DOLLAR DEATHBED DYNAMICS: U.S. Suffers 2-Year Gold Mine Supply Deficit

As the death of the world’s reserve currency grows closer, the U.S. continues to export one hell of a lot of gold.  Matter-a-fact, the U.S. exported so much gold over the past three years, it suffered a deficit large enough to equal two years worth of its domestic mine supply.

This should be no surprise to precious metal investors as 99% of Americans continue to believe DEBTS are ASSETS.  I mean, why should Americans invest in the barbarous gold relic when their wealth comes much easier via their monthly retirement statement?  Sure, their retirement balance continues to go down each month, but this is just a mere setback.  Nothing to worry about, especially when they vote in Donald Trump as President…. double and triple digit gains for everyone.

Well, that sounds real nice until you look under the U.S. Financial hood and see what’s going on with the Federal Reserve Motor.  I would recommend anyone who hasn’t seen the video by John Titus at Best Evidence called, Fed Audit Shocker: They Came From Planet Klepto… to watch it several times.

Not only did the Fed purchase worthless Mortgage Backed Securities from top Banks for $1.7 trillion, Titus believes the Fed has understated the amount of U.S. Treasuries on its balance sheet.  Titus plans on putting out another video showing how much more Treasuries the Fed may have on its balance sheet… but are not publicly stating.

The world is waking up more each day to the massive amount of fraud taking place at the Fed and its member banks.  At some point, the Dollar will lose its reserve currency status, thus waking up Americans from their 45 years of Gold Amnesia.

Getting back to the data, let’s look at the following two charts:



You will notice that total annual U.S. gold supply was lower than total annual gold demand each year during the three-year time period shown above.  The peak annual deficit was in 2013 as total gold supply of 650 metric tons (mt) and total gold demand of 881 mt resulted in a handsome deficit of 231 mt.

If we combine the data from the two charts above, we have the following result:


Total U.S. gold supply for 2012-2014 was 1,979 mt versus total demand (including exports) of 2,415 mt, resulting in a net deficit of 436 mt (whopping 14.1 million oz).  Again, that’s one hell of a lot of gold.  How much?  Well, if we go back and look at the U.S. Mint sales data, it equals all the Gold Eagles sold since 1997… 14,054,750 oz worth:


As we can see, the U.S. Gold Market deficit equaled all Gold Eagle sales since 1997.  Another important takeaway from the chart above is the huge increase in sales when investors are worried about the financial system.  This occurred in 1998-1999 due to the supposed Y2K scare and in 2008-2009 when Americans thought the U.S. market and banking system was imploding.

Another eye-opening way to look at the three-year U.S. Gold Market deficit is how it compares to domestic mine supply.  The United States is the fourth largest gold producer in the world.  China is number one, followed by Australia and Russia.  In order to supplement the U.S. gold deficit 2012-2014, two years worth of domestic mine supply would be necessary:


The United States produced 230 metric tons (mt) of gold in 2013 and 210 mt in 2014 for a total of 440 mt.  The total U.S. Gold Market cumulative net deficit from 2012-2014 was 436 mt.  Thus, gold from institutions, banks or the looting of the GLD ETF, was necessary in order to supplement this massive 436 mt U.S. gold deficit.

Unfortunately, the Eastern countries continue to import record amounts of gold while Americans hope and pray that their paper assets hold their value.  This is the reason we see the Fed and U.S. Treasury propping up the entire Bond & Stock Market.  Once the popping of the Great U.S. Ponzi System occurs, you can bet your bottom Silver Dollar that the safest assets to own are precious metals and not highly inflated $24.7 trillion U.S. Retirement Market.

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11 Comments on "DOLLAR DEATHBED DYNAMICS: U.S. Suffers 2-Year Gold Mine Supply Deficit"

  1. Steve, I thought the GLD gold was stored in London? Only the paper resides in the US?

    • Cha,

      I see you have done your homework. However, we are not sure how much is stored in London, or in other vaults around the world… including the United States. According to the GLD ETF Key Gold Info PDF:

      The Trust’s gold bullion is kept in the form of London Good Delivery bars (400 oz.) and held in an allocated

      STORAGE The gold bullion is held by the Custodian, HSBC Bank USA, in its London vault or in the vaults of sub-custodians.

      So, some of the gold is stored in other vaults besides those in London.


      • Last I heard, there was no gold in London either..

      • Sub custodians are the opaque hiding place. You simply have to trust that the gold is somewhere and held by someone in some undisclosed amount. No information is released (that I am aware of) of these.


    • Silly,everybody knows that the USA Gold is stored in China and Russia

  2. I always enjoy and learn from these reports. They seem to examine the PMs market from a slightly different, clearer angle than most. This was about gold. Unfortunately I’m stuck at the “poor mans gold” level. I view it as a nice problem to have as I suspect silver will out preform gold on a percentage basis.

    • OutLookingIn | October 14, 2015 at 9:51 am |

      HYMN –
      As Jim Sinclair has stated many times – “Silver will be gold on steroids”.

      A look at silver’s action this morning on the one minute chart, shows that it has reached or crossed the $16 dollar barrier, SIXTEEN TIMES! Currently above $16.00 The bullion cartel are pulling out all the manipulation stops, to attempt a cap at the sixteen dollar line in the sand that they have drawn.

      Could today be “THE” day? Fun times! Stay tuned.

  3. Wow! Another very scary article which no one seems to care about. Imagine: “The death of the
    world’s reserve currency grows closer” as you’ve written. Question: What happens to 99% of
    the people in the USA and worldwide who hold our currency? What do those 99% buy food
    with? If I understand correctly death means dead i.e. gone. What will you do with all your silver and gold then Steve? Just try going to town with some silver. You state the currency in terms of collapse,
    death, destroyed etc. What may happen is a devaluation over a shorter period of time i.e. 5 years.
    Whatever the percentage of devaluation will be, you will still have a USA currency. Silver stackers assets in dollar terms, will grown commensurate with the dollar decline. Also note that coins may be undersupplied presently but 1000 ounce bars are not.
    right now but 1,000 ounce bars see no shortasge.

  4. Silvrwillwin | October 15, 2015 at 8:18 am |

    Joe ,
    “Also note that coins may be undersupplied presently but 1000 ounce bars are not.
    right now but 1,000 ounce bars see no shortasge.” Huh !? Why does that not make sense to this reader?
    It would stand to reason that if 1000 ounce bars were so plentiful as you say that they are THEN an interruption or as you put it “undersupply” would not be the case for said coin manufacturing ~ no/yes ?

    • It’s just the difference between retail shortage of coins due to high demand, and no profound shortage in the wholesale market as Steve has noted several times. There is a lot of time between the existence of large bars, their sale and delivery to companies like Sunshine Minting, the time to assay and make coin blanks out of those bars, and delivery of those blanks to a mint like the U.S. Mint.

      When investment demand for those large bars increases further, plus coin demand, then we can expect wholesale shortage. From that point longer waits for coins, small bars, and rounds.

  5. In the land of the blind, the one-eyed man is king.

    It’s better to have 3 ounces in the west, than 8 ounces in the east.

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