As the world races towards another financial calamity, the U.S. Empire’s strategy to shield itself from this impending disaster, is to export all of its gold supply. That’s correct. The U.S. Gold Market can be explained in three simple words… ZERO SUM GAME.
This is quite a different strategy from the once great super power which held over 20,000 metric tons (mt) of official gold reserves in 1950. While the official figures now show the U.S. presently holds 8,133 mt of gold in reserve, anyone with an IQ greater than a “10”, realizes this is just an accounting gimmick. Unfortunately, most of that gold was probably dumped on the market (or leased) to help cap and rig the paper price lower.
According to the recently released USGS data, the U.S. exported every single ounce of its gold supply in April. Let’s take a look at the chart below:
U.S. gold production declined in April to 15 mt compared to 16.5 mt last year. Total U.S. gold production year to date is down a whopping 8%. When we add U.S. mine supply to imports for April, total U.S. gold supply for the month was 42 mt. Now, if we look at the total export figure, we can see the United States exported its entire gold supply. Thus, the net result was a BIG PHAT ZERO.
Again, a ZERO SUM GAME.
And, if you have been reading my articles in the past, it’s even worse than that. If we look at the total U.S. Gold Market supply and demand equation for the first four months of the year, this is the result:
Here we can see the U.S. domestic gold mine supply of 63 mt and total imports of 88 mt equaling 151 mt was less than total exports of 165 mt. Which means, the U.S. Gold Market had to cough up an addition 14 mt to satisfy demand (Jan-Apr). I did not include gold scrap supply or domestic consumption figures as these basically cancel each other out (actually Americans consume more gold than gold recycle scrap supply).
Now, why would the U.S. continue to export all of its gold supply? Well, we can certainly thank the folks on the financial networks, such as CNBC, for brainwashing Americans into believing gold is a “Barbarous Relic.”
As I stated before, you’ll never hear financial network hosts claiming that “Bread” or “Brooms” are barbarous relics. I imagine if you go to any large supermarket or home-improvement outlet you are going to find an entire shelf of bread and brooms. The Romans consumed a lot of bread and used lots of brooms, but these aren’t considered barbarous relics today.
To tell you the truth, I can’t stomach watching CNBC anymore. Some say it’s now just for entertainment. However, I think its worse than that. CNBC has been instrumental in totally destroying the ability for (most) Americans to understand the present economic and financial situation. So, when the next financial crisis finally arrives (worse than 2008), CNBC viewers will be more shocked and unprepared than ever.
Now, where did the U.S. export all of its barbarous relic (Jan-Apr)? According to the data, Switzerland received the most at 62.6 mt, followed by Hong Kong (39.6 mt), the U.K. (24.7 mt), India (19.2 mt), U.A.E. (8.7 mt), Thailand (3.9 mt) and Singapore (2.4 mt). The top four countries accounted for 88% of the total.
If we consider that most of the U.S. gold being shipped to Switzerland and the United Kingdom is being refined and exported to the East, then India and Asia are ultimately the largest importers of the U.S. gold supply. Which means, it’s nice to know that Americans are giving up their gold so Asians and Indians are better protected when the (next, even worse) financial crisis arrives. Who says Americans aren’t giving??
I will be putting out an article about the present Wholesale Silver Shortage situation in the next few days. There seems to be a great deal of misunderstanding of what this really means for the market. Please look out for this article which should be posted Wednesday or Thursday.
Lastly, if you haven’t checked out THE SILVER CHART REPORT, there’s a great deal of information on the Silver Industry & Market not found in any single publication on the internet. There is one chart in this report (Chart #19) that I can guarantee that 99.9% of precious metal investors haven’t seen before.
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