Gold, lies and more lies?

 

France recently decided to repatriate the last of its gold reserves that had been stored in the USA for the past several decades.  The "official" story goes like this.

The Banque de France (BdF) announced last week that it generated a capital gain of €12.8 billion after upgrading 129 tonnes of gold – about 5 percent of France's total reserves – between July 2025 and January 2026.

The gold was the last of the French reserves held in New York. It was replaced with the equivalent amount bought in Europe and held in Paris. 

The BdF has been gradually replacing older, non‑standard gold with bars that meet ​modern international standards since 2005. It moved the majority of its gold reserves out of the US Federal Reserve and the Bank of England between 1963 and 1966.

Rather than refining and transporting the gold that remained in the US, the bank opted to sell it and purchase new, compliant bullion on the European market.

. . .

France’s total gold reserves of about 2,437 tonnes – the fourth-largest in the world – are now all in Paris. This includes 134 tonnes of older bars and coins, which the bank intends to bring up to standard by 2028.

There's more at the link.

Understand that the gold bars France sold in the USA were almost certainly standard-weight bars of "three nines fine" metal (i.e. refined to at least 99.9% purity).  All gold bars traded internationally, and held in national gold reserves, are supposed to be so-called "good delivery" bars as specified by the London Bullion Market Association.  The bars stored in the USA would presumably have met that standard, or they could not have been traded as "good delivery" gold - only sold for re-refining and re-casting into standard bars.  Gold thus traded is less expensive than "good delivery" gold.  If the gold had been in non-standard format, it's unlikely that the USA would have paid France the price for "good delivery" gold bars.

However, this raises even more questions.  A market observer sends the following.

My two cents on the repatriation of French gold bars:
- France asked to return their 12.5 kg gold bars
- US had already sold them
- US offered to wire the money
- France accepted and bought new 12.5 kg gold bars in London
- Both countries agreed on the following spin to sell the story: 
- new bars bought to ‘meet current standards’ 
- Spin is 100% bullshit
- 12.5 kg 999.9 pure gold bars have always been 999.9 pure gold bars of 12,5 kg
- previous gold repatriations always happened without the ‘need for current standards’ 
- MSM doesn’t ask questions and prints spin
- Another PR disaster avoided for the US/FED 
- The rigging of the dollar system can go on 
- The can can be kicked a bit further down the road

I find it very hard to disagree with him.  I think he's right.  I think the US Federal Reserve had already sold off the gold that France had on deposit in the USA, so it could not return it when France asked for it.  Instead, the USA offered an equivalent value in dollars, which France was quick to accept.  It bought gold in Europe using that money (and now proudly claims it made a profit on the gold, having bought it before the recent price ramp-up).

Back in January, I asked:

What happened to the audit of US gold reserves in Fort Knox that we were promised?  Where is it?  Where are the results?  The subject has literally vanished from view.  My conclusion is that it's being deliberately suppressed;  and if that's the case, then I can only assume that our gold reserves simply aren't there any more.

Again, more at the link.

Is that what happened to France's US gold holdings as well?  In the light of this news, I hope more people will ask the same questions about both US and French gold reserves, loudly and repeatedly, until we get answers.  Will they be truthful answers?  Your guess is as good as mine . . .

Peter

Memes that made me laugh 306

 

Gathered from around the Internet over the past week.  Click any image for a larger view.

Sunday morning music

 

I went to high school with a young man named Eric.  I'll withhold his surname, because he lived and worked as a missionary in some very sensitive areas of southern Africa, from the worst days of the apartheid civil war to the social and economic collapse of more recent times.  He made enemies as well as friends, and I wouldn't want the former to seek to harm the latter.  Eric was a good man, and did a great deal of good for others at a time when far too many people were seeking only their own good, and dealing out whatever it took to make sure they got it at anyone and everyone else's expense.

I learned yesterday that Eric died some time ago.  Sad news, and it brought back memories.  We both enjoyed Johnny Clegg and his group Juluka, so I've been listening to some of their songs, thinking about my friend.  I thought I'd share a couple with you.  They go a lot deeper than surface listening, as anyone who's lived in Africa - the real Africa, not the tourist traps - will tell you.

Godspeed, Eric.

