Still catching up after my two week holiday, have many posts planned including finishing the fractional bullion banking, the London fix manipulation and legal case, Sprott PHYS redemptions, bitcoin. In the meantime, the table from the last post but by ounces of fine gold:
Similar percentages to the one by number of bars. As Golden Nugget commented, I should note that the spreadsheet is only for US Mint held gold, which is 95% of the total, with the other 5% held at the US Fed. Unfortunately the bar list for that is only supplied as a pdf of a scan so impossible to analyse in Excel.
Anyone interested in the reality of the US gold reserves really should read the pdf of hearing 112-41 (see link) as this bascially busts many of the memes around the US gold reserves. I will do a post on that hearing as there is a lot of detail supplied and suprising that I've never seen much commentary around it.
It is interesting that this information, including bar numbers, has been released at this time. If the intent is to calm the waters in the gold market that could possibly backfire if this information increases the calls for an audit. Is this the gold that is supposedly in Fort Knox? Thank you Bron for all of your research and for explaining many of the finer points of the gold market.
ReplyDelete"as this bascially busts many of the memes around the US gold reserves"
ReplyDeleteyes (because of details and food for thought) and no (because of shitty reasoning of Mr.Peterson).
If I would tell the IRS, "sorry, too much work to count the screws in stock for my annual physical inventory, you probably understand that" ....hmmmm, I assume I wouldnt receive much understanding.
6 Minutes inventory for a value of $500.000 is "much too expensive"? Is that dude completely out of his mind? And even 10% is "too expensive"? And even 10% every 5-10(?) years are "too expensive"?
But in the meantime amazingly the DHS has enough time and money to order, count and stockpile 1.6 billion rounds of hollow-point ammo, yea that's much more important and fun to audit....or even Obamas dog trainer is paid $102K/yr.... I mean put the numbers in perspective.
My companies balance sheet is about 5-10Mio. Guess what, takes me/counsel longer than 1-2hours of shitty IRS annual work, but obviously like always, serfs and masters are measured with different sticks.
Greets, AD
P.S. @Bron, good to have you back, hope you had a nice vacation.
Yes, the FRBNY list in the pdf looks impossible to convert to xls after trying a few pdf to xls converters. It's probably possible some way but maybe a specialist in these matters could so it.
ReplyDeleteAs Bron says, the hearings document is worth reading since it has a lot of good material in it from Eric Thorson and various Treasury folks.
One interesting observation: in the hearings document there is also a comprehensive list of a lots of assay tests that were done over years such as 208, 2006, 2005, 2004. Treasury maintains that these the bars tested were randomly selected. However all the samples are listed with sample numbers of WP, which suggests they are all West Point. Furthermore, all the bars assayed are .995 fineness or higher.
Given that over 80% of all US Treasury gold supposedly held is not good delivery (ie < .995 fine), then the assay samples do not sound random, they look to have been deliberately selected.
Does it infer there is no .995 fine gold in Denver or Fort Knox?
Bars of gold kept in deep storage freeze
ReplyDeleteSpreadsheets published with great ease
Basically bust many gold reserve memes?
Examinations of minor variations
And explanations may promise celebrations,
But lead instead to great frustrations
For similarities incidental
May mask differences fundamental
As gold moves east from our continental
From a numismatic point of view it would be interesting to know what's in the 384 bags (73,451.72 fine troy ounces) of gold coins stored in compartment K at the FRBNY. The fineness is listed as either .9 or .9167
ReplyDeleteThe lists are just lists. No one is saying that they reflect reality. Perhaps they were left in a public internet directory. Deliberately or inadvertently. Who knows at this stage.
ReplyDeleteI would think about how the lists create a 'set in stone' pickle, in that future inventories cannot deviate from these lists without explanations.
There is also mileage to be gained from thinking about how these lists could be accurate in light of various Mint figures and archives from 1968-1982
My belief is that all the US gold is there and possibly even more if you take into account other countries gold that they'll probably never get back.
ReplyDeleteIf the US has little or no gold and the Russians know it as a fact they'll imply it at some point if the diplomatic war of worlds continues to crumble.
We're one incident or mistake away from a serious escalation.
I suppose listing bars on paper is a good strategy intentional,
ReplyDeleteAnd it may flout a certain wisdom that’s conventional.
But once paper complication is propounded,
Alarms and warnings should be sounded.
That fractionating and hyper-inflatinating is a losing game
So don’t look for someone else to blame.
