The British Office for National Statistics just admitted that it miscalculated British imports by some £6 billion pounds sterling! Guess what they missed? That’s right. What else? You guessed right — gold! It always seems to be gold. Hmmm…
Anyway, it depends on the exact day each ounce of gold was imported, but generally speaking, that money adds up to about 186 tons of gold bullion. The uncertainties of Brexit seem to have caused a massive surge in gold demand in a very short period of time. It’s a huge amount of gold, and it compounds the point I have been making for a long time. World gold demand far outstrips supply.
Is the U.K. destined to replace China as the world’s largest gold buyer? Doubtful. Tiny Britain, of course, is not normally a gold buying nation. It’s per-person gold demand has always been far smaller than countries like Italy, France and Germany. When the zombie Euro finally comes to an end in 2-3 years, and is buried, keep this in mind. If people in tiny normally gold-phobic Britain can buy 186 tons of the pretty yellow metal in just 3 months, can you imagine what is going to happen when the second biggest trading currency in the world ends? There will be 340 million people suddenly stuck with national currencies they have no faith in.
What will they buy? You guessed right again!
As Europe moves further into perceived monetary instability, gold demand will skyrocket. I calculated in previous articles, that if the price of gold remained under $1,200 per ounce, the not-so-mysterious gold supplier of last resort would have been on the hook to supply up to 1,345 tons of gold last year. But, that’s not all, folks! The 2014 Society of Mining Professors report, using data from Credit Suisse, Morgan Stanley, Société Générale (SG), AME, and Bloomberg, determined that world gold supplies (from mines, scrap recovery, ETF sell-offs, and hedging) were about 4,476 in 2012, 4,850 in 2013, 4,155 tons in 2014, and will be 3,845 tons in 2015 and 3,585 tons in 2016.
Lets add 186 tons worth of this previously unknown British demand, and subtract 260 tons from supply. The result is that some “not-so-mysterious supplier of last resort” will need to pony up as much as 1,790 tons of gold to keep prices under $1,200 per troy ounce. All of this comes at a time when the banksters’ “Patsy” has just gotten a new papa. He doesn’t like the fact that she’s been abused for so long and he says as much. Whether it’s China or the banksters, this new papa ain’t nearly as dumb as the old one. They’ve abused the sweet thing, pretty badly, over the years and he isn’t gonna’ let her date them anymore.
To be fair, supply may be a bit higher or lower than was estimated and the same can be said for demand. I used the older numbers because I didn’t want to sit for an hour or two finding the most recent ones. You can use my prior work as a template, and update everything yourself, to get the exact numbers. But, any discrepancies are not significant enough to materially change the outcome or the point. There is an enormous gap between supply and demand which someone has been filling. When they stop, and they are about to do just that, prices will skyrocket. How far they will go is anyone’s guess, but up they must travel.
As stated, previously, once Donald J. Trump takes office, it is almost certain that the official US gold reserves will be closed off. Is it any wonder that the manipulators recently engineered a long squeeze in gold prices for the purpose of bringing down prices so they can exit less painfully? They want out and for good reason! There is simply no way to meet the kind of demand we are seeing for gold at its current price without further raids on the US gold reserves. Remember, the same banks that manipulate COMEX prices would also be forced to ship physical gold to buyers in India, China, Turkey and, yes, now the U.K.! They can’t avoid it, because if they do, the whole rotten system will be discredited.
Conclusion? Gold prices are headed strongly upward in the near future.
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