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"Gold From The ATM" In Turkey As Gold Deposits Surge In Turkish Banks

Tyler Durden's picture




 

Via Goldcore,

Today’s AM fix was USD 1,747.25, EUR 1,347.56, and GBP 1,090.87 per ounce. 
Friday’s AM fix was USD 1,734.75, EUR 1,345.39, and GBP 1,088.37 per ounce.

Silver is trading at $34.12/oz, €26.43/oz and £21.40/oz. Platinum is trading at $1,616.00/oz, palladium at $660.50/oz and rhodium at $1,060/oz.

Gold rose $21.80 or 1.26% in New York on Friday and closed at $1,751.20. Silver hit a high of $34.16 and finished with a gain of 2.19%. Gold was up 2.28% for the week and silver soared 5.61% for the week.

Gold edged down on a Monday as speculators took their profits as prices rallied on thin volumes on Friday to their highest in a month on technical buying.  A strong fall in the greenback triggered rapid gains in commodities and options-related buying on Friday.


XAU/USD  1 Year – (Bloomberg)

Tonight US Congress will meet to attempt to devise a plan to avert the US fiscal cliff which will throw the US into a spiral of tax hikes and budgetary cuts that will lead the US economy deeper into a recession this January. 

Another short term ‘resolution’ will almost certainly be achieved which will allow the US to keep spending like a broke drunken sailor and which will again store up far greater fiscal and monetary problems. The scale of these deep rooted structural challenges is so great that they are likely to affect the US sooner rather than later. 

The euro racked up a seven month high against the yen and is holding near a one month high against the US dollar as the meetings amongst Greek creditors continue and hope to reach an outcome today.

Greece’s goal is reducing the 190% debt to GDP ratio to a more manageable 120% in eight to ten years. The dilemma is that the IMF and eurozone finance ministers want to cease payments until a new deal is agreed because they have no guarantee that the financing won’t continue indefinitely.

Can Greek debt become manageable without creditors writing off some of the loans?  France and Italy would vote to reduce interest repayments on already granted loans while other countries like Germany would not.

A consensus was reached when German central bank governor Jens Weidmann suggested that Greece could "earn" a reduction in debt it owes to euro zone governments in a few years if it diligently implements all the agreed reforms. The European Commission also supports this view.

Global investment demand for gold remains robust with the amount in exchange-traded products backed by the metal rising 0.1% to 2,606.3 metric tons.

Meanwhile reports of the death of the Indian gold buyer have again been greatly exaggerated as India's net gold import for domestic consumption is likely to be about 800 tonnes this year following a pick-up in demand during the festive season, according to the World Gold Council (WGC).

Last year, the net import for domestic consumption was 969 tonnes. This is a significant fall but not surprising considering the sharply rising price. It shows that the Indian cultural attachment to gold will continue and India may be becoming acclimatised to higher gold prices.  

This week US economic data for Tuesday include Durable Orders, the Case-Shiller 20-city Index, Consumer Confidence, and the FHFA Housing Price Index.  On Wednesday, New Home Sales and the Fed’s Beige Book are published. On Thursday, Initial Jobless Claims, GDP, and Pending Home Sales can be viewed.  Friday’s data is Personal Income and Spending, Core PCE Prices, and Chicago PMI.


Cross Currency Table – (Bloomberg)

Gold deposits in Turkey have grown from 3.1 billion liras to 16 billion liras in the past year, Bloomberg reported on news reported in the daily Turkish newspaper Aksam which cited Denizbank AS gold banking group manager Cem Turgut Gelgor.

According to the Turkish bank Denizbank, one of the largest in Turkey, it collected 1.5 tons of gold in 7 months.

Deposits have increased from 500 kg to over 6 tons or over 192,000 ounces (worth some €260 million) over an unspecified period.

