Getting It Wrong

Sun, Feb 17, 2013 - 4:56pm

Wow, there's certainly a lot of bad metals analysis out there this weekend. I might as well throw my big ol' hat in the ring, too.

Before we get started, a disclaimer for me and everyone else who thinks they can accurately predict the future: It's not possible. What am I, a weatherman? You're asking me to tell you, days in advance, how the precious metals are going to respond to completely unpredictable variables like geopolitics, currency wars and monkey sell programs. That said, I still believe that I have a far better handle on this than most and I'll be happy to point out to you some of the errors that others are making as well as put my neck on the line going forward.

Here are just a few of the things that are bothering me:

  • Lots of folks are worked up because Soros has allegedly sold almost half of his holdings in the GLD, nearly 18 mts. However, year-to-date the GLD has seen a net withdrawal of 27 mts. Any chance old George simply redeemed took delivery? That guy didn't get where he is by being stupid and you can bet your batooty that, if there is an unallocated/rehypothecated/leveraged gold scandal brewing, he'd be first in line to get his hands on his metal.
  • The $100/month subscription guys are telling their suckers clients to dump everything and move into...what, exactly, I have no idea. But apparently a couple of downticks is enough to push these guys over the edge, regardless of the underlying fundos.
  • And I don't understand much of the silver CoT analysis that I've read. Everyone is running off in all sorts of different directions but seeming to miss what is directly in front of their faces.

In gold, the CoT is easy to interpret. All the way down from $1800, the specs have been liquidating and The Gold Cartel has bought into this selling and covered shorts. This is how it has always worked and, not surprisingly, it has worked again. The gold CoT is now, at worst, neutral with several internal components back to the bullish category.

Again, though, it's the silver CoT that is so interesting. If you haven't yet, please read through these posts. Read them very carefully, taking the time to compare the CoT structures from various points in the past two years.

Everything I've read focuses on the spec long position, as if it's still somehow out of whack. Look at the number yourself, though. As a percentage of open interest and as a ratio of net longedness, there's nothing to strongly suggest that a major spec washout is coming or required. On 9/11/12, with price near $34 the Large Specs were long 41,371 of a total OI of 121,050 (34.18%). As of last Tuesday with price near $31, they are long 40,205 of 152,817 (26.31%).

The only thing that stands out and the one thing that nobody is discussing is the Commercial Long position. It is extraordinarily high. Easily 60-70% higher than you would expect it to be, based upon history. And because it is so high, the Two Big Bad Guys have been unable to cover shorts in silver as they have in gold. I cannot stress enough how odd this is but don't take my word for it, go back and look for yourself. By this time in the price cycle, the Comm Long position would/should have "normally" contracted to 30,000-35,000. Instead, it's 52,182, UP nearly 6,000 contracts just last week! All of this commercial buying prohibited JPM from covering and, instead of a gross short position in the 70,000 range, The Silver Cartel is buried under 98,979 shorts, also UP last week.

On the surface this is extremely bullish and is most likely indicative of a "civil war" in the silver pit. One thing we must be wary of, though...What if JPM is clandestinely building a massive spread position, like they often do in gold and, just as they manipulate gold, they plan to begin creating air pockets in silver by legging out? Since we have no way of knowing, we must be aware of this possibility. Again, though, much more likely is the idea of "civil war", where JPM is trapped as the only remaining firm providing naked paper. The other commercials are buying it all up and forcing the noose ever tighter. This is akin to what happened to Bruno Iksil, their "London Whale". Once word got out that he had built an untenable position, the smaller "sharks" circled in for the kill. We'll see where we go from here but it certainly looks like this coming Friday's CoT will show a continuation or even exacerbation of this trend. Strange days. indeed....

So here are your charts as we enter a new week. I have done my level best to show you exactly where I think we are and where I think we're going. In gold, note first that the daily RSI has now fallen all of the way to 30. Though some spillover selling is possible early week, far more likely is a snapback rally to alleviate this highly oversold position. I'm still looking/hoping for one quick spike to $1580 or so but, regardless, I think we are just about done with the carnage.

