More importantly - something that the author didn't catch - even than these "disclosures" - is that the government sees conversion of soverign notes into bullion as "speculation", in other words something that is negative and potentially meriting regulation or prohibition.

What if I like to just buy bullion coins because I think they're pretty and/or I value them more than the FRNs I exchanged for them?  I would not consider myself to be a speculator.

The government doesn't care.  That's "speculation".  Ask yourself why the government sees it that way?

Essentially, whatever the government says take the 180 degree INVERSE of to find the truth.

It is the government that is speculating with the currency system, attempting to find the "right amount" of money and the "right amount" inflation.  They have no idea - as Murry Rothbard,, Ludwig von Mises and the Soviet Model proved.  The government CANNOT KNOW economically, by definition.  It's an impossibility. So what can the government DO?  The government can SPECULATE as to what the "right amount" is.

Me purchasing a bullion coin, by definition, is NOT speculation for I know PRECISELY how much that coin is worth to ME as measured in FRNs - the polar OPPOSITE of speculation.

On the flip side, the government continually tries to peg the dollar to a certain gold value, by SPECULATING how much M1, M2 or M3 is "right" or how much inflation is "right."

I urge everyone to read the actual report no wonder China wants to buy more Gold! http://www.scribd.com/doc/20215562/Gold-Telegram