Our National Treasure!
I have written many times about gold and that the central banks and bullion banks are short 12,000 to 16,000 tons of gold. I got to wondering about weights and value and found a couple of things:
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20 ounces = 1 pound
2000 Pounds = 1 Ton
therefore 1 Ton = 40,000 ounces
therefore 1 Ton @$505 per ounce = $20,200,000
1 Gold bar = 400 ouces
1 Gold bar @$505 per ounce = $202,000
China has 600 tons of gold in FOREX reserves and wants to increase that to 2,500 tons. That means China wants to go from $12 Billion in gold reserves to about $50 Billion. As an aside, we are told that the US has 8,000 tons of gold in Ft. Knox (although no one knows for sure since the last audit was in 1955). The trade deficit for October, 2005 was $68.9 Billion. Converted to gold that is 3,411 tons of gold. If foreigners wanted gold instead of USDs, we would go through our gold hoard, our national treasury, in less than 3 (THREE) months!
Posted by movermike on
Monday December 26, 2005 at 1:31pm
