andrew

This from Chris Weber of www.weberglobal.net

While copy/pasteing this from the PDF file the formatting was lost, so I've replaced it as best I can.

I can't give a link as the original is password protected.

Mods permission has been given to post this.

Where Is America's Gold?

The Mystery of Ft Knox

What Do They Have to Hide?

My new book, Good As Gold? is now available. I've tried to make it a clear and readable

history of what happened to the gold confiscated from Americans and put into Fort Knox in

the 1930s. I've used the government's own words and statements to paint a picture I think is

shocking. There has never been an accounting of this gold. There has never been a real

audit of it. (I know people say there was one in 1953, but after reading my book, I wonder if

anyone really can believe this.)

At every turn when the government was asked to provide proof of either the amount of gold

they have left, or the quality of it, they have answered with lies and evasions. They have been

acting like they have something to hide.

What we do know is that until August 15, 1971 any foreign central bank could go to the US

Treasury and buy official US gold at $35 per ounce. It was the last link to the international

gold standard. Before then, all currencies were defined in terms of the US dollar, and the US

dollar was defined in terms of gold. A dollar equaled 1/35th of an ounce of gold; $35 equaled

one troy ounce of gold.

But on that day the gold window closed. Since then, no more US government gold has been

exchanged for US paper money. In my book, I uncover a 1975 letter from the Washington DC

director of the General Accounting Office. Quoting US Treasury sources, the GAO director

pretty much comes out and says that there was almost no more "good delivery" gold left. This

means that the gold that would be acceptable on international markets and have a purity of

.995 or better was almost gone by the time Nixon closed the gold window. They knew that

there was almost nothing left that was of a purity acceptable to foreign central banks.

We can only guess at what remains, and the purity of it. In fact, we could do more than

guess, if the government only let sunlight in. The technology now exists to scan each bar of

gold and see how much gold it really contains. There could be independent accountants and

a generally public procedure to show how much the US government has.

To be sure, the US government puts out a report each year detailing the official numbers of

what they have. Here is the latest one from a few weeks ago:

Department of the Treasury -- Financial Management Service

STATUS REPORT OF U.S. TREASURY-OWNED GOLD

January 31, 2011

Summary Fine Troy Ounces Book Value

Gold Bullion 258,641,851.485 $10,920,427,976.14

Gold Coins, Blanks, Miscellaneous 2,857,047.831 120,630,844.95

Total 261,498,899.316 11,041,058,821.09

Mint- Held Gold - Deep Storage

Denver, CO 43,853,707.279 1,851,599,995.81

Fort Knox, KY 147,341,858.382 6,221,097,412.78

West Point, NY 54,067,331.379 2,282,841,677.17

Subtotal - Deep Storage Gold 245,262,897.040 10,355,539,085.76

Mint-Held Treasury Gold -

Working Stock

All locations - Coins, blanks,

miscellaneous 2,783,218.656 117,513,614.74

Subtotal - Working Stock Gold 2,783,218.656 117,513,614.74

Grand Total - Mint-Held Gold 248,046,115.696 10,473,052,700.50

Federal Reserve Bank-Held Gold

Gold Bullion:

Federal Reserve Banks - NY Vault 13,376,961.126 564,804,727.98

Federal Reserve Banks - display 1,993.319 84,162.40

Subtotal - Gold Bullion 13,378,954.445 564,888,890.38

Gold Coins:

Federal Reserve Banks - NY Vault 73,808.979 3,116,377.47

Federal Reserve Banks - display 20.196 852.74

Subtotal - Gold Coins 73,829.175 3,117,230.21

Total - Federal Reserve

Bank-Held Gold 13,452,783.620 568,006,120.59

Total - Treasury-Owned Gold 261,498,899.316 $11,041,058,821.09

Deep Storage: Deep-Storage gold is the portion of the U.S. government-owned Gold Bullion Reserve that the

U.S. Mint secures in sealed vaults, which are examined annually by the Department of Treasury's Office of the

Inspector General. Deep-Storage gold comprises the vast majority of the Reserve and consists primarily of gold

bars. This portion was formerly called "Bullion Reserve" or "Custodial Gold Bullion Reserve."

Working Stock: Working-Stock gold is the portion of the U.S. government-owned Gold Bullion Reserve that the U.S.

