Who’s Got The Gold / Who’s Mining It ?

By Barry Ritholtz - September 3rd, 2010, 12:30PM

Ever wonder which countries have the biggest gold reserves? Which countries produced the most gold?

Now, via Money Hacker, you know exactly who and how much:

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click for ginormous oversized infographic

Source: Money Hacker

PERMALINK
Category: Gold & Precious Metals.

Comments

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

22 Responses to “Who’s Got The Gold / Who’s Mining It ?”

MorticiaA Says:
September 3rd, 2010 at 1:22 pm
I thought Glenn Beck’s show was the biggest miner of gold??
Mannwich Says:
September 3rd, 2010 at 1:24 pm
Was just in South Africa and it’s quite obvious all that gold “wealth” STILL isn’t trickling down to the masses.
machinehead Says:
September 3rd, 2010 at 1:37 pm
The US Treasury’s gold reserves, as well as the gold certificates which Treasury issued to the Federal Reserve to monetize the gold, are valued at a statutory $42.2222/ounce, set in 1973.

Although I’m not a big fan of QE II, I’ve argued that Step #1 of quantitative easing should be to mark this gold to market. In accounting terms, this would instantly add $300 billion to the Fed’s assets, as well as bolstering its equity on the liability side.

The graphic should be titled ‘Top 10 gold holdings,’ since others are not mentioned. Russia holds 568 tonnes, India holds 558 tonnes, and so forth.

If governments have confidence in their debt-backed currencies, then why do they hoard all this gold? Actions speak louder than words.
VennData Says:
September 3rd, 2010 at 1:53 pm
Laughable, you all believing these gov’t statistics about Gold, GDP, stock prices, unemployment!

Obama has sold all of our gold to our enemies (at cut rate prices) right after he socialized my small family business, Islamofied our church, and took my gun!!! Then he turned me into a newt…

http://www.youtube.com/watch?v=zrzMhU_4m-g

…well… I got better.
the terminal of geoff goodfellow Says:
September 3rd, 2010 at 2:03 pm
@machinehead: re: that Step #1 of quantitative easing should be to mark this gold to market. In accounting terms, this would instantly add $300 billion to the Fed’s assets, as well as bolstering its equity on the liability side.

did you see the deus-ex machina power elite’s plan to paying off the debt with gold at $5,000 that was anonymously received and published by the legendary Richard Russell of http://DowTheoryLetters.com/ via http://ragingbull.quote.com/mboard/boards.cgi?board=CLB01229&read=23712

On the December 28 site, I put forth my theory regarding what the Fed (and probably the administration) plan to do about our insane multi-trillion dollar debt. I want to start with three assumptions:

(1) The people at the Fed are not stupid, they are as intelligent as you or I. True, they are operating outside of the US Constitution, but who cares about the Constitution today (well, maybe Ron Paul does)?

(2) The multi-trillion dollar debt of the US is so fantastical, so insane, that it can never, ever, be paid off, either by raising taxes or by borrowing. Furthermore, the interest on the US debt is rising and compounding at a dangerous and relentless pace.

(3) I believe Obama and probably Bernanke have been greatly influenced by the policies of the Roosevelt administration during the Great Depression of the 1930s. I’ve felt all along that Obama has followed Roosevelt’s strategies. In 1931 Roosevelt, to offset deflation, raised the price of gold from 20.67 to 35 dollars an ounce.

A few days ago I received a paper, signed anonymous, that expanded my December 28 piece. The paper was written so clearly and so well, that I want to reproduce some of it, courtesy of the anonymous author. What I thought so interesting is that this idea is starting to spread around and maybe gain widespread credence. The article follows, edited a bit by Russell.

“Out of respect for the proven maxim ‘do not underestimate your adversary’, we assume that the deus-ex machina power elite of the political and financial system in the US is highly intelligent and completely informed in every respect. We assume that they have in hand or have already begun to implement a carefully thought-out plan prepared years ago.

