martes, 26 de febrero de 2013

MEXICO’S FEDERAL AUDIT DEMANDS PHYSICAL INSPECTION OF SOVEREIGN GOLD HOLDINGS


Today we have an exclusive note on this blog, but hopefully this can be known through the “mainstream media” too: the Mexican Superior Audit of the Federation (“ASF” in Spanish), in its Report of Supreme Audit Results of the 2011 Public Account” delivered last week to the Chamber of Deputies, gave a stern “recommendation” to the Bank of Mexico (Banxico).

The reason is one of the most important issues we have addressed here: the gold reserves of our country.

As you may recall, last year we informed that after four months of legal wrangling with Banxico, it was forced to give us the information we wanted (that of course they did not want to disclose), about the supposed physical location of Mexico’s sovereign gold holdings.


Well, the ASF documented the purchase of 100 tonnes of gold that was made in 2011, for a total of 4,543 million dollars.

In its report, the ASF says that a confirmation of the operation was made with the counterparty, but also "found that Banxico has not conducted physical inspections to gold to verify compliance with the terms of acquisition and the conditions regarding its storage, in order to be certain of the physical custody of this asset." Our emphasis.

Moreover, the central bank only has documents which establish the terms and conditions, the dates of the transactions and payment vouchers. That's all.

In other words, Banxico invested 4.5 billion dollars and released the money without making any confirmation of the existence of the gold purchased, or of the location of the vaults where the gold bars were supposed to be held. Mere “paper gold”.

The ASF states that the Central Bank gave them some arguments on why they did not consider any verification as necessary, and assured them that the gold reserves were under the custody of "a prestigious financial institution". It seems that Banxico has a “blind faith” regarding such an institution.  

According to the report, the Bank of Mexico said that the metal seller “only” offers services to other central banks and monetary authorities, and "places gold in custody in a bank of the United Kingdom" who "sets strict standards for weight and purity which gold bars must meet, in order to be received  under custody." Almost a religious act for Banxico.

In this blog it’s been documented that this custodian is none other than the famous Bank of England, which is supposed to provide its services on an "allocated basis". That is, that customers have, or should have, a list of every ingot owned with serial number and stamped certifications of purity.

Banxico has none of these lists. Last year it could not answer a single question made by this journalist, through a legal “Request for Information”, about the number of bars that make up the Mexican gold reserves. The central bank only said that “due to the variability of the content of gold in the bars, it is not possible to specify with certainty the exact number of bars purchased." Oops!

All this makes us wonder if Banxico is really complying with the mandate of Section I of Article 19 of the Bank of Mexico Act: that the reserve shall be composed of "The currencies and gold owned by the Central Bank, free of all liens and whose availability is not subject to any restriction".

Is there no restriction on gold bullion that has not even been proved to exist? Isn´t Banxico breaking its own law?

The institution headed by Agustin Carstens wished to be excused for this irregularity, and reported that it is a common practice to perform such operations, and that an inspection such as that recommended by the ASF would have a "significant cost".

Nevertheless, the ASF has insisted under its official “recommendation” number 11-0-98001-02-0154-01-001 (they made only two recommendations, and this was the first): Bank of Mexico should “make a physical inspection with the counterparty that has the gold under its custody, in order to be able to verify and validate its physical wholeness and the compliance with the terms and conditions of dealing with this Asset…” It was verified by the ASF that this has never been done by Banxico.

No doubt. This is very delicate and Banxico has gotten into this problem unnecessarily.

Therefore it is important for Dr. Carstens to stop being evasive and decide not only to verify our gold but to order its complete repatriation to the country. It would not be the first nation to do so.

This is the very same story that Germany lived just months ago.

There, the German court of auditors (Bundesrechnungshof) demanded also in 2012 that the Bundesbank undertake an audit of its gold reserves. 

By the way, a German parliamentarian,
 Philipp Missfelder, wished to inspect the German gold bars held at the N.Y. Fed, and the N.Y. Fed could not, or did not wish to, tell him which bars belonged to the Germans.


In Mexico we need to bring home all our goldThese ingots are national treasures and we should claim them as an act of sovereignty. There is no reason for them to remain abroad.

Instead of selling our golden reserves, as Banxico has been doing for several months now, it should take this buying opportunity to acquire much more. In this blog, we’ll be informing in the weeks to come if these gold bars have been located in our Mexican territory, England or NY.

Meanwhile, we have to remember that this global financial crisis is far from over, and that it is essential for us to have “in hand” the small gold shield we decided to buy. Not doing so means that we are unnecessarily exposed to expropriation and the real possibility of waking up tomorrow with a “hang over”, after a “dream of gold”.