Mint uses as the raw material for minting congressionally authorized coins. Working-Stock gold comprises only about 1

percent of the Reserve and consists of bars, blanks, unsold coins, and condemned coins. This portion was formerly

listed as individual coins and blanks or called "PEF Gold."

So this is what the US government says they have, and where they have it. In fact, by their

own words, nearly all of it is in what they call "Deep Storage". The gold here is not examined

annually. Instead, the "sealed vaults" are examined annually. But what this means is that they

just do a cursory check to see if the seal has been broken.

By the way, the "book value" of this gold is absurd. It is officially valued at $42.22 per ounce.

This is because that was the last "official" value of the US dollar. A few months after the

August 15, 1971 closing of the gold window, Nixon devalued the US dollar. This was on

December 17, 1971. The official gold price was raised from $35 to $42.22.

But this new price meant nothing. They still weren't going to sell gold at this new, slightly

higher rate. It was really a sham. Other countries had long been after the US to raise the

official gold price, so Nixon finally did it. But what good did that do when this was the price at

which the US would not --repeat, not-- redeem its paper dollars into gold?

As I hope my book shows, there has been the atmosphere of a sham --even a fraud-- about

the US policy toward gold for generations. The Nixon fraud was only one in a series of sham

acts.

I don't understand why today's government would be afraid to open the vaults and publicly count

and assay the gold. After all, if a lie was revealed they could say that it wasn't their fault:

they weren't even born when these policies were put into place.

Officially, the US has by far the largest government reserves of gold in the world. Here are the

top eight nations and the amount they have in millions of troy ounces:

So, officially, the US has much more than twice its nearest rival, Germany. It has nearly eight

times as much as China--again, officially.

But China has quietly become the world's largest producer of gold, and the Chinese central

bank buys 100% of all production at the market price. I'm sure they make certain this gold is

of the utmost purity. I'm suspicious of the 'official' Chinese total, which I really believe is a

state secret, and may be much higher than they state here.

In any event, it is the US gold this article is all about. We need to finally see what is left of the gold that was confiscated from

the American people in 1933. We need to know how much is left from the 702 million ounces the US had in 1949, when this was by far the most gold held by one owner in history.

There are elected members of Congress, in both parties, who are ready to try to open the vaults. One of them, Ron Paul, wrote the forward to my book.

It is for sale at amazon.com, and through all of the Amazon affiliates around the world. For the US, the price of the book is $8.35. I wanted to make it this low so that no one could say it was too expensive to buy. Also, Amazon charges a shipping and handling fee of $3 for all orders up to $25. Above this, you can choose free shipping. It just so happens that $8.35 X 3 = $25.05. So you can buy three copies and give two away to people who may not realize what has been going on. Even if a person doesn't understand theimportance of gold as an investment, this is a sort of mystery story: What Happened to the Gold? Why have they been acting as if they had something to hide?

If you have a newsletter or blog, you can arrange with Amazon that you keep a percentage of any amount that people buy when they link to the book on your site. This means any amount of anything that people buy when they are on your link to Amazon.

I believe everyone have missed the trick that JPM are playing with the vault. It is not to delivery their own shorts it is for taking gold as collateral on investments from customers and then using their physical gold to then hedge and thus be able to `deal in paper 100x the underlying physical'. They recently announced that gold was good and acceptable as collateral.

OMG !!

Is that possible ??

http://seekingalpha.com/article/259549-will-jpmorgan-now-make-and-take-delivery-of-its-own-silver-shorts

Jeeese..........

So JPM whom are being investigated by the CFTC for dodgy practises, now get rushed through CFTC approval for a vault license for storing and taking delivery in the same market that they are currently being investigated in.

This is starting to look like really desperate measures are required to keep the lid on their game.

Pixel8r thank you for the time you've put into answering my question, it's much appreciated.

Yep, I think I understand now.

My interest is because your chart has worked so well to date.

See you on 24K soon.............

Okay I have made sense of my maths from the last graph. I have actually moved the Line at R4, because my original calculation was out slightly. Here's the new chart with the calculations and the line at R5 marked.

 

The calculation puts R5 at $1800 in around May 2013, but I honestly do think that we will reach there before then. With the correct position being marked on the graph for the R4 Line, you can see we have already broken through that line and come back and tested it.

