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Brazil Doubles Gold Reserves In Last 3 Months
With precious metal prices echoing 2011's year-end plunge, it is perhaps worthwhile considering the bigger picture. To wit, Central banks in emerging markets have increased their purchases of gold in recent years to bolster their rapidly growing currency reserves as the global financial crisis unfolds. Brazil, until recently, held only 0.5% of its foreign reserves in gold, but as Bloomberg reports, the nation's official holdings of gold now stand at 2.16 million troy ounces - double the 1.08 million ounces it held in August. Brazil's foreign currency reserves grew USD807mm in November (during which the nation bought 472,000 ounces of gold) as "anecdotal reports suggest that demand from central banks will remain strong." As one analyst opined, "Central banks will remain a source of demand in the gold market," as is increasingy obvious in the chart below, "liquidity is paramount and gold will deliver."
USD value of Brazil's Gold reserves
Chart: Bloomberg
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Gold bitchez?
Wow, the Central Bank of DoChenRollingBearing has been adding physical to its holdings, but nothing like a 100% increase in three months! Way to go Brazil!
Got gold?
It would be much more entertaining if this were England buying here....
It's not a coincidence that Venezuela's gold holdings are going down. This has to do with Iran
Because gold is money. Money for oil and that's all that matters now. Every country can, does and will kill for it and it's flexibility.
Long as Brazil isnt storing at the B.O.E. Could Central Banks still be that stupid?
Brazil is buying unallocated "stored" at BoE. They ain't getting sight let alone possession. Fact.
Madmen
Are they even actually buying physical gold- or just swapping (on paper) for it again?
Oil is money then, too. Nations trade it for things. Notice that the CBs aren't increasing their silver reserves.
Oil is money then, too.
No, it's not. Oil might be fungible, and might be an internationally recognized valuable thing, and it certainly is divisible, but it ain't money. Can't carry it around in my pocket, bribe a border guard with it. Oil as money? Are you referring to the petrodollar? That is oil backing up the purchasing powerof a money-thing, not being a money-thing itself.
Nations trade it for things.
Not directly, under usual business circumstances. Only those countries that want to stay out of the control of the western banking cartel do so.
I can't carry digital money in my pocket either, but it's still money.
And yeah you can bribe a border guard with oil, easily. Happens all the time, hell you can bribe the fkin UN with it.
And, yes, nations trade it directly; that's where most oil goes.
When you DEFINE gold as "money" in the absolute, you just expose yourselves as fools.
Dipshit retard! Try strapping that barrel of oil on your back, or trading those digital 'monies' to the man with the food anywhere there isn't a bank card swiper.
Hey Mr. border guard, I'll trade you this barrel of oil for a free pass through your country. HAHA! damn, dude, you can't seriously be that vacated of brain matter!
Of course not. It's all being consumed by industry or taken up by investors. If there was ANY CB buying, the price would go through the stratosphere, taking gold up in sympathy, before they got theirs. It's counterproductive for them to buy silver.
Until they have "enough" gold, that is.
LOL...after a year, you're still as stupid as when I left before
Still waiting for that "imminent parity" or was that the imminent evacuation of Tokyo...gosh, I will have to compile a top 10 list of your greatest faceplant busted predictions.
GO WORSHIP BALE LOL LOL LOL
Right, you "left".
More like you were kicked out on your ass. Must be getting used to that feeling by now.
See you still haven't learned to play nice OR tell the truth. I doubt anyone is going to be falling for your lies, Trav.
That sad lying sack of racist, silver-hating shit IS lying, as he was pointedly and undeniably banned by Tyler(s) as evidenced by his former profile having been immediately deleted at the time of his sudden departure. One does not "leave" ZH only to have their profile coincidentally and immediately deleted. Plus, I asked Tyler(s) at the time why exactly Trav was banned, as a number of other members here also wondered why, as well as if there were any concrete guidelines for being banned from ZH, but I was only told by Tyler(s) in reply that his/their reasons were his/their own, and that no elaboration would be forthcoming --- implicitly acknowledging the banning.
NOW who is the "bagholder", Trav?
I was able to see the old trav7777 profile the entire time he was gone.
