Brazil Doubles Gold Reserves In Last 3 Months

Tyler Durden's picture

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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DoChenRollingBearing's picture

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?

gmrpeabody's picture

It would be much more entertaining if this were England buying here....

quintago's picture

It's not a coincidence that Venezuela's gold holdings are going down. This has to do with Iran

CPL's picture

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.

strannick's picture

Long as Brazil isnt storing at the B.O.E. Could Central Banks still be that stupid?

All In's picture

Brazil is buying unallocated "stored" at BoE. They ain't getting sight let alone possession. Fact.



Urban Redneck's picture

Are they even actually buying physical gold- or just swapping (on paper) for it again?

trav777's picture

Oil is money then, too. Nations trade it for things. Notice that the CBs aren't increasing their silver reserves.

SWRichmond's picture

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.


trav777's picture

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.

Likstane's picture

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!

tmosley's picture

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.

trav777's picture

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.


tmosley's picture

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.

akak's picture

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?

MeelionDollerBogus's picture

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.

WhiteNight123129's picture

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.


Matt's picture

I don't follow. Venezuala is an oil producer like Iran. Shouldn't they be getting more gold in exchange for oil?

CPL's picture

Nobody can make "enough" oil.  

DoChenRollingBearing's picture

@ quintago

I don't follow either, care to add some details?

quintago's picture

They are using Venezuela and Brazil to bypass sanctions.

Global Hunter's picture

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!!!

AmCockerSpaniel's picture

This does not mean much until they try to take physical possession of the gold.

nope-1004's picture



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.



redpill's picture

Central banks gobbling up gold left and right....and the price goes...down?

viahj's picture

the price gets smashed down so they can gobble up even more

DoChenRollingBearing's picture


" 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.

nope-1004's picture

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!

DoChenRollingBearing's picture

+ 1, Yes

"Do not sell your physical!"


DollarMenu's picture

The CBs may be grabbing all they can but, what are they getting?


If it's physical, where are they putting it?

They may grab, but unless they take away, they have nothing.

Global Hunter's picture

maybe brazil knows the score and is shorting paper and buying physical hehe

kliguy38's picture

thanks santa......just added more phyz.......its your only defense....well maybe your second only defense

Chupacabra-322's picture

Part of that Gold back reserve currency the B.R.I.C.S. are going to introduce in the near future. 

Winston Churchill's picture

Another BRIC in the wall for the dollar.

Global Hunter's picture

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.

buzzsaw99's picture

the sellers, those fools! [/sarc.]

Lost Wages's picture

You mean they increased their paper promises of some gold that they share with 100 other parties?

Global Hunter's picture

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.

Cognitive Dissonance's picture

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).

VonManstein's picture

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..

slaughterer's picture

" 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.  

Canadian Dirtlump's picture

paulson strikes me as a smart fellow which flies in the face of redeeming his gold by dumping it all at once.

slaughterer's picture

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).  

Global Hunter's picture

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.

slaughterer's picture

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). 



Winston Churchill's picture

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.

CPL's picture

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.




IEVI's picture

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.