Bank Of England Is Running Out Of Gold While Ultra-Wealthy American Investors Scoop Up Gold - Next Up Is Gold In The Ground Gets Priced In A Much More Bullish Way

Over the past week or so, X (aka Twitter) has been blowing up due to Elon Musk, Trump and others posting about auditing Fort Knox to see if the gold is there or not. It has been rather surprising because I have never seen so much interest by non-mining people talking about gold.

Many gold bulls have felt that there may not be as much gold there and in New York. To see a president and his right hand man, as well as people that usually have no interest in gold jumping on the bandwagon, does this gold bulls heart good.

It really makes no sense to have gold sitting on the books valued at $42 per ounce. The only reason I can think of is that they don’t want it audited. It has been a big secret for a long time, and now the voices demanding an audit are growing rapidly. I wouldn’t just stop at counting the bars and weighing them, I would also run assays on them to determine the purity of the gold.

Even if all the gold is there and it is the grade they say it is, then they should also figure out how much of it is lent out to back all the paper trades. My guess is that there is not as much there as reported, which they will figure out by counting the bars, weighing it and testing for the grades. And a lot of what is there is lent out.

If they want to mark it up on the books to the market price, doing a thorough audit is necessary, otherwise it is just make believe.

Will it happen? I never thought they would come clean, but Elon Musk is like a bull in a china shop and seems adamant about doing the audit. Plus, he has Trump backing him up and he also wants it done. So what looked like would never get done, is about to, and it will probably be telecast live.

The other night, Trump was on Air Force One, talking to reporters and he brought up auditing the gold at Fort Knox. The reporters weren’t interested in asking about it and tried to change the subject. But, Trump wasn’t having anything to do with their diversion and kept going back to wanting to audit the gold at Fort Knox.

Ultra-wealthy American investors had to hear rumours (okay, were directly told) this was going to happen. Clear evidence can be found in the dramatic increase in holders of paper contracts asking for delivery of the gold behind those paper trades since the New Year rolled around.

The demand on the physical gold behind the paper trades has drained the vaults at the Bank of England. Some even think that they are in default as they don’t have what they are supposed to. They say they do, but what used to take a day or two for them to deliver gold is now taking several weeks. Actions speak louder than words, if they can’t deliver in a timely manner, it is because they don’t have what they should for delivery.

All the gold at the Bank of England is flying over to New York to fill the demand for the paper traders wanting to take delivery. Which also brings into question why the bullion banks in New York are putting so much pressure on the Bank of England? The only logical answer is that they don’t have all the gold they are supposed to have either.

Central bankers in the BRICS nations and in other countries have been buying gold to increase their reserves. To the point that in 2024, gold surpassed the Euro to become the second highest currency held in reserves by the world’s central bankers.

All of that buying has taken a remarkable amount of gold off the market. Over the past four years, the hoarding of gold by central bankers has tightened the above ground supply to the point that it has created a perfect storm for gold to go much higher.

If the holders of the physical gold don’t have what they are supposed to, they will have to turn into panic buyers. Which looks to have already started as gold has come out of the gate in 2025 with a tremendous rally.

This is right after gold had a terrific year in 2024 setting a series of record highs as gold went from the bottom left of the chart to the top right. But, it took until around early March for an important breakout to happen. This year, it is happening in January and is setting gold up to have an even stronger year in 2025 than in 2024.

In my Outlook 2025 report, I speculated that gold would move into the $3500 to $4000 range this year. My confidence in that call is growing and I am starting to think it will hit $4000 and go past it.

In my recent report I wrote about ten picks in the reports that had made impressive breakouts. They ranged from gold mining majors to gold explorers. I couldn’t write such a report in 2024 because the best in breed gold miners showed strength but it didn’t move down the food chain in a convincing way.

Now it is because I think savvy gold stock bulls are feeling the winds of change and generalist investors are starting to join the gold bull market as well.

I’m pleased to report that it is not a rising tide that lifts all boats. If it was, then I would be nervous. Instead what I am seeing is that the buyers are focusing on best in breed gold miners, higher cost producers that are making moves to increase production and bring down costs, gold mine developers with high-quality projects and gold explorers with important discoveries.

The cream is rising to the top, which I find very impressive as that is much more sustainable. Another reason that I think the cream is rising to the top is because gold companies with a great story to tell are out on the digital marketing airwaves telling their stories to a growing audience of investors.

Gold above ground is getting tighter by the day while demand is extremely strong. What will happen next is that as gold goes much higher, gold in the ground held by gold stocks will be valued in a much more bullish way.

To the point that it will surprise even ardent gold stock bulls. Gold in the ground is being priced as if gold was trading at less than half its current price because the gold bull market has been driven by central bank buying. They don’t buy gold stocks, long-term gold stock bulls and generalist investors do and they are starting to show up.

The generalist investors are hearing Elon Musk, Trump and others demanding to audit the gold at Fort Knox. This is happening not long after the holders of paper trades have been demanding delivery of the gold behind the paper trades at unprecedented levels.

I can see things shifting in real time with the breakouts in high-quality gold stocks, demand for delivery of gold by holders of paper gold, and Elon Musk and Trump wanting audits of the gold at Fort Knox.

There was already a healthy group of gold stock bulls on X, and now the audience is growing day by day.

Strap yourself in, the coiled golden spring is ready for launch.

All the best,

Allan Barry Laboucan