Tylers create new accounts after some waiting period. I waited almost 2 weeks for mine to be confirmed & activated. I would imagine if there's a reason to ban a person they'll use the same reason to not confirm the same person with a new account.
Fuck the central banks, when have the central bank been following good practices since the Gold exchange standard? Appart from Buba post world war II the other guys are a joke. This is actually a great mistake for Central bank to go monomettalic again. THe only way to measure Gold is not with fiat but with another similar object. You can not measure Gold with Fiat.
I don't follow. Venezuala is an oil producer like Iran. Shouldn't they be getting more gold in exchange for oil?
Nobody can make "enough" oil.
@ quintago
I don't follow either, care to add some details?
They are using Venezuela and Brazil to bypass sanctions.
are you implying they like to sell at 300 an ounce rather than buy...
seriously I would recommend that they get over selling at 300 and start buying ASAP because they are only going to be able to replace the gold they sold at 300 at ever increasing prices!!!
This does not mean much until they try to take physical possession of the gold.
Obviously Brazil has no clue what they're doing. Who in their right mind would own silver and gold since:
- Japan now over 1 quadrillion in deficit
- the US monetizing 1 trillion next year
- Eurozone banks are insolvent
- Buffet said gold is unproductive, and Munger said anyone that buys it is a "jerk"
The charts of gold and silver today, freely traded in an open, unbiased market I might add, confirm.
SARC!!!!!!!!!!
Central banks gobbling up gold left and right....and the price goes...down?
the price gets smashed down so they can gobble up even more
+1
"...so we can gobble up even more" <--- Better!
Time may be running low for physical, although I and others have been saying that for a long time. Still, DCRB's Central Bank is stocked up.
Exactly, for two reasons:
Longs pitched their positions in the COMEX at the end of Nov.
Bullion banks are now grabbing as much as they can and want the price lower.
This is the time when you need to sit tight or buy, because literally the buying that is taking place will be done at the muppets' expense if you let your emotions get you and sell. They are hammering price so they can all go long.
Do not sell your physical!
+ 1, Yes
"Do not sell your physical!"
The CBs may be grabbing all they can but, what are they getting?
Paper?
If it's physical, where are they putting it?
They may grab, but unless they take away, they have nothing.
maybe brazil knows the score and is shorting paper and buying physical hehe
thanks santa......just added more phyz.......its your only defense....well maybe your second only defense
Part of that Gold back reserve currency the B.R.I.C.S. are going to introduce in the near future.
Another BRIC in the wall for the dollar.
I prefer the prospect of a BRICS gold backed currency over a US, UK, EU, China backed global currency any day.
IMO it will be a BRIS currency though, China I think will chose and is part of the NWO and when TSHTF China will sign treaties with the US and NATO nations.
Oro Perras!
the sellers, those fools! [/sarc.]
You mean they increased their paper promises of some gold that they share with 100 other parties?
I believe a lot of gold production now in Brazil, old mines began reproducing, there has been a lot of Canadian gold producers and explorers getting property in Mexico the last 10 years. ON that note for their sakes I hope they are taking their gold mine royalties in gold.
edit: I said Mexico, I meant Brazil, there has been a lot of Canadian equity capital going towards Mexico too in my defence ha.
Odd that the paper PM markets are in the middle of a sell off. Maybe someone wants to protect a certain reserve currency from a loss of con-fidence (game).
Spot on. And Silver is the real threat as examplified by the GSR/DXY overlay i mentioned the other day. Its a clone! and this latest attempt to destroy silver via forced liquidation is done in order to support USD and it seems to be failing. GSR/DXY are never this out of sync in direction. USD still down today, stabilising but down. Nowadays you need a 10% plunge in XAG just to stop the USD nose diving. But it cant be stopped.. USDNOK is grinding lower and one more day will send it over.
Something is going to break in this fake market very very (very) soon. It so obvious.
Everything may implode somewhat..
" this latest attempt to destroy silver via forced liquidation is done in order to support USD "
Not really, it is Paulson rebalancing for MS redemption, and, maybe you haven't noticed it, but two major analysts recently released an interpretion of QE4EVAas "Fed tightening"--hence PM-negative.
