GOLD

[patsy]

So, if the gold is gone, where and whom has it gone to, and why? Gold cannot be destroyed, so whatever there was there still is, somewhere. It doesn't neccessarily stand to reason that whomever owned the gold doesn't still own it just because the gold was moved somewhere, even to a different country. Nor does it stand to reason that the gold was ever there, or that it even existed in the first place, anywhere.

BAA

There are reports that the Chinese are snapping up via over-the-counter (i.e., off market) transactions the gold that some central banks are selling. You may recall that the FMI said that there would be selling gold to raise capital to assist some economies... guess what, that gold has been purchased by the Chinese off-market.

[Dr_Who]

There are reports that the Chinese are snapping up via over-the-counter (i.e., off market) transactions the gold that some central banks are selling. You may recall that the FMI said that there would be selling gold to raise capital to assist some economies... guess what, that gold has been purchased by the Chinese off-market.

The Chinese have been replenishing their gold reserve for a number of years now. They are currently holding just over 1,000 tons of gold in their reserve. I assume they will continue to buy more similar to their interests in copper, iron ore and other commodities.

[Aussie]

The Chinese have been replenishing their gold reserve for a number of years now. They are currently holding just over 1,000 tons of gold in their reserve. I assume they will continue to buy more similar to their interests in copper, iron ore and other commodities.

I read that an important aspect of the Chinese announcement is that their Central Bank has moved this gold from the "commodities" column of their balance sheet to their "monetary assets" column. This signals that they now consider gold as a reserve asset in competition with other monetary assets such as US Treasury Bonds and likely to be accumulated more aggressively . . .

[JBmurc]

IMHO In time both India & China will hold more true gold an not just US paper which is all the USD will have left---
---- if the massive USD holders want to exchange their trillions of dollars for more of the US gold reserves at fort Knox the yanks will soon be out, just like the US Silver reserve they had the largest in the world back in the good old days now their a net buyer....

thing is the yanks aren't going let all their gold go not while the FED will loan them trillion's so really the China's an other massive USD holders are out looking for other real assets to spend their devaluing cash on .........which their doing

As they will be the new world empire ,superpower etc as they will own more of what the world needs

[Baa_Baa]

Let's assume for a moment that the USA does has 8000 tonnes of Gold, that is 257,205,973 troy ounces * $910 per t.ounce = 234,057,435,020. That's a big number right, 234 billion USD's? Now figure out what percentage that is of the total debt of the USA. Uh oh! I guess they're not relying on Gold to bail out their financial system, at least not at this price of $910 they're not.

BAA

[Aussie]

Let's assume for a moment that the USA does has 8000 tonnes of Gold, that is 257,205,973 troy ounces * $910 per t.ounce = 234,057,435,020. That's a big number right, 234 billion USD's? Now figure out what percentage that is of the total debt of the USA. Uh oh! I guess they're not relying on Gold to bail out their financial system, at least not at this price of $910 they're not.

BAA

Of course, but I think it's a symbolic, confidence thing that at least the US and a lot of European central banks have something! What do we have in NZ? Zip. Australia sold 2/3's of their gold in 2000 at the rock bottom of the market leaving them with about 43 tonnes.

I read a little while ago that one of the solutions to reduce or eradicate global government debt is a radical revaluing of gold. A raising of the base line so that $234B has an extra couple of zeros . . . of course that would be a tip of the hat to gold as a monetary asset and tantamount to an admission that that fiat currencies have been horribly mismanaged and many of the countries (like us) who don't have any gold would miss-out. Another side effect would be the likely nationalization of every gold-mine in the world!

Interesting concept though.

[TTrader]

Let's assume for a moment that the USA does has 8000 tonnes of Gold, that is 257,205,973 troy ounces * $910 per t.ounce = 234,057,435,020. That's a big number right, 234 billion USD's? Now figure out what percentage that is of the total debt of the USA. Uh oh! I guess they're not relying on Gold to bail out their financial system, at least not at this price of $910 they're not.

BAA

Take into account Silver and Platinum reserves...

Not to mention materials required for nuclear production and their large oil reserves.....

It isn't just gold they have stockpiled the question really is how much of everything do they have...

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On another note gold is still holding strong around the 910 mark does anyone see it making a break anytime soon?

[patsy]

Let's assume for a moment that the USA does has 8000 tonnes of Gold, that is 257,205,973 troy ounces * $910 per t.ounce = 234,057,435,020. That's a big number right, 234 billion USD's? Now figure out what percentage that is of the total debt of the USA. Uh oh! I guess they're not relying on Gold to bail out their financial system, at least not at this price of $910 they're not.

BAA

Surely not! However, they can well use those reserves to influence the supply and demand of gold so that gold's price stays within a psychological acceptable range for as long as practicable.

I guess a more useful exercise is to calculate what proportion of the total gold in existence is represented by 8,000 tons. This will possibly be a better indication of what they can do with the gold in reserve as far as gold price manipulation is concerned. Add that to the gold reserves of the UK, IMF, and some Western European central banks (which more likely than not will get in cahoots with the Fed) to get an indication as to for how long politicians can keep on spending IOU money.

The whole fiat money idea plus the fractional banking system represent the true terrorism against liberty, progress and wealth... but some keep on looking around the Middle Eastern deserts for terrorists yet we have them right here on our own backyard!

[Dr_Who]

The whole fiat money idea plus the fractional banking system represent the true terrorism against liberty, progress and wealth... but some keep on looking around the Middle Eastern deserts for terrorists yet we have them right here on our own backyard!

You are on to it Patsy.

They like to work their evils under the radar and to keep the public in the dark and ignorant. I suppose if you have to choose between the two evils, you choose the lesser evil.

[Aussie]

Take into account Silver and Platinum reserves...

Not to mention materials required for nuclear production and their large oil reserves.....

It isn't just gold they have stockpiled the question really is how much of everything do they have...

My take on that statement is that none of those are monetary assets which could or would ever be used in the course of commerce to settle international trade. With the possible exception of silver (which there are no global reserves to speak of) they are all commodities.

Certainly no-one would be happy to see the US pay their bills in Plutonium . . .