why it changed over time: The global gold market has expanded and the supply and demand dynamics become more diverse. Gold is not only used as an investment tool in periods of low interest rates; it is also a consumer product that can be positively influenced by economic growth. The structural changes in the gold market, the remarkable recede of real rates’ importance and their economic impacts, and the increasing relevance of the demand from emerging markets are very likely to contribute to a shift of influence in determining gold prices.

    Our analysis focuses on how real rates impact gold’s portfolio attributes such as returns, volatility and correlation. Each one of these attributes is a fundamental aspect of gold’s contribution in a portfolio. Our analysis further shows how a moderate real rate environment can be favourable to gold’s attribute

    Chapter 2: What drives gold? Factors that influence the asset class and its role in a portfolio... Cont. @ https://goldsilverworlds.com/investing/gold-investing-are-the-7-fundamental-drivers-and-negative-real-rates-still-intact/

    donnojackshit Spartacus Rex
    Aug 1, 2013 - 2:59am

    @Spartacus

    Followed that link you posted, and another article there of interest is titled "Dr Copper Flashing Red", indicates copper technicals are suggesting a possible correction to 2009 levels, which would reflect up to a maximum 50% drop!

    If this transpires, then a further savaging of gold and silver prices in the next few months is extremely possible.

    Other commentators (like Larry Edelson) have suggested maybe $1050/$15 which would see GSR 70!

    Holy stinking Batshit Batman!

    Roger Rocker
    Aug 1, 2013 - 3:12am

    Holy Cats Again.

    Earlier tonight I was whistling The Happening by The Supremes. The tune makes me happy. So I googled it and listened and one thing led to another and I came upon this: https://www.youtube.com/watch?v=QeDnZ8dpMwI Start at 3.25

    Gee whiz, please listen and think about the post above. Somewhere above there's a reference to Saxe-Coburn.

    And then a little later she says: Ya, I lived in Detroit.

    Listen up! You'll hear, it all ties in with what's posted above.

    And she probably doesn't have a clue, but man she could sing! Such sweet music.

    Stack-on!

    donnojackshit
    Aug 1, 2013 - 3:20am

    Epiphany and Fractional Silver

    I was thinking about Jake Blue's work justifying his belief that the shortage of silver in the market was first evidenced by a shortage in the Fractional Silver Coins and resultant increase in their premiums, and then it occurred to me that he is absolutely correct and indeed, is supported by Gresham's Law. Below is an except from a blogger called Aruini I found whilst looking for the theory about negative real interest rates and the price of gold, prompted by Spartacus. (Still trying to recall the theory for the moment.) "Gresham’s Law: “When a government compulsorily overvalues one type of money and undervalues another, the undervalued money will leave the country or disappear from circulation into hoards, while the overvalued money will flood into circulation.” The best examples involve either devaluing the coinage, or failing to devalue the coinage when your currency works on Keynesian/inflationary principles. IE: a quarter from 1960 was 90% silver, resulting in a lump of metal which I would guesstimate to be worth about $5 today – yet its transactional value is still only 25¢. As a consequence, anyone who receives such a coin is liable to horde it, while spending their quarters made out of base metals more freely. What Gresham’s Law boils down to is that if something has an intrinsic value (silver) which is different from its mandated value (denomination), the lesser value will dominate the marketplace – the bad will drive out the good. So far we’re only talking about legal intervention in economic matters (not even a King can declare what a coin is worth – that’s a power reserved for the Gods), but its implications don’t end there. While the silver quarter and the base-metal quarter are obviously the same (25¢ of denomination) and obviously different (inherent values of the metals), what happens if you have two goods where the differing inherent values are obfustscated? 2. The Market for Lemons: this is where we mix Substitute Goods with Gresham’s Law. On the one hand, a car is a car – its listing price is a matter of what features it has, mileage, et cetera. But in the used car market many obfuscated factors go into the value of a particular vehicle – how it was driven, unreported accidents, maintenance – resulting in two types of “identical” vehicles: Cherries – those that were driven gently and well maintained – and Lemons – those that were abused, or which just happened to be poorly manufactured in the first place. The problem which arises from this is that Cherries and Lemons can’t be reliably distinguished from one another. So as a used car purchaser, every vehicle you look at is a potential Lemon; as a result your offering price will go down. Responding to this rational response of the market, potential sellers who own Cherries become less willing to sell them at the debased prices, and – just like with the currencies – the bad drives out the good."

