GOLD: IT’S NOW AUSTRALIA’S TURN
It seems like nearly the whole planet is raising questions about gold, and more specifically the actual amounts of gold reserves held by the various central banks. We've all seen the stories of the last decade or so as countries. In the wake of the 20o8 meltdown and "bailouts," various countries started buying gold, with Russia, China, and India leading the list. Then came what we'll call the "audit and repatriate" movements in various countries. Germany led that, as according to most accounts, it supposedly holds the second largest gold reserves in the world, after the United States of America. Private groups in Germany pressured the Bundesbank to repatriate its gold reserves held in France, the Bank of England, and most importantly, the New York Federal Reserve. Again, supposedly, some of that gold was returned, and supposedly the Bundesbank did an audit, and published some of the results, and almost immediately questions were raised. Then other countries jumped on the "repatriate and audit" bandwagon, notably Austria, the Netherlands, and of course, Venezuela. Recently the Bank of England said "no you can't have your gold bank" (a very bad precedent).
And along the way while all this was going on through the years, there were stories of gold bars showing up on Chinese markets, but woops, they were merely gold plated tungsten bars, and similar stories emerged from Canada as I recall, involving coins certified by the Royal Canadian Mint, or something. It's been rather confusing if you've been trying to follow it all.
Well, now it seems it's Australia's turn, as questions are being raised about its gold. This article was spotted by Ms. K.M. and Mr. H.B., and there are a few things in here that really grabbed my attention, and as one might expect, I have to do some high octane speculation about it. The article is from Zero Hedge, and it contains a somewhat helpful review of the whole issue, with, of course, final bit of advocacy for gold and gold-backed money:
What's Up With Australia's 80 Tonnes Of Gold At The Bank Of England?
What's interesting to note here is that now Russia has jumped into the fray in a more-or-less semi-official manner through its well-known RT news outlet, raising questions about other countries' gold, in this case, Australia's. According to the article, RT asked Zero Hedge about the whole subject, and for our purposes, we'll return to this point, as it bears on our high octane speculation of the day.
Recently, news network RT.com asked for comments on the question of the 80 tonnes of the Reserve Bank of Australia's (RBA) gold reserves and their supposed storage location at the Bank of England's gold vaults in London. Based on some of those comments I made, RT has now published an article in its English language news website at www.rt.com about this Australian gold that the RBA claims is held in London.
The RT.com article, which was published on 18 February 2018, is titled "Hey UK! It's not just Venezuela, what happened to Australia's gold?", and can be read in full here on the RT website.
For the commentary, RT actually asked me quite a few interesting questions on both the Australian gold and other related gold topics. Since both the extended questions and the answers might be of interest to readers, we have decided to publish below the full set of questions and answers in Q&A format, which are as follows...
At this juncture, the question of Australia's gold reserves comes up, and here is part of the RT question answer exchange:
1) What happened to Australia’s gold? What’s your opinion?
The Reserve Bank of Australia (RBA) claims to have 80 tonnes of gold bars stored in a bailment arrangement, in an allocated gold account, at the Bank of England vaults in London. Bailment means the Bank of England is custodian, and the RBA owns and has title to specific serial numbered gold bars.
However, there have never been any independent physical audits of this gold, which means that there is no way to verify the RBA’s claim that it has all the gold that it claims to have.
In 2013, the Bank of England allowed the RBA to do a partial audit of some of the claimed RBA gold holdings, but the results of this audit remain secret, and even after FOIA requests, the documents from this audit were blocked by both the Bank of England and the RBA and never released. This also raises a red flag.
Throughout the last 20 years, the RBA also admits that a lot of its claimed gold holdings have been lent out in the secretive London Gold Lending Market, but there is no information whatsoever available on any of these lending transactions or the serial numbers of the gold bars involved. In other words, there has never even been one snapshot publication of a proper industry standard weight list for these RBA gold bars (by refiner serial numbers), let alone an updated weight list every time the RBA lent out or closed a gold lending deal.
