Tracking Gold’s Global Flow
What is the Big Hurry to Get Gold Bullion Moved?
We don’t mind if you call us suspicious.
When we first heard about all the gold that was being packed up and shipped at considerable expense from Europe, mostly from the Bank of London, we wondered if it had anything to do with the talk of Fort Knox about to be audited.
Were the authorities scrambling like teenagers to get the house cleaned up after their big party before their parents came home?
We’re still wondering.
You would probably be suspicious if your bank ferociously resisted auditing. Like the US gold depositories. Like the Fed.
That would partially explain today’s powerful gold bull market. It would also explain why the world central banks have purchased a thousand tons of gold every year for the last three years! They have heard what the big gold fuss is all about through the central bankers’ grapevine. As one of them told us years ago, they all went to the same schools, go to the same conferences, and share the same big government economists.
We are also sure it has something to do with Trump’s policies, both tariffs and dollar devaluation.
Bloomberg News says the rush of gold bars since January from London to New York, with a stop in Switzerland, “shows no signs of abating.”
Why Switzerland? Because it is a center of global gold refining. In recent years Swiss refineries have been busy recasting larger standard 400 ounce “good delivery” bullion bars into kilo bars to meet the huge demand for them in China where they are preferred. Now the commodity exchanges, preferring 100-ounce bars, are making the Swiss refineries work overtime to produce them. Not only are they more manageable, at today’s higher prices, a 400-ounce bar runs about $1,200,000.
Bloomberg:
Swiss customs figures show that 147.4 metric tons of gold worth more than $14 billion were shipped to the US in February. That was second only to the record 193 tons that were sent at the start of the year, based on data back to 2012…
Gold for investment purposes is excluded from the US government’s calculation of gross domestic product. But soaring imports and the widening of the trade gap have nonetheless added to the anxiety about the economy, making it challenging for economists to ascertain exactly how much net exports will impact first-quarter GDP.
The world monetary system is facing a profound shakeup, like it has so many times in the past. Like it did in 1932 and again in 1971. To be ready, the biggest players, including central bankers who rig the game, are positioning themselves in gold.
We recommend you do so as well. All in all, big things are happening.