“We use the following facts in our hypothesis;

“The US Federal Reserve Banking system was put into effect in 1913, (i.e, 96 years ago).

“The US dollar has declined in purchasing power during that time by approximately 95%.

“Youngsters (under the age of 50) don’t recognize the collapse in the purchasing power of the dollar. Old timers like Richard Russell do. I remember when a pack of gum was a nickel, I remember when a new Buick sold for $1800, I remember when a subway trip around Manhattan was a nickel.

“The debt obligation of the US government has become an unpayable sum, amounting to multi-trillions of dollars. That is, the US could not collect enough in taxes, reduce its expenses enough, nor produce enough material wealth with its degraded manufacturing infrastructure and work force to pay off this debt in the foreseeable future. It’s a debt that is the largest ever incurred by any society in world history.

“The US dollar is the world’s reserve currency and is held as a monetary reserve in central banks worldwide. China, for example, holds approximately 2 trillion dollars of US Treasury securities in its reserves.

“The US Treasury has a declared hoard of 261.5 million ounces of gold.

“According to the US Dept. of Treasury (as of 2008) the value of US currency and coin in circulation is 85.2 billion dollars with 70% of this being located outside of the US. John Williams of “’shadow stats” places this figure at 923 billion with 50% overseas.

“The US government now has in place a domestic policy of massive credit expansion, extremely low interest rates, and the takeover of private corporations.

“Assuming the power elite seeks to maintain the status of the US as a world power and not plunge the world into an economic meltdown, there are only two ways to pay off its otherwise unpayable debt. That is, by default or by wiping it out with inflated dollars. It seems that the latter choice has been decided upon. This may be accomplished by a continuing massive expansion of credit that will have the effect of decreasing the value of the dollar, increasingly allowing cheap dollars to be used to amortize existing debt previously incurred with expensive dollars. The holders of dollars are trapped into this situation, just as they were in 1931, but at the least, they would like an orderly decline of the dollar. They would like to rid themselves quickly of these failing fiat dollars but understand that a panic run out of the dollar, prompted by dollar-dumping would result in a severe collapse in the value of their dollar reserves. They need time to use these dollars while they still have an exchange value to acquire other real assets. They also will continue to trade with the US to support their home economies while they continue to divest themselves of dollars and build their internal markets and alternate markets. These captive dollar holders are between ‘a rock and a hard place.’

“The fiat money game is destined to end because domestic and international confidence in the dollar will fail as the world realizes that the dollar, regardless of proclamation of the US government to the contrary, is a path towards worthlessness. However, the US will try to keep the confidence game going as long as possible to gain time to reduced its debt obligations by payment with cheap dollars.

“About the time a currency collapse appears imminent, the US will have reduced its debt to hopefully manageable proportions or amortizes it completely with inflated dollars. The price of gold will have soared to new highs. Currently, if the US Treasury were to back the total of US dollars in circulation worldwide with its 261.5 million ounces of gold, that gold would be priced at 3530 dollars an ounce. However, if gold were to reach 5000 dollar an ounce, and with circulating currency at 923 billion (shadow stats), that would seem a propitious time to announce a new monetary policy. At $5000 gold the Treasury’s gold would be valued at more the 1.4 times the existing dollars in circulation. The US could then proclaim that it would redeem these dollars at the market price of gold, whatever that might be. That would still leave the Treasury with approximately 384 billion dollars in gold if the market price were $5000 an ounce.

“This strategy, if brought to a successful conclusion, would leave the US solvent, debt free, and on a solid gold standard monetary system. With America once again standing behind the dollar as ‘good as gold,’ a renaissance of recovery would come roaring back in the US and throughout the world.

“Would the power elite actually chose such a strategy? They might, thinking that within a couple of generations, they could once again reintroduce the concept of a privately owned central bank with a monopoly power to issue fiat currency. In the meantime, they would have the massive booty of 96 years reaped from a central bank fiat money system to sustain them in the lap of luxury.”

