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Central Banks Purchase 127 Tons Of Gold In Q1
Most have heard by now that Mexico disclosed that back in Q1 it bought 93.1 tonnes of gold, increasing its total gold holdings from 7.1 tons to a whopping 100.2 total tons, a stunning move which was disclosed to have been done "in line with prudent diversification principles of reserves management." However, what is less known is that many other central banks, chief among them Russia and Thailand were also waving the shiny yellow metal in between January and March. And just as importantly, from the World Gold Council, from where this update comes: "The latest statistics show no significant selling by the signatory central banks in Year 2 of the third Central Bank Gold Agreement (CBGA3)." So no central banks sell, yet the daytrading retail public knows better. As for the key question of whether China is adding to its meager holdings of 1,054 tons, which put it behind the GLD, not to mention France and Italy, there is no update. Recall, however, that when China announced an addition of +454 tonnes of gold in April of 2009, this indicated stealthy purchases of the metal in the 2003-2009 period. In other words, China is very likely accumulating gold and the next update will likely come some time in 2015.
From the World Gold Council:
As of the IMF’s May release of its International Financial Statistics, several countries have reported additional purchases of gold. Notably, Mexico reported to the IMF that it acquired 14.8 and 78.5 tonnes of gold in February and March, respectively. This was a significant increase in its gold holdings, raising Mexico’s position in the table to the 34th largest holder of gold with 100.2 tonnes. In its press release, the Banco de Mexico indicated that its acquisition of gold was in line with prudent diversification principles of reserves management. Indeed, Banco de Mexico’s acquisition of gold was likely motivated by a need to diversify its rapidly expanding foreign reserves, which increased from approximately $75 billion to $120 billion between Q1 2007 and Q1 2011.
Additionally, Thailand also reported an increase in its gold reserves of 9.3 tonnes in March, raising its total gold holdings to 108.9 tonnes. This follows an acquisition of 15 tonnes in July of last year. Finally, Russia continues to regularly add gold to its reserves, adding 22.5 tonnes between January and March. Russia is the 8thlargest holder of gold.
Below, we show which central banks had activity (either purchasing or selling) in Q1. We added "selling" for objectivity purposes: there was net purchasing of 126.9 tonnes of gold in Q1.
And an updated holdings list by central banks as of May 2011:
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You liar! It's more like 40 tons of gold and 87 tons of tungsten!
I find it interesting that most on here will hammer on CB's - yet when the CB's buy gold - they think it shows they are in the right trade.
CB's are notoriously wrong when the sell and buy PM's. Why anyone would want to be on the same side of the trade as the CB's in gold stumps me.
Ah, the sleeper wakes. Waited a year and 33 weeks, eh?
If not, I hope you have a throwaway cell phone... Because to be able to smoke enough for that logic to make sense, you must be a dealer.
Actually he's right but since the CBs just started buying over the past 2 years they are waaaayyyy behind in the game. They will need to buy for 8 more years and by then everyone will be selling.
Wasn't Gordon Brown just trying to get a job running the IMF paper pimps a few weeks ago? Seems to me to be more indicative of a top in fiat.
You can generalize about central banks, but Gordon Brown is the reincarnation of Wrong Way Corrigan.
A CB buying gold is a CB hedging fiat. It's not a "trade".
P.S. look inside the bag before you give it away.
3.4 tonnes Canada?? Farging embarassing eh?
If you wanna be on board with a gold backed Amero, its aboot time to buy some more.
Sadly Paul Martin (the despicable traitor) pulled a Gordon Brown and sold off our gold holdings to "pay down the debt" when it was South of $300 USD/toz. So all we`re going to bring to the Amero is the world`s largest supply of fresh water.
Fresh Water, soon to be "as good as gold" !
...assuming successfully continued repression of desalinization technology...
The Gold plating on tungsten is very thin at about 15 mils per bar. I would say it more like 40 ounces of gold and not 40 tons.
So, how much of official gold reserves is salted? 1.5 million 400 oz. bars courtesy of Clinton/Rubin? That would be a $900 billion swindle @ $1500/oz. (not adjusted for the actual gold plate) Do the less savvy CBs hold most of it? And what happened to the 16% of official gold reserves stored under WTC 1-2 in 2001?