    Spartacus Rex
    Aug 1, 2013 - 3:22am

    @ Donno

    Yeah re: the DR. C Flashing Red, believe I posted yesterday. Re: Edelson / @1050 / $15, Stackers may dream & drool, however not a likely scenario due to strong  Int'l demand for the Physical P.M.s (but then again, nothing is impossible right?). A GSR of 70 is likely however such would not last very long. There is simply too much circumstantial evidence to back up the claims made that physical Gold is actually hypothcated up to 100 to 1. Simply recognize and accept the Fact that Germany must still wait 7 years to merely get back 1/5 th (20%) of their Gold which was previously sitting in an allocated, custodial acct. at the NY FED. WHY? Because it is gone. Ergo Germany is not even allowed to even inspect and verify that their Gold is even actually there! Hence all of the Mope & Manipulation by the Banksters is to try and buy it back at below wholesale! Once other Countries with custodial Gold held in London & NY figure out the Ponzified Gold Market, the Defecation Hits The Oscillation! China, Russia, India, the M.E. etc., already recognize this and see the writing on the wall, ergo all of the Bilateral Trade Swaps now being put in place, and soon when the petro dollar dies, and all of that worthless FRN IOU NOTHING BUT B.S. "Reserve Currency" comes rushing back to roost in the U.S. A., its Lights Out & 3 rd World Status for Generations to come. So Gold will lift off first, and when it is priced out of middle class budgets, Silver will launch as the poor man's gold. So "Let's Get Physical" while it is obscenely CHEAP and still available.

    donnojackshit
    Aug 1, 2013 - 3:24am

    Ah, Gibson's Paradox

    From memory, it is that for every 2% negative REAL interest rates, a 20 % increase in the price of gold.

    This would suggest a more than double the price of gold at the moment when gold finally adjusts to reflect this truism!

    Spartacus Rex
    Aug 1, 2013 - 4:58am

    Also from Goldseek: Summer Fun for Precious Metals Investors

    By Adrian Ash

    The long term needn't look quite so far off for bullion buyers right now... PUT ASIDE the rise in US interest rates, GDP and Fed tapering talk. Just glance at the rest of this summer's headlines, and you'd think it offered a bull market for 'hard money' gold and silver.

    · Japan is doubling its monetary base inside two years, while the People's Bank of China has taken to one-day injections of almost $3 billion for the financial system, boosting shares after a scary jump in bank interest rates...

    · Wage talks in South Africa's gold mining industry stalled Monday, with management offering 5% where the unions want a raise of 60-100%...

    · Giant banks who swerved around the financial crisis 5 years ago are now risking a crash in summer 2013. Barclays bank – "widely regarded as one of the UK's strongest" according to the BBC – is nearly £13bn short of capital requirements (almost $20bn). Deutsche Bank paid €630m ($830m) in April-to-June alone tosettle lawsuits from customers mis-sold rubbish US mortgage investments...

    Yet here we are, back down below April's crash low of $1322 in gold and well under $20 for silver. Yes, that's above end-June's three-year lows. Yes, the rebound has been strong so far. But so it should be after prices fell at their fastest pace in three decades. Other big banks are meantime making great money trading the rise in longer-term US interest rates. Cont. @ https://news.goldseek.com/GoldSeek/1375289306.php

    donnojackshit
    Aug 1, 2013 - 5:00am

    Gibson's Paradox

    By Chris Gilbert Waltzek

    ©Gibson's Gold Law

    While preparing for this week's Goldseek.com Radio, my attention was drawn to a little known economic theory proposed by a British economist 90 years ago. In 1923 Alfred Herbert Gibson published a paper regarding the negative correlation between interest rates and inflation in Banker's Magazine (White, 2011). John Maynard Keynes later coined the term Gibson’s Paradox in 1930 (Keynes, 1930). Unlike his contemporaries, Keynes embraced Gibson’s finding as one of the most established and profound in the field of economics. I concur Gibson’s Paradox deserves to be recognized as an economic law, not merely a theory.

