Iraq Quadruples Gold Reserves In Two Months - First Time In Years

Tyler Durden's picture

From GoldCore

Iraq Quadruples Gold Reserves In Two Months - First Time In Years

Today’s AM fix was USD 1,648.25, EUR 1,246.97 and GBP 1,014.56 per ounce.
Yesterday’s AM fix was USD 1,667.00, EUR 1,259.25 and GBP 1,024.96 per ounce.

Silver is trading at $29.89/oz, €22.73/oz and £18.49/oz. Platinum is trading at $1,551.25/oz, palladium at $673.00/oz and rhodium at $1,040/oz.

Cross Currency Table – (Bloomberg)

Gold was down $20.60 or 1.23% in New York yesterday and closed at $1,648.70/oz. Silver dropped to as low as $29.592 and finished with a sharp loss of 3.66%.

Gold is marginally lower in dollars today and on course for its largest weekly drop since June (-2.6%), as COMEX speculators continue to have the upper hand over store of wealth buyers including central banks.

Prices fell below $1,650 an ounce on Thursday for the first time since August despite strong fundamentals which have not changed. 

Gold has come under pressure from heavy liquidation by hedge funds and banks on the COMEX this week. The unusual and often 'not for profit' nature of the selling, often in illiquid Asian trading, has again led to suspicions of market manipulation.

Short sellers, technical and momentum traders have the upper hand and are pressing their advantage in these less liquid holiday markets. Nervous longs are being stopped out through stop loss orders and concerns regarding the clear downward short term trend.

The recent drop in the gold price has resurrected physical purchases in the market keeping premiums steady at $1 to $1.10/oz above London prices.  

"Definitely, there's physical buying. It's from all over the place. Physical dealers are buying" a physical trader in Singapore told Reuters.

Despite the recent weakness, bullion is 5.6% higher this year in dollar terms and barring a massive year end sell off looks set for a 12th annual gain.

The standoff between the White House and Congress over the 'fiscal cliff' turned into a public relations crisis last night when John Boehner, Republican House Speaker, was humiliated by not being able to gain enough support to secure passage of his own bill.

Gold will be supported by the strong likelihood that central banks will continue buying bullion after data showed Brazil boosted its reserves for a third month, Russia continued to diversify into gold and Iraq entered the gold market for the first time in many years and quadrupled their gold reserves in just two months. 

Brazilian holdings expanded the most in 12 years, rising 14.7 metric tons in November. The nation’s holdings doubled since August. Russia’s bullion reserves increased by 2.86 tons to 937.8 metric tons in November.

Central banks have bought 426.5 tons of gold so far this year.

Currency Ranked Returns, GBP – (Bloomberg)

Iraq quadrupled its gold holdings to 31.07 tonnes over the course of three months between August and October, data from the International Monetary Fund showed on yesterday.

The IMF's monthly statistics report showed the country's holdings increased by some 23.9 tonnes in August to 29.7 tonnes.

That was followed by a 2.3-tonne rise in September to 32.09 tonnes and then a cut of 1.02 tonnes in October to 31.07 tonnes.  There was no data for November.

It is Iraq's first major move in years to bolster its gold reserves.

More recently, Brazil raised its gold holdings by 14.68 tonnes, or 28 percent, in November, bringing its bullion reserves to 67.19 tonnes.

The addition comes on the heels of an even bigger increase in October when the South American country added 17.17 tonnes to its reserves. In September, it increased holdings by 2 tonnes.

Meanwhile Turkey cut its gold holdings last month by 5.84 tonnes to 314 tonnes from October. The country allows commercial banks to use gold as collateral for loans, and changes to its balance sheet are often connected to such activity.

Belarus upped its reserves by 1.39 tonnes to 42.7 tonnes, while Russia, which had both bought and sold gold on a number of occasions this year, increased its holdings by 2.86 tonnes to 937.8 tonnes.

Currency Ranked Returns, EUR – (Bloomberg)

The central bank of Iraq’s quadrupling of gold reserves is important as there are many oil rich nations in the world with sizeable dollar and euro currency reserves and only a small allocation to gold by these central banks alone could lead to higher gold prices.

The smart money will continue to dollar cost average and buy gold on dips.

(Bloomberg) -- Turkish Jewelers Offer to Act as Gold Dealers for Banks
Turkish jewelers, which have lost business after banks campaigned to collect gold from individuals, are seeking cooperation with lenders, Sabah newspaper reports.

“No one can collect gold stuffed under the pillow better than jewelers,‘‘ Sabah quotes Alaattin Kameroglu, chief of Istanbul Chamber of Jewelry, as saying. ‘‘We seek to act as dealers for banks in gold collecting.”

