Over the past few months, just over 8,000 - four hundred troy ounce gold bars - or more simply put, 100 tonnes of gold bullion - were carefully transported under the cover of darkness with armed guards.
They were shuttled in 8 separate 737 flights carrying an average of 400,000 oz gold bullion from the Bank of England’s gold vaults in London to the central bank of Poland's undisclosed deep gold storage locations.
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In what should have been a slow news week for precious metals, this Thanksgiving 2019, was anything but that.
Eastern European Union nations, like Poland, are now going out into the physical gold bullion market and buying large tonnage lots. Poland has just taken almost half the delivery of its official gold reserves into deep Polish central bank storage, and other eastern European Union nations are doubling down on their own bold gold delivery rhetoric.
Really smart of @G4S to document— James Henry Anderson (@jameshenryand) November 29, 2019
this purchased then -> moved from London's @BankofEngland to Poland's #Gold Reserves @nbppl
+3.2 million oz
or +8,000 pcs of 400 oz #Gold #Bullion bars
8 overnight trips with guarded 737 @Boeing Airplanes
Reported this week, former Slovak Premier Robert Fico, who has a shot at returning to power, urged his parliament to compel the Slovak central bank into bringing home the U.K. stored gold reserves as soon as possible.
The reason? Sometimes your international partners can betray you, Fico said, citing a 1938 pact by France, Britain, Italy, and Germany allowing Adolf Hitler to annex a chunk what was then Czechoslovakia, and - more recently - the Bank of England’s refusal to return Venezuela’s gold bullion reserves over political differences.
Poland obviously agrees partially just judging by their actions.
A ton of gold weighs 32,150.7 troy ounces. A ton of gold worth is currently today valued at just over $47 million fiat US dollars. Just over 80 pcs. of 400 oz gold bars make up a ton of gold bullion.
Hello SD Bullion youtube subscribers, my name is James Anderson. And this is the 4th Gold Price Market Update from SDBullion.com
I will leave a link for you here so you can dig deeper into that 100-ton gold bullion shipment story which was recently executed by G4S. One of many secure logistics providers, non-bank bonded and insured custodians we often work within the high volume investment-grade bullion industry.
Mixed price action for the four major precious metals again this week.
The silver spot price finished flat, just over $17 per troy ounce.
Similar the gold spot price moved sideways finishing the week at $1,466 per ounce.
The spot platinum price ticked up a few bucks finishing just under $900 per ounce.
Another new nominal valuation record for the palladium spot price. Physically hard to procure industrial palladium bullion bars have to take palladium prices seemingly record high after record high this entire year 2019. Palladium is up over 37% or about $500 dollars an ounce from the start of the year.
This gold-silver ratio remained flat. It still takes about 85 ounces of silver to get 1 ounce of gold bullion.
Given the holiday week, the median well paid nearly 20,000 employees at the private Federal Reserve did not update their FRED ballooning balance sheet data.
But the NY Fed’s REPO Loan program managed to still loan out over $400 billion in overnight loans for the week. Since middle September 2019, the New York Federal Reserve’s trading desk has been intervening in the overnight bank loan market.
They have now lent to some of their 24 primary dealer investment banks and financial houses over $4 trillion, with a 't', fiat Federal Reserve notes since the REPO market bailout began two and a half months ago.
Turning back to the derivative gold markets this week.
News out of Bloomberg shows that some entity or high net worth investor placed an options bet that will pay off big time if the gold price goes where many believe it is destined to while at perhaps at a faster pace than many believe currently possible.
Respected gold industry peers and colleagues have speculated the possibilities of this betting range anywhere from wild bullish speculation with a more than 700X payoff if the price is indeed struck in time. Or perhaps a bullion bank requiring a gold mine to procure this option to keep financing and financial insurance costs in line during a sale, or others have respectively stated that $4,000 oz gold by June 2021 is way too far out of line for that conservative explanation. Again the spot gold price is currently just under $1,500 oz as we near the next decade, 2020.
Possibly someone somewhere has some deep inside knowledge of what may be coming down the financial road.
Either way, what may be to some a gold bug clickbait headline. It is, in reality, a $1.75 million dollar gold derivative bet that could pay off over $1.2 billion fiat US dollars if it strikes in time.
Financial Tweet of the week begins with Bloomberg’s twitter parakeets TARP bailout assistant to Hank Paulson, MN Federal Reserve chief Neel Kashkari’s new claim below.
The fin twit tweet of the week was then executed by notoriously critical Rudy Havenstein’s twitter account shortly thereafter.
Judging by Credit Suisse’s high net worth investor trends and +$50 million dollar estate data, the disparity of US wealth between the haves and have not too much, has never been higher and wider.
And if you have ever look at some of the full fiat currency wealth exacerbation data, you would see clearly, Federal Reserve policies ongoing since the 1980s have worsened this problem.
Do not be fooled by their sudden claim to care about poor and middle-class US citizens. By their action, the Fed effectively does the opposite of any mandates they claim to uphold.
And finally to close this week’s major precious metals markets update. I want to give you the macro undervaluation chart of perhaps this century.
Well, at the very least this currently is the lowest in over 100 years of time that we have seen commodity valuations versus the Dow Jones Industrial Average (in other words the cost of real inputs we need to keep the economy running have not been this cheap versus the arbitrarily chosen rotating largest stocks traded on US equity markets.
If often the goal of successful investing and speculating is to buy low, to eventually sell high.
Well institutional commodity and natural resource investment firm, Goehring & Rozencwajg has a quick 10-minute video covering their belief about the future gold price.
The guy who makes the short video presentation you can find a link to in our show notes this week is named Leigh Goering. And when gold was $250 an ounce in the year 2000 when many people, thought he was crazy when called for a gold target of $2,500 oz in Forbes magazine right in the midst of the first internet stock bubble.
Well, I am not going to give away what he says in this short presentation. If you have an interest in precious metals and the resource sector in the coming decade, I suggest you go watch it yourself.
Click on the video above or visit right here too, to chase down this well reasoned presentation for gold values 2020s and perhaps even beyond.
Thanks for visiting us here on the SD Bullion blog.