Kuveyt Turk Katilim Bankasi AS has added 3.8 tons of gold, Aksam quotes Kuveyt Turk product development group manager Mustafa Dereci as saying. Dereci said that Kuveyt Turk is providing new products such as “gold from the ATM.”

The World Gold Council estimates that there are around 5,000 tons of gold remaining outside the financial system, gold which the Turkish people have prudently accumulated over the years as a store of wealth to protect from currency depreciation and debasement.

Gold jewellery producer and wholesaler Karakas Atlantis Kiymetli Madenler AS is “working to bring unregistered gold into the system,” Chairman Kamil Karakas says in e-mailed statement today reported on by Bloomberg.

The gold wholesaler is meeting regularly with jewelers and banks in effort to draw unregistered gold assets into financial system.

Separately Turkey is aiming to position itself as a leading player in the gold jewellery and bullion industry by also becoming one of the leading gold and precious metal refining countries in the world. 

Turkey is at a level to compete with international gold refining centers like Germany and Switzerland, Istanbul Gold Exchange deputy chairman Osman Sarac said today according to Dunya newspaper.

Turkey imports scrap gold mostly from Germany and the United Arab Emirates, the gold is turned into standard bullion coins and bars in Turkish refineries and exported.

Turkey imported 114.8 tons of gold by Nov. 14 this year, of which 46.6 tons was scrap, according to Istanbul Gold Exchange data.

NEWSWIRE
(Bloomberg) -- Iran’s Gold Reserves High Enough to Meet Needs: Central Bank 
Iran has enough gold to fulfill domestic needs for next 15 years, Central Bank Governor Mahmoud Bahmani says, according to state media.

Bahmani spoke at summit in Islamabad: Fars.

Iran does not use gold to barter foreign goods: Bahmani.

Bahmani seeks increased use of local currencies in trade: Press TV.

Bahmani called for establishment of joint bank between D-8 member states: Press TV.

NOTE: Iran, Turkey, Malaysia, Pakistan, Nigeria, Egypt, Bangladesh and Indonesia form D-8 group.

For breaking news and commentary on financial markets and gold, follow us on Twitter.      

NEWS
Gold comes off 1-month high despite firmer euro - Reuters

Gold up nearly $20 to finish higher for the week – MarketWatch

Turkey Confirms Gold Exports Linked to Iran Gas Purchases - $6.4 Billion of gold to Iran in the first nine months of 2012– Zawya

Millions to strike in India over rising prices – The National

Catalans take step towards break-up vote – The Financial Times

EU ministers to discuss Greek debt – The Irish Times

COMMENTARY
This Move in Gold and Silver is Going to Shock People; $3,000/oz Possible – King World News

On Artificial Interest Rates And The Forfeiture Of Growth For Dividends – Zero Hedge

Silver To Rise Fivefold – Max Keiser

 

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Mon, 11/26/2012 - 09:53 | 3010961 q99x2
q99x2's picture

the price for the “five golden rings” went up 16 percent to $750 from $645 in 2011 due to the increase in gold prices.

Mon, 11/26/2012 - 09:59 | 3010970 GetZeeGold
GetZeeGold's picture

 

 

All I want for Christmas is the five gold rings......you guys can have the rest of that crap.

 

Yeah I said Christmas.......deal with it.

Mon, 11/26/2012 - 10:01 | 3010972 MillionDollarBonus_
MillionDollarBonus_'s picture

Doomer goldbugs are so funny. First it was 'hyperinflation' that was going to make gold and silver go to the moon. Then it was the end of 'manipulation' by the 'Bullion Banks'. And now all of a sudden it's depositors hoarding gold because of 'financial collapse'. Where is $2000 an ounce? Goldbugs have been predicting $2000 gold and financial armageddon for years, and nothing has happened. It's funny how many conspiracy theories goldbugs will invent to satisfy their fantasies of becoming kings of the universe.