And here is the key chart formation that we are going to be watching going forward, again something that I haven't seen anyone else mention. I've drawn the bottom of the pennant from the 7/1/11 price levels that preceded the huge rally in gold that followed and I've drawn the top of the pennant off of those early September 2011 highs. These are very important charts so print them off and keep them closeby in the days ahead.

In silver, the daily RSI is still above 30 but an early week drop toward major support near $29.20 would certainly take care of that. Not that a drop to $29.20 will happen, but it might. Soon, though, I expect a very sharp, short-covering rebound, UP toward $31 and change. The key pennant here suggests some further consolidation but not much longer. As an aside, it seems that many folks (Your Turd included) are expecting big things from both metals, and particularly silver, in March. These charts certainly seem to confirm that timing. By my count, the week that concludes on Friday, March 22 looks to close the pennant. Maybe you should mark that date on your calendar. (Ides+7)

Lastly, in case you didn't know it, tomorrow is a U.S. holiday so all U.S. markets will be closed. The metals will trade on the Globex, though, so you'll still see prices changing during the day. The real action won't begin again until Monday at 6:00 pm EST, though. Additionally, I'm not going to be around much the next few days so look for some guest posts and open threads. If things get really crazy, I will, of course chime in but, for the most part, I'm going to be out of action. Hang in there, keep the faith and expect more volatility. Savor the discount and btfd. You won't be sorry that you did.


About the Author

turd [at] tfmetalsreport [dot] com ()


Feb 18, 2013 - 8:19pm

The Mint / US Money Facts

Video unavailable

History of Regular Issue United States Coin Denominations.

  1. David Rittenhouse was appointed by George Washington as the first Director of the Mint.
  2. The first Mint building was the first Federal building erected by the U.S. Government under the Constitution.
  3. Past Mints have included Dahlonega, GA; Charlotte, NC; New Orleans, LA; and Carson City, NV.
  4. The first Philadelphia Mint used harnessed horses to drive the machinery that produced coinage.
  5. A two-cent coin was minted between 1864 and 1873 and was the first coin to bear the motto "In God We Trust".
  6. Legend holds that George Washington donated some of his personal silver to the Mint for manufacturing early coinage.
  7. The Mint's first delivery of coins occurred in 1793 and consisted of 11,178 copper cents.
  8. Mint marks, "S", "D", "P", or "W" designate the Mint facility,which produced the coin.
  9. Thomas Jefferson first proposed the decimal currency system,which we use today.
  10. By provision of the Coinage Act of 1965, Mint marks were not carried on coins made in 1965, 1966, or 1967.
  11. The first U.S. commemorative coin was produced in 1892 and featured Christopher Columbus.
  12. The Mint's original coins were made of gold, silver, and copper.
  13. In 1943, the content of the cent coins was changed to zinc-coated steel due to copper shortage during World War II.
  14. According to the artist, the Indian head on the buffalo nickel (1913-1938) is a composite picture.
  15. The Philadelphia Mint mark appears on each of its coins except the Lincoln cent.
  16. Sacagawea, Susan B. Anthony, and Helen Keller are the only women honored on a circulating coin. Sacagawea appeared on the obverse of the golden Dollar, Susan B. Anthony appeared on the obverse of the dollar coin, and Helen Keller appeared on the reverse of the Alabama quarter.
  17. The Philadelphia Mint covers five acres of land.
  18. The first coin to feature an African-American was the Booker T. Washington Memorial Half Dollar.
  19. Calvin Coolidge was the first President to have his portrait appear on a coin struck during his lifetime.
  20. George Washington first appeared on a commemorative dollar, with the Marquis de Lafayette, in 1899.
  21. In 1893, Queen Isabella of Spain became the first woman to be featured on a U.S. commemorative coin.
  22. All commemorative coins legislated by the U.S. Mint are legal tender.
  23. Original gold coinage included $10, $5, and $2.50 denominations.
  24. The Act of April 2, 1792, which created the Mint, required coins to have " impression emblematic of liberty."
  25. The Roosevelt dime torch, olive branch, and oak branch portray liberty, peace, and strength and independence.
  26. The donation of $508,316 in gold to create the Smithsonian Institution was assayed in the [Philadelphia] U.S. Mint.
  27. The first Lincoln cent was produced in 1909 and carried wheat ears patterns on the reverse side.
  28. From 1799 to 1873, the Mint was an independent agency reporting directly to the President.
  29. The Lincoln cent is the only circulating coin currently produced in which the portrait faces to the right.
  30. The United States has two mottos that appear on each circulating coin, "In God We Trust" and "E Pluribus Unum."
  31. Designers' initials can be found on each circulating coin.
  32. The design on the back of the Kennedy Half Dollar is the presidential coat of arms.
  33. The San Francisco Mint, established in 1854, survived the great earthquake of April 18, 1906.
  34. Before creation of a national Mint, "currency" included foreign and colonial currency, livestock, produce, and wampum.
  35. The Denver Mint opened in 1863 as a U.S. Assay Office.
  36. The present Philadelphia Mint opened in 1969 and is the fourth facility which has been located in that city.
Feb 18, 2013 - 8:22pm

