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Subject:  Re: Germany’s Gold Is Being Held Hostage Date:  1/19/2013  1:04 PM
Author:  PosFCF Number:  413743 of 499134


Knowing in advance that your questions are a form of ascribing unbelievability to one or two notions by making other unbelievable assertions, I will attempt to answer some of the points to illustrate how little weight this approach you've taken should be given.

The gold Germany thinks it has at the Fed doesn't actually exist, is that right?

The issue raised by those who are really looking for answers to that question is one of putting any questions to rest by having a full audit of the (alleged) gold reserves. There has not been an audit done of those reserves in over a half a century. Given the value involved, the lack of audits, and the nature of some politicians and some lobbyists and a lot of the financial industry over the last half-century, which would seem to be more implausible: that all of these actors adhered to strict ethical conduct (thus all the gold is still there and none of it leased or hypothecated); or that, perhaps, some measure of it has vanished? I would think the true skeptic would find most foolish the notion that it is all still there.

Also, the gold in the vaults in Canada doesn't actually exist, or in dramatically short of what is claimed, is that right, too?

This is a fine example of an assertion made to help build the case for the whole notion of missing gold being an absurdity. But it is an ignorant assertion. Any that have objectively followed the gold market for the period of the last dozen years would be aware that Canada has performed audits of their gold reserves. Several years ago their audit did show some discrepancies but those were explained, eventually, by a conclusion that some rounding errors over the years had just had a cumulative effect. While the cynics might think it a convenient answer, the overall tenor of the gold bulls was that of relief that at least one country was honest enough to have an audit and provide the results to the public.

Also Australia is fudging the books.

Interesting that you pick two countries with