So-called “under the pillow” gold in Turkey totals between 800-1,000 tons, Kameroglu predicts

Banks have been able to collect between 15-20 tons of this amount: Kameroglu

(Bloomberg) -- Sudan Central Bank Sees Gold Exports at 50 Tons in 2013
Country exported 43 mt of the precious metal in 2012, worth $2 billion, state-run Suna news agency says, citing Central Bank Governor Mohamed Khair al- Zubair.

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


Gold, silver futures sink as fiscal talks stall – Market Watch

Gold Poised for Worst Week in Six Months on U.S. Budget Talks - Bloomberg

Gold near 4-month low on U.S. budget talks standoff - Reuters

House Republicans cancel Plan B tax vote – Market Watch


Gold’s Woes Won’t Last – We’re Heading Back To $1,800 - MoneyWeek

Brazil Doubles Gold Reserves In Last 3 Months – Zero Hedge

Putting It In Perspective: In 2013 The Fed Will Conjure Enough Paper Money To Buy 11% Of All Existing Gold – Zero Hedge

Move Of Desperation By The Fed – JS Mineset

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falak pema's picture

Now we know why gold price HAS to fall, its a national security risk! 

GetZeeGold's picture



Hey, we didn't declassify did you know?

trav777's picture

ZH has raised its shameless silverbugz doomer goon reserves by 1000%

GetZeeGold's picture



So, are you looking to buy some?

Manthong's picture

Iraq’s gold IS held in New York for safekeeping, isn’t it?

JonNadler's picture

Trav, my brother where have you been hiding? I thought you had given up on us and cowardly run away or changed your screen name to something like MillionDollarBonus or Orly or something.

Welcome back my disengenious, lying, manipulating good buddy

JonNadler's picture

Trav, also please remind all the guys to spread the word about making sure gold bugs are ridiculed at the Christmas table. It's a great time to  intimidate these shmuck gold bugs, HA HA. Even though they saw  this huge drops happen a million times, they still get scared by them and makes them think the gold bull is over, even Goldman said so HA HA HA HA HA

falak pema's picture

wikileaks squeaks and million $ MIC built aircraft carrier toilet seats that need to get paid in devalued gold!

It all adds up and its hanging from the government's nose! 

malikai's picture

Wait, Iraq? What?

krispkritter's picture

GetZeeShaved "Wait, Brazilian? What?"

malikai's picture

Brazil makes sense. We didn't free the living shit out of them with nuclear projectiles.

Iraq, on the other hand...

krispkritter's picture

Makes you wonder if all those boxcars of Bennie Bucks that we shipped over are being used for this...

Disenchanted's picture




Didn't see your comment before I posted mine, but I provided a pic of what you refer to below.

GetZeeGold's picture



We didn't free the living shit out of them with nuclear projectiles.


True, but they're already pumping oil....which is why we had to send all our rigs from the Gulf to Brazil. Think about it a bit and it will all start to make sense.

Inthemix96's picture

When is the "O" gonna send your boys over to free the shit out of that then?

Week on Tuesday?


Bastiat009's picture

"The recent drop in the gold price has resurrected physical purchases in the market keeping premiums steady at $1 to $1.10/oz above London prices."

Who writes that crap?

fuu's picture

Goldcore, says so right at the top.

achmachat's picture

makes perfect sense. National banks all over world openly massively try to stack gold... and as a consequence the price of gold is free-falling.

maybe the Mayans were saying that at the end of their calendar, logic as we know it dies?

youngman's picture breaks all economic rules.....screws up my mind....but I am pounding Eggnog now...

JPM Hater001's picture

New era.

Gold back currency...backed by the Central Bank of Serpa.

Chupacabra-322's picture

Hey!  Wait a minute here.  Isn't that THE UNITED STATES GOLD.  We must be slipping.  I thought we had the invading Soverign Foreign Country and stealing their Natural Resources thing down to a pact. 

PaperBear's picture

Washington DC will have to find an excuse to invade Iraq a second time 10 years after the first invasion.

Disenchanted's picture




You can argue the source but(Dec. 9, 2012):


3,000 US troops secretly return to Iraq via Kuwait


I would argue this part:  "All US troops left Iraq by the end of 2011"

Disenchanted's picture



Now we know what happened to all of these...


How the US sent $12bn in cash to Iraq. And watched it vanish

(February 2007)


Now blow some more smoke up my ass about this 'fiscal cliff' situation.

krispkritter's picture

I would have pulled a DB Cooper with a couple pallets and/or crashed that $2.4Bn bitch close to my backyard. Amazing...and to think this happened after they 'lost' 1+Tn off the books the day before 9/11. Things that make you go...WTF!!

