The privately owned and illegal RBA generously sold off most of Australia's gold reserves in the '90's see here
Gee thanks RBA
To this day the RBA has refused to replace the gold it stupidly (and illegally) sold off, and Abbott as PM has refused to demand Australia's gold be returned from London - and importantly NOT be given to the illegal and privately owned RBA (which Abbott gave $8 billion to as soon as he won the election)
The result of the RBA audit, were not released, not surprisingly because apparently the London Gold Exchange doesn't have any physical gold anymore either see here
Given that the RBA has followed the lead of other countries to release reserve location details, perform audits and release (some) bar list details, it will be interesting to see whether they go further and follow the lead of the many countries now deciding to repatriate some or all of their Gold reserves...
Clearly, the GLD is still being used to provide much-needed supply for Asian demand. However, as Ken Hoffman said, "there is no gold left (for Western demand)". Thus, even with prices rallying in 2014, no new gold has found its way into the GLD "inventory".
I've often said that it is unwise to ever give date and price in the same sentence. Therefore, I only do it when I feel extraordinarily confident that I am seeing things clearly. I'm willing to do so now, however, but it's a little different this time. Rather than price, it's a general market condition.
I now believe that we are truly witnessing the end of the era. We've all been waiting for the day when the fractional reserve bullion banking system would fail. I believe now that that day is very close. Maybe not next week or even next month but NOT 2017, either. Sometime very soon, likely before the end of 2014.
The Dec14 Comex gold contract expires on Wednesday and it trades First Notice on Friday. As of last Friday, there were still 149,255 contracts open of a total OI of 468,748. That's 31.84%. Last year, with the same amount of time remaining before expiration, the Dec13 OI was 104,270 versus a total of 402,194. That's 25.92%. Last December, 10,157 stood on First Notice Day. (In the end, however, just 6,493 deliveries were made as 3,664 contracts were simply sold for cash.) Given the current OI numbers listed above there's every reason to think that 12,000-13,000 will stand this week, at a minimum. If all of these holders demand delivery and don't simply close via trading over the course of the month, that's 1,300,000 ounces of gold. Look closely again at the Gold Stocks numbers above. The total Comex registered Vault is just 869,309 ounces.
Look, I'm NOT trying to say that Comex default is imminent. I'd be stunned and flabbergasted if it happened. However:
- I have no doubt that readily-deliverable, physical gold is in short supply in both London and New York
- The Comex, The Bullion Banks and CME actively attempt to deceive market participants by inflating or simply fabricating their vault and delivery numbers