U.S. Gold Exports Jump 70% In September

According to the USGS most recent data, total U.S. gold exports increased significantly in September.  Not only did U.S. gold exports surge in September, they were 70% higher than the previous month.  This was probably due to increased demand as the price of gold declined $80 during the month.

U.S. exports started off very strong in January, reaching 80 mt (metric tons) with the majority heading to Hong Kong.  However, gold exports fell to 47 metric in February and dropped even further in March at 30 mt. If we look at the chart below, U.S. gold exports continue to remain weak from April to August until the spike up in September:

Total U.S. Gold Exports Last 6 Months

As we can see, total gold exports for each month were less than 30 mt.  However, when the price of gold fell to a new low, gold exports increased to 50 mt.  The majority of gold exports in September were shipped to Switzerland, the U.K. and Hong Kong:

Total U.S. Gold Exports Sept 2014

China also received a direct shipment of 3.3 mt of gold while Thailand imported 3 mt, Italy 2.6 mt, Singapore 2 mt, and the UAE 1.5 mt.  What is interesting here is the 2.6 mt of U.S. gold exported to Italy.  Italy has imported gold scrap from the U.S., but not much in the way of gold bullion.

Matter-a-fact, I went back and looked at the past ten years of USGS Gold Yearbooks and only found one entry listing U.S. gold bullion exports to Italy in 2009 at a paltry 21 kilograms, which is 653 troy ounces.  Compare that to the 2.6 mt or 83,590 troy ounces of gold exported to Italy in September.

U.S. gold exports for the first nine months of 2014 are down compared to the same period last year.  From Q1-Q3 2013, total U.S. gold exports were 573 mt compared to the 370 mt in the first three quarters of 2014.  However, the price of gold fell to a new low in November, thus gold exports from the U.S. may continue to be strong for the remainder of the year.

The Delay In Releasing THE U.S. GOLD MARKET REPORT

I mentioned over a month ago that I had planned to publish my first paid report, THE U.S. GOLD MARKET REPORT.  The report has 25 charts-graphs and is 38 pages long.  I had my web designer working on setting up the new PAID REPORTS PAGE and just when I it was about to go live with it, I found a glaring error in one of the major aspects of the report.

Initially, I thought the U.S. suffered a large cumulative gold deficit between 1981-2013.  I came up with a large deficit using figures provided by the USGS Gold Year books.  The USGS receives its data from the U.S. Census Bureau.

The USGS publishes annual gold import-export data and during some years, exports were very large.  Coincidentally, years showing large exports also listed significant net withdrawals of gold out of the NY Fed.  I assumed part of the gold exported from the U.S. included gold withdrawn from the NY Fed.

I called up Micheal George, the USGS gold specialist and asked him if foreign held gold withdrawn out of the NY Fed was included in the total U.S. gold exports.  He told me that any foreign held monetary gold withdrawn from the NY Fed was not included in the U.S. gold export data.

So with that understanding, I continued with the report.  However, when I was about to publish the report, something just didn’t seem right, so I spent some time researching the details on the foreign held gold at the NY Fed.  I went back to some older USGS Gold Year books in the 1970’s and found out that the USGS actually provided a breakdown in commercial and monetary gold exports.

Unfortunately, the USGS no longer provides a separate accounting of monetary gold exports.. so its very difficult to know how much of the annual net withdrawals of foreign held gold at the NY Fed are exported or sold into the market.  And.. its even more difficult and convoluted than that… I will get into this into more detail in the revised report.

So, some of the 4,000+ metric tons of foreign held gold at the NY Fed withdrawn between 1981-2013 were indeed included in the total U.S. gold exports.  So, now I have decided to totally revamp THE U.S. GOLD MARKET REPORT including data going back until 1971.

I have to say, the more I research these older USGS Gold Yearbooks, the more fascinating data I uncover.  For example, in 1974, the U.S. exported 3.3 million ounces of monetary gold.  Of this amount, 2.58 million oz of monetary gold were shipped to Saudi Arabia.  This is quite interesting due to the fact that the U.S. Arab Oil Embargo started in 1973.

Furthermore, it’s truly amazing how much gold the U.S. exported since 1971… and this doesn’t even include foreign gold held at the NY Fed.  It will take some time to go through all this data, but I believe it will provide the precious metal investor a very interesting report on the dynamics on one of the largest gold markets in the world.

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32 Comments on "U.S. Gold Exports Jump 70% In September"

  1. Do you ever think that possibly any of this won’t really matter. What I mean by this is that let’s say there is a supply shortage at some point. What happens?

    Yesterday, the banking cabal shut down all trading in the Russian Ruble. Will they do that on the COMEX, LMBA, while outlawing ownership of gold again? And do you think the vast majority of American plebs will even care, so long as their govt. checks keep coming?