 

R1 = 0
R2 = 4.8
R3 = 10.85
R4 = 18.47
R5 = 28.07

R2 - R1= G1 (4.8 - 0 = 4.8)
R3 - R2 = G2 (10.85 - 4.8 = 6.05)
R4 - R3 = G3 (18.47 - 10.85 = 7.62)


G2 - G1 / G1 x 100 = % Gain  (6.05 - 4.8 / 4.8 x 100 = 26 %)
G3 - G2 / G2 x 100 = % Gain (7.62 - 6.05 / 6.05 x 100 = 26%)

R3 - R2 = 6.05 + 26% = 7.62 + R3 = 18.47 R4
R4 - R3 = 7.62 + 26% = 9.6 + R4 = 28.07 R5

 

 

Pixel8r thanks for redrawing your chart. It does look like 'R4' has been passed through and tested...........

At the risk of coming over as thick, how did you produce the 'R' numbers

R1 = 0

R2 = 4.8

R3 = 10.85

R4 = 18.47

R5 = 28.07

I had a look around your 24Knews website............ Great stuff

Anyone on here know of a supplier of gold dust/dore (normally 92%)?

 

200+Kg/month needed.

200+Kg per month!!

OMG tinecu...........

You have really deep pockets....

I will see what I can do tonight.

Thanks for the explanation...........

I was going to rudely ask if you could redraw your chart with the next Pixel8r 'R5' line on it.

I would print that one out and blue tack it to my office wall...............

Where would you place the green circle on the 'R4' line ?

Pixel8r over time this chart has become more and more impressive.

If I may ask, how did you calculate where to place the horizontal lines ?

Are they based on a percentage gain from the preceding peak ?

I think Adam has fallen into the trap of looking too much at linear charts. As I recently pointed out the current increase doesn't look half as over extended when you look on a log chart.

 

In the chart below you can see that it could be that we do have a rapid increase to $50 over the next few months, IMO this could then lead to the "too far too fast" situation that Adam mentions in his article. But even if that does happen it also could be said that silver hasn't moved too far or too fast in that the silver ballon has been kept under water for so long by the bullion banks manipulation and JPM massive short.

If/when the trade in empty promises (massive shorts) becomes general knowledge silver will become very volatile as manufactures fret about supplies to keep production running. Holding months worth of stock will be regarded as prudent insurance for which they will eagerly pay a high price.

Then you get a short squeeeeeeze.

This is the point that I believe silver will become main stream news and masses of speculators will jump on board.

I also think silver may well test the old nominal $50 high on this up leg, but it may take a couple of attempts to break through before the real party starts.

I admire Adam Hamilton but we should also factor in the possibility of panic buying.

Pixel8r log charts do show a more 'balanced' picture.

Adam Hamilton of Zeal Intelligence argues that silver is over due a correction............. It has just gone to far to fast.

This article is informative reading, well worth clicking on.

http://www.zealllc.com/2011/silvtop2.htm

I'm still going to hold my physical though.

Well, you need an exit strategy. Mine is to swap silver for gold at ratios smaller than 35:1, and I intend to do that in steps (while getting out of gold I make dependent on my other measures that don't include silver).

 

The question I am asking myself right now is how much we could overshoot what has happened historically. Historically, I'd say, start winding down from 35:1 on and get out entirely by 15:1.

 

BUT Dave Morgan has just reminded me (this week's FSN silver round table) that we have now 4-times LESS silver above ground than in 1980, and put on top of this the new markets e.g. in China. I think Morgan thinks we could se 10:1 (he said so on FSN a couple of weeks ago), and in fact I think so too. So, maybe the whole 35:1 level is a joke, and averageing out I shouldn't consider before we're talking 20:1 anyway. The Hunts of course skewed the picture in 1980, but that ratio had been reached before (see charts above), and this time we have the JPMorgue fudging up the market so badly that it could explode again.

 

Anyway, I guess 35:1 will pass and I'll continue to hold on. This is my own money, so I'll take the risk. For a fund, I would possibly try to stick more to the history and start slowly averaging out and try to be out by 15:1 latest.

