Has a massive bank run already started?

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We’re in the middle of a really big bank run. No, really. This is massive. And it is a bad sign for what’s coming at some point in the near future.

What kind of bank run is this? It is completely different from the runs that the U.S. saw during 1929, at the beginning of the Great Depression. Those were periods of panic where individuals pulled their money out of their local banks.

This is, as one zerohedge.com commenter aptly put it, “the quietest bank run in history.”

The run we’re in now is one in which countries are pulling their gold out of international vaults and bringing it home again.

They won’t be burying it in their backyard, though, because the amount of gold they’re pulling is staggering.

Which countries have seen recent movements repatriate their gold? Here are some of the most notable ones — France, Holland, Germany, Romania, Belgium, Poland, Azerbaijan, Iran, Libya, Ecuador, Mexico, and Venezuela.

And we’re not talking about bringing home chump change. We’re talking about huge ‘withdrawals’ of gold. For instance, Holland brought home 122.5 metric tons of gold that was held in the Fed. That is 20% of its total gold, and 10% of its total foreign reserves. And France’s presidential front-runner is calling for “all” French-owned gold to be “urgently” returned to France. (Forbes) We’ll see if they can pull that off before it’s all gone.

And the numbers are also impressive for other countries wanting to bring home their gold.

What does this show?

It shows a lack of faith in the financial system. Why do people pull their money from the bank during a bank run? they’re afraid they’ll lose their money, and they would rather protect it themselves.

For the same reason, countries around the world are losing faith in those holding their gold. They’d rather protect it themselves.

But why do they want to protect it themselves?

There are a variety of possible explanations, but a few stand out to me.

We’re in a period of war. Both economic and traditional warfare has begun, with most of it still remaining economic. During a period of war, there is less certainty than usual. And where there’s a lack of certainty, there’s a desire to hold your own gold.

Second, we’re on the verge of an economic collapse. This is obvious. Sure, the dollar is supposedly ‘strong’ right now, but that is due to currency manipulation. (You really ought to take some time to understand how currency manipulation works — it is important.) At some point, it’ll collapse. Would you trust the Fed with your gold when that happens?

Third, gold is far more valuable than it is priced right now. And the more valuable it becomes, the less appealing it is to leave it in someone else’s care.

So countries are bringing home their gold, and they’re not taking their time.

So, in a sense, we really are in a bank run. And it is probably only a matter of time before a run comes to your bank, too.

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