For our gold’s destination has been resolved by fate,
And as for “giving advice”, it’s far too late.
So banksters, shift our gold where it be
Where you say you not sought it to be,
Somewhere you’ll not want it to be,
Knowing it’s where it isn’t ought to be.
"In all, 42 compartments at these 3 hardened facilities hold 699,515 gold bars with a fineness or purity ranging from 0.47 to 0.9999, with an average fineness of 0.9006." (Page 4 of the above linked testimony)
ReplyDelete- Its such an insignificant portion of the total inventory that its probably irrelevant; but still Im curious. What am I missing? The above testimony indicates that purity ranges from "0.47 to 0.9999" yet the excel spreadsheet lists inventory of 0.36 purity……is this just a typo or misstatement by the witness during testimony? I appreciate any insight.
FOSSE, sorry, I should have been clear, this data was not released recnetly but at the time of the hearing, which was June 2011, in response to requests by Congress reps at the hearing.
ReplyDeleteAD, the issue being discussed there is not counting but assay, Ron Paul seems is asking for each bar to be assayed, which is insane IMO due to the massive amount of work involved. As you would know running a business, auditors do not redo all the work you do but use sampling and materiality to confirm the figures you are presenting.
ReplyDeleteHaving said that, GoldenNugget has a point about the randomness of the assay sampling.
BillieJones - I think that is most likely just a mistake made during the pressure of testimony.
Bron,
ReplyDeleteIf too much work has you sweating it,
You probably shouldn’t be fretting it.
Those in the know are not amateurs,
Consider the parameters
To optimize criteria, you must decide what’s scarier,
Accuracy less than you would like, or former Congressmen saying “take a hike.”
Goldbugs and banksters have goals antithetical,
ReplyDeleteSo, who loses with notions theoretical?
Although opinion bias oft encumbers,
The truths always lurk in the assay numbers.
In March 68 when we ran out of fine,
ReplyDeleteAnd the Fort Knox dregs were made up of coin,
It was a coup d'état for the Rothschilds bloodline,
When the presiding judge got a kick in the groin.
Bron,
ReplyDeleteeven assaying (in terms of non destructive testing) each bar with todays technology, shouldnt be such a problem like Peterson exaggerates ("it takes 1280 persons and the room is too small").
Why not building a couple of robots, each including: ultrasonic scan, eddy current loss scan and spectographic scan. Whenever these different obtained datas of a bar do not fit together, melt it down to be sure.
No, from the conversation I get the impression, nobody really wants to know. "They" simply dont want to audit it openly.
On the other hand, I am not in the conspiratard camp to conduct from there, that the gold does not exist.
Greets, AD
P.S.
ReplyDeleteAnd in terms of "costs & massive amount of work", look at it like that:
But the nationalisation of the gold, melting it down and bulding Fort Knox bringing it there, was not an insane amount of work? - Still it was done.
And to put that also into perspective: Just look at the resources wasted by the USG for putting a satellite and robot on planet mercury. Amazingly, everything can be done, but the gold, no no no, dont touch it that subject, too much efforts.
P.P.S.
ReplyDeleteme again, just cant hold myself over the topic "too much effort":
Have you heard of the new transgender laws? Just like in the US, also in Berlin/Germany, politians have now decided to build not just male and female toilettes in public buildings, no, we need an additional third toilette, for people that obvious dont know if they have a mumu or a dingdong. UNBELIEVABLE. So much too the topic THIS WORLD IS GOING INSANE!!!!!!!111111
okay, okay, this is a gold blog I promise to hold myself back (till next time;)
In my opinion the gold is there and has never been transfered to another location because that would mean to have lost a backstop in case of financial chaos. But the interesting questions is who owns the gold in Fort Knox , how much has been leased out or swapped? If you do a full audit it also means checking the books, which would reveal whether Gold has been leased out, swapped etc.
ReplyDeleteThat could be one reason why the officials refuse a full audit. Cost is definitely not a reason. Deutsche Bundesbank used to lease out up to 10% until 2008, but then stopped. I would estimate that 50% are leased out because that would be in line with the 50% selling of Bank of England, because both are advised by Wallstreet.
Oh, dear! Oh, dear!
ReplyDeleteOur Fed Chair can not hear.
Those pleas for audits, let’s be clear!
Will you please come over near?
Will you please look in the Fed Chair’s ear?
There must be something there, I fear.
Say, look! A bird was in her ear.
When he is out, she’ll have no fear.