FED Gold

I also come up with 13.46 million oz if you take the $23.9B divided by the $1776/oz that was quoted in the article.....and yes this is just the FED gold...not US gold.

Plunjer Big Buffalo
Feb 18, 2013 - 8:25pm

Cable's - 22 LR

@Big Buffalo. Just ordered 2 boxes. Thanks for the tip!

Texas Sandman
Feb 18, 2013 - 8:30pm


I have a fugio cent in my collection (MS62, I think). It was something like a 1787 if memory serves. Wasn't that the first coin circulating in the US? I mean, there were some earlier ones from the colonies (pine tree schilling from MA, for example). Reverse has 13 rings symbolizing the colonies. Sun dial on the obverse with something like "time flies. mind your business". I think Ben Franklin designed it.

Nice bit of history from days of the founding.

Feb 18, 2013 - 8:31pm

First GMO's, now this. Event-ually we will not own our own body.

Gene monopoly: Australian court rules in favor of genetic patenting

An Australian court has ruled in favor of allowing a company to patent a human gene. Concerns have been voiced that allowing a company to monopolize genes will turn the human body into a commodity, and will adversely affect healthcare.

The judge argued the act of removing a specific gene from the body and isolating it made it into a product “of new manufacture” and therefore open to be patented, despite the fact that the same gene may occur naturally in other human beings.

The patent was filed by US company Myriad Genetics in 1994 – if enforced in Australia, it would give the company exclusive rights to carry out tests on specific genes. In turn, the patent would prevent anyone else from isolating, researching or conducting tests on the gene in question.

Australia’s Federal Court dealt with the company’s patents on the BRCA1, which can be used to predict the likelihood of a woman contracting cancer

The judge’s ruling on Friday said that even if a gene has “precisely the same chemical composition and structure as that found in the cells of some human beings,” isolating it from the body creates and “artificial state of affairs,” making the gene a patentable commodity. Myriad’s claim on the genes was challenged by nonprofit Cancer Voices Australia, which argued the patent is illegitimate and unfounded.


Feb 18, 2013 - 8:33pm

Following up...

I came across this in a search and it's from last year but references another LA Times article about this gold audit last summer.