Wow, I get it. At the same time Gordon Brown was selling off England's gold, Canada and other british subjects sold off too. And the gold in fort knox was salted. I wonder who accumulated all this gold at this time? Could it be the elites, with crumbs to their political lacky's? Of course, the elites would accumulate as much gold as possible for the coming hyper inflation (a la FOFOA) and of course, they would do that at the lowest price ever. And of course, the Queen could just order her subjects to sell, in America it would require stealth.
The Golden Rule- 'He who has the gold, makes the rules'
'Bout to get central banksta medieval in this world real soon.
Yeah, it's a nice economic leading indicator. The buyer feels strong !
I'd like to know just how much gold could be purchased with all the unbacked paper currency printed by the various central banks in Q1.
A little nugget, um i dont know, maybe about the size of the moon
@gene
$.34/mg
@ SheepDog,
+ $1500 as usual.
I am interested in ZH comments on this observation I made on a now stale thread earlier:
One other observation: I have yet to see ANYONE who says that they will trade their GOLD for SILVER. Silver for gold..., yes, but not the other way around. So, which metal is being held by the strongest hands? That would be gold. My hands. And the central banks.
Who is selling all this Gold? who did Mexico buy from?
JP the Morgue of course. Who, for a nominal fee, has also agreed to store it for them.
That is because most of us believe that present exchange ratio is going to fall down to the ratio between the physical reserves.
Bearing,
Seems like you have been awful negative on Silver in your recent comments. What gives? Don't tell me you've turned MOMO !
Naah! Not negative on silver. I just like gold better.
Physical silver will outperform most other invesments, IMHO. Sure is better than ALMOST anything. Silver will also be spendable in a SHTF... Keep the gold for my kid (grandkid(s)?) in the future.
I am not selling much more of my silver. Won't sell ANY unless the GSR comes down to 30 or so. I still have a lot.
And Pt too. Mmm, yummy platinum...
Further comments on gold, silver and trolls!
SILVER, perhaps because of fundamentals (use by industry &, relative scarcity) and BIG returns vs. gold, seems to be WAY more popular than gold here lately.
And, the trolls seem to have become very troll-y on silver.
Why Platinum is almost forgotten?
Indeed.
Grey and ugly as it may be, I like it too!
Pt is not forgotten by me!
By value, it is my second biggest holding of PMs.
My concern is that much of the demand for Platinum and Palladium is for catalytic converters and industry. Yes that places some kind of floor on the price but you are still exposed to big losses if there's a sudden drop in demand.
Platinum is money. Most people don't understand this because it has never seen use as currency, but that means nothing.
Actually, the Russian Empire issued circulating platinum coins for several decades in the middle 19th century, valued, ironically, at almost exactly the same ratio relative to gold that holds today. They also simultaneously issued (or tried to) full-value copper coins. With all the obvious and well-documented problems in many other nations in trying to hold to a bimetallic standard, I can only imagine the problems the Russians faced in attempting to maintain a tetrametallic standard!
Interesting. I did not know that.
Yes, it is foolish to set exchange values. All these metals should just float against each other. One form of money would likely win the most use as currency.
The Russian platinum coins were beautiful --- and must have been an absolute bitch to mint, given the technology of the day. Their numismatic premiums, which are very high, have unfortunately prevented me from ever purchasing one, although I have seen several over the years.
Gold is realy good, but it is cheap historically in terms of silver.
I'm tempted to trade, because Gold is cheap relative to silver.
Puny peso trumps the dominant dollar?
Unimaginable.
coming soon: peso carry trade
With +80% of Mexico's export destined to the U.S. market, Mexico is disadvantaged receinving an ever slumping USD in return. In addition, to curb inflation growth in Mexico, higher interest rates with accumulated gold purchases will make the currency more valuabale allowing for greater imports from the U.S and other partners.
I think Mexico is one of the most vulnerable countries to Ben inlfation scheme, due to proximity and the resulting economic dependence.
I am glad the Central Bank of Mexico is voting on its future with sound monetary fundamentals; then again, I may well be wrong.
Everybody should do the same: BTFD. Watch this animation to get inspired to do so:
http://www.youtube.com/watch?v=vs7-yDO6i9Y
Then head over here to read why silver market mainpulation will not end anytime soon:
http://thesilvergoldhedge.blogspot.com/2011/05/market-manipulation-not-t...
...and those purchases ain't on margin.
PMs up from here.
Should we be performing a 64 team tournament bracket breakdown of country vs. country once it hits 5k an ounce ?
Quick! Flee to safety!!!
