U.S. GOLD EXPORTS IN 2014: Surged During Price Take-downs

The Fed and Central Banks are in serious trouble and certain countries realize it.  This can be seen by the change in the gold price and its impact on U.S. gold exports.  If the Fiat Monetary Authorities believe a low gold price will discourage investors from purchasing the yellow metal… think again.

Ironically, the United States continues to export a great deal of gold because the majority of its citizens have no use for it.  Unfortunately, Americans view gold as something to wear on special occasions, rather than a retirement asset or insurance for the upcoming financial calamity.  Chalk one up for the clowns at the Federal Reserve.

While Americans were figuring out how to finance a new car, boat or recreational vehicle in 2014, the Chinese and Asians were buying gold hand over fist.  What a difference in buying habits, aye?  As Americans used increasing amounts of debt to purchase more crap they didn’t need, folks in the East were paying cash for West’s barbarous relic… gold.

How much gold did the United States fork out in 2014?  Well, not as much as 2013, but it still turned out to be a great deal, especially during price take-downs.   If we look at the chart below, we can see a direct correlation between falling prices and increased U.S. gold exports.

2014 U.S. Gold Exports & Avg Price

U.S. gold exports started off with a bang in 2014 as the price of gold fell to the $1,200 range in January as investors took advantage of a $200 price cut since its high of $1,416 in September.  Of the 81 metric tons of gold exported in January, Hong Kong received 57 mt of the total.  Those clever Chinese.

Then as the price of gold continued to rise to $1,336 in March, U.S. Gold exports declined significantly.  U.S. gold exports fell to 30 mt in March and remained flat through August as the price of gold traded in a narrow range between the high $1,200’s and low $1,300’s.

If we look at the chart, U.S. gold exports jumped in September to 50 mt as the price of gold fell to an average $1,239 for the month.  As the price of gold continued to decline gold exports increased slightly to 51 mt in October, but really surged to 71 mt in November as the price fell to a low of $1,130 (average $1,176 for the month).

So, where did the U.S. export all this gold?

80% of U.S. Gold Exports In 2014 Were Shipped To Three Countries

The U.S. exported 500 mt of gold in 2014, down from 691 mt in 2013.  However, 80% of the total was shipped to just three countries.  The chart below shows the breakdown of U.S. gold exports in 2014:

Total U.S. Gold Exports 2014

Switzerland received the most at 173 mt, while Hong Kong ranked second receiving 147 mt, followed by the U.K. netting 80 mt.  These three countries received 400 mt of the total 500 mt of U.S. gold exports.  If we scan across the graph, the remaining 100 mt were shipped to the likely suspects.  You will notice there aren’t any noteworthy imports by Western countries, until we reach the bottom of the barrel as Australia and Canada received a meager 10 mt between them.

Furthermore, the majority of the U.S. gold exported to Switzerland and the U.K. were not meant for its own citizens, but rather just a temporary stopover before making its way to Eastern markets.  Again, why should Western investors acquire physical gold that needs to be stored, insured and protected, when paper assets are much easier to own??

As I mentioned in the beginning of the article, the Western Central Banks are in real trouble.  This shortsighted tactic of exporting gold to the East allowing the U.S. Suburban Leech & Spend Economy to keep its doors open a little longer, will have one hell of a serious side effect.  And that is a tremendous financial hangover when the party ends.

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30 Comments on "U.S. GOLD EXPORTS IN 2014: Surged During Price Take-downs"

  1. I don’t believe that the US has any gold left. They have to rely on the corrupt banksters using ETF’s to suppress the price of gold so the dollar doesn’t go down the toilet. Or else they would be using physical gold (which they dont have). Its all gone to the East. As long as they suppress the price people will keep buying until it is all gone

    • Dirk,

      That may be true, but we still produce a good bit of gold and import over 300 mt. Basically, we are exporting all of our imports and mine supply.

      steve

  2. Silverwillwin | May 1, 2015 at 4:31 am | Reply

    Truly a disaster ! What a stark contrast to JP Morgan buying the tremendous amount of physical silver that they now own. What’s with that !? Do they really think that they alone will corner the silver market by doing this !?

    • ” Do they really think that they alone will corner the silver market by doing this !?”

      They have done it, and are continuing to do it.

      • So being a Forrest Gump kinda guy, I wonder what is the difference in what J.P. Morgan is doing and what the Hunt brothers attempted to do and were jailed for it. Being Forrest, it seems to me the only difference is they are doing it in plain site. Can it really be that easy?