    I’m just doing some game theory but I have no more idea than anyone else.

    Gold and silver move on the exchanges for one simple reason: either buyers are more motivated than sellers or sellers are more motivated than buyers. With the help of the New London Gold Pool, sellers continue to be happy campers, and not much will likely change until the above happens in all liklihood.

    If the US. working group can take the ruble down and oil complex down the way it has–imagine the forces against gold and silver from climbing. And if they lost control of paper, they will take control of physical. I see that is the logical end game.

    So to protect oneself I don’t see gold or silver happening..

    Barney

  2. An old Wall street nugget: ‘He who sells what isn’t hissin, will go to prison!’

    Swiss based Gunvor, the worlds fifth largest commodities trader, has announced it is ceasing to trade gold. It cites the main reason being that “legal” gold is now becoming rare to find. And that most gold on the market has an origin that cannot be documented. Most probably due to the hypothecating of the hypothecation of the re-hypothecated underlying!

  3. At 2 eastern time, we’ll get to see how the banking cabal is still in charge. Silver down 4% by end of day today or tomorrow. They always slam it on any FOMC decision. Guaranteed.

  4. Watch the price of silver right now: unchanged for minutes now. Banking cabal taking tight grip—getting ready to absolutely flog the price to smithereens at 2:00 eastern time.

    This is all too terrifying.

  5. Ah……starting to fade a bit. Flogging coming up in 45 minutes.

    One thing I agree with: silver would fly if the banking cabal had to back out of all their positions. And I DISAGREE with anyone alive that think the metals are not manipulated ALMOST ALL DAY LONG.

    They have to be manipulated all day long. Think about it: They’ve been manipulated for so long now that any let off the brakes and you see huge spikes. Which can’t happen. So even when you get a spike the prices are ALWAYS quickly capped—only to fade into the night once again.

    There is NO WAY to win in PM’s. Period. We can do all the analysis and research we desire–IT WILL ALL BE FRUITLESS.

    Though I do appreciate the analysis as much as anyone else I’m just sad to say it won’t mean anything.

  6. Right on cue: futures starting to tumble. Get ready for the HUGE and MONTSTROUS PM slamdown. Man, this is just Sooooooooo predictable. So is the endgame. Get ready to have your PM’s outlawed in the next few years. So predictable.

  7. Price increase capped in its tracks. Now headed DOWN, while equity markes around the world RIP HGHER.

    NEVER FAILS.

  8. Ah…..so sweet. And there goes the PM complex: BOOM.

  9. Steve,

    Do you think the 50 mt for september include (even partially) some official gold export sector ?

    I know that in the past the information looks quite difficult but maybe it is easier for 2014 months ?

    Thanks.

    • RD,

      If so, then some of the gold exports should have been sent to the Netherlands. The USGS did not list any gold whatsoever to the Netherlands in the 2014 Gold Mineral Industry Surveys.

      steve

      • OK thanks. As US production is about 20 tons/month it mean that 30 tons of old reserve/scrap has been dishoarded by the USA in september 2014.

  10. Millions & billions in physical gold and (a bit) silver, trillions & quadrillions in paper markets, shorting rubles and pumping stocks. Shit is freaking me out after reading hundreds of articles. There’s still trust in paper markets, and a lot of currency to be made. Phyz market is very small in comparison with paper ‘manipulations’, but the paper is starting to lose grip imho. Oil from $110,- to $57,- in a short period, ruble fx halted, 2% yield on broken countries bonds; when paper breaks, phyz won’t be available anymore. But it takes a damn long breath to see the paper markets kill themselves. Paper markets will become more unstable as time passes by, and momentum is gaining traction as can be seen in physical buying and paper instability. When the fire starts, the casino exit doors will be closed.

  11. Silver in the 15s. The Fed can never raise rates. Russell 2000 skyrocketing. Victory. Betting on gold and silver is just stupid when you do the math.

    Paper wins.
    If paper doesn’t win-paper halted. Physical outlawed.

    =Screwed no matter what in PM’s.

  12. So let’s us see. The market has decided….oh well, they might do some small raise *someday* so let’s rip higher no matter what. And the market decides simultaneously that while a rise in interest rates isn’t likely anytime soon……sell all precious metal investments.

    I get it. Give me my money back Fed. You should have sent a world-wide memo that no matter what PM’s would never EVER NEVER ever be allowed to work.

    • barney,

      Of course you like everyone on this planet is welcome to their opinion. However, if you think fundamentals don’t win out in the end… GO SELL CRAZY SOMEWHERE ELSE (Jack Nicholson- As Good As It Gets).

      LOL…steve

      • Steve,

        I think the fundamentals are right for gold and silver. And if they were let to go free that would be true.

        But in 1933 Rosevelt ordered the executive order to make gold holding illegal. They will do it again should they lose control of the paper market.