It is not just Paulson and co. selling, though, and, yes, there are more players than the CBs buying.
paulson strikes me as a smart fellow which flies in the face of redeeming his gold by dumping it all at once.
Paulson is not a Primary Dealer (and has no access to PD trades) and thus has to redeem PMs whenever he needs liquidity (esp. at client redemption time on non-closed basis). Paulson, compared to index-weighted competitors, has been doing fairly poorly the last 2 years, and his institutional clients are pulling out. This is nor Brad and Jolina types pulling out money, this is Morgan Stanley (and another). PMs will not magically bounce at some historically calculated (as repetitive) support, but bounce when the volume of selling required is done. Nobody really wants to sell PMs, but when there is no other slimy way to have access to easy 0% liquidity, one has to liquidate PMs (or one's MMs).
going on what you wrote slaughterer, my first thought is, what happens if this kind of thing becomes epidemic, that in an effort to raise cash, money managers have to sell their safest and most secure collateral in this case gold first. Will we not have a cycle where real collateral is sold to make paper money payments and obligations.
serious questions, I dont know the answer, and apologies for no question marks in my post, cat slept on my keyboard and now the question mark and apostrophes dont work.
What was the "safest and most secure collateral" for HFs before this GLD/SLV (it is entirely ETF generated sell-off--in collusion with the futures trading) SELL-OFF/ATTACK?
Whatever you answer (AAPL-type securities, T-Bills, certain strong FX pairs), it was sold off before PMs.
Nobody wants to sell these things anymore as the anticipated gain (on various models) in 2013 is better than 10% p.a. on the model of the craziest bull. (Deutsche and JPM compete in this arena).
Which is also what happens in a deflationary collapse.
It took them 12 months back after the 1933 collapse to figure
out what had happened.
History may be yodelling.
They are forcing all the funds to fall in line with "cash" ready to "save" the market again. It's worked three times so far in five years. Why won't it happen again? The trick is so profitable.
Problem is there are only 240 hedge funds left all bagholding. Any retailer that could juggle day trades was gone long ago. Leaves 240 hedge funds and the pensions that they manage so there is going to be a lot of un-needed pain delivered to people by proxy of these fools playing chicken with each other.
Eventually most of them will have to fall by the hand of the other financial agencies and increase pressure to weaken other elements in the squid.
They have no choice by a field of atrophying players to start to feed on one another. WE shouldn't be taking odds on VIX, ETF's, or Gold right now.
We should be building a Dead pool, and place odds of survival for each one of the 240. Like a pre-season pick. Pick eight, hope eight are dead by expiration and the usual rules.
If a fund gets a redemption notice they have some time before they have to refund the client's funds, sometimes months. Enough time not to have to dump huge positions all at once at the most illiquid times. However, it would make sense that if a large institution had a short position and they knew that some hedge fund was going to have to liquidate, they could front run the fund, drop the price dramatically to make sure the fund had to liquidate at that lower price. As for needing liquidity for margin calls, again when you receive a margin call you don't have to provide the funds the instant you get the call, you usually have until the end of the day at least, so again, why dump all at once at the most illiquid time.
"why dump all at once at the most illiquid time"
it is not so illiquid dude, it is the very beginning of trading in Chicago,--Chicago (and, by dint, Santelli "the PM godfather") is most active at the precise time that gold and silver are plummeting on the futures market.
Do you think Bernanke is calling some Chicago pit animal to "raid" or "dump" PMs? You are insane.
But I will admit, Bernanke knows "the dump" (from some of his last Q&A rhetoric).
I didn't suggest Bernanke was calling for a raid. I said an large institution front running when they know there will be big sell orders from someone who has to liquidate. As for the your suggestion the raids have happened at the most active times, you might want to look at a chart of DEC 12th and DEC 16th between 6:00 and 8:00pm EST. Tell me why again a HF fund would liquidate a position in the thinly traded overnight session?
Or a one or two to remain nameless (JP Morgan and HSBC) bullion banks would much like a lower short mark at year's end?
You guys at ZH (Max Kaiserians de facto--love Stacey) like to over-dramatize the "GREAT JPM SILVER SHORT" to the point of conspiracy theory without taking into account Hedge Fund transactions. Thus you underestimate the HF traffic and interest (different market and macro theories mixed) in PM.