26 comentarios:

  1. The Inside Story on the Gold-for-Oil Deal that could Rock the World's Financial Centers

    http://www.usagold.com/goldtrail/archives/another1.html

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    Respuestas
    1. There is no gold! China, Russia and India have bought any physical gold available. Germany is repatriating their gold in small shipments because there isn't enough left to meet the full demand. Unless they want to settle for tungsten. I doubt the US would want that reality to be discovered however.

      Have you read the Obama prophecies? http://prophecies.org

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    2. it says your link no longer exists or is broken

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  2. Sr Barba,

    GRACIAS to you and others who kept pushing Banxico to be responsible. This is a VERY important story for all of us.

    I hope your government gets its gold...soon!

    Richard
    Oregon

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  3. your country should sell at it's reserves in the UK, while at the same time buying them on US markets. The cost of moving gold from the Us would be much cheaper, plus the potential default on the COMEX when that delivery stands would be a sight to be seen!

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    1. perhaps I have misunderstood, but isn't default the situation that Mexico wishes to avoid?

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    2. Most physical gold has to be traded in london. Another thing that should end.

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  4. "your country should sell at it's reserves in the UK, while at the same time buying them on US markets"

    wow... I'm not sure the gold in available in the US.
    I would go like Chavez. He got it out of the UK vaults OK.

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  5. I am from the UK. The economic situation here is dire. Our government is desperate. Take your gold, my friends, before someone else does.

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    1. i'm also from the UK and urge Mexico to repatriate its gold. not out of disloyalty to my country but simply as a matter i believe of claiming sovereignty

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  6. I guess it make sense to have a look at your OWN gold. There is no reason to hold big gold stocks in other countries. The second world war is 60 years over :-)

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  7. There is no reason to think that a british banker would give back your gold. To protect oneself from gold-plated tungsten, one must refuse London Good Delivery bars, then go to a trustworthy refinery and oversee the casting and numbering. Trusting is not prudent anymore!

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  8. Cartense is in bed with the manipulators (usa, uk and their banksters. )We can see that miles away. Bank of México is just as the FED of US, its not "of México". Its cleared that this gold purchase by Banxico was just to bail out their friends in london. Cartensen is a fat criminal as well as the last 4 presidents of México. They all should be executed.
    att: a mexican in exile in Houston Tx.

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  9. I am sorry but the last gold remaining in london was taken by venezuela !! but good try to make it public !!

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  10. Your country can NOT repatriate any Physical Gold, because it did NOT buy any Physical Gold. It bought paper gold.

    The BIS is the broker for ALL inter-Central-Bank "gold" trade. Physical Gold does NOT trade -in inter CB trades- at the same PRICE as paper gold. Nowhere close!
    If the BIS permits your nation's CB to purchase a quantity of Gold Bullion, that CB must pay the TRUE VALUE price of Gold Bullion- many many multiples of the absurd and artificially constructed price that Comex and LBMA display.

    Finally, your nation's audit office has about as much power as a tramp. The political, economic and financial world is not run by independent nations' governments and agencies. It is run by those who own the BIS and the Central Banking system. That is where ALL power resides.

    You can discover all this for yourself at: preciousmetalspete.blogspot.com/

    Guillermo, you seem like a good lad and your heartis very much in the right place, but you must 'wise-up' a little more to how this show is run! preciousmetalspete at his blogspot will help; he's been inside these structures since 1978. Keep up the good work.

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    1. oh if it was a paper purchase then i am afraid you may be screwed Mexico. if you cant touch it you dont own it

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  11. HUGE DIFFERENCE between the task to 'audit' and the process to 'repatriate'.

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  12. Ningun Banco Central tiene el oro fisico que reporta, todos son swaps , derivados o futuros . el Banco de Inglaterra tiene un "pool" de oro para evitar especulacion y controlar el precio , ese pool pertenece a todos los paises participantes e interesados que su moneda no se devalue !!

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  13. Mexico should take it's gold and run. The first people, who participate, in a bank run, retain their wealth, the last ones get nothing. It is the same in this situation. Demand inspection, and repatriation, or be played for a sucker. If Mexico's gold were truly allocated, there would be a list of bar numbers in the national bank's hands, those bar numbers would appear on no other bar lists, the physical gold would be in a separate locker, with a tamper proof seal, and physical inspection of the bars would require zero notice. Would you settle for having to request, far in advance, access to your bank safe deposit box? None of these criteria are met. What does that tell you?

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  14. This is actually hilarious and shows the level of stupidity of government bureaucrats.

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  15. 94% of the Mexican gold reserves are in London ?
    Wa ha ha ha ha ha ha !

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  16. Economy of a country depends on the liquidity of the money and the amount of gold on their account

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  17. Any update on what has happened regarding the audit?

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