Gold is being brought back to the US. To what ends this repatriation is happening is still unknown. But the proximate reason and catalyst is pretty simple It is to close open contracts on the books since the 1990s. It is to satisfy a debt. In sum: It is to partially refill Fort Knox.
On November 16th 2024 Goldfix posted a very popular piece entitled: Fort Knox holds "Nothing But Moths and IOUs"
In that piece we stated: “The Fed, the Treasury, and most central banks, when it comes to Fort Knox gold, only hold IOUs issued by bullion banks that have already sold the borrowed metal. Over the years, that gold has found its way into more patient hands.”
Here is Egon Von Greyerz making a similar statement
Since that story went up and was subsequently was picked up by the Jerusalem Post, the US Gold repatriation began."In reality, a central bank only holds an IOU issued by a bullion bank. If the central bank attempts to reclaim its gold, it will never get it back, as the gold has likely been sold to buyers in China or India, who have purchased it outright with no obligation to return it."
There is more to this story than meets the eye. In that post we used broad strokes to describe a relationship that persisted between Bullion banks and the Fed started during the Clinton/Greenspan era. In this video we put a slightly finer point on it all.
To ask the question on which many are speculating: To what purpose is all this Gold being repatriated?
Specifically, there is healthy speculation of a Gold bond, a return to a Gold standard, or some other repurposing of the suddenly useful pet rock. Any of those applications may be true down the road, with the creation of a Gold-based Treasury instrument being most likely.
But first, before any of the above applications happen, we’d have to actually have the gold we own in our possession. Therefore, the most likely reason is at least some of the gold being brought stateside is: Banks are closing out government IOUs to refill Fort Knox. Augusta Precious Metals(Full Review) $0 (10 Years) $50,000 "Best Overall" by Money Magazine, Award-Winning for 6 Years, Thousands of 5-Star Rankings Goldco (Full Review) Vary $25,000 Industry leader with over $2 Billion in gold and silver. Top rated precious metals company with buy back guarantee American Hartford Gold (Full Review) Vary $10,000 American Hartford Gold, ranked #1 Gold Company on Inc. 5000, boasts thousands of A+ BBB ratings and 5-star reviews, endorsed by Bill O'Reilly and Rick Harrison..Don't miss out on the opportunity to invest in Gold & Silver. Check out our featured companies today: (Ad)
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