You knew they'd be clearing out their positions before getting "long" for 2013.
Meantime, Ben tripled our "paper" reserves... thanks for nothing, jerk!
Ohh, I bet they're fucking sorry now! Price crashing like this and all, won't they be the bag holders!!! Soon they'll be wishing they'd got their hands on some USDs or USTs instead!
If you've got the upper hand of food reserves you can dictate whatever terms you want if the US's reserves fall more than they are wobbling on now. Brazil couldn't care less anymore about Washington's terms unless it gave up some sweet Oil pie, a big slice of it.
yup.....just converted all of my gold to USD and buried it in my backyard for my kids in 30 years........they should reall look back and see just how smart i am
Lol, they could sell it on ebay as a novelty item, like zimbabwe and weimar fiat.
That is a damn good idea. If they don't need them, they can pass that paper onto the grandkids, and so on - eventually, times gonna get tough and that paper's gonna be mighty handy!
Check from paraguay - 10 times YTD
http://www.abc.com.py/edicion-impresa/economia/ante-volatilidad-de-moned...
+ 1, nice find Fips!
I calculated they hold some 272,000 toz (8.8 tonnes).
Paraguay, putaz!
Can't read the language....but the picture is worth a thousand words. :)
according to this website below the first one my search engine generated, The Bank of Canada 3.4 tons of gold reserves, in 1965 we had 1, 023 tons gold.
http://www.24hgold.com/english/stat_country_detail.aspx?titre=central%20...
2, questions where did all of my countrys gold reserves go, and why does Paraguay have more than Canada.
I will need to do some more research on this, but my initial thought is WTF
Ask Mr. Rothschild
Mulroney!!!
Brazil just raised their bank lending MoM 10bps ... 1.4% to 1.5%
You can smell a massive trade war coming with the US bread basket.
Bull, the damn Portugeuse bastadz are fixing to eat this gold..
/o The games within games within malfeasance and graft are becoming more evident everyday, wake up neo..
Where is Brazil keeping it tho?
If this keeps up they will be filling the Tungston bars with Gold.
All the articles I read are just like this one...everyone buying......and holding....not day trading..but yet the price goes down.....someone could get an easy Nobel Prize if you could figure out the economic model of this move...and you could name the model after yourself...cool huh...and you get to wear a tuxedo when you pick up your prize
There are only three real possibilities of who is on the other side. We know that they either dont care about price, or dont have a choice.
1) A Soverign (most likely USA) is manipulating the futures market. Last time I check Benny does not really care about gold and does not talk about it. But they would be big enough to not care about the pricing
2) A fund is being liquidated. Maybe GLD? And yeah a margin clerk that is told to dump a massive book really does not care how he does it. Its the same thing if you have cancer in your toe, off goes the toe, wait its in the foot, off goes the foot....leg....etc.
3) Public is talking about holding, but have sold in reality, or more and more people are getting max pain. This is prob not the case because the big drops happen right before the market. Leaves me to believe someone is sending a message.
This is honestly some weird stuff. Dont know if the rubber band will fly back and over, or just break...
"someone could get an easy Nobel Prize if you could figure out the economic model of this move...and you could name the model after yourself...cool huh..."
How about the "Obama-Bernake-Geithner Cluster Fuck"? But then the prize would have to be split three ways...
I wonder if they know they can buy as much as they want? - just fire up the old BRL printing press and crank out the required amount of paper. I mean, fair is fair - if everyone else can do it...
EDIT - I probably forgot - I imagine you're only allowed to print up unlimited supplies of money AFTER you've spent way more than you take in. That's probably the catch for them.
Brazil - Oil, Gold and HOT WOMEN......
Time to retire and move....
Brazil believes in TRADITION too?
Sweet, just like Uncle Ben.
Man, I don't understand. With the price so smashed and gold being such a dangerous investment, why is Tulving "sold out" of so much gold inventory - those people are going to be very sorry for their misguided actions:) Thankfully, they still had some Kangaroos!
http://www.tulving.com/goldbull.html
JD
Apparently Brazil and the Vampire Squid are the only ones buying gold?
