In my article «The Central Banks’ Gold: a Story of Silent Expropriation», I wrote that following the collapse of the gold-dollar standard, central banks in leading «golden billion» countries had been engaged in a variety of covert operations with the yellow metal. As a result, gold has gradually and systematically been disappearing from the vaults of central banks. In the near future, the complete devastation of these gold storerooms can be expected, which will be a milestone event in global finance and global politics…
The «gold rush» as a sign of the «end times»
A sign of the feverish attempts of the world’s financial oligarchy to delay the moment of the «great turn» was the visit by Queen Elizabeth II of the United Kingdom and Prince Philip, Duke of Edinburgh, to the Bank of England’s gold vaults on 13 December 2012, which was much publicised in the world’s media. If public sources are to be believed, then the Bank of England’s vaults contain 20 percent of the world’s official gold reserves. Naturally, the queen did not undertake to count the number of gold bars or check for signs of gold in these bars. But her photograph in front of these shining gold bars should be enough to convince everyone that everything is as it should be in the «golden kingdom». This PR event did not have the desired effect, however. The nervousness of those involved in the gold market has reached its limit and has started to turn into a «gold rush».
There have been many «gold rushes» in the history of mankind. In the 19th century, for example, one could refer to the following outbreaks as «rushes»: in Siberia (in the 1830s), in California (at the end of the 1840s), in Australia (in the 1850s) and in South Africa (at the end of the century). However, at that time they were localised «rushes», whereas these days it is a global phenomenon. At that time, gold was extracted from the depths of the Earth, whereas nowadays what is left of the gold is being scraped out of the vaults of central banks. Today, many well-known billionaires are investing in gold. The well-known speculator George Soros, for example. Other investors have piled into the gold market after him. A top manager at Swiss bank UBS, Josef Stadler, declared that the rich are secretly buying gold by the tonne. It should be remembered that Soros is an agent for the Rothschilds. He does what his boss allows and orders him to do. If Soros has gone for gold, it means that the «gold denouement» is close. You will recall that back in the spring of 2011, Soros loudly declared: «I believe that gold is the greatest speculative bubble in the world». And he pointedly sold all the gold he had. At that time, Soros was acting in the interests of the Rothschilds, who were actively buying up gold and needed to stop the rise in gold prices. Some analysts, commenting on Soros’ U-turn towards gold in 2012, noted that the speculator «had arrived late for a piece of the golden pie». Well, I think we can agree that the «golden pie» had already been eaten. Soros was only allowed to pick at the left over crumbs.
Even before the onset of the «great turn», some journalists, politicians and experts were starting to be surprised and outraged at the unscrupulousness of global bankers and their lack of any kind of moral principles, bankers who over the last few decades have been carrying out a covert «transfer» of gold from government vaults to privately-owned safes. However, in reality the world’s bankers (the Rothschilds) are not showing the world anything new. The story of official gold has once again demonstrated the stability of their «principles», principles which in the 19th century allowed them to become more important than kings. On this subject, the Russian geopolitics expert Vladimir Pavlenkho writes: «For more than 200 years, the Rothschilds family has specialised in controlling the media, banks, diamond mining and coloured metals including gold. Moreover, their psychology is such that all the world’s gold belongs to them and is only being temporarily stored by individual states which, considering that gold is a «national asset», guarantees its safe protection from unwanted contenders. It is being protected until such time as the Rothschilds need it. And highly-experienced members of the Rothschilds family always find a way to force gold to start shifting at the right time so that it ultimately returns to its «owner», which in reality has been demonstrated time and again in recent decades.»
The «gold denouement»: some obvious repercussions
It is difficult to say how society will react when the fraud being committed by the financial authorities of «golden billion» countries is uncovered. Obviously, confidence in central banks (as well as the treasuries associated with them) will be lost forever. The authority of governments will also be undermined (since they have been unable to ensure any kind of control over the activities of central banks). It is more than likely that fraud uncovered on such a large scale will cause serious chaos in the financial, economic, social and political life of society.
I will leave the analysis of a possible development of events in socio-political life following the «great turn» to sociologists and political analysts. But in the sphere of economics, certain repercussions are obvious. To begin with, there will be a sharp increase in the price of gold. When the supply of gold from the vaults of central banks comes to an end, the artificial balance in the precious metals market will be broken. So far, the maximum price for gold reached a level of 1,900 dollars for a troy ounce (in August 2011). The true «equilibrium» price of gold will, according to different estimates, be between 5 and 10 dollars (at the current volume and American exchange rate). Some experts are mentioning even higher price values. An overestimated prognosis like that, however, will only be borne out if the world sees a shift from gold commodities to gold currency. With gold currency, it is more accurate to talk about the gold parity of the monetary unit, rather than the price of gold. In this way, John Butler, author of the well-known book «The Golden Revolution», has calculated that if the USA had guaranteed 40 percent of banks’ liabilities in 2012, then for the gold reserves present in the country at that time (slightly more than 8,000 tonnes), the price of gold would have been at least 13.40 dollars per troy ounce. On a fairly regular basis, one finds «golden guru» Jim Sinclair’s prognosis in the media predicting that by 2015-2016, the price of gold will rise to 12.50 dollars per ounce.
