If 2,000+ tonnes of gold has recently moved to New York, and only ~700 tonnes has appeared in COMEX vaults, then where did the remaining 1,300+ tonnes go - while staying under the radar of U.S. customs data?
The most likely destination: the vaults of the largest U.S. official sector entity in the gold market—the Federal Reserve Bank of New York (FRBNY). This gold could have entered the Fed’s auxiliary vault, which is located adjacent to JPMorgan’s 1 Chase Manhattan Plaza, and connected by tunnel to the FRBNY’s main vault under 33 Liberty Street.
If this gold is being accumulated on behalf of the Federal Reserve Banks and classified as monetary gold (exempt from U.S. customs reporting), it raises a key question: Why would the Fed be accumulating gold?
One possibility: preparing for the US Treasury revaluing the gold certificates held by the Federal Reserve Banks.
If the U.S. Treasury revalues its claimed 261.5 million ounces (8,133.5 tonnes) of gold from $42.22/oz to $3,030/oz, the Federal Reserve Banks would owe the Treasury $781.3 billion in “value” for the Revaluation.
With only 1,300+ tonnes on hand, it would not settle all of this liability, but would be a liquidity buffer to settle part of the gold certificate revaluation liability, while also acting as financial and geopolitical insurance in case of a monetary system shift toward gold.
Is the US Federal Reserve quietly preparing for a new gold-backed monetary era?
...gold stocks used to be a good proxy to Gold.
...not so much anymore.
...because while gold stocks are expected to be a good leverage on Gold's upside, you are also exposed to company specific risks that could derail their performance too,
...like this EMR announcement
EMR stock has been struggling since 21 Oct 2024 and now trading -10% below the price then. Despite QAU gaining +10.88% and GOLD (ETF ticker) gaining +18.38% since then. GOLD ticker is AUD Gold, QAU ticker is USD Gold.
Even if you chose right like e.g SPR, it did gain +10.62% since 21 Oct 2024, but now because it is taken over by RMS, you become RMS shareholder. RMS has not done so well, down -11.29% since 21 Oct 2024.
1 year view EMR Stock Price and Chart — ASX:EMR — TradingView
...even reliable NST could only muster +4.76% since 21 Oct 2024.
...buying physical Gold or Gold ETF means you don't have to worry about buying the 'wrong' gold stock which could underperform relative to Gold. More importantly, when the market crash arrives, gold stocks would be smashed while Gold typically experience only a small dent. But in these times, when it arrives, capital rotation into Gold would accelerate and drive Gold price up in a bigger frenzy.
...And if and when Bessent does revalue Gold, only physical Gold would benefit. Emerald Resources’ Cambodian mine misses guidance
Nicola Blackburn
Emerald Resources’s quarterly output from its Okvau Gold Mine missed guidance in the March quarter owing to earthworks and waste movements that limited access, the company said.
The mine’s production hit 20,000 ounces, below the range of 25,000 and 30,000 ounces guided at a cost of $US900 an ounce to $US1000 an ounce.
“Although the earthworks and waste movements, related to the cut back activities, hampered production during the current quarter, the cut back is designed to allow for the extended life of the open-cut operations,” the company said.
The miner’s guidance for the June quarter remained unchanged. Full-year guidance is expected to hit a range between 105,000 and 115,000 ounces.