Mon, 11/26/2012 - 10:05 | 3010976 economics9698
economics9698's picture

As soon as the Islamic countries realize they can break the back of the bankers by letting private banks issue currency backed by gold or silver they will do it. 

As soon as they realize they will not end up like Kaddafi they will break the back of the central bankers in the USA and Europe.  Israel will perish; it’s within sight of the Islamic fundamentalist.

All they have to do is pass laws allowing money backed by gold or silver.

 

Mon, 11/26/2012 - 10:38 | 3011062 WSMassiv
WSMassiv's picture

"They" tried to already...

1. Sadam

2. gaddafi

 

interweb it.

Mon, 11/26/2012 - 10:03 | 3010977 GetZeeGold
GetZeeGold's picture

 

 

Well I did predict $1000 gold.....$2000 gold just seems batcrap crazy.

Mon, 11/26/2012 - 10:06 | 3010982 Mister Ponzi
Mister Ponzi's picture

"It may go to 1100 - but 1500 or 2000 is utter nonsense..."

Mon, 11/26/2012 - 10:25 | 3011035 Sudden Debt
Sudden Debt's picture

Gold at 800$ is a clear bubble and people will get crushed!!

 

Mon, 11/26/2012 - 10:11 | 3010991 CheapBastard
CheapBastard's picture

"Gold will never reach $1,000 /oz"

Mon, 11/26/2012 - 10:09 | 3010988 BeerBrewer09
BeerBrewer09's picture

an ounce of gold never changes

the currencies around it change

understanding that simple concept will make you a precious metal investor (which I'm sure that you are)

Mon, 11/26/2012 - 10:22 | 3011031 GMadScientist
GMadScientist's picture

Sure...because the rate of extraction of and demand for gold are a constant?

LOL

 

 

Mon, 11/26/2012 - 10:31 | 3011046 BeerBrewer09
BeerBrewer09's picture

What will you invest in to take you into your retirement (40 years) or to pass on to your heirs?

I choose gold, silver, land & resources.

You can choose paper or digital numbers.

Place your bet(s).

Mon, 11/26/2012 - 10:10 | 3010989 fijisailor
fijisailor's picture

PMs don't need to achieve astranomic results.  All they need to do is beat the interest rates offered by banks for deposits and that they have certainly done.

Mon, 11/26/2012 - 10:28 | 3011041 Snidley Whipsnae
Snidley Whipsnae's picture

As long as real interest rates remain negative PMs will thrive.

Anyone see a scenario where real interest rates go positive in the near future? Far future?

The Fed recently said that interest rates will remain about where they are until at least mid 2015. The low rates will likely be extended again unless the Fed/treasury/gov decide to jack rates and destroy what is left of the economy, the banking system and the world financial system. Anyone predicting this outcome?

I din't think so.

Sun, 12/09/2012 - 15:04 | 3047159 MeelionDollerBogus
MeelionDollerBogus's picture

year over year analysis is at times negative, keep that in mind:

goldpricemodel 2013 roc 52-week

gold 52 week ROC 1980 to 2011

Mon, 11/26/2012 - 10:14 | 3010994 TheCanimal
TheCanimal's picture

MDB: You make some good points.  However, doesn't a prudent investor need to put 5-10% of their assets in gold and silver as a currency hedge?  What are you doint with YOUR money?

Mon, 11/26/2012 - 10:18 | 3011009 Snidley Whipsnae
Snidley Whipsnae's picture

Why 5 -10%? I believe, as Eric Sprott does, that if you believe in something and have thoroughly researched it then don't fear it... embrace what you believe in and screw diversifcation.

Why would I place ~ 90% of my assets in some bull shit that I know is worthless?

Mon, 11/26/2012 - 10:18 | 3011011 TheCanimal
TheCanimal's picture

doing

Mon, 11/26/2012 - 13:01 | 3011571 Bansters-in-my-...
Bansters-in-my- feces's picture

Even though you are a imposter MDB,fuck off troll puppet.