Not surprisingly the initial source overall appears to be Zero hedge

The Fed’s Gold Is Being Audited… By The US Treasury

Zero Hedge
Aug 3, 2012

When we started reading the LA Times article reporting that “the federal government has quietly been completing an audit of U.S. gold stored at the New York Fed” we couldn’t help but wonder when the gotcha moment would appear. It was about 15 paragraphs in that we stumbled upon what we were waiting for: “The process involved about half a dozen employees of the Mint, the Treasury inspector general’s office and the New York Fed. It was monitored by employees of the Government Accountability Office, Congress’ investigative arm.” In other words the Fed’s gold is being audited… by the Treasury. Now our history may be a little rusty, but as far as we can remember, the last time the Fed was actually independent of the Treasury then-president Harry Truman fired not one but two Fed Chairmen including both Thomas McCabe as well as the man after whom the Fed’s current residence is named: Marriner Eccles, culminating with the Fed-Treasury “Accord” of March 3, 1951 which effectively fused the two entities into one – a quasi independent branch of the US government, which would do the bidding of its “political”, who in turn has always been merely a proxy for wherever the money came from (historically, and primarily, from Wall Street), which can pretend it is a “private bank” yet which is entirely subjugated to the crony interests funding US politicians (more on that below). But in a nutshell, the irony of the Treasury auditing the fed is like asking Libor Trade A to confirm that Libor Trader B was not only “fixing” the Libor rate correctly and accurately, but that there is no champagne involved for anyone who could misrepresent it the best within the cabal of manipulation in which the Nash Equilibrium was for everyone to commit fraud.

Far more importantly, for all those financial novices who fail to grasp the simplest relationship between assets and liabilities, the allegation expounded by the “conspiracy theorists”, as the LA Times calls them, has never been that the gold at the NY Fed is not there. It is by all means there: after all what safer place to keep it than 80 feet below the Federal Reserve itself, the same Fed which has exclusive access to the 1000+ strong Federeal Reserve Police whose “primary duty is to provide force protection to Federal Reserve facilities. Secondary responsibilities, depending on the particular location, may include liaison work with other law enforcement agencies and/or investigative work related to administrative matters.”

And not only the gold belonging to the US: it is well known that the bulk of Europe’s sovereign gold is also contained deep under downtown Manhattan: we wish them all the best when they attempt to repatriate the physical when they need it, such as the day after the EUR finally collapses.

No - what the “conspiracy theorists” allege is that claims existing in paper format on the physical gold held under Liberty 33 are orders of magnitude greater than the actual physical gold these claims supposedly have recourse to....

Feb 18, 2013 - 8:34pm

Nick Elway

I wonder if the bars are larger than 400 oz ? I need to search a bit further on this.

Those look like some pretty hefty bars in that articles story although that photo is probably an older picture of a vault somewhere else long ago. I've seen it before online and maybe it's an old NY Fed vault pic.

Ok...I just looked it up at Wiki and at the NY Fed website and there are some discrepancies in overall totals and bars held there then what the story suggests. That pic is indeed from the NY Fed.

"As of 2012, the vault housed approximately 530,000 gold bars, with a combined weight of approximately 6,700 tons."

That was probably one of the fastest and quietest audits of huge gold reserves you'll ever hear of. What I didn't hear in the audit was a total weight of gold that was given.

Feb 18, 2013 - 8:35pm

Edited post

I'm in South America, and repeatedly lose the internet connection. I tried to edit my earlier post to make it more clear, but the connection went phfffft! Here, I'm trying again.

dph -- "And how could the vast majority of the country's gold be held elsewhere when the NY Fed has 99.98% percent of it in their custody?"

The New York Fed has 99.98% of the U.S. gold that is held by the Fed system -- to wit: there's not much held in Philadelphia, Dallas, San Francisco, Kansas City, etc.

Tricky, isn't it? And the amount of U.S. gold held by the Fed system is said to be not much, but they don't tell us exactly how little it is. Maybe 175 ounces? Maybe 99.98 troy pounds (out of a total of 100?). LOL

Major U.S. gold reserves, the 8,000 tons, if there are any left, are stored in Ft. Knox, Westpoint, and Denver -- all under the control of the U.S. Military -- not the Fed. Does that provide some clues as to who is positioned to run this country?

And an earlier post (previous page?) shed light on how misleading this "gold audit article" really is. Can't find it right now, perhaps someone else will post a link to it?