I thought it was a barbarous relic?
No?
+ 1502.50
It will always be worth its weight in gold.
The Asians all need to buy more...when fiats all die, soonish, those with the most gold will win.
'USA 8,000 tons of gold' yea sure.
as long as nobody checks
our banksters are fabulous! we must trust them.
fade the NWO, BiCHeZ!
YouTube - Gold Price Song
8000 Tons of gold paper certificates.
God this next ten years is going to suck lol.
WTF just casued the Dow to jump? PPT in full force? QE3 coming?
Hmmm, good question. Seems the talk of monetary base still expanding (rather than contracting as it was upon QE1 closure) is still driving everything up? So much more global money available? Seems hard to conceive we won't miss that extra $100b+ of free money monthly and that instead PD's will have to actually sit on T's instead of flipping...inconceivable but still, seems something is stirring, regardless organic or synthetic?
See further down for question on valuing gold
Canada's just not bothered about the yellow stuff, very odd.
That's because we have lots of it in the ground...
you sure?
you remember the National Energy Program (NEP)? Institute a National PM Program and problem solved.
I'm sure. One of my friend's father is at the top of one of the biggest gold mining company in Canada. Yeah he's very rich.
aw bless, I was just joshing with ya.
If so, is there any ratcheting up of Canadian domestic mining /refining capability?
WHO SOLD?
good question, well it only takes $80 to dig gold out of the ground because it only takes $5 to dig silver out of the ground.
+ 16: + 1
Oh, you actually believe there is really gold in those vaults?
GOD DAMN THESE RIGGED SECURITIES MARKETS!
Ehm.
sorry for shouting. Fuck /es
Seriously...did they just announce QE3? Wtf
I'm seriously just fucking done for the day at this point. Good luck to everyone still trading.
have a nice real one...i mean the f word!
Central Banker: Do as I say, not as I do. Peasant.
+ $1504
Be your own central bank! Buy gold!
fofoa.blogspot.com
Yes, I know there are FOFOA haters around here, but if he right, then anyone not owning gold will feel, um, diminished.
shrinkage
Two vids with Hayman Capital's Kyle Bass from earlier today
http://is.gd/0m8D0R
thanks for the link! I think Mr. Bass always calls it right.
Thanks for sharing I watched when I heard he'd be on. He doesn't like gold at all! ; )
great avatar!
Wonder if they're really getting the physical.
Barely related, but today when I went into a mall in a generally well-off area in Berlin that is littered with organic food stores and such, there was a gold buying booth set up on the ground floor. They advertised the "recycling" of gold as the environment-friendly way to dispose of your gold.
http://img820.imageshack.us/img820/6190/goldbuyers.jpg
I suppose it's a good idea. I mean, if you're honest about it, how many times did you throw your old jewelry into the trash simply because you were too lazy to drive to the recycling center?
Is it chic to call give to call a store by an english name in Germany?
Usually, names that cannot be properly yodelled are outlawed, but special exception permits can be acquired on July 4th when we celebrate Kulturimperialismus Day.
gold.
wow, now i'm so scared that i'll dig up that Briefgold envelope
Good for the Mexicans. They should demand some from the Spaniards for what was looted from their ancient capital 500 years ago.
Dude, imagine the reparations that would ensue!
Spain would owe: Mexico, Peru, Colombia
Portugal would owe: Brazil
Israel: Palestine hehehe
they don't owe them jack. The natives were just standing on the ground, not developing it.
Let them repay Spain for the wheel and the written word.
Yes, if there are no strip malls, Mcmansions and ten-lane highways, obviously the land is worth nothing.
You think you are so intelligent, yet you clearly still buy into the consumerist, "grow or die" mentality of your slavemasters.
As a matter of fact, Spain and Portugal took refined precious metals, actual jewlery and ingots, Gold mostly in Central America, Silver mostly in South America, from the natives, in HUGE amounts. 60% ended up on the bottom of the ocean, lost, but the 40% that made it to the Iberians fueled their empires for 400 years. It would be cool if Mexico got 1% what the Spaniards took from Old Mexico City itself, just as a symbol. Also, the Spaniards especially never quite decided as to whether they wanted to kill the natives, or teach them. They mostly killed them for about 150 years, then slowly got around to teaching them. In Central America especially, there are still Indians that never learned Spanish...
