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Bank of Mexico Admits 96% of Gold Reserves Held in US & London
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.
http://www.silverdoctors.com/bank-of-mexico-admits-96-of-gold-reserves-held-in-us-london/#more-15577