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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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Thu, 12/20/2012 - 15:38 | 3083772 Karlus
Karlus's picture

Gold bitchez?

Thu, 12/20/2012 - 15:43 | 3083780 DoChenRollingBearing
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?

Thu, 12/20/2012 - 15:46 | 3083814 gmrpeabody
gmrpeabody's picture

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

Thu, 12/20/2012 - 15:50 | 3083823 quintago
quintago's picture

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

Thu, 12/20/2012 - 15:56 | 3083857 CPL
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.

Thu, 12/20/2012 - 16:16 | 3083937 strannick
strannick's picture

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

Thu, 12/20/2012 - 18:16 | 3084290 All In
All In's picture

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



Fri, 12/21/2012 - 00:45 | 3085743 Urban Redneck
Urban Redneck's picture

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

Thu, 12/20/2012 - 16:17 | 3083941 trav777
trav777's picture

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

Thu, 12/20/2012 - 16:31 | 3084005 SWRichmond
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.


Thu, 12/20/2012 - 18:04 | 3084262 trav777
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.

Thu, 12/20/2012 - 18:35 | 3084340 Likstane
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!

Thu, 12/20/2012 - 17:35 | 3084172 tmosley
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.

Thu, 12/20/2012 - 18:00 | 3084247 trav777
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.


Thu, 12/20/2012 - 21:34 | 3085026 tmosley
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.

Thu, 12/20/2012 - 21:51 | 3085066 akak
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?

Sun, 12/23/2012 - 21:06 | 3092018 MeelionDollerBogus
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.

Thu, 12/20/2012 - 17:56 | 3084232 WhiteNight123129
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.


Thu, 12/20/2012 - 15:59 | 3083873 Matt
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?

Thu, 12/20/2012 - 16:14 | 3083932 CPL
CPL's picture

Nobody can make "enough" oil.  

Thu, 12/20/2012 - 16:05 | 3083895 DoChenRollingBearing
DoChenRollingBearing's picture

@ quintago

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

Thu, 12/20/2012 - 18:03 | 3084256 quintago
quintago's picture

They are using Venezuela and Brazil to bypass sanctions.

Thu, 12/20/2012 - 16:23 | 3083968 Global Hunter
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!!!

Thu, 12/20/2012 - 17:12 | 3084121 AmCockerSpaniel
AmCockerSpaniel's picture

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

Thu, 12/20/2012 - 15:50 | 3083816 nope-1004
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.



Thu, 12/20/2012 - 15:55 | 3083845 redpill
redpill's picture

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

Thu, 12/20/2012 - 15:57 | 3083859 viahj
viahj's picture

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

Thu, 12/20/2012 - 16:02 | 3083882 DoChenRollingBearing
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.

Thu, 12/20/2012 - 15:58 | 3083863 nope-1004
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!

Thu, 12/20/2012 - 16:04 | 3083888 DoChenRollingBearing
DoChenRollingBearing's picture

+ 1, Yes

"Do not sell your physical!"


Thu, 12/20/2012 - 16:14 | 3083931 DollarMenu
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.

Thu, 12/20/2012 - 16:24 | 3083977 Global Hunter
Global Hunter's picture

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

Thu, 12/20/2012 - 16:29 | 3083996 kliguy38
kliguy38's picture

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

Thu, 12/20/2012 - 16:18 | 3083949 Chupacabra-322
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. 

Thu, 12/20/2012 - 16:25 | 3083982 Winston Churchill
Winston Churchill's picture

Another BRIC in the wall for the dollar.

Thu, 12/20/2012 - 16:29 | 3083993 Global Hunter
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.

Thu, 12/20/2012 - 17:34 | 3084159 Ookspay
Ookspay's picture

Oro Perras!

Thu, 12/20/2012 - 15:40 | 3083773 buzzsaw99
buzzsaw99's picture

the sellers, those fools! [/sarc.]

Thu, 12/20/2012 - 15:39 | 3083776 Lost Wages
Lost Wages's picture

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

Thu, 12/20/2012 - 16:32 | 3084004 Global Hunter
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.