Do you have any documentation for that figure of 60% lost at sea? If so, that is a staggering amount! I have always idly wondered how much of Spain and Portugal's New World treasure was lost at sea, but never imagined that it would or could be anything near such a percentage as you quote.
I remember reading that figure in a National Geographic as a kid.... between privateers, shipwrecks, theft, and the rest, far less than half made it to the Royal Treasury of each country. Lots has been salvaged by divers in the Aqualung era, lots at 10,000 feet in the mid-Atlantic, unknown, unreachable. Trans-Atlantic shipping was VERY dodgy in the 1500-1700 period...
Yeah, remember too, gold and silver are heavy as fuck, one rogue wave, and you'd be down in Davy Jones' Locker.
Interestingly, I recently came across figures of the total amount of gold and silver that Spain and Portugal removed from the New World by either pillage or mine production (but not, I think, that necessarily made it back to Europe, or to their respective courts anyway). It was around 150,000 tons of silver, but only around 3000 tons of gold, a roughly 50:1 ratio. It was, however, around 10% of all the silver mined in human history to the present day.
This will give you a sense of the amount of treasure lost.
http://www.sunkentreasurebooks.com/shipwrecks.htm
Volatility is fun!
No wonder theme parks are doing shitty, all the bashing, clobbering, popping and fizzling is done at the S&P.
WEEEEEE volatility!
Totally expected. What would be more interesting is to see who has been purchasing all the lead, gunpowder, other military hardware and riot gear. What is that old saying again, oh yeah, "location, location, location"
Most gold buyers I know (few) already have guns and ammo too.
"Pb is a precious metal at a high enough velocity."
"Lead and lead delivery systems."
ZH-er quotes, authors forgotten.
Why doesn't Greece, Ireland and Portugal take their lines of credit, load up on Gold, and kiss the Euro goodbye with Gold backed currency?
Ireland should have bought all of UKs gold during the Brown Bottom. Portugal is stacked with gold probably the only thing holding them up.
Yes, somewhat surprised to see Portugal with all that gold - over $35 billion. When the EU tells them to give some of it up, that's when the euro implodes, IMO.
Prechter will state this is a sure sign of the top in Gold.
Keep getting these emails offering free advice...JWow even his free advice is shitty....
Yeah, and I'm still waiting for his putative deflation and magically appreciating fiat currency to ride in on the back of a unicorn, too. It certainly has not pranced through my local grocery store or gas station anytime lately!
The dude lives close to my neck of the woods. Hope I see him in town sometime for some serious K&A.
Gold tacos, bitchez!
Well, I've said it before.
Today, well actually any day, is a great day to buy silver!
Just BTFDs, how hard can it be?
The Blasphemers and apostates of the one and true precious will soon be mercylessly crushed.
on a lighter note:
and And now for your viewing pleasure.
The Mistress of the Macabre. The
Epitome of Evil. The most sinister
woman to dance on the face of the
earth. Lowly dogs, get on your
knees, bow your heads and worship
at the feet of SANTANICO
PANDEMONIUM!
_____________________
So those are Selma's?
nifty update
http://markettechnicals-jonak.blogspot.com/
Thanks Tense Indian. What a rollercoaster.
China's inflation running over 8%....USA is about 8% also...no wonder UT and many pension plans are now joining CBs in buying gold as wealth preservation:
Cost of U.S. Imported Goods Rose More Than Forecast in April
By Alex Kowalski
http://www.bloomberg.com/news/2011-05-10...
"The reports of my death are greatly exaggerated." -Gold
"The reports of my demise have also been greatly exaggerated" ~ Silver
Humor me. Let's say one wants to measure global gold supply above ground relative to global money supply and assumes a 40% reserve requirement in some new global gold standard.
Assume 165,000 tons above ground at YE09 (according to WGC) and assume that supply is growing 2% in 2010 and 2011, there would be roughly 171,000 tons above ground at YE 2011.
Okay....171,000 tons roughly equates to 6,000,000 ounces of gold supply.
If global money supply is roughly $55T (help me if wrong) and we assume a 40% reserve requirement (obviously a big assumption), that would mean one would need $22T in gold supply, thus gold would be worth $3600/oz ($22T/6M)
You would also need to factor "credit" + "growth" to cover their needs so really it is about $220 Trillion.
Now show me your price
I think the answer you are looking for = MORE!!!
There are apparently some 100 times the paper claims for each oz of gold.
The answer is indeed MORE!!! Much more.
or tungsten plated gold, as it were.
