Monday, April 27, 2015

Yamashita's Gold and the Price of Gold

Although we are not the first to explore this subject, we still wish to ponder anew the implications of the Yamashita gold hoard on the price of gold today.
A few years ago we read an article picked up by Zero Hedge in which the analyst considered the very subject we are addressing. The author could not confirm the veracity of the Yamashita story, and we were too new to the subject to give it proper consideration. However after reading Gold Warriors, we are convinced that Yamashita gold is very real, but that its impact on gold markets is limited, or coming to an end, for a couple of reasons.
In the first place, not all of the gold hidden in Philippines is feasibly recoverable. So whatever its potential quantity, only a fraction has been recovered or will be recovered in the near future. Nonetheless, we estimate that 20-30,000 tons is a fair estimate of the amount recovered or recoverable.
Much of that number - we would venture the majority - ie 50-60% - has been recovered by both the butcher Ferdinand Marcos and their barbaric allies the Japanese. Even this amount has issues, and certainly any remaining recoverable gold, would have to overcome a number of issues, the chief of which is what the Seagraves called "sanctification". In other words, the gold is in all kinds of shapes, formats, and purity, requiring that all of this gold has to be resmelted, and then integrated into the global gold supply in order for it to be acceptable in the London market. These logistical problems are not trivial, and thus constrict the flow of gold into the market.
Additionally, the CIA has siphoned off much gold, further diminishing the potential supply of Yamashita gold into the marketplace.
A huge amount of the gold has been tied up in Santa Romana's accounts since his death in mid 1970s, his heirs having been denied the gold by the criminal banks led by John Reed's Citibank, JPMorgan Chase, HSBC, Wells Fargo, among others. Even so, we will assume that a good deal of it has been stolen by the banks and released into the market.
Finally, the Chinese have been a vacuum cleaner of gold for the past 2-3 years, importing at least 1,000 tons of gold per month according to Dr Jim Willie, an amount which now equals about 30,000 tons. Perhaps much of the gold has come from the Yamashita hoard, and sold to them at a discount. This fits with Willie's statements that the gold is coming from the Vatican, and it is a known fact that Santa Romana worked for the criminal organization known as the Roman Catholic Church headquartered in the Vatican.
Official US gold holdings would never be sufficient to satisfy the payoff to the Chinese for their enormous treasury holdings which they have most likely been redeeming for gold. Thus the US would need fresh voluminous sources to make good on the Chinese held debt.
Over the past 50 years the Philippine gold stores, provided by the Japanese during World War 2, have indeed suppressed the price of gold, and is probably the primary reason its price collapsed suddenly in 1980. It was at this time that Marcos' gold supplies were making their ways into the gold supply.
Thus if our estimates are approximately correct, then the available - not the theoretically potential - supply of Yamashita gold has been consumed, and we could expect to see a marked rise in the price of gold this year and in following years, especially given that its production has become only marginally economical, and in many cases downright uneconomical.
It may be the case that the Bush Crime Syndicate launch the nuclear attack against Fukushima not because of Japan's flirting with China as an ally or greater trading partner, but because they were being warned to disgorge themselves of the massive quantities of gold they possess on their home territory - gold which they stole from Asian countries between 1895-1945.
We suspect that there is another 30-40,000 tons of gold to come out of the Philippines and Japan, but we believe that neither the means nor the willingness to recover it exists among the Japanese, who are clinging to it for dear life. Gold is probably the real motive for the recent acrimony in Sino-Japanese relations.
With New York, London, and Vatican supplies approaching exhaustion, and with the criminal New York banks refusing to release any gold, we suspect that we are on the cusp of a major gold rally. Should more of the Yamashita gold come to market in a big way - and there are lots of obstacles to it doing so - gold's price will stabilize where it is.
The main point we make is that the frustration gold bugs have experienced over the past 4 years over the bear market in gold is due mainly to the release of the Yamashita gold into the market place. If we are correct that it is nearing exhaustion, the normal methods of analysis will begin to apply in predicting gold's future price. Until now, it has been prevented because most people have no clue about the Yamashita gold, and its truly epic quantities.
So while there is no doubt that central governments brazenly manipulate the price of gold down, the full disbursement of this hidden gold reservoir may finally limit their effectiveness in suppressing the price of gold in future months and years.
Copyright 2015 Tony Bonn. All rights reserved.

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