Precious Metals Forum

Go Back   Precious Metals Forum > Precious Metals and Economic News > Gold Bug

Reply
 
LinkBack Thread Tools
Old 10-16-2018, 08:46 AM   #1
Golden Cockroach
 
PMBug's Avatar
 
Join Date: Oct 2011
Location: In Scrooge McDuck's vault
Posts: 6,694
Liked: 2379 times
Australia and the Bank of England - A Cautionary Tale about Gold

You might remember when Germany started a gold repatriation process that woke up most of the world's central banks to the probability that gold held in repositories in New York and London might not actually be there.

Some Australians recently investigated what happened with Australia's gold:

__________________
The journey of a thousand miles begins with a single step. - Lao Tzu

Important stuff: PMBug 101 * Forum Guidelines * Support PMBug
PMBug is offline   Reply With Quote
Old 10-17-2018, 09:39 AM   #2
Golden Cockroach
 
PMBug's Avatar
 
Join Date: Oct 2011
Location: In Scrooge McDuck's vault
Posts: 6,694
Liked: 2379 times
Bron Suchecki commented on the issue:
Quote :
...
In John's second YouTube he gets stuck into the RBA's audit of Australia's gold reserves at the Bank of England, tipped off by the work and FOIs of Bullion Baron (see this and this post for the background). John makes a number of valid points, the primary one being that it is not a real audit if the RBA is not able to randomly sample from its bar list without direction/limitations by the Bank of England.

John's issue with the Bank of England limiting the scope of the sample is that it enables them, given the 6 weeks notice the RBA gives, for the Bank to get bars manufactured with the required serial numbers (which it would only have to do if the Bank has been leasing/selling the RBA's gold without its permission).

This scenario is actually close to impossible given how the global refinery accreditation and manufacturing process works. ...

Having said that, John misses the key control breakdown identified by Bullion Baron which is that the Bank of England has it own numbering system and it is an open question from the FOI documents whether the RBA was just given this number or the actual serial number on the bar, as the RBA refused to provide this information. If the former, then this mean the Bank could just find a bar of similar weight (difficult but not impossible given the Bank stores 416,000 400 ounce bars) and say this matches their internal number. It is only the actual serial number stamped on the bar, in conjunction with year and refinery, that uniquely identifies a bar.

While the RBA is one of the most transparent central banks in respect of reporting on its gold reserves, Bullion Baron's FOIs reveal that they dropped (still drop?) the ball in respect of managing Australia's gold reserves. A case of 1900s "Mother Country" deference-type attitudes or maybe just because Bank of England is seen as one of the "central bank club" and so you can trust your "mates" to do the right thing?
https://goldchat.blogspot.com/2018/1...lian-gold.html
__________________
The journey of a thousand miles begins with a single step. - Lao Tzu

Important stuff: PMBug 101 * Forum Guidelines * Support PMBug
PMBug is offline   Reply With Quote
Old 11-09-2018, 03:04 PM   #3
Golden Cockroach
 
PMBug's Avatar
 
Join Date: Oct 2011
Location: In Scrooge McDuck's vault
Posts: 6,694
Liked: 2379 times
Quote :
Amazing developments on the gold front happening in Australia! The Reserve Bank of Australia has responded to pressure from the commentary of John Adams and Martin North regarding its gold holdings.

Responding to dozens of e-mails from viewers, the RBA created a new official web page where it provided 5 official answers to 5 specific gold related questions. The RBA’s official response can be found at the following link:

https://www.rba.gov.au/qa/gold-holding.html
...
https://www.silverdoctors.com/gold/g...-gold-scandal/

From the RBA page:
Quote :
... The RBA's gold is held at the BoE in an ‘allocated’ account, such that individual bars (with specified bar serial numbers) are attributable to the RBA. (In an unallocated gold account, the customer does not own specific bars, but has an unsecured entitlement to a share of gold held in a ‘pool’.)