Thu, 12/20/2012 - 15:40 | 3083777 Cognitive Dissonance
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).

Thu, 12/20/2012 - 15:50 | 3083815 VonManstein
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..

Thu, 12/20/2012 - 16:02 | 3083883 slaughterer
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.  

Thu, 12/20/2012 - 16:13 | 3083923 Canadian Dirtlump
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.

Thu, 12/20/2012 - 16:20 | 3083960 slaughterer
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).  

Thu, 12/20/2012 - 16:39 | 3084020 Global Hunter
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.

Thu, 12/20/2012 - 16:47 | 3084045 slaughterer
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). 



Thu, 12/20/2012 - 16:49 | 3084048 Winston Churchill
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.

Thu, 12/20/2012 - 17:34 | 3084167 CPL
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.




Thu, 12/20/2012 - 16:43 | 3084034 IEVI
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.

Thu, 12/20/2012 - 16:52 | 3084057 slaughterer
slaughterer's picture

"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).  

Thu, 12/20/2012 - 17:49 | 3084213 IEVI
IEVI's picture

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?

Thu, 12/20/2012 - 16:10 | 3083904 knukles
knukles's picture

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?

Thu, 12/20/2012 - 16:16 | 3083940 slaughterer
slaughterer's picture

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.  

Thu, 12/20/2012 - 16:27 | 3083987 AgShaman
AgShaman's picture

You knew they'd be clearing out their positions before getting "long" for 2013.

Thu, 12/20/2012 - 15:41 | 3083782 Jonas Parker
Jonas Parker's picture

Meantime, Ben tripled our "paper" reserves... thanks for nothing, jerk!

Thu, 12/20/2012 - 15:40 | 3083784 Al Huxley
Al Huxley's picture

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!

Thu, 12/20/2012 - 16:00 | 3083876 CPL
CPL's picture

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.

Thu, 12/20/2012 - 17:01 | 3084086 kliguy38
kliguy38's picture

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

Thu, 12/20/2012 - 17:39 | 3084176 Ookspay
Ookspay's picture

Lol, they could sell it on ebay as a novelty item, like zimbabwe and weimar fiat.

Thu, 12/20/2012 - 18:58 | 3084424 Al Huxley
Al Huxley's picture

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!

Thu, 12/20/2012 - 15:42 | 3083789 Fips_OnTheSpot
Thu, 12/20/2012 - 15:50 | 3083828 DoChenRollingBearing
DoChenRollingBearing's picture

+ 1, nice find Fips!  

I calculated they hold some 272,000 toz (8.8 tonnes).

Paraguay, putaz!

Thu, 12/20/2012 - 16:01 | 3083880 Cognitive Dissonance
Cognitive Dissonance's picture

Can't read the language....but the picture is worth a thousand words. :)

Thu, 12/20/2012 - 16:45 | 3084038 Global Hunter
Global Hunter's picture

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.

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

Thu, 12/20/2012 - 19:39 | 3084573 silverserfer
silverserfer's picture

Ask Mr. Rothschild

Thu, 12/20/2012 - 21:47 | 3085081 BigInJapan
BigInJapan's picture


Thu, 12/20/2012 - 15:44 | 3083795 Yen Cross
Yen Cross's picture

 Brazil just raised their bank lending MoM 10bps ... 1.4% to 1.5%

Thu, 12/20/2012 - 16:18 | 3083947 CPL
CPL's picture

You can smell a massive trade war coming with the US bread basket.

Thu, 12/20/2012 - 18:54 | 3084402 Calmyourself
Calmyourself's picture

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..

Thu, 12/20/2012 - 15:44 | 3083799 Debtless
Debtless's picture

Where is Brazil keeping it tho?

Thu, 12/20/2012 - 15:58 | 3083867 tradingdaze
tradingdaze's picture

If this keeps up they will be filling the Tungston bars with Gold.

Thu, 12/20/2012 - 15:45 | 3083802 youngman
youngman's picture

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 huh...and you get to wear a tuxedo when you pick up your prize

Thu, 12/20/2012 - 15:52 | 3083830 Karlus
Karlus's picture

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...

