Commodity Trade Mantra

US Exports 128 Tons Of Gold In Jan, Feb 2014 – Supply Deficit Increases

US Exports 128 Tons Of Gold In Jan, Feb 2014 - Supply Deficit Increases

US Exports 128 Tons Of Gold In Jan, Feb 2014 – Supply Deficit Increases

Not only did the U.S. export 128 metric tons of gold in the first two months of the year, its supply deficit continues to increase.  While gold exports to Hong Kong fell in February, Switzerland imported another 28 metric tons of gold during the month, more than twice the 12 metric tons it imported in January.

If we look at the chart below, we can see where the United States exported the majority of its gold.

U.S. Gold Exports Jan & Feb 2014

In the first two months of the year, Hong Kong imported 65 metric tons (mt) of gold, Switzerland received 40 mt,  followed by Australia at 6.2 mt, India 5.7 mt, United Arab Emirates 3.2 mt, Thailand 3 mt, Singapore 1.2 mt and the United Kingdom…. a paltry 1 mt.

Hong Kong and Switzerland imported 105 mt or 82% of the total 128 mt exported during January and February.   If we assume that the majority of gold heading to Switzerland is being refined and then shipped off to Hong Kong and the East… the overwhelming majority of U.S. gold exports are heading to Asia, India and the Middle East.

Let’s assume 80% of Switzerland’s gold imported from the U.S. is refined and shipped to the East.  Thus, 113 mt of U.S. gold exports during January and February made their way to Asia, India and the Middle East, while 15 mt were imported by Western countries.

As I stated several times before, the West continues to print money and manufacture derivatives, while the East acquires gold hand over fist.

The U.S. Gold Supply Deficit Increased to 40 Metric Tons During First Two Months Of The Year

Even though the United States is the top 4th gold producer in the world (Russia surpassed the U.S. in 2013 and is now #3), it doesn’t seem to care about holding onto any of its yellow precious metal whatsoever.

During the first two months of the year, the U.S. imported 48.1 mt of gold, had a mine supply of 39.4 mt and exported a whopping 128 mt for a net supply deficit of 40.5 mt:

U.S. Gold Imports, Exports, Mine Supply & Deficit JAN-FEB 2014

While these figures do not include U.S. gold scrap supply, it also excludes any domestic consumption.  For KICKS & GIGGLES, if we did include U.S. gold scrap supply which would be approximately 30 mt for JAN & FEB (USGS estimates U.S. gold scrap was 200 mt in 2013), it would still leave a supply deficit of 10 mt.

Of course, the United States consumes some gold… which implies a number of banks, financial institutions or an exchange coughed-up 40 metric tons of gold to make up for the supply deficit.

The major Banks and Financial Institutions will continue to publish ridiculously low gold price targets because all they have left in their BAG OF TRICKS, is the ILLUSION OF FAITH.   Hell, it’s not even real faith, but rather the sort of delusional faith in a system that is rotten to the core.

As Russia, China and the other BRIC countries work towards a system that doesn’t include the TURD called the U.S. Dollar, Americans have less and less time to prepare for the GREATEST TRANSFER OF WEALTH…. in history.

 

Courtesy: SRSroccoreport

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