        • Silverwillwin | May 2, 2015 at 6:37 am | Reply

          THERE IS NOTHING NOBLE IN BEING SUPERIOR TO YOUR FELLOW MAN;
          TRUE NOBILITY IS BEING SUPERIOR TO YOUR FORMER SELF.

          Ernest Hemingway

        • “I wonder what is the difference in what J.P. Morgan is doing and what the Hunt brothers attempted to do and were jailed for it.”

          A couple differences [and someone else could no doubt point out others]:

          #1 JPM’s holdings are the biggest in history, and #2, that wouldn’t have happened if they weren’t doing the bidding of the government & fed reserve. Hunts had government/fed reserve against them.

  3. Steve,

    This article, to me, only reinforces the need for a Fed audit of our gold supply. I’ve read China may report their current gold holdings this year and may request the same from us as well. Also, China is pushing to be part of the SDR basket of currencies and having an ample, proven gold supply will support that desire. If that happens I read China will probably need to unpeg from the dollar which could be the trigger needed to bring down the paper markets and cause the expected global collapse.

    The need to divest from paper instruments to gold & silver is more critical than ever, but how many everyday Americans can afford $1200/oz of gold? I have some, but have focused on silver since it’s legal tender, world money and currently has an exchange rate of 73/1 to gold. I believe silver will be the investment most will make and IMHO will go up by more multiples than gold when true price discovery is achieved. I hope more people get the word to buy PM’s before the downfall starts!

    • Mark,

      As I mentioned in several articles and interviews, the value of silver will rise to high levels due to the peak and decline of unconventional oil production. The Fed & Central Banks have been able to paper over the problems because we have had an increasing (or stable) oil supply. However, one oil production starts to fall in earnest, the value of paper assets will decline significantly.

      It might take place sooner due to one of a dozen black swans flying around, but if not, it WILL OCCUR happen on the back of falling energy production.

      steve

    • Dave the Stacker | May 11, 2015 at 7:06 am | Reply

      Amen Mark

  4. Steve,

    I forgot to post this earlier, but thought I would share to give all the viewers a good laugh. To lend credence to your comments “Ironically, the United States continues to export a great deal of gold because the majority of its citizens have no use for it. Unfortunately, Americans view gold as something to wear on special occasions, rather than a retirement asset or insurance for the upcoming financial calamity” watch this segment of CNBC’s Future Now online show. Whenever Scott Nations appears it becomes comical. Enjoy!

    http://video.cnbc.com/gallery/?video=3000375539

  5. To answer your question Silverwillwin: There is only one reason that the Morgue would want to own massive amounts of silver. That is, if silver were to rise in price or if there is a short squeeze then JPM could sell large quantities to slow or stop the price rise and still be able to deliver at a tremendous profit. Once accomplished then the morgue could use this profit to begin the process all over by massively shorting silver. They have done this many times; this is their modus operandi. No other scenario is as profitable as this. If they allowed silver to rise to $200 their criminal banking enterprise would be out of business before they could cash in (due to derivatives collapse).

    • Glenn,

      I agree with most of what you say. However they could have a derivatives-related collapse and still possibly abscond with their physical holdings. Not most employees/stockholders benefiting, but the controlling elite would find some way to shelter the physical from a paper/digital collapse by corporate structuring. Or just offer to share with elites from government & fed reserve in exchange for retention & protection.

      We’ve seen the whole time Holder was in office egregious acts by banks go without bankers indictments.

  6. Very often I agree with this report, and usually it ties oil and energy with the price of PM. However, it wont be about that, PM will rise cause everye same ol’ shit wont fly anymore and the manipulators and central banks are playing two dimentional. The rest of the world has moved on, fiat will fall and metals will be left standing, regardless of what oil happens to be doing at the time. IMHO

    • HYMN,

      You stated this, “The rest of the world has moved on, fiat will fall and metals will be left standing, regardless of what oil happens to be doing at the time.”

      That is an interesting statement. The failure of Fiat is due to PEAK OIL & the FALLING EROI. We must remember this equation ENERGY = MONEY. I am a bit surprised that you don’t see the propping up of the markets with PAPER and MONETARY PRINTING as a means to offset the energy situation.

      Again, the collapse of the Fiat U.S. Dollar is tied to energy.

      steve

      • “The failure of Fiat is due to PEAK OIL & the FALLING EROI.”

        Isn’t it also true the failure is due to sheer number of currency units created with no sound backing? There isn’t even five cents worth of copper backing a dollar.

        Can’t it also be said that other currency manipulation like near zero interest rates cheapens the value of a currency? With low to no interest rate return on dollars invested in a bank, CD, money market account, etc., isn’t that also a failure of fiat currency to produce something of value?