During the years 1999 - 2004, the RBA says that almost all of it's gold was on loan, and the RBA is still in the gold lending market to this day, for example, 10 tonnes of its claimed 80 tonnes at the Bank of England were said to be on loan during 2018. The important point here is that the gold bars that the RBA would have title to at the completion of a gold lending deal would not be the same bars that it held prior to this gold being lent to a bullion bank in London.
Independent physical audits, full and proper weight lists, details of gold lending transactions, and above all a transparent attitude, would all allow instant verification of the RBA's claims about the sovereign Australian gold holdings. That the RBA and Bank of England refuse to do any of these things is highly suspicious. Therefore, there is no black and white way to say that the RBA has the 80 tonnes of gold it claims to have.
Then, question number three is asked, and it's illuminating to cite some of the answers given in response:
3) Some experts believe that western central banks are “covertly disposing” of their gold or otherwise leasing it to China and India through bullion banks. Do you believe in that? Do you believe there’s some grand, global gold conspiracy involving the world’s central banks?
There is a mountain of evidence that Western central banks despise the power of gold and will go to great lengths at the highest levels to contain the gold price through coordinated interventions and anti-gold policies. From the London Gold Pool of the 1960s, to the US and IMF gold sales in the 1970s, to the 1980s Gold Pool discussions at the Bank for International Settlements (BIS), to the Bank of England intervening into the London Gold Fixes in the 1980s, G10 central bank governors have often been personally involved in committing to gold market manipulation.
As regards the Australian and Canadian gold sales, the more logical explanation for both of these was that they were coordinated gold sales by G10 central banks as part of a plan to fire-fight the physical gold market or to bail out gold short bullion banks, or that the sales were part of secretive gold re-distributions to other countries, such as to China. While this may seem far-fetched, you have to realize that central banks never tell the truth, especially when it comes to the gold market, and that the sheer numbers of central bank gold sales around that time in the 1990s and 2000s, including by the UK and Switzerland, point to something collusive about the sales rationales.
At a broader level, there seems to be collusive policy behind the scenes of western central banks offloading physical gold in a coordinated manner through secretive sales and leasing it to achieve various policy objectives. These objectives include inducing extra gold supply to dampening down the gold price....(Emphasis added)
Keep that little remark about "inducing extra gold supply to dampen down the gold price" in mins, because it too has something to do with today's high octane speculation.
Then comes the Sixth question, and the answers given are stunners:
6) Australian economist John Adams said: “In the last 20 years we’ve only seen the gold once.” According to Adams, the RBA audit was so flawed it was basically meaningless. Is there any chance that the BoE could manufacture bars with fake serial numbers?
The Bank of England allowed Australia’s central bank to do its own partial gold audit in 2013, and to inspect a random sample of the RBA gold bars, This audit was basically meaningless, yes, and was flawed from start to finish.
Knowledge of this gold audit kept out of the public domain and the results of the audit were totally censored and buried. Only via FOIA requests did the Australian public even get a glimpse into what was going on. The FOIA emails and correspondence that the RBA did release were heavily redacted without any details of how many gold bars were selected and what the sample size was, and the results of the audit were not published. No one in any industry would accept such conditions for an audit nor of the so-called audit results.
At no time did the Bank of England supply a proper weight list to the RBA with the refiner serial numbers of the claimed gold holding. The RBA had to select some bars a month in advance and advise the Bank of England of the bars its wanted to examine. This in itself is ridiculous. For example, the SPDR Gold Trust (GLD) has full annual audits of all of its gold holdings (of nearly 800 tonnes), i.e. 10 times more than the RBA holds. Since the GLD can get its gold physically audited twice per year, there is no reason why the RBA cannot.
In July 2013, just before the RBA's flawed and partial audit, the RBA didn’t even have formal ‘gold safe-custody arrangements’ in place with the Bank of England since it had to ask for “gold safe-custody arrangements between the RBA and the BoE to be formally clarified”. That's according to a glimpse of some RBA - Bank of England correspondence that did make it out in one of the FOIA emails released.
