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@VictorCleaner @WhosThisGaltGuy @OccupyWisdom @burningfiat 1. Another said the Saudis were buying 20M oz/yr, or 622 t/yr (CB guaranteed paper), beginning in 1991, and he said they were buying even more than that per year by 1998. Doing the math, that’s around 4,500 tonnes total by 1998, or 145M oz.
@VictorCleaner @WhosThisGaltGuy @OccupyWisdom @burningfiat 2. That’s enough to cover all of their oil in the ground according to Another. He said that a little over 100M ounces was “equal to all the oil in Arabia”. Then Asian buying exploded the trading volume by January of 1997 and ended the oil for gold deal.
@VictorCleaner @WhosThisGaltGuy @OccupyWisdom @burningfiat 3. Another said there was 14K+ tonnes worth of paper gold. The Saudis owned maybe 4,500t of that. When someone asked if they would be able to collect what was owed, he said they would either get it outright “or thru the increase in value of metal owned after an oil for gold bid.”
@VictorCleaner @WhosThisGaltGuy @OccupyWisdom @burningfiat 4. So let's say the Saudis got their 4,500 tonnes from the mines, not from the CBs. After all, 50K+ tonnes have been mined since then.
@VictorCleaner @WhosThisGaltGuy @OccupyWisdom @burningfiat 5. Remember, Another said that the Saudis wanted 100M+ ounces to “replace” their oil in the future when it is gone, and 4,500 tonnes is 145M ounces, so perhaps they met their goal. I can relate as I too have met my goal. I’m not buying much gold anymore.
@VictorCleaner @WhosThisGaltGuy @OccupyWisdom @burningfiat 6. Things have changed since then. The Saudis aren't buying much anymore. But other than the threat of a single oil state unilaterally repricing gold no longer being a concern, everything else about the ending of the $IMFS is worse and more obvious today than it was 20 years ago.
@VictorCleaner @WhosThisGaltGuy @OccupyWisdom @burningfiat 7. Yet someone is still gobbling up all of the world's mine production. More than 50K tonnes have been mined since 1997. While that new gold was being added at a steady 2,500 t/yr in weight terms for 20 years, the price of gold was rising.
@VictorCleaner @WhosThisGaltGuy @OccupyWisdom @burningfiat 8. So demand for physical in currency terms had to be rising enough to take that new gold at ever higher prices each year. If you understand how the price is not driven by the physical side, then this implies that there's some virtually unlimited source of physical demand.
@VictorCleaner @WhosThisGaltGuy @OccupyWisdom @burningfiat 9. So it doesn’t matter that the Saudis aren’t buying much gold right now, because there is this mysterious demand for all of the physical gold that comes to market regardless of price, and it’s not the CBs. In aggregate, CB gold is flat for the last 20 years.
@VictorCleaner @WhosThisGaltGuy @OccupyWisdom @burningfiat 10. Freegold is not about oil for gold. It never was. It’s about what will undergo a permanent revaluation and become the global wealth reserve asset par excellence (replacing the dollar in that role) when the dollar reserve system collapses, and how each of us can get in on it.