Good threads tonite. Thanks.

Dyna mo hum
Feb 18, 2013 - 8:35pm

Ya Know

The FED might should STFU about actual tons and location of said gold. In the future China may want to place a lien on said number of tons of gold when the find out they are the holders of a great deal of worthless paper. What's worse is we could be expected as mere citizens to defend the Fed's interest in the case of foreclosure.

Feb 18, 2013 - 8:46pm

Horsemeat. It's helping keep inflation hidden across Europe.

Nestle removes beef pasta meals after finding horsemeat

Nestle, the world's biggest food company, has removed beef pasta meals from shelves in Italy and Spain after tests revealed traces of horse DNA.

The Swiss-based firm has halted deliveries of products containing meat from a German supplier.

Nestle is the latest in a string of major food producers to find traces of horsemeat in beef meals.

A spokesman for the company said levels of horse DNA were very low but above 1%.

Last week the firm said its products did not contain horsemeat.

In other shock news: a McDonalds burger was found to contain traces of beef. .

Feb 18, 2013 - 8:47pm


WTF business of the TSA is anything which does not represent a security threat?

But I suppose that is a little like asking why HSA needs 1.5 Billion rounds of hollow-tip ammo!!

Feb 18, 2013 - 8:48pm

Germany's Gold

So if, as they say "The vast majority of The US Gold reserves are stored elsewhere", there is plenty of Gold in The NY Fed to just start shipping Germany's Gold (Only about 1500 Tons in NY) over to JFK and back to its rightful owner? I mean, it's only sittin there gathering dust isn't it??.................

Feb 18, 2013 - 9:04pm

Peter Schiff on Gold’s Holding Pattern in 2013

Peter Schiff guest appearance on Varney & Company explaining why inflation is causing stagnation in the precious metals market.

Feb 18, 2013 - 9:05pm


Nice pick up by yourself and I noticed that language also. Big difference.

Which kind of begs another question about how or why it might be held by them at all if it's just a partial amount. I wonder what the reason or basis is for them to hold the amount they do in the way they do?

I might have to look into it but not tonight. Thanks for everyone's math help in trying to cipher those figures but it seems really short and the bars in the old pics look way bigger then 400 ozs. to me.

The whole gold market is cloaked in secrecy to the extent it breeds speculation about itself by saying little and denying or acknowledging even less. I would think that TPTB love the abundance of dis-info and uncertainty. There is no shortage of it and it clouds from what is probably a simple political/mechanical truth how gold functions in a sovereign black shadow market on a level we can't even conceive of.

You have to wonder what was really going on all of these decades with all of the transferring/shipping of gold bars abroad and all the re-melting of gold bars onto other shapes ands sizes and the paper alchemy (not to mention tungsten) that has been going on for awhile.

What a dense shadowy mess it is inside of the tangled PM web they've spun. Anything's possible.

How much does gold trade for in TPTB shadow market? Is it's value or worth variable depending on the entities it might trade in-between?

Can a military force value be put upon it if received from someone seeking protection? Probably so.

Might 1 ounce of gold far exceed the above board everyday price if say you are Syria's President or Iran in their present situation? The international premium must be a high/low one depending on who is trading what to whom and if it's under the table or not in that shadow sovereign banking system.

Northern Border
Feb 18, 2013 - 9:10pm

Stackers never get it wrong

The paper games are coming to an anything that is not nailed down.

all the stars seemed to be aligning for something very soon.


napa698 Big Buffalo
Feb 18, 2013 - 9:21pm


Just saw your note about 22lr and called them they sold out at 9:00 pm,wish i had see it earlier

Feb 18, 2013 - 9:33pm

I posted a link to this earlier.

I guess I'll have to post the whole thing since some people apparently didn't read it.


Get Ready for Some Major Disinformation about America's Gold

An audit of the gold held at the New York Federal Reserve has been completed and the disinformation campaign has started. Notice how LaTi reports the story:

The U.S. government’s gold in New York is safe in a vault underneath Manhattan, and some of the precious metal there is purer than previously thought.