Sun, 12/09/2012 - 15:02 | 3047155 MeelionDollerBogus
MeelionDollerBogus's picture

2400 GOLD BY 2013 September

2000 / oz in March

Mon, 11/26/2012 - 09:59 | 3010971 SheepDog-One
SheepDog-One's picture

What happened to the year long plot line that all the fake phony numbers and data were 'We gotta keep things up cuz its election year' and after that reality would come storming back in? 

Mon, 11/26/2012 - 10:14 | 3010999 Sudden Debt
Sudden Debt's picture

early 2013 aprils fools?

Mon, 11/26/2012 - 10:02 | 3010974 dbTX
dbTX's picture

The golden rule rules.

Mon, 11/26/2012 - 10:04 | 3010981 Oh regional Indian
Oh regional Indian's picture

And to lay bare the great Gold/Oil/Dollar complex, here in India:

NEW DELHI, NOV 26: 

Gold prices today surged by Rs 100 to all-time high of Rs 32,950 per 10 grams here on sustained demand from stockists and retailers to meet the rising requirements during the ongoing wedding season.

The previous record of gold price was Rs 32,900, set on September 14.

Silver also rose by Rs 200 to Rs 63,200 per kg on increased offtake by industrial units.

Traders said the gold sentiment turned bullish on rising wedding season demand and a weak rupee against the US dollar. 

Joke..... on us...

ori

Mon, 11/26/2012 - 10:07 | 3010984 magpie
magpie's picture

...Do Indians also have a use for Platinum ?

Mon, 11/26/2012 - 11:35 | 3011208 Oh regional Indian
Oh regional Indian's picture

Nope. Not much of an investment metal here Magpie.

 

Mon, 11/26/2012 - 10:08 | 3010985 CheapBastard
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Anyone who has been to Hong Kong recently KNOWS the Indians have not stopped buying gold. Just walk into one of their gold stores---it's packed with Indians buying very large amounts of the yellow metal. Where they store it once bought I have no idea. I don't know if they store it in HK or drag it back to India or some other location. Maybe Banzai can tell us.

Mon, 11/26/2012 - 10:14 | 3010997 fijisailor
fijisailor's picture

And anyone who buys gold jewelry should know that Indian jewelry is 22kt and certainly preferable to the usual sold in the US.

Mon, 11/26/2012 - 10:16 | 3011005 Sudden Debt
Sudden Debt's picture

Over here in Antwerp you have a lot of gold jewelers and it's been a common topic that 22K gold over here isn't 22K gold. Mostly ist's more copper and zinc than gold.

But tourists still love the stuff...

So a lot of people think they own gold... but don't.

Mon, 11/26/2012 - 10:19 | 3011014 Snidley Whipsnae
Snidley Whipsnae's picture

Fools and their assets will be seperated quickly... no matter what the assets are.

Mon, 11/26/2012 - 10:19 | 3011015 GMadScientist
GMadScientist's picture

Are you implying my "grill" is electro-plated?

Motherfucker.

 

Mon, 11/26/2012 - 10:23 | 3011030 Sudden Debt
Sudden Debt's picture

Just test it. If you put a current of 330V on it and they snap tight like a magnet, it's fake.

If not, your good.

Hey.... Are YOU WEARING MY NEW NIKES?! DROP'M!!!

 

Mon, 11/26/2012 - 11:56 | 3011285 Overfed
Overfed's picture

In the States I believe they call that shit "Black Hills Gold".

Mon, 11/26/2012 - 10:14 | 3011000 Snidley Whipsnae
Snidley Whipsnae's picture

“working to bring unregistered gold into the system,”

Who are these fools that will place their unregistered gold into a system? What happens during crunch time when the fools try to with draw their gold?

I suppose that they know not of John Corzine and his ilk?

Mon, 11/26/2012 - 10:19 | 3011013 Sudden Debt
Sudden Debt's picture

I've seen these pratices here also.

