The Western central banks do not have all (or perhaps even most) of the gold they claim to have. This is why the US government refuses to allow an audit of the purported US gold hoard (allegedly 8,300 tons) – it’s not there! And this is why the US refuses to return the German government’s gold – supposedly held for safekeeping at the Federal Reserve Bank in New York. Germany and other countries that have stored their gold reserves in New York are now beginning to wonder (fear): Could the US government have stolen their gold and spent it? – a reasonable concern in light of current developments. What we do understand is that much of it has been leased out and re-leased out, just like the fractional reserve banking system. Gold is now flowing OUT of the US at a rate of 50 tons per month (i.e., 600 tons a year). That is an incredible loss of real wealth for the nation.
Meanwhile Eastern central banks (think China, India, Russia, South Korea) added 17% (534 tons) to their gold reserves last year, and along with the public in those countries have continued to be aggressive buyers in 2013. They are acquiring Western gold at bargain basement prices (i.e., down $400-450 over the past two years [this was written before the recent takedown of the precious metals markets on April 12 and 15]) courtesy of Fed/US Treasury/Wall Street price suppression (manipulation) operations in the paper gold market. As we have repeatedly written in recent years, gold is rapidly leaving the West and moving to the East (the rising new center of financial/economic power). China bought 92 tons of gold in March.
A recent study shows that over the past 22 years, net exports of gold out of the US have been 4,500 tons – gold is moving from weak hands (i.e., the US) to strong hands (i.e., Asia). If investor demand for gold over that period is considered, the net gold exports could actually be as high as 11,200 tons. It should be remembered that, throughout history, giant movements of gold from one region, country, or empire to another have always preceded a giant shift of power (financial, economic, military) to the area where the gold has moved. Today, the beneficiary of this power shift is Asia!
(Excerpt from McAlvany Intelligence Advisor, May 2013)