Russell Comment — We must never again allow a sinister group of individuals to seize control of our money system. The Founding Fathers foresaw the danger of paper money issued with no connection to gold. Moreover, it’s imperative that the discipline of gold be taught to all Americans so that the immoral concept of a Federal Reserve can never again be sneaked or thrust upon the American people.

All Congressmen and Senators must be taught a class in money, fiat money, gold and the Constitution. The course must be mandatory. President Obama is said to have taught Constitutional law. As Obama surveys the Fed, and the results of fiat money in the US today, what in God’s name is he thinking?
Who’s Got The Gold / Who’s Mining It ? | The Big Picture | simple financial analysis Says:
September 3rd, 2010 at 2:11 pm
[...] via Who’s Got The Gold / Who’s Mining It ? | The Big Picture. [...]
NoKidding Says:
September 3rd, 2010 at 2:29 pm
The terminal of geoff goodfellow confuses me.

It seems to be saying that when the price of gold spikes (because there is no faith in the dollar), the US will back its dollar with inflation-spiked gold. The 262 million ounces of gold at 5000 dollars an ounce is worth 1.3 trillion dollars.

When faith in US currency is such that gold sustains 5000 an ounce, what might the budget deficit will be?

The problem (inflation caused by government debt spending) would seem to scale with the proposed solution (price inflated asset), such that the effect of the recommended action would be the same whether enacted sooner or later.

To reiterate: if it does not make sense now, why would it make sense then?
How the Common Man Sees It Says:
September 3rd, 2010 at 3:11 pm
were are assuming there is gold in Fort Knox
wngoju Says:
September 3rd, 2010 at 4:05 pm
the next post by BR is not …posted.
try it – http://goo.gl/5yMC
machinehead Says:
September 3rd, 2010 at 4:14 pm
While it might help to devalue the US dollar by purchasing more gold — I have advocated this — the current $325 billion market value of US gold holdings is nowhere near gross Treasury debt of $13.5 trillion.

And depending on whether you believe the Financial Report of the United States or Lawrence Kotlikoff, the net present value of unfunded federal promises ranges from $60 trillion to $202 trillion.

No manipulation of the gold price, or attempt to pay off existing debt with devalued dollars, is sufficient to the magnitude of the task.

The US now has an ingrained structural deficit which, using proper accrual accounting, runs between $3 and $5 trillion a year. Even if all outstanding Treasury debt were cancelled today, we’d find ourselves right back in the same hole within a decade.

I hate to be the bearer of bad news, but there is no magic-wand ‘turn debt into assets’ program that Tim Geithner can obtain by calling this toll-free number NOW.

Given the dismal plight we’re in, gold (unlike paper securities) is one asset that won’t be stripped of its value by default or currency instability.
obsvr-1 Says:
September 3rd, 2010 at 5:43 pm
since all the worlds gold can not back up the worlds money supply and definitely not the worlds debt, then the real question is what is gold really worth, what is its intrinsic value and what is its speculative value ? If the herd is convinced to move into gold with loads of $$ flowing into the ‘precious metal’ then are we witnessing the expansion of another bubble ?
Calvin Jones and the 13th Apostle Says:
September 3rd, 2010 at 7:05 pm
machinehead:
Can you tell me how you arrive at the $60 to $202 trillion dollar figure? Besides, that’s a mighty big discrepancy.
TakBak04 Says:
September 3rd, 2010 at 8:18 pm
@VennData Says:
September 3rd, 2010 at 1:53 pm

Laughable, you all believing these gov’t statistics about Gold, GDP, stock prices, unemployment!

Obama has sold all of our gold to our enemies (at cut rate prices) right after he socialized my small family business, Islamofied our church, and took my gun!!! Then he turned me into a newt…

http://www.youtube.com/watch?v=zrzMhU_4m-g

…well… I got better.