Jim Sinclair said today that this is the Great Train robbery he's been anticipating for a decade, and the Goldmans are massively going net long here and now!!
If Brazil just bougt 1 million ounces, imagine the buy orders the bullion banks are placing!
http://www.silverdoctors.com/jim-sinclair-metals-action-is-great-train-r...
Does goldman wake up every morning in dread looking at the chart? They are not the only one massively long...
The DXY down, printing QU up, Preezy in Chief....Gold should be on fire here...Im pulling out hair trying to figure this out. Its like I am walking on the ceiling
Just keep buying physical as you can, and do not worry!
My love for obama is the best investment i can make!
LMWAO!...pleease!
No need for this one to visist room 101.
Enjoy your Minute of Hate, sir.
By the way, don't forget....
If you see something, say....
The more the Cartel blatantly manipulates the metals the faster people wake up and rush out of fiat, not the other way around like they want us to believe. They are still living in a pre internet world. The people know who the perpetrators are and in the end history will repeat and they will be stripped of their wealth and incarcerated. This time there is no where to hide.
Incarcerated? How about "hanged from a nearby tree"?
Sure they bought gold and it was not enough to hold it up. Same with spoos, retail investors have taken 100's of billions out and yet they march straight the fook up.
It's amazing these countries have waited so long to build their stockpiles up.
You would have thought many countries would have woken up after Walter Mitty closed the window on gold in 1971
Everyone is not buying, but they will soon. Sure, central banks are buying, but not the guy on the street. Only about 3 in 100 of Americans own gold assets other than jewelry. And of this 3 percent, not many have a significant amount. The percentages are so tiny that it won't take much to create physical shortages. In my opinion, the public will not get interested until we get a new high in gold ($1925). Until then, we will have to be patient and wait. But once we get a new high, I think it will be off to the races and the upward trend will be hard to stop.
Gold stocks are literally on sale right now. They have gotten hammered the past 15 months. The HUI is at 425, which is extremely low in my opinion. The GDXJ and SIL ETFs are trading at incredibly low prices. This is a bottom in my opinion and it won't be long before we come out of it. We could easily rocket to a 600 HUI next year. If we get that plus a new high in gold, then we could be entering a major move into mining stocks.
www.goldsilverdata.com
Excellent comment! I have heard both 1% and 3% of Americans who own non-jewelry gold. Either number is still very low, and I am sure the median gold holding is not too high.
FOFOA says that it is not just increased public demand for gold, but the likely fact that PHYSICAL OWNERS WILL REFUSE TO SELL is what will drive gold to amazing numbers...
Selling your gold?
" Sure, central banks are buying, but not the guy on the street. Only about 3 in 100 of Americans own gold assets other than jewelry."
I have this dream where the average American runs to the bank to drain their entire savings and then takes that to the coin shop to buy 1/5 of an ounce of gold.
I think the ultimate gold valuation will be driven by the ascendent cultures in the east rather than American citizens "waking up". In fact, for all the gold bug confiscation fear I see everywhere, I can see gold being revalued to $12,000 overnight without the public noticing or forgetting about it in a week and then bitching about the price of gas.
Brazil buys at $1.8 billion a month while the Fed prints at $85 billion a month.
Why would any CB announce what they're buying or selling? Is it more market "adjustment"? Really don't understand
this stuff now. Nothing makes sense anymore.
The BOJ certainly isn't telling anybody that they're behind half of Tue Yen for gorudo scams here in Japan. Why tell?
They must have deposited it with the Fed or the BOE because I think I saw it hit the market this week. LOL.
Gold puta!
at these prices, one would be foolish not to.
Yes, what about physical delivery? When and where? Look at what they do, not what they say, was supposed to be the mantra.
Ah Ha....
I knew there was a reason for the lack of demand and a cliff dive on price.
fUCK THE BANKER SCUM.
So you are telling me that central bankers doubled up at the top. I'm not surprised.
I can double my pretend Gold reserves. It's easy.
print money buy gold, print more money buy more gold
print money short gold, print more more money short the fuck out of gold,
print moar money buy moar gold!
Repeat untill the gig is up!