Tags: Martenson | Numbers | US | Gold

Chris Martenson: Numbers Game with US Gold Reserves?

By John Morgan   |   Sunday, 12 May 2013 05:47 PM

The federal government may have leased significant portions of its gold reserves in the past two decades, because the U.S. exported 5,500 tons during that time period even though there were only about 1,000 surplus tons available for export, according to Chris Martenson of PeakProsperity.com.

Martenson, an economist and author, said the discrepancy between exports and available
domestic supply can only lead to the door of the Federal Reserve or the U.S. Treasury.

“The U.S. has exported vastly more gold than it has imported, and that gold had to come from somewhere,” he wrote.

“This leaves gold-leasing from the Fed as the most likely source for all that gold, and it is such a large amount that I know of no possible source on the face of the planet where such an amount could be purchased. That is why Germany seeking to repatriate their gold is such a big deal. What if that gold has already been loaned out?

Editor's Note: Billionaires Dump Stocks. Prepare for the Unthinkable.

“To put it mildly, any whiff that the world’s central bank gold is not where people think it is would really be an enormously unsettling admission to have to make.”

Martenson said his conclusion is that if the Fed has in fact been leasing gold, it either had
to come from the U.S. Treasury or it belonged to other countries for which the Fed, under
longstanding practice, has been holding gold in custody.

A recent Treasury audit found that 99.98 percent of U.S.-owned gold bars and coins are held “in the custody” of the Fed, but that means the Fed has jurisdiction of it, not necessarily physical possession, according to Martenson.

He said every audit request by former Congressman Rand Paul, R-Tex., to check the physical gold held in deep storage was rebuffed.

Martenson said if the gold export-import data from Canadian-based Sprott Asset Management, one of the world’s natural resource fund companies, is accurate, it could be “the story of the decade.”

“If it is, then when all of this has to finally be undone, my prediction is that agreements will be broken, allies will be stiffed, and the Fed will not willingly part with whatever gold actually remains, no matter who thinks they own it (Germany, et al.) or how many times Bernanke says that the Fed holds it merely out of tradition.”

Dan Steinhart of The Casey Report, which published Martenson’s missive, noted that gold’s recent plunge was provoked by a 400-ton sell order that was dumped on the market all at once by an unknown party.

Steinhart said that logic would have dictated the 400 tons be sold gradually so as not to drive the price down sharply and get the best price. “That this didn’t happen leads to the conclusion that the seller’s goal was not to get a fair price, but to suppress the price of gold itself.”

Since peaking near $1,900 in early September 2011, gold has fallen more than 20%.

Peter Schiff, author of “The Real Crash” and head of Euro Pacific Capital, said gold has been beaten down but its fundamentals are still intact.

"I've never seen such negative sentiment since I've been buying it," he told Yahoo Breakout.

Editor's Note: Billionaires Dump Stocks. Prepare for the Unthinkable.

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