Thu, 12/20/2012 - 16:06 | 3083881 Jonas Parker
Jonas Parker's picture

"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 huh..."


How about the "Obama-Bernake-Geithner Cluster Fuck"? But then the prize would have to be split three ways...

Thu, 12/20/2012 - 15:49 | 3083811 Al Huxley
Al Huxley's picture

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.

Thu, 12/20/2012 - 15:49 | 3083819 Yamaha
Yamaha's picture

Brazil - Oil, Gold and HOT WOMEN......

Time to retire and move....

Thu, 12/20/2012 - 15:50 | 3083826 Bay of Pigs
Bay of Pigs's picture

Brazil believes in TRADITION too?

Sweet, just like Uncle Ben.

Thu, 12/20/2012 - 15:52 | 3083832 Duke Dog
Duke Dog's picture

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!


Thu, 12/20/2012 - 15:54 | 3083847 SilverDoctors
SilverDoctors's picture

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!

Thu, 12/20/2012 - 15:57 | 3083861 Karlus
Karlus's picture

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

Thu, 12/20/2012 - 16:06 | 3083896 DoChenRollingBearing
DoChenRollingBearing's picture

Just keep buying physical as you can, and do not worry!

Thu, 12/20/2012 - 15:55 | 3083849 Pooper Popper
Pooper Popper's picture

My love for obama is the best investment i can make!


Thu, 12/20/2012 - 16:15 | 3083913 knukles
knukles's picture

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....

Thu, 12/20/2012 - 15:57 | 3083860 jjsilver
jjsilver's picture

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.

Thu, 12/20/2012 - 16:04 | 3083894 Jonas Parker
Jonas Parker's picture

Incarcerated? How about "hanged from a nearby tree"?

Thu, 12/20/2012 - 16:00 | 3083874 punxsutawney phil
punxsutawney phil's picture

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. 

Thu, 12/20/2012 - 16:01 | 3083878 AgShaman
AgShaman's picture

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

Thu, 12/20/2012 - 16:03 | 3083886 Newager23
Newager23's picture

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.


Thu, 12/20/2012 - 16:29 | 3083908 DoChenRollingBearing
DoChenRollingBearing's picture

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?


Thu, 12/20/2012 - 16:17 | 3083946 ForWhomTheTollBuilds
ForWhomTheTollBuilds's picture

" 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.


Thu, 12/20/2012 - 16:13 | 3083928 JustObserving
JustObserving's picture

Brazil buys at $1.8 billion a month while the Fed prints at $85 billion a month.


Thu, 12/20/2012 - 16:20 | 3083953 Rustysilver
Rustysilver's picture

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.

Thu, 12/20/2012 - 21:52 | 3085119 BigInJapan
BigInJapan's picture

The BOJ certainly isn't telling anybody that they're behind half of Tue Yen for gorudo scams here in Japan. Why tell?

Thu, 12/20/2012 - 16:24 | 3083972 Quinvarius
Quinvarius's picture

They must have deposited it with the Fed or the BOE because I think I saw it hit the market this week.  LOL.

Thu, 12/20/2012 - 16:35 | 3084012 khotel
khotel's picture

Gold puta!

Thu, 12/20/2012 - 16:35 | 3084015 jomama
jomama's picture

at these prices, one would be foolish not to.

Thu, 12/20/2012 - 16:43 | 3084030 debtor of last ...
debtor of last resort's picture

Yes, what about physical delivery? When and where? Look at what they do, not what they say, was supposed to be the mantra.

Thu, 12/20/2012 - 16:51 | 3084054 Bansters-in-my-...
Bansters-in-my- feces's picture

Ah Ha....

I knew there was a reason for the lack of demand and a cliff dive on price.


Thu, 12/20/2012 - 16:54 | 3084061 mdtrader
mdtrader's picture

So you are telling me that central bankers doubled up at the top. I'm not surprised.

Thu, 12/20/2012 - 18:48 | 3084386 suckerfishzilla
suckerfishzilla's picture

I can double my pretend Gold reserves.  It's easy.  

Thu, 12/20/2012 - 19:44 | 3084599 silverserfer
silverserfer's picture

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!

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