The Reserve Bank has processes in place to ensure that its specified gold bars are maintained appropriately. Inventory reconciliation – including of unique serial numbers – is undertaken periodically, or after any movements on the RBA's account. Additionally, the Reserve Bank audits its gold processes, including gold holdings at the Bank of England.
...
Uh huh.
__________________
The journey of a thousand miles begins with a single step. - Lao Tzu

Important stuff: PMBug 101 * Forum Guidelines * Support PMBug
PMBug is offline   Reply With Quote
Old 12-05-2018, 10:27 AM   #4
Golden Cockroach
 
PMBug's Avatar
 
Join Date: Oct 2011
Location: In Scrooge McDuck's vault
Posts: 6,694
Liked: 2379 times
Quote :
...
In response to Mr Adams’ videos, the RBA earlier this month added a new page on its website with a series of questions and answers about its gold holdings.

“The RBA’s gold is held at the BoE in an ‘allocated’ account, such that individual bars (with specified bar serial numbers) are attributable to the RBA,” it said.

“The Reserve Bank has processes in place to ensure that its specified gold bars are maintained appropriately. Inventory reconciliation — including of unique serial numbers — is undertaken periodically, or after any movements on the RBA’s account. Additionally, the Reserve Bank audits its gold processes, including gold holdings at the Bank of England.”

Mr Adams says he still has unanswered questions — but in an email this month, a spokeswoman told him the bank had “no further answers” for him.

“They haven’t explained what inventory reconciliation means,” he said. “I think we have a spreadsheet full of serial numbers and we’re checking with BoE to ensure they match. It does not mean you’re checking the physical gold.”

Mr Adams said he was “not saying the conspiracy is true or false, I’m only saying 99.9 per cent of it is not in Australia and the RBA can’t say why it’s prudent we have our gold not physically in the country”.

“The gold may be missing or the gold may be there but even if it is there are a lot of Australians who say just bring the gold back,” he said.

Speaking at the CEDA annual dinner in Melbourne on Tuesday night, RBA governor Philip Lowe seemed amused at a question from the audience on the topic.

“No, we do regular audits of our gold reserves to make sure (it is) all there and accounted for,” he said. “I can report that every audit we get a clean bill of health there.”

Mr Lowe said the gold reserves were kept in London because “that’s where the centre of the gold lending market is”. “By (lending) out our gold temporarily we can earn a small incremental return on it and cover some of the costs of holding those reserves,” he said.

“It’s the right place for the gold to be, we don’t have any plans to sell any more, to buy any more, or to bring it back to Australia.”
...
https://www.news.com.au/finance/econ...58febb80df8da3
__________________
The journey of a thousand miles begins with a single step. - Lao Tzu

Important stuff: PMBug 101 * Forum Guidelines * Support PMBug
PMBug is offline   Reply With Quote
Old 12-05-2018, 01:31 PM   #5
Ground Beetle
 
11C1P's Avatar
 
Join Date: Aug 2013
Location: North Dakota
Posts: 924
Liked: 485 times
.

One of the many things I was hoping Trump might do is have a complete inventory of the gold & Ft. Knox. Also ending the fed, but I guess he's got his hands full cooperating with the Russians, who the dems said he'd start a war with if in office & whom barry told them he'd be able to cater to their desires after he was re-elected. Oh, almost forgot, hilly & billy took millions of dollars from rich Russian donors & coincidentally hilly sold off 1/4 of our uranium to Russia.

.
__________________
11C1P Airborne Mortar Man!
11C1P is offline   Reply With Quote
Reply

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On


Similar Threads
Thread Thread Starter Forum Replies Last Post
India to move their gold reserves to Bank of England PMBug Gold Bug 3 07-11-2014 10:24 AM
Bank of England may have sold 1300 tons since Jan! Unbeatable Gold Bug 4 07-30-2013 07:32 AM
Petition for Australia to repatriate gold PMBug Gold Bug 0 02-12-2013 09:20 AM
Bank of England Gold Vault (video) PMBug Gold Bug 2 12-10-2012 04:20 AM
US gold 'tradition' - quality swaps with Bank of England a smoking gun? PMBug Gold Bug 0 11-15-2011 08:15 AM


All times are GMT -5. The time now is 09:20 PM.


Powered by vBulletin® from Jelsoft Enterprises Ltd.
Content Relevant URLs by vBSEO 3.6.0 PL2 ©2011, Crawlability, Inc.
Content of PMBug.com copyright © 2011 - 2018 Measuring Up. All Rights Reserved.