‘Just bring the gold back’: RBA responds as conspiracy theories swirl around Australia’s ‘missing’ gold
Australia owns 80 tonnes of gold worth $4.4 billion but it’s not even in the country — and the internet is rife with conspiracy theories.
Is Australia’s gold really being secretly melted down and sold to the Chinese?
If you’re into conspiracy theories, talk of impending global economic collapse and have a deep distrust of central banks, you may have come across this one.
It goes like this. Most people would be aware that the Reserve Bank of Australia, like all central banks around the world, holds a portion of the country’s reserve assets in gold.
What you may not know, because it was only made public in December 2012, is that 99.9 per cent of Australia’s $4.4 billion worth is actually held by the Bank of England.
Of that gold, 11 tonnes is “leased” out to earn interest — it brought in around $700,000 last year — while the other 69 tonnes is sitting in a vault in London. Or is it?
“There are all sorts of conspiracy theories and rumours in the gold market as to what’s going on,” said economist John Adams, who has been on a crusade to find Australia’s “missing gold” in a series of videos with Digital Finance Analytics founder Martin North.
The crux of the conspiracy theory, promoted by the likes of Swiss gold trader Egon von Greyerz, is that China, India and other eastern countries are accumulating more gold than can be explained by mining production.
He believes much of it is actually western central banks “covertly disposing” of their gold, or otherwise leasing it to China and India through bullion banks which then “issue an IOU only backed by paper since the physical will never return from Asia”.
“Since 2008 just China and India have accumulated 26,000 tonnes of gold,” Mr von Greyerz wrote recently. “That is a remarkable figure and virtually the total mine production for that period.”
An audit of Australia’s gold holdings was conducted in 2013, but a freedom of information request for the findings and the final report was denied as providing the documents “would, or could reasonably be expected to, cause damage to” the relationship between the RBA and the BoE.
“In the last 20 years we’ve only seen the gold once,” Mr Adams said. “The audit was so flawed it was basically meaningless. We had to tell the BoE six weeks in advance the serial numbers of the bars we wanted to see, that gave them enough time to rig the sample.”
In response to Mr Adams’ videos, the RBA earlier this month added a new page on its website with a series of questions and answers about its gold holdings.
“The RBA’s gold is held at the BoE in an ‘allocated’ account, such that individual bars (with specified bar serial numbers) are attributable to the RBA,” it said.
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https://www.news.com.au/finance/economy/australian-economy/just-bring-the-gold-back-rba-responds-as-conspiracy-theories-swirl-around-australias-missing-gold/news-story/c0fe71e8bd40a3440a58febb80df8da3
Fed in Aus seems to have a missing gold problem and this MSM site is running cover!