Does Utah have the Midas Touch? Gold Exports & Reserves

It is amazing, but the total amount of gold in the world is a surprisingly small quantity.  The annual worldwide production of gold averages around 50 million troy ounces per year, a cube of gold that would be 4.3 meters (14 feet).  Thus, all of the gold produced worldwide in one year could just about fit in the average person’s living room! This cube would weigh 1,555,210 kilograms (3,110,420 pounds) and be worth around $50 -$60 billion dollars at the currently inflated prices.  Not much in the scheme of things.

China is the largest producer of gold, followed by Australia and South Africa.  The United States ranks fourth followed by Russia.  However, it’s a neck-and-neck race behind China.

In the article: Did U.S. Export Over 175 Million Ounces of Gold?  The author speculates that some of the U.S. exports of gold could be the repatriation of foreign central bank gold that had been stored with the New York Federal Reserve. If foreign central banks are pulling their gold reserves out of storage in the U.S., that signals lost faith in U.S. financial strength which would be very bad news indeed.

Gold Exports by Utah

Utah is the number one U.S. exporting state of gold followed by Nevada and Massachusetts.  By far, Utah’s largest trading partner for gold is Great Britain which receives more gold imports from Utah than all other countries combined.  In fact, Utah’s gold exports make up about half of all its exports period, and may be one of the primary reasons why its exports have doubled in the last five years ahead of any other state.

Other States Also Export Gold

Why?  What’s their secret?  Are they just lucky or smart or have special connections? Well, whether the article that postulates that foreign U.S. gold reserves are covertly being with drawn or not, the simple fact is that during uncertain times people flock to gold.  And gold reserves are a sign of the financial strength of a government.  The U.S. used to be #1, but at this point, the EU has superseded that position.

Great Britain’s increasing hunger for gold is a therefore understandable as are the plethora of e-mail advertisements, TV commercials and street promotions offering to buy used gold.

Remember the Golden Rule.  He who has the gold, rules.

**Any views or opinions presented in this article are solely those of the author and World Trade Daily and do not in any way represent those of UBM Global Trade or PIERS. Some of the trade reports utilized in this article were derived from the PIERS Prospects & StatsPlus applications and are used by permission.

Comments are closed.

%d bloggers like this: