This page has been archived and commenting is disabled.

Russia To Increase Gold Holdings By 13% In 2011, Will Buy 100 Tonnes Of Gold Each Year

Tyler Durden's picture


The WSJ reports that The Central Bank of Russia, which seems to have missed Doug Kass' Friday Fast Money appearance, plans to buy 100 metric tons of gold from domestic banks a year in order to replenish the country's gold reserves, Deputy Head of the bank Georgy Luntovsky said Monday, according to the bank's press service. In 2010 Russia's gold reserve increased 23.9% to 790 tons, or 25.4 million Troy ounces. As a reminder China has just over 1,000 tonnes in official holdings. Which means the PBOC will most certainly not be late to get on the bandwagon, although unlike the CBR, will unlikely issue a press release to announce its plans.


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mon, 01/24/2011 - 11:19 | 898670 JW n FL
JW n FL's picture

nooooooo..... noooooooooo.... gold $1050.... lol

Mon, 01/24/2011 - 11:35 | 898731 DaBernank
DaBernank's picture

Maybe dougie meant GLD @ 105, which is not what Russia's buying.

Mon, 01/24/2011 - 11:58 | 898813 Lieutenant Dan
Lieutenant Dan's picture

Teach me how to Dougie!

Mon, 01/24/2011 - 11:46 | 898735 Pladizow
Pladizow's picture

Kass 2009 Prediction:

Gold never reaches $1,000 an ounce and trades at $500 an ounce at some point during the year.

Kass 2010 prediction:

The price of gold topples. Gold’s price plummets to $900 an ounce by the beginning of second quarter 2010. Unhedged, publicly held gold companies report large losses, and the gold sector lies at the bottom of all major sector performers. Hedge fund manager John Paulson abandons his plan to bring a new dedicated gold hedge fund to market.

Kass 2011 prediction:

"Gold will briefly touch $1050.00/ OZ. and should finish the year $150 lower than where it is today.

 See you in Siberia Comrad Dougie!

Mon, 01/24/2011 - 11:51 | 898787 EscapeKey
EscapeKey's picture

With such a great track record, he ought to work for the Federal Reserve.

Mon, 01/24/2011 - 12:18 | 898889 Pladizow
Pladizow's picture

He does, via CNBC.

Mon, 01/24/2011 - 11:57 | 898809 Lieutenant Dan
Lieutenant Dan's picture

Kass can kiss my ass! Paper gold may trade 900, but no one in their right mind would give up real gold. If gold is worth 1300 today, and the fed continues to print more money, then the price of real indillutable gold goes up (assuming the ratio of gold produced/total gold outstanding < total debt purchased/total debt oustanding).

Mon, 01/24/2011 - 11:20 | 898672 Glasgow Gary
Glasgow Gary's picture

If they can find 100 metric tons a year, I'm sure they will.

Mon, 01/24/2011 - 11:35 | 898732 High Plains Drifter
High Plains Drifter's picture

Do you think the Russians test a bar or two , from each pallet?

Mon, 01/24/2011 - 11:20 | 898673 Hard1
Hard1's picture

The Fed just sent a representative to talk them out of that idea and he decided it would be easier to sacrifice himself at the airport.

Fort Knox just got a bid 

Mon, 01/24/2011 - 11:25 | 898691 Raynja
Raynja's picture

+ 36000

Mon, 01/24/2011 - 11:49 | 898776 Sudden Debt
Sudden Debt's picture




Mon, 01/24/2011 - 11:50 | 898779 ArrestBobRubin
ArrestBobRubin's picture

Woof! nice one mate.

Mon, 01/24/2011 - 12:20 | 898898 Clark_Griswold ...
Clark_Griswold Hedge Mnger's picture

You didn't see the For Rent sign out front.....

Mon, 01/24/2011 - 12:30 | 898942 e_goldstein
e_goldstein's picture


Mon, 01/24/2011 - 11:21 | 898675 Math Man
Math Man's picture

Headline should have read:  "Russia to buy half as much Gold in 2011 as they did in 2010"

Mon, 01/24/2011 - 11:40 | 898753 JW n FL
JW n FL's picture

the buy is in... quiet and global... dont believe what you are being fed all the time..

Mon, 01/24/2011 - 11:21 | 898678 end times prophet
end times prophet's picture

Sounds like they are going to have to print a couple more ton(ne)s of paper gold

Mon, 01/24/2011 - 11:22 | 898679 topcallingtroll
topcallingtroll's picture

Russia is talking their book and they are getting concerned.

