by Chris Waltzek
Bill Murphy from GATA.org returns to the show with comments on the national gold stockpile. Bill Murphy agrees with Jim Rickards and a growing cadre of researchers, that gold swap arrangements make decyphering the domestic a daughnting task, so reserves are likely overstated, threatening dollar hegemony. However, wise BRIC central banks are accumulating the metal at new records, according to the World Gold Council (WGC), 480 tons of gold were purchased by monetary authorities last year, the second largest annual total on record. A key takeaway point: once the gold enters their vaults, the ounces essentially evaporate from the market. Case in point, China has strict laws on gold exports. Moreover, now that rates have entered negative territory in several key money centers worldwide, the gold bears can no longer claim that the monetary metal carries zero interest, i.e., in a negative rate environment, gold and silver both pay substantial interest by avoiding interest paymentst. Like John Embry, Bill Murphy expects a big shift in investor tastes, making the unloved silver sector the defacto loved asset class du jour.