Jeff Opdyke has a pretty inflammatory ad going around these days for The Sovereign Investor, it’s all about how the consistent export of gold from the US — as reported in form FT-900 — will lead to America experiencing it’s “next 9/11” moment in April of this year.
The basic argument is that the US Treasury Department has been secretly selling off the gold from Fort Knox for years, consistently exporting more than can be explained by the mining production and internal consumption of gold in the US, and that the global public is becoming aware of this but will be shocked into action in April.
The April date comes from the fact that he says China has tended to release information about their gold reserves only every five years or so, and they last reported their gold holdings in April, 2009. Next release, whenever (if) it comes, will call attention to the huge hoard China has been building (though it may be largely from mining, as I believe all Chinese-mined gold is required to stay in China)
Here’s what Opdyke says about the gold export anomaly:
“Here’s what I found out: Since 1991, the U.S. has been consistently exporting large quantities of gold on a net basis.
“And the amount of gold the U.S. has exported is well above and beyond what the US should be capable of exporting.
“Let me show you what I mean…
“Using data from the Gold Fields Mineral Services, the US Census Bureau, the US Mint and Bloomberg, I was able to determine the U.S. total demand and supply of gold during those 20 years.
“During that time, the U.S. had a total amount of 7,532 tons of gold available for consumption… but the U.S. consumed 7,605 tons.
“So, we consumed more than we had available to us. That implies we should have been a net importer of gold.
“But oddly enough, we were not. In fact, we exported a massive 5,504 tons.”
I don’t know how reliably these import/export figures describe the real situation in the world, since gold is fungible and recyclable moves around the world in both paper from and in bullion form pretty easily (it doesn’t just get exported from one place, imported to another, and consumed — it could just as easily be exported again to another customer), but there are certainly plenty of folks who believe that the Treasury is hiding empty vaults at Fort Knox. They buttress this both by saying that the Federal Reserve has been dragging its feet at Germany’s request to repatriate its gold (though that’s not at Fort Knox), and by noting that many politicians over the years have asked for audits of both Fort Knox and the Federal Reserve, to no avail.
Just as an FYI, Fort Knox is the US bullion depository — it’s the gold that the government owns, managed by the Treasury Department. The Federal Reserve doesn’t have anything to do with Fort Knox, but has a separate gold bullion depository in Manhattan that is filled with gold ow