Central banks purchase 0 tons of silver in Q1
I have $5 if anyone has a shovel.
Sorry but 100+ tons here or there ain't jack squat.
Really? Only 33 nations have 100 tons or more, in total. So 100 tons in a quarter seems like quite a lot. Gold isn't that easy to get, you see.
http://en.wikipedia.org/wiki/Gold_reserve
No, no 100 tons is no big deal.
Wink wink, nudge nudge, say no more.
CB buying of gold (not silver) is consistent with freegold. I might even call it evidence.
You can count on Federal Reserve figures. They are very accurate. Plus they are very honest.
People should take info put forth by the World Gold Council with a grain of salt.
They have been turned out like whores long ago by their Central Banking Pimp Daddy's
They are the designers and engineers of leveraged trading vehicles....thereby providing the impetus for the multitude of derivatives based casinos that purport to have the necessary backing....but most likely represent burn centers managed by insane clowns (just ask CPM Group's Jeffery Christian). Taking their advice would be akin to getting invited to an "underground" street fighting event by a mafioso kingpin....then thinking it prudent to take some advice on where to place some bets from the same party that provided the invite.
Presently....silver looks to be a slightly better buy right now...but either one would be a good purchase. Now is a great time to start tracking the GSR. If you have exposure to both...you could use 'vola-shill-ity' as a means to use your "investment grade/trading" portion of your stack to build it even bigger.
Governments will never admit that fiat currencies are not long for this world. They will continue to use manipulative tactical advantage to provide members of their club more buying opportunities to accumulate the precious. When their 'House of Cards Ponzi' finally comes crashing down like a "Jenga" game gone awry...they'll most likely be forced to appease the unhappy serfs by instituting a new construct that's backed by gold....which they've been secretly hoarding for years via the issuance of paper with no intrinsic value.
http://www.gold.org/investment/partners/
The WGC was curiously AA (opposite of UA) for the bulk of the last decade....while gold has stair-stepped it's way north 5-fold over that term. People will receive their wake up call to join the party when the real bubble gets formed....and the shylocks become interested in removing PM's from the bulk of the weak hands.
http://www.kitco.com/scripts/hist_charts/yearly_graphs.plx
Excellent post AgShaman!
Yes, the World Gold Council is now and always conspicuously silent regarding gold's monetary attributes, invariably focusing on jewelry demand and, at best, grudgingly acknowledging investment demand in a footnote as "mere speculation" --- just like their shill Jon Nadler of Shitco. Whenever I read a press release from the World (Anti-)Gold Council, somehow I always hear the voices of world central bankers in their vain attempts to belittle gold and its fundamental historical monetary role, and most particularly its future monetary role as well.
Haha....well said
Their fear is starting to look disgustingly pathetic....with their power base teetering on the precipice. If they can keep the serfs afraid of involvement in PM's....they must surely believe they can retain their stranglehold control over the masses.
More people should consider playing along non-chalantly....while quietly including themselves into the fold by some stack building of both gold and silver.
Its possible governments believe their own lies.
The World Gold Council is a fraud and its lists are misleading. You must dive deep into history to understand what a corrupt system it is. The gold countries "hold" only exists on paper. A third or more of the gold is still in the US if at all. That means countries are not only forced into the petrodollar system but also to "hold" their gold in the US. Especially the losers of WW2 and every country occupied after the war. Italy, Germany, Hungary, Slovakia and Japan never have all their gold. A peace treaty with the Allies were never signed. The Allies are actually at war with these countries. The gold (like membership in NATO) is another bounty they have to pay for their own occupation. The petrodollar and the gold are used to blackmail these countries whenever needed. The whole system we live in is based on lies, blackmail and compound interest. The Yankee dollar and its British and French lapdogs are the status quo. They are the enemy then and now. Peak oil and Islam is their worst enemy. Let us cheer Peak oil and Islam and every "element" that is against this terror. Did you know Germany officially is an enemy of the UN? I mean the war is over but if they want it they can have it. Free thinking Germans are their living HELL!
So Mexico loaded up at the top. Typical.
Top? say that again 10 months from now.
The trend is your friend. Central banks will be repurchasing Gold for years to come. Gold is moving into strong hands, and it WILL be remonetized.
http://ericsprott.blogspot.com/
It is quite funny that the country with highest percentage of reserves in Gold is Portugal, followed by Greece in second place....
Weird how that works out isn't it.