15 Ton Gold Repatriation Hits JP Morgan London Vaults
The global trend of nations “repatriating” their gold reserves from the custodial vaults where it has long been stored continues. The issue, as WealthCycles has reported extensively, is the near certainty that not all the gold recorded to be held in the bullion banks is really there. Much of it has been pledged and repledged against the debt that keeps the world’s monetary system afloat. The more physical gold that is reclaimed and delivered to sovereign treasuries, the less that remains to back up all the pledges. When the chips are called in, many of those who believe they own gold will find themselves holding nothing but pieces of paper. At that point, “price will solve everything.”
As WealthCycles reported almost a year and a half ago, in the fall of 2011, Venezuela was the first nation to demand the return of its gold held abroad. At the time we also quoted Wikileaks, which shared with the world the Chinese administrations’ view on gold.
Since those heady days of unmitigated “recovery,” we have sunk further into “recovery,” and as expected, trust has waned and repatriation of gold has accelerated. We reported on the trend almost a year later saying (again) that “the same gold is claimed by multiple owners.”
Germany, having second-mover advantage, decided to remove the demandContinue Reading →
We initially remarked that “most of the gold stored in those money centers has existed only as digits on their general ledgers—and not as physical bullion,” adding in 2012 that some governments and central banks that are reportedly “buying gold,” such as Mexico, may simply be buying claims on gold. Many are not waiting to find out.