Peter

Heads up - shotgun bargains

 

For the benefit of anyone thinking about buying a shotgun, CDNN Sports has a flash sale on shotguns right now.  Their sales flyer can be found at this link.  Prices are only valid for a day or two, so if you're interested, click over there ASAP.  No, I'm not being compensated in any way for mentioning this - CDNN don't even know I'm putting it up - but their prices are very low, and the quality of the Silver Eagle shotguns is pretty good.  I've used a few.  For more details about the shotguns they're advertising, click on the image of the one you want.

To put the sale in perspective, a new single-shot shotgun usually sells for anywhere between $125 and $175.  CDNN has a pump-action repeater for $120.  That's a great deal in anyone's book!  You could buy four or five of them for the price of a single good-quality handgun.  If you've ever thought of equipping every adult member of your household with a defensive firearm, that's a pretty good place to start.  Their sporting shotguns (with longer barrels) are also a good deal for beginners who need their own shotgun, rather than borrowing someone else's expensive setup.

I'll try to put up another post later today.  I just thought this sale deserved to be publicized.

Peter

About those "donut" spare tires and wheels...

 

It seems that a lot of motorists never think much about the space-saver spare tires fitted to many modern vehicles, and abuse them far beyond their design limits when they use them.  I learned that when I went to a local tire dealer to replace my twelve-year-old donut tire, which was showing signs of oxidization as the rubber perished.

According to the dealer, any tire is supposed to be replaced after nine to ten years on the wheel, including donut spare tires.  The problem is that so many spare tires are mounted underneath the vehicle, where they're hard to see, that they don't even get their pressure topped up, much less inspected for wear.  People seem to forget they exist.  The assistant dealing with my car said that he's had several incidents where vehicle owners had a flat and tried to put on their spare, only to find it was as flat as a pancake.  To make matters worse, some of them then tried to repair their spare tires using cans of tire sealant refill, sold at many auto dealers and supermarkets.  Trouble is, those cans are designed to pressurize full-size tires, not a donut spare with its much smaller internal volume;  so they inflate the latter too much, which - given perished rubber or weak spots - can rupture again almost immediately.

Another problem is that regular car wheels are manufactured, reinforced and stressed to handle forces such as acceleration, cornering, minor bumps and potholes, etc.  On the other hand, donut spare wheels are produced by simply stamping the wheel out of sheet metal.  They're not designed for extreme use.  The vehicle manufacturers warn buyers about that, recommending a maximum speed of 50 mph and maximum distance of not more than 50 miles.  In other words, the donut spare is designed to get the vehicle to a place where it can be repaired, and no further.  However, many drivers seem to regard them as interchangeable with the "main" wheels and tires, using them for days and weeks on end, and running at normal highway speeds.  Inevitably, many donut spares that are abused in that fashion will fail on the wheel, and perhaps cause a serious accident in the process.  Apparently some drivers have even tried to sue the donut spare manufacturer, on the grounds that the wheel and/or tire "failed" or "was defective".  When the facts emerge, and it becomes clear that the spare was abused far beyond its recommended limits, the lawsuit inevitably fails, leaving the luckless motorist to pay the defendant's legal fees.

The final problem I learned about from the dealer was that some (not all) manufacturers may make a given model of vehicle for ten years or more.  They'll order spare wheels and tires in bulk from a supplier, hundreds or thousands at a time, but donut spares are not ordered to a specific wheel and/or tire measurement.  Instead, the overall dimensions of the spare will be specified.  That means a larger wheel diameter with a smaller tire may fit those dimension, or a smaller wheel diameter with a larger tire.  The only common factor will be the spacing and size of the holes for the lug nuts.  It's up to the supplier to send an order that meets the overall dimensions.  The next order, or one from a different supplier, may meet the same overall dimensions, but with different wheel and tire diameters, widths, etc.  Therefore, when ordering a replacement donut spare tire, it's essential to note the measurement of one's existing tire and order an exact size match.  Otherwise, a tire that may be used by some vehicles of that model might be supplied - but it may not fit your specific vehicle's spare wheel.  Tricky!

As you can tell, I learned a lot.  The dealer has ordered my new spare tire, and it'll be here within a couple of days.  I'm looking forward to being a bit better equipped, for safety's sake.

Peter