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Today
Discussion: Was US Gold Repatriated to Refill Fort Knox?
Premium: Goldman reveals an important “dot” to this effect.
Discussion:
Was US Gold Repatriated to Refill Fort Knox?
We believe we know why Gold is being brought back to the US. It is to close open contracts on the books since the 1990s. It is to satisfy a debt. It is to partially refill Fort Knox.
On November 16th 2024 Goldfix posted a very popular piece entitled: Fort Knox holds "Nothing But Moths and IOUs"
In that piece we stated: “The Fed, the Treasury, and most central banks, when it comes to Fort Knox gold, only hold IOUs issued by bullion banks that have already sold the borrowed metal. Over the years, that gold has found its way into more patient hands.”
Here is Egon Von Greyerz making a similar statement
"In reality, a central bank only holds an IOU issued by a bullion bank. If the central bank attempts to reclaim its gold, it will never get it back, as the gold has likely been sold to buyers in China or India, who have purchased it outright with no obligation to return it."
Since that story went up, The US has begun repatriating Gold by the ton. To what ultimate end noone knows. But it is happening plain as day.
This repatriation started after that GoldFix post which was picked up by ZeroHedge and by more broadly read mainstream journals such as JPost.
Could the Gold buyers have read it and reacted? Very unlikely, as this has been going on since 2020 under various guises.
Could our story have catalyzed speeding up a process that had already started? Maybe. Whatever the real reasons, the GoldFix “moth” story did coincide with a changing Zeitgeist surrounding Gold.
There is more to this story than meets the eye. In that post we used broad strokes to describe a relationship that persisted between Bullion banks and the Fed started during the Clinton/Greenspan era.
We believe the Gold is currently being repatriated to end that era. We believe it is being done prior to any Fort Knox audit, if one were to actually happen.
We believe when one connects the dots between the Greenspan era, the 2020 Covid crisis, and the 2022 OCC accounting change which by the way forced bullion banks to show the public their Gold derivatives books labeled as such revealing they had been hiding 90% of their gold trades in a non Gold trading account
When you combine these things with the current repatriation situation, you will see that this is an unwind of a decades long position that used Treasury gold (legally) to generate income for the Fed, and free up money enabling banks to engage in a massive carry trade for generations. The result was a price suppression, a manipulation of gold price at the market structure level unseen for 40 years.
To ask the question everyone else is now speculating on: To what purpose is all this Gold being repatriated?
The answer is:
There is speculation of a Gold bond, a return to a Gold standard, or some other repurposing of the suddenly useful collateral. any of those may be true down the road. But as to why this gold is being brought back right now?
We offer another far simpler, far more likely scenario based on information and legacy positioning of Gold bullion banks concurrent with n agreement made during the Clinton era that is just now unwinding.
They are closing out the IOUs in Fort Knox. There is far more evidence to this being the reason than anything else out there.
This weekend GoldFix will do a special post filling in the blanks on this idea.
At the bottom of this post in the premium section, we have included one of the dots in our analysis.. It is the Goldman Sachs report discussing GDP as being artificially low because of the large Gold imports. It includes the chart we posted on social media that has now been making the rounds in other people’s work and posts. The whole 2 page report giving it context is attached. The context is what matters. As always a ht to ZH on that.
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