And again her ear will hear, my dear.
But alas and alack, I shed a tear
This bird still resides in her ear
Giving me even more added fear
So I bought a new bird feeder
Just in case our new Fed leader
Could encourage her deaf ear to drain
Then-although she’d still sound inane
She’d no longer be the Fed’s new bird brain
The game is afoot, replace gold with a crypto currency before the debt and currency crash. Any exposure of the true risks, through reporting or inventory standards will not be allowed. Increasing the debt and large distractions may help, meanwhile Marx commodity currency trying to be subverted with ever more anonymous developers working on a more asian-themed bitcoin....time to take a position.
ReplyDelete"It's probably better to have him inside the tent pissing out, than outside the tent pissing in." Lyndon B. Johnson 31 Oct 1971 ???
I Think It Was 1972
ReplyDeleteHere's Something Else Written in '72 By Curtis Mayfield:
"BANKERFLY"
Darkest of night
With the moon shining bright
There's a bet goin' strong
Lotta contracts goin' on
Manipulation of the hour
Has an air of great power
The pukes have envied him for so long
Oh, Bankerfly
You're gonna make your fortune by and by
You never lose, don't ask no questions why
The only game you know is suppress and lie
Hard to understand
What a hell of a ass
Expert of the slam
What a mind, for the excellent scam
No weakness is shown
His hustle never wrong
His mind was his own
But the crook lives alone
Oh, Bankerfly
You're gonna make your fortune by and by
You never lose, don't ask no questions why
The only game you know is suppress and lie
The game he plays he plays for keeps
Hustlin' fools on computer screens tryin' ta take over
That's what he tryin' to do, y'all
Taking all till he is dead
Gambling with paper from the Fed
Tryin' to take over tryin' to take over
Tryin' to take over tryin' to take over
Bankerfly
The aim of his role
Was to move a lot of dough
Ask him his dream
What does it mean? He wouldn't know
Thousands of Contracts he’ll confess
Is the most he'll ever suppress
But his time's running out
And there's no happiness
Oh, Bankerfly
You're gonna make your fortune by and by
You never lose, don't ask no questions why
The only game you know is suppress and lie
Bankerfly bankerfly
Bankerfly bankerfly
I think you'll find Curtis wrote:
ReplyDeleteset not bet
and
man not ass.
I prefer man.
Very good !
It might well be do or die not suppress and lie as well.
Definitely 1971, you may be thinking of 'I want his pecker in my pocket.'?
ReplyDelete"It's clearly a budget. It's got a lot of numbers in it." GW B 2000
Well, This Song I think was conceived in '71 and recorded in '72
ReplyDelete"Just Be Thankful For The Gold You Got"- William De Vaughn:
Though you may not own a great big paper stash
Bank account funds
CD’s in the bank
You may not have an account at all
But remember brothers and sisters
You can still stand tall
Just be thankful for the gold you've got
Though you may not drive a great big Cadillac
Diamond in the back, sunroof top
Diggin' the scene
With a banksta lean
Banksta whitewalls
Satellite in the back
You may not go to the bank at all
But remember brothers and sisters
You can still stand tall
Just be thankful for the gold you've got
Diamond in the back, sunroof top
Diggin the scene
With a banksta lean, wooh-ooh-ooh
Diamond in the back, sunroof top
Diggin the scene
With a banksta lean, wooh-ooh-ooh
Diamond in the back, sunroof top
Diggin' the scene
With a banksta lean, wooh-ooh-ooh
In revelry the evening sped,
ReplyDeleteWith laughter crowned, till darkness spread
Her shadows, from the azure height,
Shone forth the moon, - the summer night
Blazed with the starry host of heaven;
Then, kisses to each maiden given,
Farewell to all, loth to remain,
Antonio seeks his boat again,
The dripping oats the moonbeams gild,
Anon, the loosened sail is filled,
And in the dim uncertain light,
The barca wings her rapid flight,
Forth from the island, far away,
O'er slum'bring silent Naples' bay.