    Subsequent researchers proposed that Gibson's Paradox explains much of the price movement in the gold market (Summers & Barsky, 1988). Research indicates that the gold price and real interest rates are highly negatively correlated - when rates go down, gold goes up. It has been rigorously back-tested and stands the test of time via not only theoretical evidence, but empirical research. In fact, regression analysis reveals a very high f-statistic which adds statistical support to the notion - when real interest rates are below 2%, a bull market in gold is virtually certain.

    If experimental and experiential evidence validates Gibson's Paradox, how come the theory isn't widely recognized? It's likely that the mainstream media and academia have been reticent to accept and assimilate Gibson’s Paradox due to a simple misconception. The generally accepted real interest rate or rate of return is not negative, and so a gold bull market is not anticipated.

    How should analysts / economists determine the real interest rate? The real interest rate is the nominal rate that investors expect to receive, i.e. the long term treasury bond coupon or rate less the inflation rate. Since the U. S. Treasury earns 3% per annum, the real interest rate is 3% minus the annual rate of inflation. John Williams’ Shadowstats.com indicates a domestic inflation rate of 6-8%. To verify his work, one can calculate the annual growth rate in the Treasury Inflation Protected Securities TIPS ETF from the IPO date in 2004 until 2012. The TIPS ETF indicates a 6% (approximate) annual inflation rate, very close to John Williams’ figure. So to determine the real rate of return, the 6% inflation rate is subtracted from the 3% treasury yield, resulting with a real interest rate of -3%.

    Next, Gibson’s Paradox offers a gold price forecast for the next 12 months (White, 2011). The rule states that for every percentage point the real interest rate (-3%) is below 2%, gold will increase in value by 8%. As calculated in the last paragraph, the real interest rate is assumed to be -3%. Since -3% is 5% below the 2% threshold, 5 percentage points times 8% provides the gold forecast for the next 12 months: 5 x 8% = 40% . The current gold price is near $1,700 - leading to a gold price forecast of: $1,700 x 1.40 = $2,380. Anecdotally, $2,380 coincides with the 1980 inflation adjusted, peak gold price.

    Maintaining a healthy modicum of skepticism is wise for every investor. Next a very cursory back-test of Gibson’s Paradox is illustrated in Figure 1.1. Assuming that rates entered negative territory in 2001 and have remained there ever since, resulting with a constant real interest rate of -0.5%, gold should have performed as follows:

    Figure 1.1. Gibson’s Gold Law - Back-test:

    2001: $300;  2002: $360; 
    2003: $432;
    2004: $518; 
    2005: $622; 
    2006: $747; 
    2007: $895; 
    2008: $1074;
    2009: $1289;
    2010: $1547;
    2011: $1857.

    Do the numbers above look familiar? Clearly the back-test shows a high correlation to the true bull market price advance - Gibson’s Paradox holds. Assuming the same negative real interest rate of -0.5% (2.5% below the threshold resulting with 2.5 x .08 = 20% growth per annum) Gibson's Paradox provides a gold forecast in Figure 1.2 (White, 2011):

    Figure 1.2. Gibson’s Gold Law - Forecast:

    2012: $1,700 x 1.2 = $2229; 2013: $2229 x 1.2 = $2675;
    2014: $2675 x 1.2 = $3210;
    2015: $3210 x 1.2 = $3851;
    2016: $3851 x 1.2 = $4622;
    2017: $4622 x 1.2 = $5,547.