You put in the gold into your bank and you can take money against it as a loan for 1.65% a year.

You still pay THEM to store YOUR GOLD which THEY use as COLLATERAL...

yeah... I'll never do that because I love to stroke it at night.

Mon, 11/26/2012 - 10:54 | 3011105 Mary Wilbur
Mary Wilbur's picture

"I've seen these practices here also."

Where is "here?"

Mon, 11/26/2012 - 12:26 | 3011421 Lobbelt
Lobbelt's picture

Antwerp, if I'm not mistaking.

Mon, 11/26/2012 - 10:18 | 3011010 GMadScientist
GMadScientist's picture

This just in: Chinese still like rice.

 

Mon, 11/26/2012 - 10:20 | 3011018 Sudden Debt
Sudden Debt's picture

And Yellow Chinese people like Yellow stuff

Mon, 11/26/2012 - 10:22 | 3011029 apberusdisvet
apberusdisvet's picture

To MDB and all the other bankster bendovers:  global gold production in total will decline going forward due to declining grades mined and exponentially increased costs.  I know that it's very difficult for some of you trolls to understand financial reports, but the most recent from the gold miners might be illuminating.   Further,  the amount available to the free market will fall even more due to de facto and/or  de jure nationalization and/or expropriation.  Virtually 40%+ of all global production is withheld from the free market; notably by Russia and China.  Even disinformation pundits will acknowledge that demand is up.  The result will be classic Econ 101; rising prices.  Oh sorry----you guys never took an economics course---my bad.

Mon, 11/26/2012 - 12:04 | 3011318 DoChenRollingBearing
DoChenRollingBearing's picture

The fun in gold prices will really start when the large owners of physical gold will decline to sell it anymore.  NO ONE I know who has gold is a seller.

Mon, 11/26/2012 - 10:33 | 3011054 Snidley Whipsnae
Snidley Whipsnae's picture

Scaricity is definitely one huge driver.

Negative real interest rates are another huge driver.

Gold flow from West to East is another huge driver... and it's more than just China.

PMs have a lot going for them now and the big boys are starting to remove them from their no no lists. People are beginning to see that fiat is **** and soon will attract more flies than supporters.

Mon, 11/26/2012 - 10:40 | 3011071 JOYFUL
JOYFUL's picture

This is all quite farcical, and totally in keeping with the [deserved] notoriety of banksters the world over...

a news wire story comes out of Istanbul and a gullible dupe like GoldCore picks it up and adds to the myth: Turkey is doing something creative with it's massive private gold holdings....

when the last story from Bloomberg(about a month ago now) got into the western precious metals media outlets, I got seriously interested: not wanting to dispose of any of my AU, but definitely willing to make it work for me during this tedious time of manipulated statis, I marched off to all the mentioned banks in the story(IS and GARANTI) and politely asked where and when I could get my "gold-backed credit card" and my "gold-backed loan," using my shiny Cumhurriyet 22k coins as collateral...crickets....I even emailed the reporter of the piece who guaranteed me she had the details in writing, from the "Deputy CEOs. Personal Banking of both banks. Both of whom remain assiduously unavailable for comment about their stillborn creations!

Although the ensuing weeks have been a total joke, in my usual stubborn fashion I have persisted to the point of having handed over a modest amount of gold coins for a secured loan of lira and a piece of plastic for my coming Asian tour...I decided against actually wandering around the backwaters of Indochina with my shiny...we are kinda in an interim phase between bizness as usual and collapse, so flexibility is key.

The upshot is, the banks are strong on putting out self-serving PR that sounds great, but short on execution, informed personnel, and professional execution when it come to handling the gold-savvy segement of the market...GARANTI in particular is an outfit unworthy of serious consideration for those aspiring to offshore alternatives and I rate IS Bank as a non-starter.  Kuyvet Bank is just a Turkish subsidiary of a Kuwaiti oilsheikdom bankster outfit, with a hypocritical PR pretence of doing real Islamic style banking while conducting the usual usurial rip off by disguising their interest with fancy verbiage...gold from ATM? How bout bullshit, straight from the bovine's backside?!? If it wasn't for the necessity of travel, I'd be happy to leave all of them alone.

