Massive Shock Coming to the Gold Market Soon?
By Michael Lombardi
January 23, 2014
In 2013, only 37 tons of the gold bullion came back to the Bundesbank: five tons came from the Federal Reserve and the rest came from France. (Source: Kitco News, January 20, 2014.) So where’s the gold? If the Bundesbank is bringing back only five percent of its gold each year, it’s going to take 20 years for the country to get back its 674 tons of gold bullion … forget the seven years promised!
Why can’t Germany get its gold back? Do Western central banks really have any gold left in their reserves or have they sold it all? And why is China, now the world’s second-largest economy, buying so much gold? These are questions that lead me to one conclusion: gold prices should be a lot higher than they are today.
Dear reader, the majority of “stuff” I read from analysts and economists these days says the 12-year run in gold bullion is over…the U.S. economy is getting better and gold has no reason to go back up. Hogwash, I say.