TIMES THEY ARE A CHANGIN

Via Jesse

Fed Custodial Gold Continues to Decline in the Post-Bretton Woods II Monetary Interregnum

The avalanche of gold that fled the Second World War is going home.

This is a return to a more ‘normal’ currency regime, and a move towards monetary autonomy in the aftermath of the of Bretton Woods era.

In the post-Bretton Woods II era it appears that independent regional currencies may predominate.

Unless of course the nations can forge a more equitable agreement for an SDR-like clearing currency for international trade that is not dominated by any one nation or group of nations.

And the times, they are a-changin’.

Gold Withdrawals From the Shanghai Exchange 63.2 Tonnes In the Latest Week

There were 63.2 tonnes of gold bullion withdrawn from the Shanghai Exchange this week.

As can be seen in the second chart, the gold withdrawals are occurring at a record pace.

This significant demand for physical gold is increasing, with what appear to be artificially low prices, that are doing what prices that are below a fair and efficient market-clearing price are theoretically expected to do,

The market cannot treat gold like one of the paper currencies indefinitely.

They may try to expand their leverage [gold hypothecation, leasing, futures, forwards, derivatives] freely, given the craven silence of the regulators and professional courtesy amongst the looting class.

But they cannot create more physical bullion, and therein lies their limits.

Gold is moving from West to East.


 

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6 Comments
fear & loathing
fear & loathing
September 26, 2015 4:48 pm

bob was dead on, at least in my case “don[t criticize what you can’t understand” gold good paper bad

Lysander
Lysander
September 26, 2015 5:16 pm

Whew! That’s a whole lotta gold, bubba! According to that one chart on gold holdings, the FRB’s are currently in possession of 14,000 tons of gold.

Is this the mystery gold stored in Fort Knox, just laying there like Schrodinger’s cat, maybe there, maybe not, you just can’t ever see it? Or is this figure separate from the Fort Knox holdings?

nkit
nkit
September 26, 2015 5:46 pm

I like Dylan’s music overall, but he really sucks on harp.

fear & loathing
fear & loathing
September 26, 2015 9:45 pm

do you know where your gold is?