 

Mon, 11/26/2012 - 18:52 | 3012707 Tompooz
Tompooz's picture

@joyful.  It's the same with the myth of China's official "encouragement" to buy PM's, now even repeated by Casey ("You've likely heard how government leaders in Beijing have been encouraging citizens to buy gold and silver".)

We've all heard it, but repeating a wrong interpretation of a news story, no matter how viral it gets around, cannot replace some actual hard digging for  truth and  source.

Be a goldbug all you like, but lose your critical facilities at your peril.

 

Mon, 11/26/2012 - 10:41 | 3011078 Herdee
Herdee's picture

Here's the situation that's going to influence Gold.It's uncertainty and we all know that the Market doesn't like that.We're coming into the end of the year and the fiscal cliff situation is looming.So what you say?Well,if you take a look at the numbers on the tax rates,any money you happen to make on a gold miner after investing your hard earned dollars is going to be taxed away very promptly by your political "friends" in Washington.Gold bullion on the other hand is considered to be a "collectable".If the Bush tax rates expire,you could see a removal of funds from the mining sector due to high tax rates on any increased capital that you might make.That increased tax rate would make investing in the mining sector higher risk.Higher risk to your own capital.There could then be a rush from the mining sector stright into the physical holding of the bullion.Will it play out that way or is it being planned that way in Washington?Not a sure thing right now ... which still brings us back to uncertainty in those two sectors.

Mon, 11/26/2012 - 10:58 | 3011103 Clint Liquor
Clint Liquor's picture

Gold convertability in the Ukraine:

http://www.bank.gov.ua/control/en/publish/article;jsessionid=A64BDF88A49FDA1EE1CB945BCD7D4DE1?art_id=126639&cat_id=76291

Money should be a meduim of exchange and a store of wealth. For the past 40 years it has only been a medium of exchange. This will change after the currency crisis, the People will demand it. The Ukraine is one step ahead.

Mon, 11/26/2012 - 11:01 | 3011121 Snidley Whipsnae
Snidley Whipsnae's picture

Attempts by governments to tax physical gold heavily have generally failed.

Black markets, or underground economies if you prefer, always spring up. Smugglers, one of the oldest professions, are always available.

One of the reasons that governments/trolls advise new comers to purchase PMs via etfs is that these purchases are traceable and taxable forever. 

Physical PMs purchased by a family disappear after the generation that purchased them passes on... unless they are inherited by complete fools.

Something to think about.

Mon, 11/26/2012 - 12:07 | 3011339 DoChenRollingBearing
DoChenRollingBearing's picture

+ 1

What Snidley says!  Physical only: do it for the children!

Mon, 11/26/2012 - 11:27 | 3011182 THE DORK OF CORK
THE DORK OF CORK's picture

Me thinks the Turkish economy is about to blow up.

Its ego is writing diesel cheques its body can't cash.

Mon, 11/26/2012 - 11:33 | 3011204 kridkrid
kridkrid's picture

85% of Turkey's economy is Thanksgiving-based. Tough to build a society around a holiday.

Mon, 11/26/2012 - 11:56 | 3011284 KanKhaderKhanKan
KanKhaderKhanKan's picture

For all those Turkophobic posters on ZH just compare the following:

Turkey - Growing manufacturing sector and gold owning population with trade links to not only EU, Middle East but also petro-states of Central Asia. 

Greece - Collapsed industry, bankrupt state, unemployed credit-junkee population.

Who's laughing now? Not to crow but if this recession/depression business continues you mark my words they'll be Greeks in Athens who'll be begging for the days of the Turkish Sultan.

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