Gartman had an intersting note on gold today in his letter....of course it's only applicable if you believe the Fort Knox reserves. Ron Paul asked for an independent audit at one time of which he was refused...There are 35,273 ounces in a tonne x 8,134 tonnes x (lets call it 1600 cus we're all gold bulls here) = 459,056,931,200 What % is that of their debt? I can't even work the math ...its raining here and my solar powered Casio just goes error anyway <gg>
Finally, regarding gold, we thought for the record it might
be good to know who the largest gold holding nations are
in the world. Surprisingly to some, the US is by far the
largest holder of gold, holding just barely less the next
three nations combined, ex-that of the IMF. They are as
follows:
Country Tonnes % of Total
Reserves
The US 8,134 73.8%
Germany 3,401 69.8
The IMF 2,814 n.a.
Italy 2,451 68.0
France 2,435 64.8
China 1,054 1.6
Switzerland 1,040 17.4
What do we learn from this? We learn that the US has a
huge hoard of gold and we learn that the sum of gold
held by China as a percentage of its total reserve is
shockingly small. This will change. China will be a quiet,
but consistent buyer of gold and a seller of other assets
over time. It really hasn’t any choice except the timing.
That, we suspect, shall be rather slow. Years and
decades will be involved rather than weeks and months.
That’s the Chinese way: |