The problem with this is that the gold held at the New York Federal Reserve is not "The U.S. government’s gold." It is gold held, for the most part, by the Federal Reserve for foreign countries.

LaTi goes on:

That’s according to a first-ever audit conducted last year by the Treasury Department of U.S. gold on deposit at Federal Reserve banks in New York and elsewhere.

This is curious because it is the government conducting the audit. That's like having Bernie Madoff's brother auditing Bernie's customer accounts. Why wasn't an independent auditing firm brought in? And since the gold is held for countries like Germany, why didn't Germany and others who have gold on account get to pick the auditor?

Here's more LaTi disinformation, which misdirects from the above important questions:

As part of the audit, the Treasury tested a sample of the government’s 34,021 gold bars in the New York Fed’s vault five stories below Manhattan’s financial district, according to the inspector general’s office. Auditors drilled tiny holes into the bars to remove samples that were tested for fineness in a process called assaying.
In three of the 367 tests, the gold was more pure than Treasury records indicated, according to the Treasury's inspector general. As a result, the government notched up the value of its gold holdings by approximately 27 fine troy ounces – or about $43,500, based on gold’s market value Monday.

Then LaTi tells us this:

The audit of the Fed gold came after 2012 presidential contender and former U.S. Rep. Ron Paul (R-Texas) questioned the central bank's gold holdings. While he was in Congress, Paul questioned whether the New York Fed had loaned or otherwise encumbered U.S. gold in financial arrangements, and he advanced a bill that would have required a full assay and audit of the country’s gold reserves.

But Dr. Paul was most concerned about "the country’s gold reserves," which is different from what is held at the Fed. The country's gold reserves are held mostly at Fort Knox, which no one is allowed to see, much less audit.

Then we have two more paragraphs of disinformation:

The New York Fed holds 99.98% of the U.S.-owned gold bars and coins in the custody of the Federal Reserve. The rest of the gold is on display at Fed banks in cities such as Richmond, Kansas City and San Francisco.
As of Sept. 30, when the market price of gold was $1,776 an ounce, the Fed banks held $23.9 billion in U.S. gold. (Gold has since declined in value, and on Monday the precious metal was hovering around $1,610 an ounce.)

Unlike Fort Knox, the NY Fed gives tours of its vaults, so Americans can see the gold of other countries, but not US gold.

Bottom line: This audit was designed to confuse. Expect more stories about how the Treasury conducted and audit of US gold. Not true. Fort Knox gold, where America's gold supposedly sits, is off limits to all and has never been audited.

Again, the gold held at the New York Fed is mostly gold held for foreign countries. It does not belong to the Federal Reserve or the United States government. LaTi after misdirecting throughout the full story, ends with the limited truth:

The vast majority of the country’s gold reserves is held elsewhere, in Fort Knox, West Point and Denver.

Of course, the full truth is this gold has never been audited and unlike the NY Fed, which provides tours, there are no tours of the Fort Knox gold.

Touring the New York Fed

Every year tens of thousands of visitors from around the world visit the gold vault as part of a free, public tour of the New York Fed. This tour is designed to educate visitors about the Federal Reserve Bank of New York and Federal Reserve System. You can register for a tour here.

Bottom Line: The audit of the NY Fed gold will be used to deceive and give the impression that the gold supposedly held for American's has been audited.

If you go read the comments at the LA Times site you will see that many people have bought the story hook, line and sinker.

This should put the conpiracy theories to rest but then again, conpiracy theories are alway flexible so they're virtually impossible to prove wrong.

Just look at Obama's birth certificate for an example of that...

Ron Paul wanted an audit becasuse he and the nutters were alledging it wasn't there.

Germany wanting theirs back had nothing to do with it.

We've stored the Hungarian Crown Jewels at Fort Knox as well as the Constitution at times.

