Got Gold?
“The U.S. gold coverage ratio, which measures the amount of gold on deposit at the Federal Reserve against the total money supply, is currently at an all-time low of 17%. This ratio tends to move dramatically and falls during periods of disinflation or relative price stability. The historical average for the gold coverage ratio is roughly 40%, meaning that the current price of gold would have to more than double to reach the average. The gold coverage ratio has risen above 100% twice during the twentieth century. Were this to happen today, the value of an ounce of gold would exceed $12,000.”
– Scott Minerd – Guggenheim Partners
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Yojimbo says:
The author states:
“The U.S. gold coverage ratio, which measures the amount of gold on deposit at the Federal Reserve against the total money supply, is currently at an all-time low of 17%.”
But isn’t the “amount of gold on deposit at the Fed” the gold supposedly in Fort Knox? Didn’t the US pledge that to the Fed?
And since the Gold in Fort Knox is no longer there, you divide the total money supply by zero and get – infinity!
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17th October 2012 at 10:42 am
card802 says:
You can put anybody’s name in at the beginning, but this is a pretty interesting presentation by Santiago Capitol about gold, bubbles, monetary supply, etc.
Pretty much covers what is is in this chart, for those of us who are chart challenged.
About 10 min.
http://play.goldmail.com/igv95x6z2alh
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17th October 2012 at 11:14 am
Eddie says:
The gold is supposed to be in Ft Knox and also at West Point, NY.
Nobody knows if it’s there or how much is there…apparently that secret is better kept than the recipe for making a nuclear bomb.
I’ve never been quite clear on who owns the gold. I thought it belonged to the U.S. Treasury, but the Fed carries it as an asset on their books, if I’m not mistaken.
The fear that some fairly bright people have about the gold is that the big banks have sold a lot of it…..we know they did sell ALL the silver. And sellling gold into the market is a way to drive down the price of gold, something I believe the Fed desperately wants to do.
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17th October 2012 at 11:30 am
Kill Bill says:
If Fort Knox isnt empty its damn close, I say.
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17th October 2012 at 12:56 pm
Kill Bill says:
The Fed does carry gold on its balance sheet, but the Fed is a charter owned by the central banks. And, IIRC, Nixon closed the gold window )foreign debts no longer paid in AU) around 1971.
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17th October 2012 at 12:58 pm