Fort Knox: The Real Knock-Off Capital of the World? Or, Alternatively, SERIOUSLY WTF Gold OMG!!!!!

Wednesday, November 25, 2009 , , , 0 Comments

If you want an interesting story, look no further than gold. It's like the stuff of Indiana Jones movies (if I watched them, I might know if that's a decent comparison or not) and it's about to get really fun.

The Evil Twins are scheduled for one hell of a car crash on the Comex if they don't figure out their own exit plan out of their paper gold problem but maybe that is the plan?

Anyway. Wonky stuff, this gold business. Hope you got in when it was prettier, you're pretty much screwed now if you didn't.

Rob Kirby via Market Oracle:

When the news of tungsten “salted” gold bars in Hong Kong first surfaced, many people who I am acquainted with automatically assumed that these bars were manufactured in China – because China is generally viewed as “the knock-off capital of the world”.

Here’s what I now understand really happened:

The amount of “salted tungsten” gold bars in question was allegedly between 5,600 and 5,700 – 400 oz – good delivery bars [roughly 60 metric tonnes].

This was apparently all highly orchestrated by an extremely well financed criminal operation.

Within mere hours of this scam being identified – Chinese officials had many of the perpetrators in custody.

And here’s what the Chinese allegedly uncovered:

Roughly 15 years ago – during the Clinton Administration [think Robert Rubin, Sir Alan Greenspan and Lawrence Summers] – between 1.3 and 1.5 million 400 oz tungsten blanks were allegedly manufactured by a very high-end, sophisticated refiner in the USA [more than 16 Thousand metric tonnes]. Subsequently, 640,000 of these tungsten blanks received their gold plating and WERE shipped to Ft. Knox and remain there to this day. I know folks who have copies of the original shipping docs with dates and exact weights of “tungsten” bars shipped to Ft. Knox.

Ok, let's just put that one aside for a moment while we consider what this means for the United States.

In October, WC Varones taught us about gold shortages, or denial thereof. The US Mint sold 46,000 American Gold Eagles from November 16 - November 23 and announced today it was out. Yes, out. "Resuming in December," they claim, so someone make sure to check back to see if they find a few spare gold blanks lying around. Hope you weren't planning on getting Grandma any gold for Christmas.


The U.S. Mint said on Wednesday it will suspend sales of the popular American Eagle
1-ounce bullion coins as rising demand depleted its inventory.

"The United States Mint has depleted its current inventory of 2009 American Eagle 1-ounce gold bullion coins due to the continued strong demand for this product," the Mint told its authorized dealers in a memorandum on Wednesday.

November sales to date were at 124,000 ounces, higher than the 115,500 ounces sold in each month of September and October, the Mint said.

The Mint said it expects to resume sales in early December.

Like I said, someone keep an eye on that.

Hell, let's go back to June, shall we? It fits with the story, trust me on this one. From my June 3rd Gold Manipulation or Mass Central Bank Sell-Off? The World May Never Know. But *We* Do

Via Prudent Investor (thankfully I did not miss this one), a gem that I could not resist passing along. If you would care to understand why gold is still suffocating despite fundamentals which dictate it should have passed the $1500 mark long ago, I refer you to the following May 29th Gold Seek post:

Ladies and gentlemen, the foregoing data and discussion with the USGS individual is proof that the United States of America [or criminal elements within its Treasury and/or The Federal Reserve] “HAS” surreptitiously exported physical gold - and continues to do so. It is confirmed. The exports are likely coin melt [or gold compound, if you prefer] from the great gold confiscation back in 1933; or alternatively, this terminology is being used to disguise physical repatriation of foreign gold bullion formerly on deposit with the N.Y. Federal Reserve. Such repatriations are recorded as “exports” in U.S. Trade data. Public acknowledgment of same would scream like a siren call that the global financial community has totally lost faith in American financial stewardship – hence the need to do so on the sly.

This is being done in a vain/desperate/losing battle to satiate “off the charts” global demand for physical gold bullion arising from the profligacy of the American Empire’s two previous Administrations and to prop up the failing U.S. Dollar.

Over the course of 2007 / 2008 – more than 5,000 metric tonnes of “Gold Compounds” have been exported from the United States of America representing more than 62 % of reported sovereign U.S. gold reserves or about 24 times annual U.S. mine production.

5000 metric tonnes = 160 753 733 troy ounces [$128 billion+ at today’s prices]

The fact that industry funded trade groups like the World Gold Council and other professional gold consultancies, who shall remain nameless, have not reported these facts negates their credibility and illuminates them as dupes or willing shills. These fraudulent or ignorant organizations deserve to be shuttered and disbanded.

We have been through this before. How did we allow China to increase its gold reserves 75% in a six year period?! More importantly, where in the hell did they get the gold from?

Between you and I, I'm wildly speculating that our friends at the NY Fed got the yellow stuff the heck out of Dodge long before things started getting so wonky. But maybe my tin foil hat is strapped on too tight, you decide.

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.