Research Director Alasdair Macleod reports today:
"An exhaustive study of global physical gold
stocks, authored by GoldMoney founder James Turk
with the assistance of Juan Casteneda of the
University of Buckingham is published this morning, and is available in PDF
"The study concludes that the commonly accepted
figure of 171,300 tonnes (as of the end of 2011)
overstates gold stocks by 16,056 tonnes.
"In my opinion the principal implications are
"-- The level of global physical gold stocks is
important in the context of remonetization of gold,
which is likely to become increasingly discussed in time, given the
accelerating pace of monetary creation by central banks.
"-- There is an as-yet unappreciated transfer
of wealth in the form of bullion from the West to the East. This transfer has
been going on for decades, starting: a)with the
Middle East OPEC members in the 1970s onwards; b) to the Indian subcontinent
through the 1980s and 1990s and to the present day; and c) to the Chinese
population in the last decade (and less obviously the citizens of other
populous southeast Asian states). Therefore the West has already ceded
control of the world's gold, leaving a significantly smaller balance in the
West than commonly believed.
"-- The study finds that gold stocks are
overestimated by 10.3 percent. Given that the bulk of the world's gold
bullion is no longer in the possession of the advanced Western economies, the
shortage of bullion backing Western physical and futures markets is
considerably more acute than commonly realized.
"I hope this excellent paper sparks a debate
about the consequences for the West of having driven gold out of circulation
as a monetary asset at a time when paper currencies are firmly on the path to
their own destruction."
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
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