After the audit, the RBA blocked publication of the audit results document stating that it “would, or could reasonably be expected to, cause damage to’ the relationship between the RBA and the BoE” and that it could “render less effective of procedures or methods for the conduct of tests, examinations or audits’ by the Bank”. This is complete nonsense. (Emphases in the original).
So, once again, like Germany, we find an audit by a central bank that is not really an audit in any conventional sense, since the results are not only keep hidden, but those results could "reasonably be expected to cause damage to the relationship" between the Reserve Bank of Australia and the Bank of England. Interestingly enough, these types of results seem to be mirrored in the recent FASB regulations which essentially have taken the entire US federal budget "black." So we have (1) an audit that wasn't an audit, (2) the clear implication that something is being covered up (3) the claim that "extra gold supply" is being "induced" to "dampen down the price" of gold, and finally (4) Russia drawing attention to it through RT.
So my high octane speculation of the day requires mention on one final point. Regular readers here, or of my books (In particular, Covert Wars and Breakaway Civilizations) will be aware that for some time I have speculated about the existence of a hidden system of finance, something deeper than the "black budget", something created to maintain over several decades a large funding mechanism for the financing of the USA's enormous black projects world. This mechanism I believe was formally put into place after World War Two by President Truman, though I do see indications of something like it being assembled prior to that war in a kind of ad hoc manner. In any case, this system, I have argued, was based upon the secret recovery, and use of, the Axis plunder from World War Two, and in particular, the recovery of the bullion looted from Asia under Imperial Japan's Operation Golden Lily. This supply, in addition to any gold mined since the war (which in my opinion again is subject to the same sort of obfuscation of the amounts by banks and mining companies as the actual gold audits themselves) constituted a hidden reserve, which could be effectively re-hypothecated over and over again (since only a few knew how much there was, and that "few" may not have included the central bankers themselves, but rather, the intelligence community). The effect was to be able to create liquidity as needed.
So why is Russia now involved in covering the story. My high octane speculation and suspicion is, that they know various aspects of this story, and perhaps know it in some detail. There has been the odd hint over the years from Russia that they do indeed "know something" about this system and the international cabal behind it. (Consider Dr. Tatyana Koriagina's statements in Pravda a few months prior to 9/11, that America would suffer dramatic attacks on its own soil, but that these attacks would come from such a cabal and that this cabal had assets of over $300 trillion to play with). Russia has also pointed out the dangerous precedent set by the Bank of England in refusing to return Venezuela's gold reserves. If my "hidden system-re-hypothecation" scenario has any validity, I suspect Russia may have intelligence on how much was so re-hypothecated, and by whom, when, and where. Additionally, I suspect they may have intelligence on how much gold has been "induced" from various sources into the system, releasing bits of information in dribs and drabs, rather than exposing the whole thing all at once, and causing a collapse.
If I'm right about all this speculation, then one can expect to see in the future more such stories and - not to coin a pun - the odd "nugget" or two of detailed information to add to the overall picture of corruption that began to be painted in this article. After all, the article paints the clear implication that something is amiss, running all the way from Canberra to London.
See you on the flip side...
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Let’s think, either there could be more gold, or, less gold than we have been led to believe.
Appeared in Popular Science magazine: March 1948, US Alchemists make gold, Atomic Energy Commission has gone into the business of manufacturing synthetic gold
Then there is this older article from Modern Mechanix:
BOMBARDING the Atom for POWER and GOLD (Dec, 1932)
“Transmuting one chemical element into another by splitting atoms and adding or subtracting a portion of their protons and electrons has already been accomplished, and it now remains to perform this feat on a large economical scale. Success, which probably lies far in the future, may mean that gold will become as plentiful and inexpensive as substances like lead and iron.”
And, as I recall the Nazi scientist’s made some claims about making gold in the 1930’s.
