U.S. Gold Exports Surge As Its Gold Trade Deficit Continues

It’s no secret that the East (Asians and Indians) continue to acquire a lot of gold as Western demand has weakened this year.  According to the most recent data released by the USGS – United States Geological Survey, U.S. gold exports surged during the first four months of the 2017 versus the same period last year.

How much?  A great deal.  In the first four months of 2017, the U.S. exported a stunning 173 metric tons of gold (5.5 million oz) compared to 119 metric tons (3.8 million oz) during the same period last year.   Thus, U.S. gold exports Jan-Apr 2017 surged 45% versus last year:

This is quite a large increase.  I would imagine part of the increase is due to the fact that U.S. precious metals retail demand is off considerably ever since Trump was elected President.  U.S. Gold Eagle sales are down a whopping 62% 1H 2017 versus the same period last year.

For example, the U.S. Mint sold 501,000 oz of Gold Eagles during the first half of 2016, versus 192,000 oz for the first half of 2017.  This is a drop of 309,000 oz.

That being said, the drop off in physical gold investment demand in the U.S. has been offset by elevated demand in the East.  As I mentioned in a previous article, the U.S. exported 31.4 metric tons to Hong Kong alone in January.  Thus, Hong Kong received more than half (57%) of all U.S. gold exports during January this year.

So, what were the top five countries that received the majority of the 173 metric tons of U.S. gold exports?

Top 5 U.S. Gold Exports JAN-APR 2017 (mt =metric tons)

Hong Kong = 66.7 mt (38%)

Switzerland = 48.3 mt (28%)

U.K. = 25.5 mt (15%)

India = 22.9 mt (13%)

U.A.E = 6.1 mt (4%)

Of the 173 mt of U.S. gold exports, these five countries received 169.5 mt, or 98% of the total.  Hong Kong and India received 51%, while Switzerland and the U.K received 43% of the total.  However, much of the gold that is exported to Switzerland and the U.K. make its way to China, India or other Asian countries.  So, it is safe to assume that the majority of U.S. gold exports are eventually making their way to the East.

What is also quite interesting is that the U.S. continues to export more gold than it produces and imports.  During Jan-Apr 2017, the U.S. produced 77 mt of gold, while it imported 88 mt, for a total of 165 mt.  However, total U.S. gold exports for the first four months of the year equaled 173 mt, or 8 mt more than it produced and imported.

Thus, the U.S. continues to run a GOLD TRADE DEFICIT.

While precious metals investors in the West are frustrated by the low gold price (and the failure to break above $1,300), the East doesn’t seem to mind a bit.  The Eastern philosophy for owning gold is to acquire it on price dips for the longer term, while the West tends to become frustrated over the shorter term.

So, I don’t look at the 62% decline in U.S. Gold Eagle sales Jan-Apr versus last year, as a bad thing.  Rather, I just brush it off as the West ‘s FICKLE investment nature.

Lastly, I had the pleasure of chatting with Chris Martenson of PeakProsperity.com this week.  It was way overdue because Chris is one of the few analysts whose work is quite similar to what we do here at the SRSrocco Report.  I will be releasing our interview when it is posted on their site.

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25 Comments on "U.S. Gold Exports Surge As Its Gold Trade Deficit Continues"

  1. I wish my fellow Americans had a clue as to the monetary challenges facing the dollar. Interesting now the number of debt problems being addressed across a wide section of states in America. The problems are growing and Americans need to wise up and start buying gold and silver. Thanks Steve for another great article.

    • What’s so sad to me are the elderly… many of whom have NO idea as to what’s coming..! We are in BIG, BIG trouble here in the U.S….. !

  2. They know a storm is coming, but America is mostly to fat and happy to care, bouyed by reserve currency.

    • Too fat, too happy, too entertained…..!

    • They are not happy. They are laughing panicly because they feel powerless.
      I often experience people who break through their ignorance-safety-mechanism and see how they get deeply depressed immideately if the look at the worlds realitys. They can’t handle it and try to push down everything and everyone that reminds them that the world is at its end.

  3. Steve,

    What the USA is doing makes no sense at all!!! Why would they be doing this in the face of a mounting economic collapse?!?! The country will have no monetary asset to turn once the fiat paper burns! This makes me wonder if our government will put a ban on the public owning precious metals and turning everything monetarily to a cashless/cyber economy where they will be able to makes slaves of us forever. I feel this country gets further away from our Foundings everyday and it’s very confusing and scary times coming!

    What’s your opinion of why the USA has lost its economic sense Steve?

    Jared

    • Jared,

      The U.S. had to drop the Gold-Dollar peg in 1971 because it was importing so much oil.. and the price of that oil was increasing. By 2005, the U.S. was importing two-thirds of its oil consumption. Once a country with the Reserve currency goes down the road of monetary debasement, it cannot stop. If it stops, then it collapses.

      So…. we really can’t go back to sound money, because our country can only survive on Energy and Resources from other countries.

      steve

    • They do this because they think they have enough big weapons to conquer it back soon.

  4. I think the worlds gold isn’t where we think it is. Equilibrium gold shows up when the time comes. And it could provide some certainty after insanity. They have plans on the shelves for us. Again, and again, and again. There’s even some balance accounted into it. Because without balance, there’s war.

    They are not stupid, like us.

    • Anyone care to bet that “our” gold from New York and Fort Knox is long gone?