        I agree falling peak oil production/falling EROI is the “common denominator” destroyer of all fiat currencies.

  7. Sorry, I don’t understand the relationship between the money printing- oil- silver. could you please explain?

    • Yes. Read the last 20 articles on this website.

    • Angelo,

      The understanding does require the intake of a lot of information supplied in few places, and connecting the dots, to get to the grasp of the situation Steve has. I feel like I’m just starting to fully grasp what he is saying…and i have a degree in Geology [but no financial paradigm expertise]

      I’ll bet in an upcoming paid silver report he will explain in more detail than is possible in brief articles or comments.

    • Angelo,

      While I could spend my time writing a reply here, I believe houtskool gave the best advice. If you have the time, I encourage you to read some of my past articles and listen to some of my interviews… especially my two most recent interviews. That should give you a pretty good understanding why money-oil-silver relate.

      steve

  8. Hi Steve,

    I was wondering if you had seen this recent article regarding Swiss gold imports/exports for March. London exported a very large 97 tons to Switzerland in March. The only other countries of note exporting gold to Switzerland were the US and Turkey with 18 and 15 tons respectively. Swiss gold exports went mainly to India (73 tons), mainland China (45 tons), Hong Kong (30 tons) and Singapore 29 tons.

    http://www.goldcore.com/us/gold-blog/gold-flows-east-china-india-import-massive-quantities-of-gold-from-switzerland/?utm_content=14773927&utm_medium=social&utm_source=twitter

    • Michael,

      Thanks for linking that article. No, I didn’t see it yet, but just read it. I gather much of that London and U.S. gold is shipped to Switzerland for remelting into kilo bars for Asia and India. Seems as if the Chinese and Asians no longer care for the 400 oz Western bars… LOL.

      This is just more proof that WESTERN GOLD continues to head EAST. Americans will be the last to realize they have become the BIGGEST PAPER BAG HOLDERS in the world. When the U.S. Dollar finally collapses in value, Americans will no longer be able to drive their SUV’s to Starbucks for their $5 cup of coffee.

      steve

  9. silverfreaky | May 3, 2015 at 5:02 am | Reply

    It looks really bad for silver.I expect another blowback from maybe 20%.

    • silverfreaky,

      Didn’t know you were such a TOP NOTCH TECHNICAL ANALYST…. LOL.

      steve

      • silverfreaky | May 4, 2015 at 1:01 am | Reply

        Then look to the miner this morning.Again they are falling like a stone.

        • silverfreaky,

          You are free to continue bashing the precious metals and miners to your hearts desire. It’s great to have someone who believes in paper money, derivatives and debt on this site.

          steve

  10. Maybe the $1200-range is the TRUE value of gold, so we sold more at that price level. Just like anything else, the seller sets the price but only the buyer decides if that’s the CORRECT price.

    • Kofi,

      At face value, your comment makes sense. However, the markets today are totally manipulated. The only thing holding up the value of the U.S. Dollar is FAITH. Unfortunately, more and more countries are losing faith in the mighty Dollar which is why we are seeing massive amounts of gold heading from WEST to EAST.

      Kofi, I don’t know how much of my work you have read, but the value of gold and silver are competing with all the Fiat currencies, Treasuries, Bonds and over $105 trillion in global conventional paper assets. All of these paper assets and currencies get their value from a GROWING ENERGY SUPPLY. I have stated that the world is now experiencing PEAK OIL and we will probably start to see a decline in U.S. Shale Oil production this year.

      The decline of U.S. and world oil production will put severe stress on the valuations of most paper assets. Thus, the real VALUE of gold and silver are not realized because most investors believe all those paper assets are a STORE OF WEALTH. They are not… they are ENERGY IOU’s.

      When the world realizes PEAK OIL is here as oil production continues to decline, I believe investors will be forced to move into gold and silver to protect REAL WEALTH.

      $1,200 gold will seem like a pittance in the future.

      steve

      • I can see how the energy [mostly oil, but also coal] part of the equation or paradigm may seem foreign to people. It’s all been pretty abundant during our lifetimes. Scarcity during WW2, but otherwise it’s been so available many have never thought or are unable to imagine life any other way than with abundant energy. We just take it for granted that it will be there.

        You see it in the comments of some. While there are some trolls, some really believe there will be abundant oil for a hundred years or more.

        • David,

          Do you know how many years of U.S. Coal Mine Reserves we have remaining? Well, according to the EIA, we have about 12 years…. LOL. Now, I said reserves, not resources.

          steve

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