The man behind the curtain

In a real case of ‘the emperor has no clothes’ it has been discovered that the Reserve bank of Australia has only a tiny fraction of its gold reserves in Australia.

Even if there wasn't a panic bank run and we all carefully divided up the reserve banks gold between us evenly we each would be left with a speck of gold too small for many of us to see. If the 99.9% of the reserve banks offshore gold holding were added to the small amount here, we would be left with an ounce each about the size of a $2 coin, and currently worth $1500

Even if there wasn’t a panic bank run and we all carefully divided up the reserve banks gold between us evenly we each would be left with a speck of gold too small for many of us to see.
If the 99.9% of the reserve banks offshore gold holdings were added to the small amount here, we would be left with an ounce each, about the size of a $2 coin, and currently worth $1500

So if you have a shoebox of pure gold you have more real wealth on hand than the reserve bank.

If you found a lost gold earring lately you just found more than your share of the material value of what backs the Australian dollar.

Looking for earrings in the gutter just became a viable career.

Posted on March 7, 2013, in Australia, Bailouts & Banks, Economics & Finance, Monetary system. Bookmark the permalink. Leave a comment.

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