Excellent high octane speculation Dr Farrell. I am just learning about the gold game, you are a fine source.
“. something created to maintain over several decades a large funding mechanism for the financing of the USA’s enormous black projects world. This mechanism I believe was formally put into place after World War Two by President Truman”
Some things to consider regarding Australia’s gold (I’m an Aussie :)). Then Treasurer Peter Costello ‘sold’ 167 tonnes of Aus gold reserves in July 1997 at $306 an ounce (now over $1300 an ounce)….The RBA’s sales pushed the world gold price down to an 11-year low, returning just $2.4bn for the gold that was sold via a single broker engaged without a tender. AND THAT WAS WITH ONLY 167 TONNES OF GOLD!!!!!!! IMAGINE IF 1 or 2000 tonnes of gold ‘appeared’ or was found to be fake!!!!
People wondered then why we sold at the bottom of the market…..strategy! Australia is the world’s 2nd highest producer of gold-replenishing isn’t an issue. Now China and Russia sit at 1 and 3 respectively and are not part of the ‘Western cabal’. They can mine all they like but if the value drops-good night! The Reserve Bank of Aus’s highest assets are not in gold btw.
China and Russia are hoarding at the top of the market…….best time to sell and NOT buy or hoard. Now if the Fiat system doesn’t crash but gold drops…..China and Russia still lose.
The latest data is showing that Trump’s tariffs are biting the Chinese economy and Xi is facing restlessness at home-he has stocked the nationalist/racists Chinese sense of world centred ness too early and unless he takes Taiwan and can actually push the West out of the Pacific-things could get ugly in the Middle Kingdom. Now China is the number 1 strategic problem for both Australia and the US. If they are hoarding gold for an alleged ‘gold standard’ currency in the hope of knocking out the US $ and fiat currency and suddenly a large chunk of known gold stocks are found to be waaaaayy higher or waaaay fake…..you lose China and Russia!
Now Australia is in an interesting position. The US is Australia’s number 1 military ally and China is Australia’s number 1 trading partner. The Chinese have attempted to hack the Aus parliament and ban coal exports etc as a bullying act………..we can’t walk that tightrope forever and you can’t have two big kids in the playground sharing the sandpit either…….someone has to lose.
I think JPF has hit the nail on the head regarding rehypothecating and a hidden system of finance. Perhaps there is some kind of ‘breakaway civilisation/tech going on, maybe a coming war of some weird nature-but in the mean time this system can be used to shut down the growing Chinese behemoth (like how Kennedy’s bill printing threatened ‘them’).
If I were an outside ‘group’ looking to bring-down the near-worldwide Central Bank system, I would concentrate on their physical gold holdings. In the near-certainty that ‘games’ have been conducted around the physical gold, I would arrange to ask for it back. That pins the CBs to the wall, since most of the gold is most likely gone.
Once the CB-types have swapped-around all the gold they have to make token repayments to the asking-country du jour , conduct a rai… er, ‘instantaneous audit’… on a major gold depository. With plenty of witnesses and cameras around, establish that there is little or nothing behind the curtain. Step back and watch the CB system crash-n-burn… (Hopefully, you have a system In Place to fill the gap…)
The bullion “markets” are just as rigged, corrupt and broken as all the other “markets.” The central banks lease bullion to the bullion banks, sometimes on long-term leases, with the expectation that the gold be returned at the end of the lease. The problem is that the leased gold is rehypothecated to infinity so that, unbeknown to each other, a hundred or more parties claim ownership of each ounce. The same is true of every share of common stock, corporate bond or Treasury security. Often, the bullion does not actually leave the central bank vault, but sometimes (like when the Chinese buy it) it does, making physical audit/inspection somewhat awkward. Since the Chinese have the bars they buy melted and re-cast in 1 kilo bars, the western central banks can, given time, have new bars with the requisite bar numbers made. However, in the case of Germany IIRC they were given newly-cast bars with serial numbers completely different from the ones originally deposited. The gold “market” is just another example of official secrecy being abused for private gain.