Disenchanted's picture



Exactly! Actually I think it was over 2 Trillion$ mentioned on 9/10/2001.

JustObserving's picture

It was $2.3 trillion and worth a shade over $3 trillion in today's dollars.  We have this fiscal cliff spectacle about $1 trillion in budget reduction over 10 years but $3 trillion vanished without any accounting and the lamestream media never mentions it.

Disenchanted's picture




and then after that in 2008 through the present there was the untold trillion$ in bankster/corporate 'bailouts'



ParkAveFlasher's picture

I imagine $3T would buy an awful lot of silence, gents, among other things.

stateside's picture

Gold has come under pressure from heavy liquidation by hedge funds and banks on the COMEX this week.

When you are clueless to a fall, blame it on the old fall back "liquidation".  So these hedge funds are 100% in gold and need to liquidate?  Liquidate for what?  I thought hedge funds hold gold to "hedge' their other investments.  I'm sure 99.99% of these hedge funds also hold stocks and stocks are doing quite well.  No need to liquidate gold to cover stock losses.  Why doesn't anyone liquidate their stocks or treasury holdings?  Why just gold and silver?  These guys who write these columns crack me up - they really haven't a clue.


Illya Kuryakin's picture

For every buyer there is a seller. For every seller there is a buyer. This post is meaningless.

GetZeeGold's picture



How much hot air can I put you down for? I hope you don't actually expect me to deliver it.

youngman's picture

That is TRUE only if the units or things you are selling is a finite number.......but our bankers have invented paper they can increase the units by paper..not by actually making or producing something...that is why the market is broken and how it can be manipulated.......think to your self....why does a Cental Bank Loan out its gold....?????? seems wierd to me...and why does the gold ETF GLD not allow you to cash in your stock for gold..and why does the Treasury never audit the gold of the USA????

Bastiat009's picture

It's just after 8 in NY. Big gold move coming? Where will it go today? All bets are off. Let's enjoy the show...

sudzee's picture

Oil for gold bitchez.

JonNadler's picture

what's the matter with these savage wretches? Don't they know they are supposed to try to imitate their intellectual superiors in the West

magpie's picture

Don't worry, those decadent orientals will expend it on opium and dancing girls.

Papasmurf's picture

I would too, if I had it.

Pseudo Anonym's picture

Iraq quadrupled its gold holdings to 31.07 tonnes over the course of three months between August and October, data

and iraq will keep it until it's re-stolen by ameerika to appease the hofjuden

CheapBastard's picture

Soon USA banks will accept gold as collateral.

phoolish's picture

phunny that w/ all this central bank buying (Chins, Brazil, this) ... price is collapsing.  Think they don't want to pay "retail."



viahj's picture

exactly, they have pallets of Bennie Bucks to slam down the paper price and pick up physical on the cheap, that's what I'd do if I was a central bank, then I'd commit sepuku because I would have no honor.

A82EBA's picture

I cant remember who was discussing it but a while back some of you were saying maybe CEF was maybe a least dirty shirt gold play, is that still the case? I have phyz but I like very short term gold paper play and still hanging on to my CEF, advice i picked up from ZH

PMakoi's picture

Seriously, on this Brazil, any of the IMF "gold sales"..., has anyone seen any documentation of physical deliveries of these tonnes-like quantities??  Are these real physical transfers, or is it all paper??

Northeaster's picture

This must mean the Dinar will RV soon right?



lasvegaspersona's picture

what is most interesting is why China buys in dribs and drabs. If they want gold why not just take a fraction of their bond holdings and buy all the gold that exists?

I suspect this is because they can not. There  is not a pool of physical in any public market they can purchase. I suspect they must acquire in secret or at some higher price (to get gold in quantity) from other central banks willing to sell.....the BIS? 

Any way why don't the Chinese just lay out $50 billion and get a thousand tons? Instead they purchase a few hundred tons 'via Hong Kong'? Come come now....that does not make sense. I'm guessing that the market for physical gold in large amount exists only on a secret, central bank level.

PMakoi's picture

Possession is 9/10ths of the law, and in any new "money" system.  The arguments about whose paper is worth what, will be another field day for lawyers.

Hold fast!

madcuban's picture

I don't understand.  Withall these reports of adding gold reserves at home by all these countries, why isnt the price of Gold going up?  These are massive increases.  Or are these countries just taking delivery of gold they already owned but were sitting in someone else' vault?