The Treasury International Capital Data Provides an Important Reminder to Gold Holders

If you cannot feel the Treasury International Capital (TIC) data nudge you in the ribs upon discussion of selling into fear, you must be wearing a flak jacket.

Draw your attention to China and Japan. These nations represent the largest two purchasers of US Treasuries and account nearly 42% of Treasuries sold in May. While this percentage may appear solid, it has quietly deteriorated since 2009. China and Japan have reduced their marginal purchases from 26.8% and 20.9% in 2009 to 21.9% and 19.8% in 2010, respectively. This subtle decay illustrates the importance of the old saying, “money talks and bullsh*t walks.” Money is shifting despite the contradicting explanations on F-TV. Gold “sees” these trends, so pay attention when it nudges you in the ribs upon discussion of selling gold into fear.

Treasury International Capital - Major Foreign Holders of U.S. Treasuries:


Source: treas.gov