Australia is denied access to its gold: New Zealand doesn't have any

Someone is bound to make the comment so I will get in first. If our theories are correct we are unlikely to need gold for very long before we depart this mortal coil.However, there is nothing more certain than uncertainty and who knows? It may help us in the shorter term?

A New Gold Scandal – England Denies Australia Access To Its Gold

Gold Survival Guide,

6 November, 2018

Another potential issue for Australia’s remaining gold reserves, is that 99.9% of the gold reserves are held at the Bank of England. The Reserve Bank of Australia (RBA) has previously said:

“The Reserve Bank has processes in place to ensure that the gold reserves are maintained appropriately. It is not considered necessary from management, security or operational perspectives to relocate the gold bars to a facility in Australia.”

Source.

However check out the below interview with John Adams from just last month (Hat to to G.C.). Adams clearly points out that Australia’s gold reserves likely haven’t been “maintained appropriately” at the Bank of England.

 

John Adams outlines how a freedom of Information release in 2014 highlights 3 scandals in relation to Australia’s gold reserves:

1. Prior to 2013 Australia had never conducted an audit of its gold at the Bank of England!
2. The RBA never had a formal arrangement with the Bank of England (B of E) as to: What were their obligations to look after the gold reserves? How often could the RBA check on the gold? What were the circumstances around the verification of the gold? The RBA finally asked for this in 2012 when they also wanted to audit the gold.
3. Given there was perhaps a suspicion that the gold may not be there, it is very surprising that the B of E set the rules of the game for the audit. The audit took place in September 2013. But communication began in June 2013. Adams details how the Bank of England specified:
   
   
   • what areas the RBA could take their “random sample” from.
   • How they had a very long lead time to prepare for the audit.
   • How there was a non random component of the sample with enough time to have the required bars refined.
   • It was unknown how many bars were in the random sample. But the B of E specified this random sample would also come from a similar area as the non random sample!

The Audit results were never released which is very surprising. If the gold was there, then there should be no need to keep the results secret?

There is the possibility of a further audit by the RBA this coming year. John Adams believes it should be much more thorough than the previous audit and the Bank of England should not be given any warning of it.

In the meantime there is a petition for Australians to sign to “Bring Home Our Gold”.

How Does New Zealand Compare to Australia in Terms of Gold Reserves?

We’ve previously discussed how if the US dollar were again linked to gold, New Zealand couldn’t directly peg it’s dollar to gold.

Why is that?

Because, unlike the US there is nothing to back this change with!

Australia Has 80 Tonnes of Gold, How Much Gold Does New Zealand Have?

Interesting to see a mainstream news organisation in Australia reporting on the state of the Reserve Bank of Australia’s gold reserves. The Wentworth Report’s David Evan summarised and commented on an article published by “The Australian”.

First check out David’s thoughts. After that we also share some disturbing information the one and only audit of Australia’s gold reserves. Then we’ll have some comments of our own at the end about New Zealand’s gold reserves…

Gold’s Demise Bar None. … Well, Four

In a vault deep in the basement of the Reserve Bank’s Martin Place headquarters in Sydney sits a hoard of gold bars worth about $US500,000 each — all four of them.

The RBA now holds almost the entirety of the nation’s gold in vaults administered by the Bank of England.

To add insult to injury to the nation’s gold devotees, the vaults are stuffed full of the redesigned $10 polymer banknotes awaiting official release in September. …

Australia sold its gold in 1997, in a sale timed to suppress the price of gold, to bury it forever, and replace it with government paper:

Then-treasurer Peter Costello agreed to sell most of its holdings in 1997.

The decision prompted cries of betrayal from the gold industry and, with the benefit of hindsight, was incredibly poorly timed. Since the sale of 167 tonnes of gold for $2.4 billion, or just over $400 an ounce, gold in Australian terms has rallied to record highs. The price peaked last July at $1819.44 an ounce, at which point the gold Australia sold for $2.4bn would have been worth $10.7bn. …

Australia is in the paper camp, with the monetary progressives:

The RBA’s current gold holdings, in the Bank of England’s vaults, now total just under 80 tonnes.

That’s less gold than is held by the central banks of Iraq, Poland and Romania, according to figures compiled by the World Gold Council, and is just a sliver of the amount held by similarly sized economies such as Spain (281.6 tonnes) and Russia (1706.8 tonnes).

Gold has been accepted as money most everywhere civilized for the last 5,000 years. Paper currencies come and go, usually ending in a storm of inflation and over-production to meet some crisis or other.

That storm will be on the West soon. We have record low interest rates, near zero, so next time there is a recession the only available tool for the central banks is “printing.” In addition, the debt load across society is greater by far than at anytime in history (courtesy of the great bubble, 1982 – 2008), and the temptation to inflate society out of its debt will become irresistible at some point.

Government got us into this mess, and government will keep digging until it collapses.

Source.