    Therefore, if real interest rates remain even fractionally negative, given the precepts of Gibson’s Paradox, the price of gold should surpass $5,500 by 2017. However, there are many factors that can skew the actual forecast outcomes. For instance, the real interest rate is volatile, which will result in varied annual gold price forecasts. The Gibson Gold Forecast is intended only as a guide. Nevertheless, gold investors are urged to regularly calculate the real, inflation adjusted interest rate to verify that it is below 2% and particularly that it remains below 0%, to satisfy the ideal conditions for higher gold prices. The Alpha Stocks Newsletter includes this article and many others which are dynamically updated, regularly. If you'd like the weekly market analysis and portfolio of stock candidates, the monthly cost is less than $1 per day; most subscribers prefer the annual $147 fee due to the cost savings:

    Rest of the article at GoldSeek.com
    donnojackshit
    Aug 1, 2013 - 5:28am
    jaw777 zman
    Aug 1, 2013 - 7:46am

    @zman and Kcap

    It doesn't matter if you see higher prices or not. The printing of money (QE) is inflationary. Higher prices result from velocity. I don't agree with your premise that the demand for physical silver and gold is weak. I admit looking at ASE and AGE is very isolated, but the mint is selling more bullion this year than ever before. I don't see anything other than price that would indicate that physical demand is not there. And the price is manipulated. Where are you drawing your conclusion of weak demand from?

    I don't Sinclair is rethinking his thesis. I believe you misinterpreted what he is saying.

    Kcap - I don't go to KWN for anything more than the Norcini metals report on Saturday morning. Some of the commentators there can be decent, but they only have one message, "It's going to the moon so buy more now". After repeating that same message during a 2 year correction, you lose credibility. 

    opticsguy
    Aug 1, 2013 - 8:07am

    Jim Willie always maintained that large amounts of gold

    were impossible to get through the COMEX without blowing it up. So what is a billionaire to do if he wants $1B worth of gold?. It seems we found out. Buy a whole bunch of GLD, convert the shares into physical, tell the media you are getting out of GLD (but not gold), and wait for the truck to arrive at your vault.

    Could the whole GLD scam be a way to circumvent the COMEX for the elite? Of course, those who move first will get their gold, and the holders of less than 50,0000 shares will get $0 for it someday.

    ag1969
    Aug 1, 2013 - 8:36am

    Very Scary

    Very scary because Paul Craig Roberts is very accurate.

    When China was a primitive third world country, it fought the US military to a stalemate in Korea. Today China has the world’s second largest economy and is rapidly overtaking the failing US economy destroyed by jobs offshoring, bankster fraud, and corporate and congressional treason.

    The Pentagon’s war plan for China is called “AirSea Battle.” The plan describes itself as “interoperable air and naval forces that can execute networked, integrated attacks-in-depth to disrupt, destroy, and defeat enemy anti-access area denial capabilities.”

    Yes, what does that mean? It means many billions of dollars of more profits for the military/security complex while the 99 percent are ground under the boot. It is also clear that this nonsensical jargon cannot defeat a Chinese army. But this kind of saber-rattling can lead to war, and if the Washington morons get a war going, the only way Washington can prevail is with nuclear weapons. The radiation, of course, will kill Americans as well.

    Nuclear war is on Washington’s agenda. The rise of the Neocon Nazis has negated the nuclear disarmament agreements that Reagan and Gorbachev made. The extraordinary, mainly truthful 2012 book, The Untold History of the United States by Oliver Stone and Peter Kuznick, describes the post-Reagan breakout of preemptive nuclear attack as Washington’s first option.

    https://www.lewrockwell.com/2013/07/paul-craig-roberts/the-us-empire-pre...

    BagOfGold
    Aug 1, 2013 - 8:45am

    Watch how BNN...the CNBC presstitutes of the north...

    Lash Larue & Bell Buttercup cut off Peter Schiff in this interview!!!...

    https://watch.bnn.ca/#clip976405

    We are so screwed here in Canada...with Bell Media owning over 85% of the media!!!...