Another repercussion will be the abrupt devaluation of the American dollar. It is quite simple. An invisible competition has existed between the price of gold and US currency throughout the entire period following the collapse of the Bretton-Woods system: the higher the price of gold, the lower US currency falls, while the lower the price of gold, the stronger the position of paper money in the world’s financial system. It is quite possible that the dollar will depreciate so much that in place of it, US financial authorities will try to create a «new» («rose-coloured» rather than «green», for example) dollar or a new currency altogether (like the «amero»). This is provided that the US remains on the world’s political map and does not disintegrate into a bunch of independent states.
Since the discovered gold scam will give rise to a universal distrust of financial authorities, it is not inconceivable that other reserve currencies will also collapse – the euro, the British pound sterling, the Japanese yen. Obviously, amid the rising paper money chaos, people will be forced to return to commodity money. Economists say that the basis for this kind of money could be goods necessary to society such as oil, energy, various coloured and black metals, wheat, cement and so on. The pros and cons of different monetary unit projects based on «baskets» containing different sets of goods will not be discussed here. There are many more cons. The main one is the complexity of creating a system based on commodity «baskets». And their consequent instability. I think that when the «great turn» begins, mankind will just not be up to constructing a complex monetary system. The «lifebuoy» will once again turn out to be gold.
Where has the gold from the vaults of central banks gone?
Proving right now that gold has been stolen from the vaults of central banks is difficult, but nevertheless still possible. Answering the question of where the gold has gone, however, in whose safes (those of companies or individuals) the gold can currently be found is a little more complicated. It is of course possible to put forward the assumption that it has been «divided» equally between all the main consumers of gold – businesses in the jewellery industry, investors, private hoarders etc. However, it is difficult to believe this explanation, if not impossible. As a rule, gold was never sold at its «peak» price but the other way around, at the moment when its price had reached «bottom». This creates the nagging suspicion that the privatisation of gold reserves took place in the interests of certain individuals who obtained gold on extremely favourable terms. Unfortunately, even the GATA organisation, which we mentioned in a previous article, was unable to provide any kind of proof that would allow this version to be acknowledged with confidence. At the same time, this explanation dawns on every serious analyst. In particular, the opinion of Russian financial analyst Sergey Golubitsky, who attempted to make sense of gold sales by the National Bank of Switzerland between 2000 and 2005: «And so, my version of events. Between 2000 and 2005, Switzerland knowingly sold its national gold reserve at dumping prices, and brilliantly removed the priceless yellow metal from the Central Bank to its own commercial businesses! The reason behind this removal was both remarkable and legal: to change the constitution and decouple the Swiss Franc from gold.
«In the new circumstances, a sizeable «surplus» appeared in the vaults of the Central Bank, therefore this was exchanged for money which, incidentally, was not stolen by civil servants but given out to the people of Switzerland (represented by local and regional authorities)! In the majority of cases, the buyers of this gold, in my opinion, were these same Swiss, the only difference being that they were not sitting in state structures but in private banks and funds. My hypothesis also perfectly explains the vociferous public statements made by the Swiss authorities, who had killed the price of gold in the market, since they had allowed their gold reserves to be «privatised» at artificially reduced – charitable! – prices. As soon as the programme to redistribute 1,300 tonnes of gold came to an end in 2005, global gold prices surged upwards…»
Today, much of the world’s media is justifiably paying attention to the fact that the People’s Bank of China is pursuing a policy of steadily building up its gold reserves, although this stockpiling is not reflected in its official reports or is only partially reflected. It is logical to assume that major non-governmental banks might implement such a policy: building up their gold reserves through the privatisation of cheap metal from the vaults of central banks, while carefully camouflaging the process.
Data about gold reserves unrelated to the category of official reserves, meaning those on the balance sheets of private structures or in the ownership of individuals, is fragmented and unreliable. Not even experts from the World Gold Council are able to quote exact figures. They only have crude estimates, such as: there are more than 30,000 tonnes of gold in the hands of private individuals in the form of jewellery and other non-monetary forms. Approximately as much again can be found in reserves in the form of monetary gold – coins and standard gold bars. This is the gold belonging to private investors – companies and individuals. Some experts believe that unofficial reserves of monetary gold today already exceed official gold reserves. It is an incredibly powerful resource, especially bearing in mind that empty vaults or «tungsten» (false) gold can be hidden behind official data on the reserves of central banks. The question arises: how consolidated are unofficial reserves of monetary gold? Or are they dispersed among millions and millions of private owners in various countries around the world? Even the experts at the World Gold Council once again have difficulty answering this question.
Judging by publicly-available sources, the gold reserve of private fund SPDR Gold Shares ETF is the largest unofficial reserve. Shares in SPDR Gold were first listed on the New York Stock Exchange in 2004 and were some of the fastest-growing in the world. At the present time, they are also listed on the Singapore and Tokyo Stock Exchanges. This fund’s gold reserve is equal to 1,260 tonnes and is being kept safe by HSBC – a bank controlled by the Rothschilds clan. The gold is stored in the bank’s central vault in London, although it could be placed in other HSBC vaults. Other private gold funds are only small. The total reserves of all these funds are estimated to be between 2,100 and 2,200 tonnes. In other words, nearly 7 percent of all unofficial monetary gold reserves in the world.
(To be concluded…)