I feel sure that silver will out perform gold before this bull market is over, but it may well be a much more volitile ride. So I hold more gold in £ terms than silver, if I was in 100% silver I don't know if I'm strong enough to sit through 50% type fall without panicing.

As for an exit strategy, I remember reading your 'When to sell thread' on GIM great stuff, but I would add a public mania to the list. When you see people lining up in the streets outside dealers to sell bits of silver like grandma's old silver tea pot and flatwear from her estate, and at the same time other people 'panic' buying because they are afraid to miss the boat on this 'can't loose' investment, it may well be time to sell half my holdings.

If a mania ( people running only on emotion without any thought ) does take place 10:1 or better is easy to imagine.............

GF

The Gold/Silver ratio looks tempting to play, but as both are in massive bull markets I think I'll just sit tight with both rather than risk ending up with less of both.

I would not greatly be supprised to see 60:1 again as the next move in this ratio, but who knows.

God I so love GOldfinger's and pixel8r's charts !

Well done gentlemen !

Silver to challenge the old $50ish high next ?

HA....... Pixel8r

TO INFINITY AND BEYOND................. I love it.

Should be around £862. That's what coininvest are offering.

Ha...... So you can get over spot already !

What price could I expect to get for a 1oz Britannia coin at the moment? Looking on the 'net £820 seems to be the going rate, does seem about right? I'm not selling, just wanting to know the difference between what you pay for coins and what you can sell them for.

I spoke to ATS Bullion a few of weeks ago about selling gold coins and was told that supply and demand at the time of your sale would be a factor, so if dealers are finding stock hard to come by you could get a price closer to spot than otherwise.

Will a time come when it will be possible to sell at spot plus X%, the dealers would load the margin onto the buyers.......

Sov's when your selling them seem to not do as well as Brit's or krugers despite selling for higher margins over spot when you buy them, makes you wonder how many buyers know about the CGT advantage.

Getting £820 for a Britannia when spot is £853ish does not sound a great deal to me though, the dealer is getting approx 4%.

What an utterly hideous concept, so given the current UK political mindset that means it's almost guaranteed to happen.

 

'Despair' seems the only appropriate word.

Despair indeed.

This is my point exactly. when you go down the isa route you are getting locked in. you'll never sell. and if you do, your gonna lose 28%. Your shares have to perform 28% better than gold for you to make any headway! That a pretty big handicap.

Just buy the soverigns, balance your portfolio between physical gold and physical silver thats enough balance. forget the shares and isa nonsense. they're just a big con. a big con with a huge tax handicap dragging you down.

 

In the event of a hyperinflation it will be pretty easy to make 100,000 as inflation picks up these figures will become "small" in real terms. so any tax free allowance will become small fry and meaningless

Huh..............

It is my understanding any capital gains made on investments held in an ISA are exempt from capital gains tax and

the income from ISA investments is exempt from income tax, however the tax credits on any dividends are not reclaimable.

ISA's seem a reasonable way to buy shares or ETF's.

Where does the 28% loss come from ?

EDIT :- Don't get me worng, buying soverigns has big advantages as well !

but also Capital is like water - it flows where it is easiest - away from regulations, taxes, malinvestments. It continues to flow east and those in charge are making it worse. If the state becomes even more overbearing it will head underground (and it already is doing)

lowrent ......how does that work in practice?

That's a big one. Where are they - what currency?

 

London

 

In turdling I assume,I didn't think to ask

This is the point where I'm very tempted to buy more gold.

* Its clearly still in a long term bull market

* Has crossed the important $1000 mark and seems to be staying over it

* Big reverse H and S formation that has brocken above the neck line on the monthly chart

* A nice long consolidation period since march '08 having worn down expectations

* Gold still not in the main stream media except 'tin foil hat type storys'

* A gold dealer told me last week that goldman sachs dealers were comming in and buying kg. bars, but the general public selling small items and scrap

* I feel uncomfortable buying now (strangely in the past usually a good sign)

So if I'm buying expect a price fall

I'll get my tin foil hat

It's going to be like this for the next 20 years IMO.

 

Those who caused the mess have been rewarded and those who were prudent are being punished.

 

It's going to get worse

 

There will be more bailouts for the feckless and more taxes for the industrious.

I feel I have to agree with you ziknik,it's all so wrong that I no longer feel angry......just sad.