Mon, 01/24/2011 - 11:26 | 898700 Quintus
Quintus's picture

Yeah, that's right!  The Russian government has now branched out into the metals trading business and is just talking up the price so they can unload all their gold to some poor suckers at a profit.

Mon, 01/24/2011 - 11:40 | 898752 caconhma
caconhma's picture

You got it all wrong. Just like in Tunic, the Russian government officials are not so sure about tomorrow. Therefore, they buy gold to run with something tangible.

They do understand that fiat money is just POS.

Mon, 01/24/2011 - 12:02 | 898801 Quintus
Quintus's picture

Sarcasm mate.  The Russians (and everyone else with a trade surplus) know damn well that paper is no longer a sound store of value.  Funnily enough it's only those countries whose principal export is paper debt that are really keen on promoting paper debt as a store of value.

Mon, 01/24/2011 - 11:23 | 898687 Quintus
Quintus's picture

Has anyone told them that they can't eat it?  Clearly not, or they wouldn't be wasting their hard-earned money on a useless metal that isn't even real money and is going to be worthless soon anyway.

Mon, 01/24/2011 - 11:32 | 898720 Arius
Arius's picture

i suppose they got to learn the hard way...

Mon, 01/24/2011 - 13:14 | 899080 Calmyourself
Calmyourself's picture

I was thinking, half their wheat crop burns and they buy 100 tons of shiny yellow metal?  Stupid russkies, you cannot eat it, now if they would buy APPL they would be in good shape, you can eat that you know..  Jonnadler weigh in here..  It is almost as though, India, China, Russia and many other countries know better than those paper market puffers, hmm..

Mon, 01/24/2011 - 13:16 | 899093 In Fed We Trust
In Fed We Trust's picture

I took alll my gold and plated my teeth with it and made a nice grill.  I want to make sure that my gold can't be confisicated before I skip town.  When I gets some extra cash I may set a diamond on each tooth to enhance my grill.

People need to be carefull about wearing to much gold on the body.  I've seen niggers OD on the stuff.  What was that movie...? "I'm going to get you Sucker" where the dude OGed from wearing to much gold?

Mon, 01/24/2011 - 11:25 | 898693 alter ego
alter ego's picture


After this news came out, the Fed along with

other banksters sent a little package by fedex

to their Ruski friends

Unfortunately for Berni, the package exploded

before been delivered.

I think that is a wicked way to send a


Mon, 01/24/2011 - 11:25 | 898696 Dr. Porkchop
Dr. Porkchop's picture

Tell them it's a barbarous relic.

Mon, 01/24/2011 - 11:27 | 898701 alter ego
alter ego's picture

The Fed to Rusia.

Don't buy gold, don't buy gold.

Just buy "Trash for Cash"

I mean it.


Mon, 01/24/2011 - 11:31 | 898708 TheGreatPonzi
TheGreatPonzi's picture

The manipulation on metals is becoming more and more visible, and no one can deny it.

This night, every commodity (from corn to copper) opened very significantly higher. It was including gold and silver. When bad news coming from Ireland and good news coming for Russia about gold came, the trend in PMs was abrubtly reversed. Unfortunately, the banks focusing only on PMs prevents them to do the same for every other commodity. We have a very strange and ridiculous decoupling as a result.

Mon, 01/24/2011 - 11:36 | 898737 Turd Ferguson
Turd Ferguson's picture

Wait a second.....I thought that the gold bull was over. Everyone is saying so!

On a lighter note, my latest video is now posted to YouTube.

Mon, 01/24/2011 - 12:05 | 898835 DaveyJones
DaveyJones's picture

"my favorite russian hooker" - very nice

Mon, 01/24/2011 - 16:49 | 899939 DoChenRollingBearing
DoChenRollingBearing's picture


Mon, 01/24/2011 - 21:55 | 901167 StychoKiller
StychoKiller's picture

So, in your movie, the JP Morgue is plugging your advertisers?!  Absolutely shameless -- I love it! :>D

Mon, 01/24/2011 - 11:30 | 898709 Dr. Porkchop
Dr. Porkchop's picture

Sign On Road Entering Russia:


Welcome To Russia!


  • We Buy Gold!
  • Russia Brides Waiting To Meet You!
  • Yes, We Have Phone Cards!
Mon, 01/24/2011 - 11:38 | 898747 GoinFawr
GoinFawr's picture

In Russia, Gold can't eat you.