    Bag Of Gold


    Aug 1, 2013 - 9:25am

    Gold Morning

    Cyprus gold still in play to help fund troika bailout

    First review finds good progress made in repairing the Cypriot financial sector; central bank will take on a wider supervisory role but may have to sell gold to contribute to the country's bail-out. Author: Tom Bowker 31 Jul 2013 The Central Bank of Cyprus (CBC) may yet be called upon to sell gold from its reserves to contribute to the resolution of the country's banks and to shore up Cyprus' fiscal position, as part of the conditions attached to the rescue package put together by the ‘troika' of the European Central Bank, the European Commission and the International Monetary Fund (IMF). The troika today completed its first mission to review the progress of Cyprus under the programme agreed in March, and in a call with journalists today the IMF mission chief, Delia Velculescu, said the use of revenues from the sale of gold is still under consideration. The original programme conditions reserved the right to call on up to €400 million from future profits made by the CBC, "including from sales of gold reserves, if needed". I think they want the gold. Plain and simple. A soft economic war. Slowly digesting all of this well-brought together information. I will go back and look but those agreements to each only sell 400 tonnes of gold, and the total 'only' to be allowed to be 2600 or whatever it is basically admits that 'they' have been selling an incredible amount of gold for decades. Those agreements have bothered me for a while. And GLD does appear to be a way to siphon off some physical while it was still in the vault. That the two are inter-related seems obvious with hind-sight. "May you live in interesting times" does seem to be a fairly solid curse.
    DeaconBenjamin
    Aug 1, 2013 - 9:36am

    Never mind the Czech gold the Nazis stole...

    During the war the Bank for International Settlements proclaimed that it was neutral, a view supported by the Bank of England. In fact the BIS was so entwined with the Nazi economy that it helped keep the Third Reich in business. It carried out foreign exchange deals for the Reichsbank; it accepted looted Nazi gold; it recognised the puppet regimes installed in occupied countries, which, together with the Third Reich, soon controlled the majority of the bank’s shares. Indeed, the BIS was so useful for the Nazis that Emil Puhl, the vice-president of the Reichsbank and BIS director, referred to the BIS as the Reichsbank’s only “foreign branch”. The BIS’s reach and connections were vital for Germany. So much so, that all through the war, the Reichsbank continued paying interest on the monies lent by the BIS. This interest was used by the BIS to pay dividends to shareholders – which included the Bank of England. Thus, through the BIS, the Reichsbank was funding the British war economy. After the war, five BIS directors were tried for war crimes, including Schacht. “They don’t hang bankers,” Schacht supposedly said, and he was right – he was acquitted. Thomas McKittrick, an American banker, was president of the BIS. When the United States entered the war in December 1941, McKittrick’s position, the history notes, “became difficult”. But McKittrick managed to keep the bank in business, thanks in part to his friend Allen Dulles, the US spymaster based in Berne. McKittrick was an asset of Dulles, known as Codename 644, and frequently passed him information that he had garnered from Emil Puhl, who was a frequent visitor to Basel and often met McKittrick. Declassified documents in the American intelligence archives reveal an even more disturbing story. Under an intelligence operation known as the “Harvard Plan”, McKittrick was in contact with Nazi industrialists, working towards what the US documents, dated February 1945, describe as a “close cooperation between the Allied and German business world”. Thus while Allied soldiers were fighting through Europe, McKittrick was cutting deals to keep the Germany economy strong. This was happening with what the US documents describe as “the full assistance” of the State Department. https://www.telegraph.co.uk/finance/bank-of-england/10213988/Never-mind-...

    Kcap
    Aug 1, 2013 - 10:22am

    @jaw

    Understood re: KWN. The Fleckenstein report however is right on. Kcap

    ancientmoney opticsguy
    Aug 1, 2013 - 10:40am

    @opticsguy re: GLD . . .

    "So what is a billionaire to do if he wants $1B worth of gold?. It seems we found out. Buy a whole bunch of GLD, convert the shares into physical, tell the media you are getting out of GLD (but not gold), and wait for the truck to arrive at your vault.

