Gold Volume in New York Storage Vaults Has Tripled Since April

LEXINGTON, KENTUCKY – Gold is flocking to America.

An article in The Wall Street Journal yesterday shows that the amount of gold stored in vaults in New York has more than tripled over the last three months.

(More than 20 million ounces arrived in New York from overseas this spring.)

This chart shows the quantity of gold stored in approved vaults within 150 miles of New York City…

Why is gold rushing towards New York? More below…

Land of Oligarchs

First, greetings from Kentucky…

We drove 168 miles north today, about four hours. We find ourselves in rural Kentucky, just outside Lexington, in a land of beautiful horse farms.

Oligarchs and aristocrats – descendants of the great European families – own these lands.

We sailed down narrow country roads, beneath blue skies and white clouds, guided by the long wooden horse fences around the farms. It looks just like England here on a beautiful summer’s afternoon.

This was the most scenic drive America has offered us yet.

Our hosts tonight are Chris and Linda. They invited us to camp under a copse of trees at the end of a field they own.

Above, Miles does his homework. And here we are at our campsite…

We’ll stay here another day… Then we’ll hit the road again.

The Case for Gold

Two years ago, Kate and I sold all our things, cleaned out our apartments, canceled all our bills, and hit the road with our kids and a small suitcase.

We now live like gypsies… drifting from town to town, country to country… sleeping wherever, homeschooling our kids wherever, and generally having the best time of our lives.

We’re currently living in a tent and driving around America, sleeping in driveways, backyards, barns, parking lots, approved campgrounds… and anywhere else we can find.

One aspect of this lifestyle that I haven’t talked about much recently is gold.

In addition to selling all our things and leaving our homes behind, Kate and I also converted all our savings to gold.

Effectively, we chose to make gold our home currency during our travels, instead of the U.S. dollar. Why?

I study economics while we’re on the road (while Kate and the kids do their schoolwork). At some point, it became clear to me that the U.S. government is broke.

No one says it this way. The dollar is still the world’s king currency. The U.S. government still functions perfectly normally. From the outside, everything appears fine.

But if you look beneath the surface, the facts are clear…

Illusion of Solvency

The U.S. government cannot fund itself without the central bank printing money.

We saw this all throughout the spring and summer of 2019, when there were weird goings-on in obscure corners of the money markets (see here and here, for example)…

We saw it again in September 2019, when the repo market blew up…

And we saw it in March 2020, when the U.S. Treasury bond market started imploding. The Fed had to print more than $1.6 trillion in four weeks to keep it functioning.

That’s why I say the U.S. government is broke.

It only maintains the illusion of solvency because the Federal Reserve prints dollars… and it channels those dollars to the Treasury via the banking system.

This chart shows the Fed’s total money-printing since 2013…

In March, it went stratospheric. It printed $2.9 trillion in just 13 weeks.

As I write, the U.S. national debt (what the U.S. government owes the rest of the world) just passed $26 trillion. It’s up nearly $2 trillion in the past eight weeks.

There’s no way the U.S. government will ever rein in its spending. So it’s very obvious that the U.S. dollar – and all the international paper currencies connected to it – are about to see their values drastically debased.

Gold will be the only “currency” still standing.

That’s the main reason why Kate and I converted our savings to gold in 2018. (As you know if you’ve been reading these Postcards, we used the Dow-to-Gold ratio to time our move into gold.)

So what does all this have to do with the massive and unprecedented migration of gold to New York over the last three months?

A global synchronized currency devaluation is coming.

The American upper classes can see the future, as Kate and I did. They’re hoarding gold in massive quantities to protect their wealth.

– Tom Dyson

P.S. Here we are sharing a meal with our hosts this morning. The hospitality and kindness we’ve received on the road in America so far has been stunning…

Like what you’re reading? Send your thoughts to [email protected].

One reader is concerned for the Dyson family as they travel during coronavirus… another asks how Tom and Kate split up their day-to-day tasks…

Reader comment: I keep reading your postcards, hoping for just a hint that you realize that coronavirus does not care that you happily keep moving, that you have your own views about finances, that you are an expert on various economic matters, but you are not using any protective measures for your family. Anyone you meet, even out in the wilds of the countryside, could be a carrier. Wearing masks is not a fashion statement. I send your family my greatest hopes for good health, but please show some responsibility.

Reader comment: Your stories are amazing. I’m wondering if it would be a useful experiment to switch roles with Kate for a day, or two or three. Also, what do you get at the fast food places as vegetarians? Our family stopped eating meat in September…

Tom’s response: I have the easy job. It’s mostly driving and phone work. Kate does all the cooking, cleaning, organizing, packing, and HOMESCHOOLING, without electricity, while living in a tent, with all our stuff in the back of a car, and using public bathrooms to keep us all clean. These days we are “flexitarian.” I’m not sure if I’m using that term correctly, but we eat vegetarian when we can. Otherwise, we go with the flow and eat whatever.

Meanwhile, a reader offers destination suggestions for Alaska… and yet another says the Postcards help him recall his experiences traveling while in the Army…

Reader comment: I’ve really enjoyed reading your postcards. I just want to let you know the Canadian Rockies are gorgeous and a one-of-a-kind place in the world. Also, listening to your wife’s intuition – slow down to take needed rest – might be a great idea 🙂 Cordova is a fishing town in Alaska your family might enjoy. Thank you for weaving stories of folks in these small towns with your family journey. Safe travels to you and your family!

Reader comment: Love reading about everything you are doing! Seems worlds away from the routines and security of the boarding school you went to! Stay safe! Happy traveling! Love to you all from New Zealand.

Reader comment: Lord, Lord. What memories you have me recalling. I’m 92 and spent 25 years in the Army. Due to my specialty, I was sent to some God-awful places and some heavenly ones, dragging my wife and two boys with me. They had experiences you couldn’t buy, and that they still remember. You and your family will learn survival skills no one can take from you. Thank God you are having such a great time. You are going in the opposite direction from me or I would invite you to visit.

Tom’s response: Please keep your comments and responses coming! I read them aloud to Kate and the kids every evening in our camper before bed. We get so much encouragement from them.

Also, thank you to everyone who invited us to camp. We are SO grateful for the invitations and we will try to visit as many of you as possible as we make our way north and west towards Alaska…

As always, please keep writing us at [email protected].