Does "600" Plus or Minus Matter When We're Talking Tonnes of Gold?

38
Mon, Jun 6, 2016 - 8:22am

Late last year (September 2015) I posted and linked to Ronan Manly's Blog about The LBMA, Thomson/Reuters GFMS, and The 2000 Tonnes of Gold that Just Appeared in 2013.

(Link: https://www.tfmetalsreport.com/blog/7128/lbma-thompsonreuters-and-2000-t... September 8, 2015 )

Now if you, Dear Reader, or I myself ,were to suddenly gain (or lose!) several thousand tonnes of monetary metal - raw material for a Country's National Asset Holdings and it's Central Bank Currency Reserves- we would probably notice this fact pretty fast. And upon completing our tax returns, annual accounts, or just doing monthly management accounts, we would be highly likely to have the quantity and value highlighted clearly and without any doubt, vagueness, or lack of clarity in any way.

But the great and large and trusted institutions that actually do deal with gold, I mean really big gold exchanges, the purveyors of gold markets supply and demand data. Well ... how should I put this? They seem to have certain "tweaks" that come and go in their printed brochures, press releases and so on. And it's amazing how often central bank secretive transactions are never too distant from the errata, vagueness, or whatever adjective you personally prefer to use in describing the lack of precision in such large monetary numbers.

Now when I say the word "tweak" you might be forgiven in assuming some small adjustment, errata, correction upon arrival of more exact statistics and such like.

But this time it's 600 tonnes approximately.

That's 600 tonnes of gold.

Are you sitting up paying attention? That's quite a "tweak", isn't it? A sizeable tweak. A whopper. If we talk US dollar sized tweaks, it's 24 billion and 9 million of them!

This latest episode comes once again from Ronan Manly's latest Blog article at Bullionstar.dot com:

Apples and Oranges: An update on LBMA Refinery Statistics and GFMS

It's well worth a read. Thanks for the research Ronan!

I leave you to follow the links and read Ronan's full article. His final paragraph goes to the heart of the matter. Our respect and tolerance, and whether these are actually warranted in certain high profile institutions:

".... Overall, this series of communications from the LBMA leaves a lot to be desired, and undermines trust in LBMA issued data. It will be interesting to see whether the LBMA will surreptitiously alter its press release and brochure, or issue a correction and clarification, or leave the errors as is in the respective documents. "

That's it for now!

Best of luck to you.

Argentus Maximus

.

The author posts daily commentary on the gold and silver markets in the TFMR forum: The Setup For The Big Trade. More information about the author & his work can be found here: RhythmNPrice. The author advises that he trades and holds market positions in accordance with his own opinions.

About the Author

  38 Comments

Orange
Jun 6, 2016 - 8:35am

Arbitrage

Just in case you have not seen this. Gold and Silver in $ and RMB

https://didthesystemcollapse.com/

Jun 6, 2016 - 8:35am

I look forward to receiving

I look forward to receiving the next tranche of information about that silver fix class action lawsuit.

https://www.reuters.com/article/us-silver-fix-lawsuit-idUSKBN0FU29920140725

Jun 6, 2016 - 8:52am
LostMind
Jun 6, 2016 - 9:07am

As always Thank you AM...

Question for that great mind of yours.

Metals to rise or fall after the great Yellon speaks today?

I'm looking to either buy the monster box of ASE's or 7.5 ounces of the yellow pet rock. Rolling the dice on when...

Jun 6, 2016 - 9:26am

Ha! LostMind...

Not speaking for Argentus here, but that is like asking an expert on tides how big the next wave is going to be! My man AM deals in larger timeframes and movements, and doesn't sweat or typically care about the daily noise!

If you are looking for shorter-term timing, maybe this chart would help?

A bit later in June and July are often a good time to get long, so maybe hold off a bit for the stacking? Who knows...

Jun 6, 2016 - 9:36am

Because LostMind asked ...

Because LostMind asked ... even though Pining got it spot on graphically!

Speaking about adding to longs:

The bump down end of June may attract me for gold, and maybe it will not be substantial enough. It will talk for itself and I just listen to what I think it says.

I'm into July (3rd week July-1st week Aug) for a seasonal low, but if it comes out as a high that's ok.

And then after that I really want to be prepared for potential acquisitions in October. In paticular, there just might be a silver decline from here towards October which I would want to use if it materializes.

Whatever, it will be in the Setup thread as we arrive at it. Always provided I become aware of what's going on before it's over! That's the never ending challenge!

LostMind
Jun 6, 2016 - 9:40am

Thanks Pining and AM

I look at PM's as a hedge not an investment, so once I buy its gone. Trade fiat for metal for the "Whenever" blow up of the current fiat and reset. I have some jingle in the pocket so was looking to do a trade this week. Otherwise, I will keep looking at new fishing boats...

I do appreciate both of your analysis to the nth degree. Always very helpful, even when sometimes over this lost minds head

Gramp
Jun 6, 2016 - 9:58am

Silver - On How It's Made

How its Made - Silver

Thanks for your Input AM!

jaba
Jun 6, 2016 - 11:10am

@Argentus Maximus

A very interesting article, however, I think perhaps your math is faulty; in that one tonne of gold is worth approx $ 40 million. So 600 tonnes is $ 24 Billion not $ 29 Million!

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