    Could the whole GLD scam be a way to circumvent the COMEX for the elite? Of course, those who move first will get their gold, and the holders of less than 50,0000 shares will get $0 for it someday."

    ------------------------------------------------------------------------------

    You hit the essence of what makes GLD a "leagal" scam. 

    Most people have no clue about the differences between investing in GLD, unallocated paper gold, and phyzz. To them, gold is gold. They don't read prospectii, and if they did, wouldn't understand a word.

    GLD and SLV were created by bankers for bankers. Common people who send their money to buy "gold" or "silver" didn't know that the money would be used by the banks to buy gold for the banks . . . and their fiat would return to them as investors, quite likely at a value unrelated to phyzz, when paper and gold prices diverge, which they will.

    GLD and SLV were ingenious tools designed to deflect demand away from phyzz for ordinary people. They get paper, and the banks get to use investors' monies to accumulate phyzz, which by their rules is only available to them as APs with piles of fiat given to them by the Fed.

    A sweeter bankster deal is hard to fathom.

    Galearis
    Aug 1, 2013 - 10:57am

    @ ssj and Turd

    Impressive piece of work, SSJ, and congratulations....Also the video is a real head clapper! You know, when you biff yourself in the head for not seeing something that should have been obvious....Silver was not a central bank metal except for Mexico, the Philippines, and China - all mostly gone by 2005 if not earlier.

    G.

    zman
    Aug 1, 2013 - 11:19am

    @Irene , realitybiter

     "Yellen (doing more QE like today) would NOT be.(bullish for inflation and gold)."

    Check it out- https://www.jsmineset.com/2013/07/31/the-answers-to-the-questions-you-need-to-know/

    Jakarta Expat zman
    Aug 1, 2013 - 11:37am

    @ZMan

    Although true what you say about this cow Yellen and the continuance of QE not being good for inflation/gold is that all we care about here?

    Sorry and although I have not lived in the US for more than 30 days in a tax year since 1988 I do still hold the blue/gold Big Eagle passport and as such I do still care about my home country. I understand from a personal point of view from others here why they would love to see the economy crash and burn, gold/silver rebound and the economy finally do the ultimate reset it needs. So I have to take slight umbrage with your statement.

    I would have hoped that most here would not want the apocalypse because it will be very very bad for the US and around the world, people will die via violence, starvation and due to outright neglect by the US govt. that would be a terrible thing which I would not wish on anyone. I bought our PM holdings for insurance against inflation only not for an apocalyptic event which if things keep going like they are could very well happen. 

    With that said, who would you, ZMan, put in charge of the FED to right the wrongs and get the country back on track with a sound fiscal policy without any apocalyptic scenario?

    Become a gold member and subscribe to Turd's Vault

    Contribute

    Donate  Shop

    Get Your Subscriber Benefits

    Exclusive discount for silver purchases, and a private iTunes feed for TF Metals Report podcasts!

    Key Economic Events Week of 1/14

    1/15 8:30 am ET Producer Price Index
    1/15 8:30 am ET Empire State Mfg. Index
    1/16 8:30 am ET Retail Sales
    1/16 8:30 am ET Import Price Index
    1/17 8:30 am ET Housing Starts
    1/17 8:30 am ET Philly Fed
    1/18 9:15 am ET Capacity Utilization and Ind. Prod.

    Key Economic Events Week of 1/7

    1/7 10:00 ET ISM Services Index
    1/7 10:00 ET Factory Orders
    1/9 2:00 ET December FOMC minutes 
    1/10 Speeches from CGP, Goons Bullard and Evans
    1/11 8:30 ET CPI

    Key Economic Events Week of 12/31

    1/2 9:45 am ET Markit Manu PMI
    1/3 10:00 am ET ISM Manu Index
    1/4 8:30 am ET BLSBS
    1/4 9:45 am ET Markit Serv PMI

    Recent Comments

    by Trail Trekker, 1 hour 13 min ago
    by Trail Trekker, 1 hour 17 min ago
    by Trail Trekker, 1 hour 29 min ago
    randomness