Other countries store their gold and other tresures with us from time to time as their situation warrants because they know it's safe.

Too bad some Americans like you don't have as much faith in this country as other countries do...

Feb 18, 2013 - 9:35pm

Silver at Airports

I've walked through Metal Detectors/pat downs (Not Naked X-Rays) on domestic flights with a silver dollar and ASE in my jeans coin pocket a few times with no problems.

Feb 18, 2013 - 9:41pm

Harvey's Up!

Gold recovered from is greatest one day drop since December on Friday, rising $6.05/oz to $1,615.11 by late morning trading in Europe. America's debt and deficit issues are mathematically too big to fix; and not only that, if there truly was a "recovery", it would cause interest rates to surge from their record low levels; killing off the equity, debt, and real estate markets; not to mention, each 1% increase in rates raises annual U.S. debt service costs by a whopping $160 billion: Andy Hoffman. The only reason financial Armageddon has not yet commenced has been the most concerted scheme of money printing, market manipulation, and propaganda in global history; in essence, commandeering financial markets and targeting nominal gains at the expense of exploding debt and inflation: Andy H. WalMart VP of Finance: This is the worst start to a month I have seen in my seven years with the company. Bloomberg: Gold volumes for the benchmark cash contract on the Shanghai Gold Exchange soared to a record today. In spite of the new gold taxes India’s gold imports surged 23% in January. The Shanghai gold exchange volume soared to a record 22 tonnes last month. GATA stalwart Adrian Douglas passed away from brain cancer last week. Financial powerhouse Norway joins the global currency debauchery. All this and more on...

The Harvey Report


Feb 18, 2013 - 9:43pm

Short-term silver lease rate is coming down

Not much happened to the gold lease rate. Silver seems to be the focus now.

SteveW Nick Elway
Feb 18, 2013 - 9:53pm

NY Fed gold audit

So we've figured they have 423 tonnes.

Now "As part of the audit, the Treasury tested a sample of the government’s 34,021 gold bars in the New York Fed’s vault five stories below Manhattan’s financial district," what is the meaning of "government's" in this sentence. Does it mean "belonging to" or does it mean "in the custody of"?

We know that Germany is repatriating 300 of the 1500 tonnes that is in the custody of the NY Fed. So is this 1500 tonnes included within the 423 tonnes? And what about the various other nations that have lessor amount held in custody by the NY Fed?

I'm old enough to remember that the NY Fed had little need to store US gold since almost all the gold was held in custody for foreign nations to settle current account deficits/surpluses while the US could settle in US $ prior to August 15, 1971.

Feb 18, 2013 - 9:56pm

@ Puck

I read it the first time.

But thanks for posting it again.

Feb 18, 2013 - 10:04pm
Chevy Thunder
Feb 18, 2013 - 10:07pm

Gold In Zimbabwe

Gold was never used in Zimbabwe in real commerce and business. As I said, they used US dollars and SA rand.

However, in the poorest of villages where people live on dirt and inside dung houses, some of the villagers would sneak into private property during the night and try to pan gold crumbs to buy bread, eggs and whatever else they need to survive. They were doing this before the crash of the Zimbabwe dollar. This is just a function of them being excessively poor and the fact that there's no Bank of America on the corner, if you can understand what I mean.000000000000000000000000000000000000000000000000000000

Feb 18, 2013 - 10:13pm

Holy freakin sheet.

DrkPurpHaze...the article you posted about the audit I had not seen. Unbelievable. For those paying attention and who are aware of the numbers here....the US has been robbed. Where are the other 600,000 plus bars as reachwest already wrote above? If 99%+ of the US Gold bars are in the NY Fed, then Ron Paul was right about Fort Knox and so was Sprott, Willie and everyone else spouting that the gold was missing. WAKE UP AMERICA!! We've been robbed by the banksters while we all slept. But how would we have known? We wouldn't. Do you get it? They stole it from us. THEY. STOLE. OUR. GOLD.

