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'Unallocated gold' means 'no gold,' Rickards says

Section: Daily Dispatches

10:58p HKT Sunday, April 3, 2016

Dear Friend of GATA and Gold:

Another day, another interview with fund manager, newsletter writer, and geopolitical strategist James G. Rickards about his new book, "The New Case for Gold," but anyone who has had U.S. government security clearance as Rickards has had is worth listening to about the monetary metal, and in this new interview, with Collin Kettrell of Palisade Radio, Rickards continues to make interesting points and arguments. Among them:

-- The U.S. Treasury Department and Federal Reserve refuse to audit the U.S. gold reserve lest they confirm gold's continuing importance in the world financial system. (Your secretary/treasurer suspects that the refusal to audit the gold arises more from the fear that an audit would disclose gold swapping and leasing, surreptitious U.S. intervention in the gold market, which would really confirm gold's importance.)

... Dispatch continues below ...


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-- The Fed's balance sheet would look normal if it was credited for the value of the gold for which the Treasury Department has given the Fed a certificate.

-- The Bank for International Settlements operates to mask the activity of its member central banks in the gold market.

-- The U.S. gold reserve well may have been leased but that would not require the metal to leave the U.S. government vaults at Fort Knox and West Point. Indeed, Rickards says, the U.S. government's gold remains in U.S. government vaults because leasing is just a paper operation allowing issuance by bullion banks of a hundred claims to every ounce of real metal. "'Unallocated gold,'" Rickards adds, "means 'no gold.'"

-- "The evidence for manipulation" of the gold market "is overwhelming."

-- China and the United States are suppressing the gold price through trading on the Comex to facilitate China's acquisition of gold and diversification away from U.S. debt instruments, and the United States thinks that's good.

-- There is a severe shortage of physical gold at refineries, which are starting to process gold bars that are 30 years old, an indication that supplies are nearing the bottom of the barrel, since vaults operate on a last-in-first-out basis.

-- The gold price could explode rather than rise gradually and so it might not be good to delay purchases.

The interview is 36 minutes long but the audio is accompanied by a transcript. It's posted at Seeking Alpha here:

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

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