Where's the Gold?... Was the Rest of the U.S. Gold Supply in 2009 Sold By the Fed?

Submitted by SadInAmerica on Sat, 04/17/2010 - 10:39pm.

A recent Federal Reserve report document could raise suspicions about the status of the U.S. gold supply, supposedly the largest in the world at just over 8000 tonnes.  

At an average price of $900 per ounce, the $190 billion accounting entry in the Fed report would equal about 6,500 tonnes of gold.  This is a vast amount of gold -- more than any other country has (Germany is #2 in official gold reserves with 3,400 tonnes).

On Page 24, line 14 of the March 11, 2010 Federal Reserve Statistical Release, the figure for the third quarter  on the line titled "Gold and SDRs" (U.S. net sales) shows a total for the third quarter of $190.9 billion (SEE THIS LINK).

In case you are wondering what a Special Drawing Right is, this is right off the IMF website:

The SDR was created by the IMF in 1969 to support the Bretton Woods fixed exchange rate system. A country participating in this system needed official reserves—government or central bank holdings of gold and widely accepted foreign currencies—that could be used to purchase the domestic currency in foreign exchange markets, as required to maintain its exchange rate. But the international supply of two key reserve assets—gold and the U.S. dollar—proved inadequate for supporting the expansion of world trade and financial development that was taking place. Therefore, the international community decided to create a new international reserve asset under the auspices of the IMF.

However, only a few years later, the Bretton Woods system collapsed and the major currencies shifted to a floating exchange rate regime. In addition, the growth in international capital markets facilitated borrowing by creditworthy governments. Both of these developments lessened the need for SDRs.
The SDR is neither a currency, nor a claim on the IMF. Rather, it is a potential claim on the freely usable currencies of IMF members. Holders of SDRs can obtain these currencies in exchange for their SDRs in two ways: first, through the arrangement of voluntary exchanges between members; and second, by the IMF designating members with strong external positions to purchase SDRs from members with weak external positions. In addition to its role as a supplementary reserve asset, the SDR, serves as the unit of account of the IMF and some other international organizations.

As it says, it is a potential claim on the freely usable currencies of IMF members.  So why is this under the category of "Gold and SDRs"?

And what has become of the other gold?  According to other government reports, it may have been shipped out of the country, right under everybody's noses.

Rob Kirby has pointed out that in 2007/8, about 5000 tonnes of gold was shipped out of the U.S., according to the USGS, even though the actual gold production of the United States was just over 200 tonnes per year.  

This amount could possibly be as a result of the repatriation of foreign gold stocks held in the U.S. by the Federal Reserve, but the fact remains that a large amount of gold is fleeing the country. Here's a shot of one of the USGS reports...

The reports are starting to add up and now from this Federal Reserve report, it looks like there's going to be some explaining to do.  If this were a business, we'd be doing a top to bottom audit of the Federal Reserve to find out where our money has gone, because it doesn't look like it's still sitting at Fort Knox.  

It's either in China (as part of the cost to keep them from selling all their Treasuries), or taken away to Europe by its new owners who conned the fools in the government out of the people's gold... Either way, heads are going to roll.

Concerned Citizen - April 17, 2010 - source BeforeIt'sNews

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Submitted by SadInAmerica on Sat, 04/17/2010 - 10:39pm.