        So, yes, fundamentals eventually win, but then you won’t win anyway is my opininion.

        Barney

        • barney,

          I don’t want to WIN in the end… I just want to preserve some wealth. PEAK OIL is coming and that will destroy the value of most paper assets. I am not saying this will occur in the next few years, but its coming most certainly by the end of this decade.

          These are the fundamentals the ELITE cannot control.

          steve

          • @Steve,

            I was thinking that though oil is tanking or has tanked that it makes your point in a way. If it has taken the zero percent interest rates for the cheap Shale loans, that many will default on if oil stays low, plus trillions in thin-air money that helped pump up the oil price…….which gave the oil industry an additional 4 million gallons per day of oil equivalent. Otherwise, that increased production would have never happened.

            So, to get oil higher either the Fed will have to start pumping money again while keeping interest rates at zero to keep the Shale going FOR NOW, oil kaboom…..production drops off a cliff even before the depletion rates in addition to new wells that run dry takes hold.

            So since I don’t believe the economy will ever boom under the weight of all the debt, oil will likely not rise without more of the same: qe4 and ZIRP. As you know, that will only slow the inevitable collapse of paper assets. But that is all.

            i just hope when they go to confiscate gold it is much higher by then.

  13. when gold and silver are required to be returned ,the metal of choice will be ‘lead’….imho

    • As Dan implies, if TPTB “outlaw” gold ownership that will largely be ignored. This is not 1933, when gold holders thought they were doing a patriotic duty by complying with an immoral executive order.

  14. barney,
    you make your points but, give alternative suggestions. if you don’t have any then you are wasting your time as most people here probably ignore your constant negativity any way.

  15. wow—debate, you do not get many sites that let some of this go on

  16. Barney,

    When gold was outlawed in 1933 the US population was much more trusting in it’s government than today. Besides that, they only arrested one person over the law to make an example and the rest of the gold that was turned in was voluntarily done. Let’s put some perspective to your conclusion, if they did outlaw gold the vast majority would continue to hoard their holdings and NOT turn it in. This would create a black market for precious metals and be bullish. They wouldn’t be able to physically confiscate the metals going door to door or after people who left a paper trace of their purchases, this would be met with nearly the same reaction as a country wide gun confiscation.

    Don’t listen to Barney’s plee to sell, keep stacking!

    • I am not telling anyone to sell or anything of that nature Chuck. I’m just pointing out how the repression will likely never end. Do what you want with your own investments. And I disagree with anyone who says gold is “insurance.” No–it’s not. it’s an investmnent alternative.

      • WRONG.

        Gold is money. The ONLY “true” money. Has been for thousands of years and will be for thousands more! Currency is a paper claim chit claiming wealth. It is NOT money.

        A bare six weeks ago, people in Russia could buy an ounce of gold for 54,000 Rubles. Today that same ounce gold will cost them 90,000 Rubles. Now, what would you have preferred to have your wealth in if you lived in Russia? Gold is insurance. Insurance against having your wealth destroyed by currency devaluation.

    • I can see Berney’s point Chuck. I started stacking at around $1800 and am still adding a little to reduce the average but I’ve been hit hard. I am pretty sure that if the price does actually go through the roof Governments will take action, either by nationalizing stocks as in 33 or imposing heavy gains taxes. Either way it will not be pretty for gold holders especially those with it ‘safely’ stored in vaults. It will be a case of getting out before draconian steps are taken ’cause after that it might only be the black market. After that our stacks might only be of use when our grandkids have grown up.

      Silver is probably safer from confiscation as the value/oz is so much lower and the CB/Governments probably regard it as not worth going after. Gains taxes yes. That’s why I am biasing towards silver now.

      As Steve says, these are long term stores of wealth products, not investments in the traditional way.

  17. I hear all time Long term Investment.It was the wrong Investment at the wrong time.
    When I know today that silver costs the third part of Money in 3 years, should I buy it today?

    The prediction that the Dollar collapses was wrong too.Exactly the controverse happens.

  18. We all agree that the Silver/Gold market is manipulated. And for the most part we can identify
    who the manipulators are. Therefore, if the USA exports every ounce of gold, I ask, “So what?”
    If the manipulators are not buying gold or silver but their assets are FIAT currency, ” What does
    that tell you?” All the rhetoric has gone nowhere. We had hopes that the physical market being
    set up in China would put “silver in a free market.” Since China must import a few hundred
    million more ounces than it’s mine produce, they hire the manipulators as consultants to keep
    the price low so they can import silver at a low cost. The question to ask is “What’s in it for the
    manipulators?” What do they gain by bankrupting the primary miners at these low prices?
    And last of all, are any of these manipulators like JP Morgan, Goldman Sacks etc. buyers of
    silver.

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