Central Banks Favour Gold and AAA Rated Government Debt – Reserve Currencies of EUR and USD Questioned

Tyler Durden's picture

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topcallingtroll's picture


The two day bear market is already over.

Time to buy back in and protect my lousy 3 percent market timing gains

Cdad's picture

Ummmm....yeah, I'd be careful there, chief, with the "all clear" on the commodities today.  Yesterday's dislocation was massive.  I doubt everyone who wanted out is out yet.

I'm with you on wanting to haul them back into inventory...but the last two days in this group were pretty historic.  Just sayin'.

cossack55's picture

Of course. GOD will be addressing the world this PM.  All is good. Worship at the alter of the Teleprompter-in-Chief.

Twindrives's picture

Intense vacation and golf schedules are wearing on Barry.  He looks haggard.  Michelle needs to massage some Shinola into his scalp to hide that gray.  

augie's picture

I dare say its time to break out the soul glow.

Ray1968's picture

I'm holding my puts until Friday's expiration. Probably just stupidity on my part.

topcallingtroll's picture

Ok i am sticking with oog cdad and ray on this. I will fuck up if i trade too much.

trav7777's picture

if you were a CB, what's holding your notes up?  The dollar?  lol.  If shit gets serious, you have to really consider having something, anything, with which to back yourself.

The notion of selling into the markets is on pause indefinitely.

Infinite QE's picture

Indeed. When CB's have to settle with each other via the BIS, they do it in gold. Not paper as these rascals know the game and the value is not retained in paper.

Infinite QE's picture

Indeed. When CB's have to settle with each other via the BIS, they do it in gold. Not paper as these rascals know the game and the value is not retained in paper.

Scarlo's picture

Paper is for trading, not hoarding in bank vaults. Freegold...

writingsonthewall's picture

"Traditionally, government bonds have been termed 'risk-free' assets but the euro zone situation has made some of us change our understanding of that,"


Who was this idiot? I mean seriously what a total tit.

before 1998 there was an unwritten rule that "no nuclear nation will ever default" - and then the Russians did.

Do these fools not learn to make such absurd rules? - clearly not it seems.....

Bubbles the cat's picture
Bubbles the cat (not verified) writingsonthewall Apr 13, 2011 12:45 PM

"Who was this idiot?....."

Could be my fund manager.

Terminus C's picture

Is it me, or is there not a major contradiction here?

Gold, investment grade corporate bonds and AAA-rated bonds were the three assets that reserve managers saw as more attractive than the year before.

Over 70 percent of the managers surveyed said central banks were likely to remain net buyers of gold given the level of uncertainty about sovereign debt.

Hugh_Jorgan's picture

I was asking the same thing as I read the headline for this piece. What the hell is out there that has a AAA rating, that is not a US or European T-bill?

I know crap about the bond market, I guess it it time to go find out...

White.Star.Line's picture

There are still a few "upper deck" passenger cabins available for purchase, but as always the White Star Line only accepts gold and silver for these tickets. We do have a few "lower berth" dormitory-style rooms available for fiat purchases. Do note, these tickets are not insurable.

Sean7k's picture

The cumulative reserves of the world's central banks is 3.5 trillion?  Over a quadrillion in deriviatives, sovereign debt of astronomical amounts and that is the total reserve? 

This system is so far gone- we are living in fantasy economics now. The school of prop, burn,churn and turn. Without the current safety net of food stamps and welfare, we are a carbon copy of the Weimar republic in 1921.

People playing the market and gaming currencies for any real gains as a tiny percentage profit from the speculation. The rest are at various levels of starvation and wealth losses. More and more tax schemes and more and more citizens finding ways to diminish their tax payments.

The only difference is now, it's global. The banksters came out pretty good that time too.

Bicycle Repairman's picture

So CB's are buying gold, but Goldman and the gold trolls say I should sell my gold and silver?  F--- that.

SamuelMaverick's picture

Fellow ZHers, I decided to do some market research...  I put some 100 tr. oz. Englehard silver bars up for sale at spot price no premium on craigslist. If we were in a bubble or mania phase I figured I would get a shitload of calls.  So far all I have had was one response from an idiot who wanted to trade an ipod, an xbox and $500 in exchange for a $4000 bar of silver. No other calls, no inquiries, all I have heard is crickets chirping.  Bubble my ass.   BTFD.    Yours, Maverick

knowless's picture

For real, it's like if you post an ad for a part time baker(or similiar) that pays a reasonable wage, when I did this around 2009 I got about 400-700 people(probably more, after a while I stopped checking).. not sure what it would look like today.

pirea's picture

Serious people do not look to buy PM on craiglist.

Your conclusion is misleading.

Try something else.

angela03's picture

 Of course it may be that most people don't relish buying their PM's off of Craigslist. Your advertisement surely struck many as a scam not worthy of attention. 

Infinite QE's picture

I am shocked however that the CB's have not been loading the boat with LULU and TZOO stocks as the `luminaries' here have been shilling as storehouses of wealth.

savagegoose's picture

i think SDR's are held by a LOT OF COUNTRIES



click posistion in the fund

jmc8888's picture

Tell the IMF that the bankster debt lacks credibility. 

No austerity for fraud.