————

Gallows Humor…..,but incredibly funny…nonetheless!
TakBak04 Says:
September 3rd, 2010 at 8:30 pm
@How the Common Man Sees It Says:
September 3rd, 2010 at 3:11 pm

were are assuming there is gold in Fort Knox

—————

Remember the fake”TungstenBars” posted about on “zero hedge?”

and..THERE’S ALWAYS the Movie….”GOLDFINGER” from WAY BACKI!

What was Ian Fleming trying to say to us ….way back?

(CHILLS) Especially when the “radio heads” ON BOTH Left & Right…are sponsored by “BUY GOLD!” (COINS!)

You gotta figure something doesn’t add up there if both LEFT & RIGHT WING TALK RADIO are having GOLD SPONSORs hawking their wares.

But, if you bought the “Gold Miners” on the cheap a couple years ago….you might have some safe returns you could “lock In” if GLD and GOLD COINS hit the crapper….????
Marcus Says:
September 3rd, 2010 at 10:18 pm
The World Gold Council, and industry group of gold mining companies, calculated that all the gold ever mined is 165,000 metric tons, which is valued at about $6.5 trillion at 1,250$/ton.

I calculated the percentage of all mined gold held as government reserves of 108 countries (U.S. with 8,1334 tonnes through Costa Rica, last on the WGC list with 0.1 tonne), and investment funds a total of 30,144 tonnes. This represents about 18% of all the gold ever mined.

This means 88% of all mined gold is in private hands.

Having that much of a resource in private hands would make a gold standard very difficult.

@How the Common Man Sees It, and @TakBak04. You may be in good company, Ron Paul believes it’s “a possibility” that there might not actually be any gold in the vaults of Fort Knox or the New York Federal Reserve bank.
ZedThou Says:
September 4th, 2010 at 12:38 am
There exist something on the order of 6 billion troy ounces of gold in the hands of humans, or less than 1 oz per person. If you believe that people are going to to keep reproducing in greater numbers (this is a certainty) and our appetite for gold will not diminish (on this point, I believe the desire will increase markedly in coming years), how can owning a few tens of ounces of physical gold not make sense?
machinehead Says:
September 4th, 2010 at 9:13 am
Calvin Jones — those aren’t my figures for US negative net worth. The former is from the Treasury; the latter is Laurence Kotlikoff’s interpretation of GAO figures. Links:

http://www.fms.treas.gov/fr/index.html

http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=aiFjnanrDWVk

The wide gap is because projections are increasingly uncertain for the distant future. Either way, the message is the same: whether unfunded promises are 4 times or 14 times GDP, there’s no way they can be paid off. And it’s doubtful whether even the debt service can be met.
d4winds Says:
September 4th, 2010 at 9:56 am
good for mercantilist rah-rah & little else
How the Common Man Sees It Says:
September 4th, 2010 at 12:27 pm
@ZedThou

There exist something on the order of 6 billion troy ounces of gold in the hands of humans, or less than 1 oz per person.

===========================================

Yes, and if you consider how much gold is wrapped around people’s fingers in the form of gold wedding bands you will see why not a lot of it will come flooding into the market when prices go higher

@Marcus

Much of the gold was leased and sold into the market in the ’90′s. That is why many people call the gold market one of the world’s biggest ponzi schemes and why many of the gold banks do not want their system audited

Gold Could Double over Five Years – Headed Higher with Government Resentment: Holmes

http://tinyurl.com/24c8lx7
drey Says:
September 4th, 2010 at 1:11 pm
“The World Gold Council, and industry group of gold mining companies, calculated that all the gold ever mined is 165,000 metric tons”

….which, according to a BW graphic last week, would fit into 3 and a half olympic size swimming pools.
Sudip Adhikari Says:
September 4th, 2010 at 6:28 pm
So, United States is at the top. I wonder why did they detached $ from it?
moneyhacker Says:
September 5th, 2010 at 8:10 am
Hello everybody, I’m the editor of the Money Hacker blog. We did the best we could with the collation of data with the public sources available to us. I can’t answer all your questions but hope you’ve enjoyed checking out our infographic. We’ve certainly enjoyed seeing the comments that have come through here.