Mon, 01/24/2011 - 11:53 | 898794 ArrestBobRubin
ArrestBobRubin's picture

You forgot a big one:

-Unlike where you live, we prosecute bigtime Jewish financial criminals here

Mon, 01/24/2011 - 11:30 | 898711 Oh regional Indian
Oh regional Indian's picture

Funny thing is that the Central Bank is just a part and party of the global central Bank circle jerk, headed by the CENTRAL bank (BIS). All tune-marchers.
Ask yourself, why do central banks need to broadcast their moves? What good does it do anyone? No one and no good at all I feel.

Such a sham.

Mon, 01/24/2011 - 11:34 | 898725 lsbumblebee
lsbumblebee's picture

Whose turn is it this week to prop up the USD? We may have to listen to Dougie Kass and the Gold Bashers at 78 rpm.

Mon, 01/24/2011 - 11:35 | 898729 Mad Max
Mad Max's picture

You know, people always say "you can't eat gold."  Yet, I've had bits of gold leaf on chocolate cake at absurdly priced restaurants.  I also "think" I had Goldschlager one time back in college, but the memory is a bit fuzzy.  However, I've never eaten an FRN, willingly or not, either straight or in bits on a chocolate cake.  Just a deep thought for the day.

Mon, 01/24/2011 - 12:41 | 898969 ArrestBobRubin
ArrestBobRubin's picture


Old Swiss proverb: "Own some gold and you'll never go hungry"

Another of gold's unique qualities: it heads the starvation thing off at the pass.

Sat, 06/18/2011 - 20:41 | 1381433 blunderdog
blunderdog's picture

I was at that party too.  That wasn't Goldschlager.  It was cinnamon mouthwash with some shredded aluminum foil mixed in.

Mon, 01/24/2011 - 11:41 | 898757 lunaticfringe
lunaticfringe's picture

There once was a man named Doug Kass,

Who thought he was bold, bright, and brilliant- but alas,

His predictions all foundered, his guesses all wrong,

And his mother now calls him- dumbass.


Mon, 01/24/2011 - 15:02 | 899527 Stuck on Zero
Stuck on Zero's picture

A limerick is 5 lines with meter:  AABBA.  Try again.

Mon, 01/24/2011 - 17:03 | 899994 Temporalist
Temporalist's picture

There once was a man named Doug Kass,

Who thought he was bold, bright, and brilliant- but alas,

His convictions while strong,

Were stupendously wrong

And his mother now calls him- dumbass.


I fixed it for you to make you happy...

Mon, 01/24/2011 - 11:50 | 898765 overmedicatedun...
overmedicatedundersexed's picture

the little man tries to buy gold cheap ..the big power brokers think how can we steal it all?

the mindset of the common poor man vs the rich elite, ..viewpoint.

one must have the mind of criminal to outsmart both..the criminal mind to think and act like the elite, the willingness to shear sheep.but it's got it's own downside...come the final reckoning.

Mon, 01/24/2011 - 11:48 | 898770 alexwest
alexwest's picture

why not to announce..

USA is yet unoffical numero uno enemy of Russia,, so another arrow into ..

#2 Russian CBR wont buy on market,, it will buy from locals.. and price will be what price CBR wants..

its called export tarifs,,,


Mon, 01/24/2011 - 11:51 | 898786 Xibalba
Xibalba's picture

I hope 'lil Dougie is right.

Mon, 01/24/2011 - 12:00 | 898817 LostWages
LostWages's picture

BTFD Comrades...If you miss out, tough shashitsky.

Mon, 01/24/2011 - 12:03 | 898830 goldmiddelfinger
goldmiddelfinger's picture

Russia buying doesn't matter. For now, gold is going down.


Mon, 01/24/2011 - 12:14 | 898868 ArrestBobRubin
ArrestBobRubin's picture

Ever consider the fact that lower price is one of the reasons why the Russians are stepping up their buys right now?

Like us, they are getting more real value for their money while in process of distancing themselves from the crumbling world of fiat currencies and the fallout their crash will produce.

Good on ya Russia. Smart bunch of dudes.


Mon, 01/24/2011 - 12:19 | 898891 Math Man
Math Man's picture

They're not stepping up, they're buying half as much as they did last year.

Mon, 01/24/2011 - 12:28 | 898939 EscapeKey
EscapeKey's picture

Right, because when central banks tell you what they're about to do, you can rely on it.

Mon, 01/24/2011 - 12:35 | 898950 ArrestBobRubin
ArrestBobRubin's picture

You said same at 10:21, is it really that strong a point? Polly want a cracker?

