The 20-Month Gold Puzzle

There was a news story recently that the U.S. Mint suspended sales of U.S. Gold Eagles because it could not meet demand.

But here is a chart of sales...

...which shows a rising demand, but not excessively higher than previous times when the U.S. Mint had _not_ suspended sales. Even the Y2K burst didn’t cause the Treasury to suspend sales of gold Eagles. How does gold go down in a whoosh! when the Treasury cannot keep up with coin demand? Hmmm.

Here is the Treasury statement of gold inventory dated January 31, 2007, about 20 months ago. I couldn’t find the Treasury link itself, but this statement was included in an article in 2007.

Here is the most recent Treasury statement.  Do you notice anything weird about those two statements? The numbers are exactly the same! Does this make sense? How does your working inventory not change at all over 20 months? Now, I understand that the August 2008 statement just released is exactly the same as the statements as far back as March 2006, over two years ago. But I can’t find March 2006,  but I still have this 20-month puzzle.

Disclosure: none

Comments

[Cesato:]

jeje, Magic Kingdom!!

2008 Oct 02 11:08 AM

[GMiki1:]

They couldn't be LYING to us, could they? Nahhh, not our GOVERNMENT. Oops, here come the black helicopters. I was only jok...

2008 Oct 02 11:21 AM

[GMiki1:]

Oh, thank God. Those helicopters were only throwing down bundles of hundred dollar bills.

2008 Oct 02 11:25 AM

[mark mchugh:]

Thanks Louis, for asking on of the great unanswered questions. Is anyone expecting an answer anytime soon?

GMiki - always love your comments.

2008 Oct 02 01:27 PM

[Lionheart:]

Beware everyone....there is going to be a massive bank failure next week. Take cash out of the bank and go buy some food.

2008 Oct 02 05:15 PM

[http://www....:]

nice pull back today

2008 Oct 03 12:32 AM

[Philly Jim:]

Ever think that maybe the treasury is holding their gold for what may come?

2008 Oct 03 12:48 AM

[Groneil:]

If anyone bothered to read through the notes to the financial statements of the US Mint they would find the following:

"In accordance with 31 U.S.C. § 5517 (b) and 31 U.S.C. § 5516 (b)(2) statutory rates of $42.2222 per FTO of Gold and 1.292929292 per FTO of silver are used to value the entire custodial reserve of the US mint."

2008 Oct 03 01:46 AM

[bowman711:]

Of course they don't have any gold for ordinary people - what gold there is now is all going to the super-rich at (manipulated) low prices inconsistant with every economic theory or law.

2008 Oct 03 09:30 AM

[mark mchugh:]

Louis,

Here's the 2006 report:
web.archive.org/web/20.../

and 2005:
web.archive.org/web/20...

and 2004:
web.archive.org/web/20...

Long live the Wayback Machine!!!!

2008 Oct 03 11:50 AM

[maclean.anna:]

Time to hedge your gold! You'd think it would be a safe place to be considering this market, but with our govt. trying to manipulate the entire market, it may not be too safe after all.
Stumbled upon an article that really drives this point home:
www.greenfaucet.com/co...
Good luck. And make sure you hedge!

2008 Oct 03 02:38 PM

[Bill_bill:]

Banks need cash and they can't borrow from each other, their gold is a liquid asset, and when banks sell gold for dollars they sell so much it drives the price of gold down.

2008 Oct 03 03:34 PM

[7g2b:]

Why is the book value used rather than current market value ?

2008 Oct 03 03:54 PM

[GMiki1:]

Today's Daily Pfennig explains a lot about the dollar:

www.kitcocasey.com/art...?/

The European banks need to have dollars in the U. S. and the LIBOR rates have been too abnormally high to borrow from there, so they've sold Euros to buy $$$.

And what a crazy day. The bill passed and the DOW unpeels its gains of the morning.

2008 Oct 03 03:57 PM

[gimemoreau:]

October 31, 2004, Total - Mint-Held Gold 248,098,660 Oz
August 29, 2008 Grand Total - Mint-Held Gold 248,046,115 Oz
For 4 years, Mint only used 52,545 Oz ???

2008 Oct 03 09:49 PM

[TERN:]

Mark,

Using the link you give for the 2006 report, I can only find the 2007 report.

2008 Oct 03 11:22 PM

[mark mchugh:]

TERN,

Don't know what happened, but this should be the march 2006 report:

web.archive.org/web/20...

2008 Oct 04 01:34 AM