      • Well, its almost time the players show their cards. Great migrations as a result of too little drinking water, no food? Will we shoot them, or will we adopt them? Can we buy enough oil with our gold to maintain the grid? I think not. Maybe gold and silver could provide some necessities on an individual level, but that’s it. Mindset is a thing to worry about. And physical condition.

  5. Thanks Steve

  6. Thanks for another awesome article and can’t wait to see that interview with Chris! Both of you do AWESOME work…!

  7. To win the War you need guns not gold and that’s what West is doing.

    • Right . . and that is what the US is preparing for since they reinstated the reserve Dollar.
      Imagine you have a neigbour . . this neigbour has tons of debt. But instead of saving money he is multiplying his debt on hyperspeed . . . and he is buying every year as much weapons as the hole whole world together. . what do you think? Is he planing to turn his debt crisis around??? Or is he preparing to destoy the WHOLE world so he “could” still be relevant or die trying? . . You guess. . .

      All we see is war preparation.
      They tried to pitch the EU agains russia via the ukraine. The seizing of Crimea was 99% WWIII material. The US knew the russians would never give up their icefree port in sevastopol. This was a direct stab in the russian heart to create war in the region and weaken russia before the REAL war.
      And dont get me even started with Syria, Irak, Iran, Yemen, Afghanistan, NorthKorea etc .
      They fly planes and drive ships near russian and chinese borders to check the military response to prepare the attack.
      They orchestrate racewars via refugees (in europe) and mexicans and “Black-Lifes-Matter-Movements”(in the us) with the help of the media for their Nato nations so people start to develop real race hate again to be ready to feel the need to defend something.
      They lay the ground for hate via religious terror. Islam etc. Which is manufactured via killing more than 20million people since WWII. Over 1Million in Irak. EVERYONE there lost someone, and is f*****g angry!!! Its a wonder that there is not more terrorism.
      They make people believe chinese people have no heart and are soulless robots so they wont get empathy during war.
      We have a full scale propaganda machine . . I am from germany and I KNOW how propaganda and war preperation works. It never changes.
      First covert economic war . . then spreading hate agains religions(jews) and nations (france, poland etc) surveil and as much people as much you can to stop the smalles resistance and keep them feel watched . . and finally make them believe they are the greatest country in the world with the right to school other countrys
      . . and then FAKE “enemy attacks” until the people are outraged and cry for war.
      All fiction . . !!

      That’s why the west is not fighting for its gold . . they take the temporary cash and assume that they will loot it back soon or else take the hole world with them to HELL!
      This world wont be about cryptocurrencys . . or ressources . Its about: we want EVERYTHING and full spectrum world dominance or we destory EVERYthing so noone else can have it!!!

      People dont understand why many psychopath end up in the highest political ranks.
      Those people CANT feel empathy. Everything is just about kicks, money and power. They rape, kill and destoy for entertainment . . And WWIII is the biggest wet dream of them. Be prepared . . and don’t concentrate too much on soon to be irrelevamt details.They need, want and wish for this war more than anything!!!

  8. Gold exporters = losers. Gold importers = winners. Gold traders = vampires.

  9. As a result to my job I get around and through many counties daily. It appears that the BUY GOLD FOR CASH places are once again popping up everywhere. This parallels with what you’re saying , Steve. Seems to be a trend.

  10. When Chris Martenson announced some collaboration with Glenn Beck a few months ago, really threw my respect for him in a tail spin. What gives?

  11. I’d like to hear Steve’s take on the comments by the President the other day about America’s bright energy future and getting out coal industry going strong again.

    • Rob Eells,

      I actually don’t know what to make of Trump’s energy comments. Either he is really that ignorant, or he is just playing along with the game.

      The U.S. EIA- Energy Information Agency also puts out very OPTIMISTIC Forecasts of energy production over the next 20-30 years. This is also nonsense. But, if they were to publish a more realistic assessment, then the markets would be in CHAOS because we need energy growth to allow the markets to continue.

      Without growth.. I am not talking leveling off energy production, without Growth, the financial and economic markets implode.

      steve

      • Trump is a business man. Businessmen don’t care about sustainability . . they care about how much profit they can make to a certain deadline.
        His deadline is 4 years or less. There is a lot of energy-sector-boost for that time in store. So he is right.
        Big businessmen live of squeezing a business out until there is no drop left and they can throw it away like a condom. Some had 60 businesses over their lifetime . .
        The real consequences . . the dropped workers . . the envoirmental damages etc are never seen. Just the “successful managers” that got out with their millions on time before it got ugly. He is behaving like a businessman. Looks good, makes optimisic . . but has to be shreddered for something new soon.

  12. IF you can ‘see’what chaos is coming, then Gold ,Silver and lead, would be a very wise choice for you and yours….imho

  13. Why do we import gold just to send it out again who do we get imported gold from. Also i am old i know what’s coming and i’m still screwed.

  14. I know the day of reckoning will come, but the big fat question is when? Doom and gloom have been talked for years, but stock markets keep rising and I am getting older and worn out. I have invested a lot in the precious metals and averaged down considerably since 2011. I still do accumulate from time to time, but I am still in a deep hole. Honestly, I wish the markets to crash soon and get over with it, but it seems like an eternity because the bubble in assets has been getting bigger and fatter and it has been already 9 years since 2008 financial meltdown. Do any of you think that the crash will happen this year or in 10 years from now lol. Steve, I love your articles, but wow…metals are still depresses and getting capped by these banksters.

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