Nugget that calls for a Bobbie McFarrin Song: "GET GOLD, BE HAPPY"
ReplyDeleteHere's a little song I wrote
You might want to sing it note for note
Get gold, be happy
On every day, the West has trouble
When we lose gold we make it double
Get gold, be happy
Ooh, ooh ooh ooh oo-ooh ooh oo-ooh ooh ooh oo-ooh
(Get gold)
Ooh oo-ooh ooh ooh oo-ooh
(Be happy
Ain't got no gold, got paper instead
Somebody came and took your bread
Get gold, be happy
The Chinese say our gold is great
Treasury bonds they liquidate
Get gold, be happy
(Look at the Chinese, they’re happy)
Ooh, ooh ooh ooh oo-ooh ooh oo-ooh ooh ooh oo-ooh
(Get gold)
Ooh oo-ooh ooh ooh oo-ooh
(Be Happy)
Ooh oo-ooh oo-ooh
Here we give you some gold
When you worry, get gold, we make you happy
Ain't got no gold, ain't got no style
Too much paper, you can’t smile
But don't worry get gold
Although we worry
‘Cause we’re led by clowns
Try not to bring everybody down
So get gold, be happy
Get gold, be happy now
Ooh, ooh ooh ooh oo-ooh ooh oo-ooh ooh ooh oo-ooh
(Get gold)
Ooh oo-ooh ooh ooh oo-ooh
(Be happy)
(Put a smile on your face, don't bring everybody down)
Ooh, ooh ooh ooh oo-ooh ooh oo-ooh ooh ooh oo-ooh
(Get gold)
Ooh oo-ooh ooh ooh oo-ooh
(It will soon pass, celebrate it)
Ooh oo-ooh oo-ooh
Get gold, be happy
I'm not worried, I'm got gold.
I think you guys are wasting your creativity here on this blog, maybe you should start www.goldpoetry.com :)
ReplyDeleteBron---you realize I must respond---This time with a "twin spin"
ReplyDeleteFirst Side: Rolling Stones: :Get off of My Gold"
I live in an apartment on the ninety-ninth floor of my bank
And I sit at home looking out the window
Imagining the gold price had tanked
Then in flies a guy who's all dressed up like a Union Flag
And says, here’s your jive paper and I want all of my bars of gold back
I said, Hey! You! Get off of my gold
Hey! You! Get off of my gold
Hey! You! Get off of my gold
Don't hang around 'cause two can’t hold
All my gold, baby
The telephone is ringing
I say, "Hi, it's me. Who is it there on the line?"
A voice says, "Hi, hello, how are you?"
Well, I got your gold and I'm doin' fine
He says, "It's three a.m. and too much manipulation
Don't you people ever wanna audit the fed?
Just 'cause you feel so good, do you have
To drive me out of my head?"
I said, Hey! You! Get off of my gold
Hey! You! Get off of my gold
Hey! You! Get off of my gold
Don't hang around 'cause two can’t hold
All of my gold baby
I was sick and tired, fed up with this
And decided to take a nap on my throne
It was so very quiet and peaceful
There was nobody, not a soul at home
I laid myself out, I was so tired and I started to dream
In the morning, paper trades were just like
A flag stuck all over my computer screen
I said, Hey! You! Get off of my gold
Hey! You! Get off of my gold
Hey! You! Get off of my gold
Don't hang around 'cause two can’t hold
All of my gold
Hey! You! Get off of my gold
Hey! You! Get off of my gold
Hey! You! Get off of my gold
FLIP SIDE: BLUE OYSTER CULT:
"Don't Fear The Keeper"
All our vaults have none
Now, our gold is gone
Sellers don't fear the Keeper
Nor do the banker, the shill, they’re the same
(We’re not like they are)
Come on Seller
(Don't fear the Keeper)
Seller bless the plan
(Don't fear the Keeper)
It can multiply
(Don't fear the Keeper)
Seller They're the man
La, la la, la la
La, la la, la la
Swiss’s work is done
Here but now its gone
Kileo and jewelry
Are together in purity
(Kileo and jewelry)
40,000 tonnes go every day
(Like Kileo and jewelry)
40,000 tonnes go every day
Another 40,000 coming every day
(We’re not like they are)
Come on Seller
(Don't fear the Keeper)
Seller bless the plan
(Don't fear the Keeper)
It can multiply
(Don't fear the Keeper)
Seller They’re the man
La, la la, la la
La, la la, la la
Having gold was fun
Here, but now it’s gone
Came the last night of sadness
And it was clear we couldn't hold on
Then the vault was open and the wind appeared
The candles blew and then disappeared
The curtains flew and then he appeared
(Saying, "Don't be afraid")
Come on Seller
(And we had no fear)
And the gold ran to him
(Then it multiplied)
Our gold looked backward and said goodbye
(It had become like their gold)
We had blessed their plan
The Keeper had become our man
Come on Seller
(Don't fear the Keeper)