This is stone cold fact. That article was intentionally placed for the "aware" to get it and the sheep to say, SEE, our gold is there....we told you so. The minions, shills, liars, ankle grabbers will be telling you all is fine.

So....since this is now proven, perhaps you will recall an old post of mine where I explicitly tell you that the GOLD IS GONE and what will drive the price up past $10,000 into multiples tens of thousands of dollars, is when we buy it all back with our printing press. Why would we do this? To show we are re-stocking America's gold while we buy it BACK FROM THE BANKSTERS and CHINA (all part of the deal) and they make a new fortune.

Wow. I'm speechless now that this is public info.


Feb 18, 2013 - 10:17pm

Ligtening up

"How many conspiracy theorists does it take to change a light bulb?" he asked.

"I don't know," she replied.

"You don't know," he said "because the they don't 't WANT you to know!

How many feminists does it take to change a light bulb? THATS NOT FUNNY!

How many union electricians does it take to change a light bulb?

Uuuuhhh, I dunno...

Takes about five or maybe six.


Hey, you got a problem with that buddy?

Mr. Fix
Feb 18, 2013 - 10:33pm

@ Kcap

So, on the day that we find out that 600,000 plus bars of American gold has been stolen, the price goes up six dollars.

Somehow, I still don't think fundamentals mean anything.

Feb 18, 2013 - 10:34pm

FED has 5%

It is not 99% of the the US gold that the FED has in is 99% of the FED's holding of US gold. The FED holds 13.46 million oz of the US gold and 99% of it is in NY. So if that is roughly 423 tons and you assume the US has 8000 tons then the FED is looking after just over 5% of the US's gold holding...but why My question would be is why does a private entity hold 13.46 million oz., or 5%, of the peoples gold. Perhaps in lieu of something...... AND.....where is the audit of the other 95%??????

Feb 18, 2013 - 10:38pm

@Puck - Gold Audit in NY

I read the LA Times article -- it's very misleading. Worse yet, as you mentioned, the comments were filled with many ill informed and just plain ignorant remarks. It makes me sad that so few had any grasp at all of the magnitude of the deception, much less an understanding of the workings of the FED or the history of gold as money.

The important thing to keep in mind is that even with this subversive pre-emption of the narrative by MSM, the efforts of us so called 'nutter gold bugs' forces TPTB to respond. Since WE HAVE created the narrative, our strategy is to control it and challenge them at every opportunity with the facts & the truth. People are doing that. It's kind of like a critical mass type of thing, at a certain point, the 100th monkey (mixing my metaphors) gets it, and then, all of a sudden, the rest do too.

Feb 18, 2013 - 10:46pm

Get ready for

more disinfo on Americas gold.

and don't let them say your some kind of conspiracy nut, there are black helicopters running drills in dntn American cities.


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 5/20

5/20 7:00 pm ET CGP speech
5/21 10:00 ET Existing Home Sales
5/22 2:00 ET FOMC minutes
5/23 9:45 ET Markit PMIs
5/24 8:30 ET Durable Goods

Key Economic Events Week of 5/13

TWELVE Goon speeches through the week
5/14 8:30 ET Import Price Index
5/15 8:30 ET Retail Sales and Empire State Manu. Idx.
5/15 9:15 ET Cap. Ute. and Ind. Prod.
5/15 10:00 ET Business Inventories
5/16 10:00 ET Housing Starts and Philly Fed
5/17 10:00 ET Consumer Sentiment

Key Economic Events Week of 5/6

5/9 8:30 ET US Trade Deficit
5/9 8:30 ET Producer Price Index (PPI)
5/9 10:00 ET Wholesale Inventories
5/10 8:30 ET Consumer Price Index (CPI)

Recent Comments

by scoremore, 3 hours 26 min ago
by scoremore, 3 hours 50 min ago
by Texas Sandman, 4 hours 43 min ago
by scoremore, 5 hours 14 min ago
by Texas Sandman, 6 hours 56 min ago