Dr Farrell, if you were to interview Chris Powell of the Gold Anti-Trust Action Committee, he would probably be able to shed quite a bit of light of the questions you raise above.
What should you expect London has been a criminal enterprise since at least 1066 AD. Only a fool would leave their state gold in that bank one should also ask who were the Barbary Pirates paymaster.
II’m a rube here. How exactly does gold lending or leasing work?
alternate theory – they have hoarded the gold somewhere ‘safe’ and one day they will crash the system with a revelation, oh my god, there are holes in the back of those vaults and all the gold is gone. gold trickles out into the market here and there under a deflationary regime. golden rules maximus.
perhaps with fukushima only those who live in gold plated mansions will not get cancer too young. russia is good at that.
message to Lassiter (‘s reef) descendants – leave it in the ground, it will only get stolen.
new currency, fool proof and transparent (literally)
– based upon the scarce commodity of the Emporer’s Clothes (sans gold)
I am sure everyone will agree (or be summarily shot)
As I Read I post…
All these countries asking,
Where’s the beef; er gold?
Indeed, where’s the gold Fort Knox?
Venezuela learns the hard way that he who has the gold rules & makes the rules/rulers: an unelected, unaccountable newly $elected ruler – mafia capo, Guido.
Don’t tell me they sold the golden rope
to their enemies, which will, in turn, hang them w/it?
Agatha Christie’s Murder On the Orient Express.
They’re all guilty of golden theft. Where’s the gold?
My, what large sharp golden teeth you have!
[the Breakaway System of Hidden finance]
All the better to eat your public a$$et$ with.
The classic economic view would ask:
Have these central banks sold this gold forward in the post-London gold pool and its successor commodity markets in their attempt to keep down the price so as to maintain the appearance of a solvent U.S. dollar standard?
Largely how the “Plunge Protection Team” has supported the U.S. stock market.
The system works in reverse to hold the gold prices down. The central banks holding gold can get together and offer to sell gold at a low price in three months. The “market” will realize that w/low-priced gold being sold, there’s no point in buying more gold and bidding its price up. So the forward-settlement markets shapes today’s markets.
The question is have the Fed and the Bank of England actually had to make good on their forward sales to Russia & China buying gold?
Most, if not all the above, is directly from Michael Hudson’s interview w/the Saker.
Scroll down to Venezuela.
I think China, Italy & Russia etc want a gold backed reserve currency and the usual suspects in the Anglo American sphere want to keep fiat. By obfuscating, denying repatriation and subduing the price of gold it makes it difficult for a gold backed currency to flourish. I think this is bankster wars.
Where lies the true worth of gold? Is it more valuable in its metallic state in gold bars; or is its true value in its white powder, mono atomic state?
WD, I read a book by a British author several years ago and don’t recall his name. I think it was Lawrence or Laurence. Anyway, he went into great detail with his research regarding the white powder. I can’t find it, probably loaned it to someone and never got it back, that was when I was reading 2-3 books a week (much younger) to relax from working for a corporation 60-70 hours a week. It is a good read and I recommend it.
Laurence Gardner “Lost secrets of the Sacred Ark” is a great read involving monatomic gold, etc. He died sometime ago. db
So what you are saying is that the consensus between the bullion price manipulators and their possible adversaries is that a “slow burn” is the way to go. Perhaps the thinking is that it is wiser to allow major manipulators a way out instead of cornering them.
Sun Tzu said: “When you surround an army, leave an outlet free. Do not press a desperate foe too hard.”
In any case, the recent breakout in the palladium price is probably a sign that the other precious metals will soon definitively leave behind the “fix” pricing by the Anglosphere oligarchs and their cohorts.
As more countries get out
from under the dollarized boot;
the price of metals will rise.
SQUARE POINT THEATER 23
Herd of wild horses
flow liquid gold in the Man
from Snowy River.