by Dave Kranzler
Investment Research Dynamics
CPM Group’s Jeffrey Christian did a Youtube podcast in which he mocked the view that most if not all of the gold in “Ft Knox” has been used by the Fed and the U.S. Treasury to help control the price of gold since the late 1960’s (London Gold Pool). The best proof those of us who are convinced that the Treasury’s gold plus an unknown quantity of gold held of behalf of foreign Central Banks has been hypothecated in the Fed’s effort to suppress the gold price is two-fold: 1) Contrary to Christian’s claim, there has not been a bona fide, independent audit of the Fed’s gold holdings since Eisenhower was the President: 2) the U.S. flinched, embarrassingly, when Germany requested the repatriation of half of the gold the Fed has “safekept” for Germany since the end of WW2; the U.S. balked then eventually agree to return 300 tonnes of the custodied gold, or 20% over seven years. Why not in just a couple of months similar to Venezuela’s repatriation of 200 tonnes of gold the prior year?
With the sanctions imposed on Russia by the U.S., along with the U.S.’ confiscation of Russia’s assets held at western Central Banks, eastern hemisphere Central Banks have been repatriating gold held in London vaults as well as adding to their existing gold stock.