After months of dragging their feat and claiming it was necessary for national security reasons to keep the info classified (sounds like an freedom of information request to the Fed) The Bank of Mexico has been forced to comply with the Federal Transparency Law and release information revealing where the Central Bank’s gold reserves are held.
In what will not be a surprise to any SD reader, the report reveals that The Bank of Mexico holds less than 5% of it’s gold reserves within Mexico, while the remaining 95% of it’s ‘physical’ gold reserves are held in the US and London (translation- nearly the entirety of Mexico’s gold reserves are held at the Bank of England and the NY Fed basement, and have likely been rehypothecated more times than an MFG client’s assets).
Our friend Eric Sprott recently pointed out in his monthly newsletter Do Western Central Banks Have Any Gold Left? the likelihood that the Western Central banks have largely leased out the gold they are supposedly holding as reserves.
In effect, Mexico just admitted that their actual, tangible gold reserves are 1/20th of the stated total. Perhaps Mexico should consider hiring Hugo Chavez as their gold reserves consultant.
Got PHYZZ?
- “At month’s end, April 2012, Banco de Mexico maintained a position in fine gold of 4,034,802 ounces, of which only 194,539 ounces are located in the territory of the United Mexican States.” [Our emphasis]
- Banxico “has been informed and knows the specific location of the gold position that forms part of its reserve of International assets”
- The countries where these reserves are located are “United States of America, England and Mexico.” And also, “the acquisitions of gold during March and April 2012 are under custody in England”.
- And besides, it is precisely there in “the city of London, England, where more than 99% of the gold which the Bank of Mexico maintains outside the country is presently under custody…”
Though the figures refer to past April, they are still current.
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Viva Mexico, I Hope They Still Have It. For Your Sake. Lol
Do we still have ours? Can’t prove it by an audit or if anything exists at Fort Knox.
To all stackers of phyzz especially those with very small stacks (myself included). Feel good knowing that if you are holding 10oz of phyzz in your hand, when the SHTF you have more wealth than a paper millionaire
or an allocated or unallocated holder of precious metals. Sweet.
Means: Repatriation time!
I am afraid that ship has sailed already…
Would you be concerned if you could not locate 96% of your retirement with Bernie Madoff? At least with Bernie you could eventually get 50% back. I would bet Mexico will not be as fortunate.
In the aftermath, I hope and pray that folks aren’t so dismally stupid as to again put their savings in banks for many, MANY generations to come.
Putting your money, jewelry, collectables, stamps, gold, silver, and marriage certificate in the bank is as intelligent as putting you cat in the dog kennel. If fact, your cat would be safer in the kennel than your money in a bank.
The only reason why I have a bank account is because my workplace needs to make a direct deposits for my paycheck and it’s an obligation or else, I might never open a bank account. I always withdraw from my account whenever I receive some cash.
I expect the Mexican gov’t is under intense pressure from the U.S. not to ask for their gold back. Same could be said about Germany.
Why?
Mexico, holding its gold in England, where things can be re-hypothecated to infinity, is thus complicit in the manipulation of the gold market. The citizens of Mexico ought to demand re-patriation of their nation’s gold, so that their true wealth in gold can be revealed, and to safeguard against the destruction of fiat paper ‘money’.
Just as in the United States. The people of Mexico have no say in matters like this and are left to be railroaded by the bankers who caused the problem.
Poor Mexico. I wonder how they got duped into handing it over. There was a peso collapse in 1994, Clinton and the globalists bailed them out. Maybe a provision of the loan deal….
and in other news, 96% of Mexican Politicians are idiots!
Unlike in America, where the politicians are intelligent and competent.
96% of their gold is pasado
I wish Australia’s Central bank was so forth coming. I have been battling them all year to obtain similar information. The following post links document my results:
http://ausbullion.blogspot.com.au/2012/08/rba-has-foi-pf-key.html
http://ausbullion.blogspot.com.au/2012/06/pf-keys-still-in-working-order-at-rba.html
http://ausbullion.blogspot.com.au/2012/04/where-is-australias-gold.html
@tears of the moon. Is the RBA like our Fed a private, foreign owned banking corporation that graces Australia with the privilege of fiat money?
We have a systemic collapse and possession of the gold will say who owns it. This WAS your gold Mexico, now it is ours.
I’m going long forges and 1kg casts. Short 400oz LGD bars.
@ UglyDog – Not as far as I can determine. Once had a discussion with the curator of the RBA Museum at the RBA HQ, on this topic and he was adamant that it was solely Australian government owned, unlike the US Fed
I love the fact the RBA Museum has a 19th Century gold scale in a glass cabinet as it is no longer needed.
Photo
So this is how it happens hmm.. Countries start sniffing out who dealt it while the Fed keeps saying “Who smelt it dealt it”.
1st post.
How much you wanna bet that HSBC and JP Morgue has leased out and sold all Mexico’s gold 100 times over??!
1,747 times actually!!
this really makes you wonder just how insightful venezuela was in bringing the gold home …. when mexico asks for theirs will there be any left and when the next country requests their gold will all other countries be watching with just a little fear …
Breathe easy, follks.
Mexico has Carlos Slim and Hugo Salinas Price on her team.
They must want to repatriate soooo bad.
My guess is they’ll do it before 2014.
Repatriate what? They don’t have no stinkin’ gold.
Ironic that an individual that is buying physical and holding it themselves is smarter than a whole country.
The other funny thing is that an individual who owns physical gold is richer than Canada after its collapse because Canada doesn’t have any gold reserves. Why Canada why? X(
There’s gold in London. Lots of gold. But there’s going to be a run on the vaults. First come, first served. We’re pussies. We’ll do the Right Thing.
Chavez didn’t have his gold in the States. We Brits had it. So he politely asked for it back. And we gave it to him.
The Mexican Government has been robbing the American public for so long by pushing their citizens here and teaching them how to game us that I have little sympathy in this regard! They owe us more than their gold could ever repay!
@RocketsRedGlare Um… Can you think of something the Americans didn’t take from Mexico in the first place? By rights, everything from the Dallas Cowboys to the Goose Creek oil field should belong to them.
Then again, they did swipe most everything they got from the Aztecs…
@Tawnyard: Please show me ANY LEGITIMATE CLAIM BY MEXICO! TEXAS for instance! How about California! The entire South West! It was a time of illegitimate conquest and they lost!!! It never belonged to the Spanish or French or Austrian… It was ALL Indian land! The Indians and Americans have the ONLY legitimate claims! The Indians signed peace treaties or were physically conquered! The Spanish and Mexicans never did either. The Spanish may have conquered the Aztecs but never the Apache, Comanche, Navaho or any other North American tribe!! OR US! Mexico is lucky to have the land they still have! We took everything N of Mexico City in the Mexican American War and then gave most of it back!
@Tawnyard
While you’re at it, why don’t you also state that the right thing to do is to send the descendents of the American slaves back to their ancestral countries and make reparations?
I don’t care to go back to ancestral Germany at this time unless they offer me a high enough paying job at the Porsche factory. I am happy being a slave in this country.
I’m trolling, boys. Chill, will you? ; )
@Mammoth, I think everybody should – and will – ask for their gold back. As soon as they do, it’s game over, IMHO.
Someone needs to tell the Mexican government that “If you don’t hold it, you don’t own it”. In my opinion, I think that the US and the UK already sold the golds because they wanted to reduce the Eastern demands which is also known as manipulating gold’s price.