LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page >> News >> Story  Disclaimer 
Latest Headlines to Launch New Website

Is Gold Price Action Warning Of Imminent Monetary Collapse Part 2?
By: Hubert Moolman

Gold and Silver Are Just Getting Started
By: Frank Holmes, US Funds

Silver Makes High Wave Candle at Target – Here’s What to Expect…
By: Clive Maund

Gold Blows Through Upside Resistance - The Chase Is On
By: Avi Gilburt

U.S. Mint To Reduce Gold & Silver Eagle Production Over The Next 12-18 Months
By: Steve St. Angelo, SRSrocco Report

Gold's sharp rise throws Financial Times into an erroneous sulk
By: Chris Powell, GATA

Precious Metals Update Video: Gold's unusual strength
By: Ira Epstein

Asian Metals Market Update: July-29-2020
By: Chintan Karnani, Insignia Consultants

Gold's rise is a 'mystery' because journalism always fails to pursue it
By: Chris Powell, GATA


GoldSeek Web

Is the U.S. Selling Gold Reserves?
By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch -

-- Posted Friday, 3 September 2010 | Digg This ArticleDigg It! | | Source:

What the Chinese said

We always have to remember that the Chinese are inscrutable.   The Chinese government is very careful not to say any more than is necessary on anything.   It’s also very useful to have people, supposedly close to government makes statements that may appear to be government policy.   Many of the statements come from people helping to lay a smokescreen for the true picture, or to get a reaction, like tossing a stone into a bush to see what flies out.  


Before we give the quote we have to tell you this quote is not from a top official but from a central bank researcher.   Because of his closeness to the People’s Bank of China, it may be assumed he is telling us facts that are common knowledge at the bank.   On the other hand the quote is explosive, not backed up by fact, runs counter to common sense and against the information we have.   It’s natural to then say, “Maybe he knows something we don’t know”.   So whether you accept this as fact, or not, is your decision.  


Here is the quote, “Sales by overseas central banks could see a sharp fall in gold prices”. [The Financial News reported Wednesday], citing Zou Pingzuo, a central bank researcher.    He continued, “Investors should be careful about investing in gold.    Gold prices could fall sharply because of intensive gold sales by the United States and other overseas central banks.”


Are the U.S. and other central banks selling gold?

We are of the opinion that the World Gold Council is a competent body and that they do gather accurate information on ‘Official’ gold sales worldwide.   We also note that leasing is not selling just as swapping is not actually selling.   The figures published by the WGC tell us that the gold selling has stopped and that central banks, including China, are buyers.  


Yes, when gold is leased or swapped, the gold leaves the owners control, but unless the overriding agreement is broken the gold should return to the owner’s control.   It’s there that the main questions lie.   And it’s there that the statement may gain credibility.  


Many are convinced that leased gold or swapped gold is a cover for what in reality is a sale.   As a result many believe that the central bank holdings of gold are far less than published.   If such obligations do attach to the gold owned by a nation, then at best, it is ‘at risk’ and this should be clarified.   The risk of the gold not being returned does attach to that gold, because it lies under the control of an entity or person outside that bank.   That certainly weakens ownership control as we all know.


Why isn’t the Federal Reserve happy to prove its gold holdings in an audit?

Senator Ron Paul has wanted an Audit of the Fed for a long time for, as he said, “the audit should determine not only the simple presence of gold in the U.S. government's vaults at Fort Knox, Kentucky, and elsewhere but also "whether any of it has been obligated.”  


Senator Paul is fully aware of the Federal Reserve's involvement in gold swaps with foreign banks, an admission made by Fed Governor Kevin M. Warsh a year ago in his battle with GATA's litigation against the Fed under the Freedom of Information Act.   It was there that Governor Warsh insisted that the Fed's gold swap arrangements must remain secret.   What was the Treasury’s response to the Senator?   “Representatives from the Treasury Department and U.S. Mint did not respond to requests for comment on Paul's proposal."


Shouldn’t the Treasury, the Fed and public institutions in general be transparent?   You would think so, but then the perceptions we have of government, the Fed and the gold reserves, may be radically altered and confidence damaged.   After all, it was only after the Gold Standard was dropped that it was discovered that the U.K. could not cover all the banknotes they had issued [based on gold].  


What stands out starkly is that if the Federal Reserve does have the gold they say it has, then an audit will reveal this and ensure confidence is bolstered in the central bank’s reserves at all levels of the monetary world.  So why would a central bank not audit its holdings regularly to shore up any waning confidence?   After all, as the nation’s purse holder, they should assure the public that their reserves are what they say they are.


What would happen to the Gold Price if central banks and the U.S. were selling?

The answer to this question is not what you may initially think.   To get our conclusion Subscribe through



Legal Notice / Disclaimer

This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment.  Gold Forecaster - Global Watch / Julian D. W. Phillips / Peter Spina, have based this document on information obtained from sources it believes to be reliable but which it has not independently verified; Gold Forecaster - Global Watch / Julian D. W. Phillips / Peter Spina make no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of Gold Forecaster - Global Watch / Julian D. W. Phillips / Peter Spina only and are subject to change without notice. Gold Forecaster - Global Watch / Julian D. W. Phillips / Peter Spina assume no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this Report.

-- Posted Friday, 3 September 2010 | Digg This Article | Source:

Contact us:



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to >> Story

E-mail Page  | Print  | Disclaimer 

© 1995 - 2019 Supports

©, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


The views contained here may not represent the views of, Gold Seek LLC, its affiliates or advertisers., Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of, Gold Seek LLC, is strictly prohibited. In no event shall, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.