World gold holdings are overestimated by 10%, GoldMoney study concludes

Section:

4:20p ET Monday, October 15, 2012

Dear Friend of GATA and Gold:

GoldMoney Research Director Alasdair Macleod reports today:

"An exhaustive study of global physical gold stocks, authored by GoldMoney founder James Turk with the assistance of Juan Casteneda of the University of Buckingham is published this morning, and is available in PDF form here:

http://www.goldmoney.com/goldmoney-foundation/essays/the-aboveground-gol...

"The study concludes that the commonly accepted figure of 171,300 tonnes (as of the end of 2011) overstates gold stocks by 16,056 tonnes.

"In my opinion the principal implications are as follows:

"-- The level of global physical gold stocks is important in the context of remonetization of gold, which is likely to become increasingly discussed in time, given the accelerating pace of monetary creation by central banks.

"-- There is an as-yet unappreciated transfer of wealth in the form of bullion from the West to the East. This transfer has been going on for decades, starting: a)with the Middle East OPEC members in the 1970s onwards; b) to the Indian subcontinent through the 1980s and 1990s and to the present day; and c) to the Chinese population in the last decade (and less obviously the citizens of other populous southeast Asian states). Therefore the West has already ceded control of the world's gold, leaving a significantly smaller balance in the West than commonly believed.

"-- The study finds that gold stocks are overestimated by 10.3 percent. Given that the bulk of the world's gold bullion is no longer in the possession of the advanced Western economies, the shortage of bullion backing Western physical and futures markets is considerably more acute than commonly realized.

"I hope this excellent paper sparks a debate about the consequences for the West of having driven gold out of circulation as a monetary asset at a time when paper currencies are firmly on the path to their own destruction."

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.



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Opinion Around the World Is Changing
in Favor of Gold -- Find Out Why

When Deutschebank calls gold "good money" and paper "bad money". ...

http://www.gata.org/node/11765

When the president of the German central bank, the Bundesbank, pays tribute to gold as "a timeless classic". ...

http://www.forbes.com/sites/ralphbenko/2012/09/24/signs-of-the-gold-stan...

When a leading member of the policy committee of the People's Bank of China calls the gold standard "an excellent monetary system". ...

http://www.forbes.com/sites/ralphbenko/2012/10/01/signs-of-the-gold-stan...

When a CNN reporter writes in The China Post that the "gold commission" plank in the 2012 Republican platform will "reverberate around the world". ...

http://www.thegoldstandardnow.org/key-blogs/1563-china-post-the-gop-gold...

When the Subcommittee on Domestic Monetary Policy of the U.S. House of Representatives twice called on economist, historian, and gold standard advocate Lewis E. Lehrman to testify. ...

World opinion is changing in favor of gold.

How can you learn why and what it will mean to you?

Read the newly updated and expanded edition of Lehrman's book, "The True Gold Standard."

Financial journalist James Grant says of "The True Gold Standard": "If you have ever wondered how the world can get from here to there -- from the chaos of depreciating paper to a convertible currency worthy of our children and our grandchildren -- wonder no more. The answer, brilliantly expounded, is between these covers. America has long needed a modern Alexander Hamilton. In Lewis E. Lehrman she has finally found him."

To buy a copy of "The True Gold Standard," please visit:

http://www.thegoldstandardnow.com/publications/the-true-gold-standard



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