Only zombie governments wouldn't be buying more gold right now.

That's why we're not. As they've proved time and again, Geithner, Summers and Bernanke are WAY too smart for that gold stuff.


Mon, 01/24/2011 - 13:02 | 899047 Bay of Pigs
Bay of Pigs's picture

Of course it doesn't matter because you said so Swami. Maybe you could get a gig working for this Kass douche being an analyst for him. Right up your alley. 


Mon, 01/24/2011 - 13:48 | 899199 goldmiddelfinger
goldmiddelfinger's picture

Both he and I have a better record than you.

Mon, 01/24/2011 - 15:54 | 899741 Bay of Pigs
Bay of Pigs's picture

Sure you do Swami. You, Nadler, Johnny Bravo and Prechter have been spot on. Excellent analysis.

Mon, 01/24/2011 - 14:19 | 899345 Spitzer
Spitzer's picture

jAN/FEB are the lows for the year allot of the time.

 Russia has money in Kinross gold, Paulsons biggest miner holding. Paulson is a smart guy, he doesn't fight the Fed or the KGB.

Mon, 01/24/2011 - 12:07 | 898843 UglyPatheticPauper
UglyPatheticPauper's picture

If I order a Russian Bride will it come with the Gold Rings??

Mon, 01/24/2011 - 15:25 | 899632 walküre
walküre's picture

Exactly what will happen.

Adding more silver today.

Mon, 01/24/2011 - 16:57 | 899965 tmosley
tmosley's picture

Might hold off until Wednesday or Thursday, given that this is options expiration week.

Mon, 01/24/2011 - 12:21 | 898907 bankrupt JPM bu...
bankrupt JPM buy silver's picture

hope they arnt buying the salted ones...

Mon, 01/24/2011 - 12:32 | 898949 Himalaya
Himalaya's picture

Russia & China are going to back their currency with gold in the future!!!

Mon, 01/24/2011 - 13:43 | 899185 walküre
walküre's picture

clearly you're thinking the EURASIA.. new gold backed super fiat!

Mon, 01/24/2011 - 12:51 | 898997 gwar5
gwar5's picture

CBs are buying and holding gold.  As long as the Chinese say gold is money, it is.


Mon, 01/24/2011 - 12:54 | 899014 Midas Mulligan
Midas Mulligan's picture

100,000 kilos of gold per annum.

Do svidaniya, Dougie, means good-bye.



Mon, 01/24/2011 - 13:03 | 899052 JW n FL
JW n FL's picture

They wont be flying that 100 tonnes thru the Moscow Airport...

Mon, 01/24/2011 - 13:32 | 899146 Silversinner
Silversinner's picture

Russia and China saying what they have

and buying might be much more then

officially announced.That is how I would play it.

Show some muscle without driven prices up to

much because it buys time to accumulate more.



Mon, 01/24/2011 - 13:33 | 899147 Silversinner
Silversinner's picture




Mon, 01/24/2011 - 13:41 | 899178 walküre
walküre's picture

the spread in Silver is getting out of hand

bid and ask divergence is $6 on "recognized" silver bullion


soon the miners will shut down lines of production because of the paper price manipulation.

buckle up Daisy! we're going to the black market.

Mon, 01/24/2011 - 13:56 | 899228 tmosley
tmosley's picture

Russia is buying the fucking dip.

Mon, 01/24/2011 - 15:17 | 899598 medicalstudent
medicalstudent's picture

'russia knows what gata knows'


- bill murphy

Mon, 01/24/2011 - 15:52 | 899737 SlorgGamma
SlorgGamma's picture

Remind me again: what was the named of that former superpower which blew all its money on military-industrial boondoggles, a vast security state, toxic ideological fundamentalism, and a disastrous invasion of Afghanistan?

Ah, yes, the United Status of Securitized Assets.

Mon, 01/24/2011 - 16:01 | 899769 walküre
walküre's picture

I'd like to see an analysis on the last few minutes in silver please..

That looked like a huge selling order and absolutely no bids.


Mon, 01/24/2011 - 17:02 | 899991 tmosley
tmosley's picture

Longs are buying physical, not paper.  Their bids don't show up until later, when the retailers make their orders.  This is what will cause the demise of the LBMA and COMEX.  Like a tsunami drawing back the ocean miles out to sea before it all comes crashing back, destroying any shorts that stand in its way.  That will be a hell of a day for the surfers (who are the longs).

Should land most of us at the doors of our new mansions, if that's your thing. 

Do NOT follow this link or you will be banned from the site!