Russian Gold Reserves Up 8.5% In 2012 - Palladium Reserves "Exhausted"

Tyler Durden's picture

From GoldCore

Russian Gold Reserves Up 8.5% In 2012 - Palladium Reserves “Exhausted”

Today’s AM fix was USD 1,656.75, EUR 1,232.43, and GBP 1,052.77 per ounce.
Friday’s AM fix was USD 1,670.25, EUR 1,243.39, and GBP 1,058.93 per ounce.

Silver is trading at $30.90/oz, €23.08/oz and £19.74/oz. Platinum is trading at $1,689.00/oz, palladium at $741.00/oz and rhodium at $1,200/oz.

Cross Currency Table – Bloomberg

Gold fell $8.80 or 0.53%% in New York on Friday and closed at $1,658.90/oz. Silver saw an initial gain hitting $31.77 in Asia, but it then slipped to a low of $31.11 in New York and finished with a loss of 1.45%. Gold was down 1.50% on the week, while silver fell a further 2.01%.

Gold in USD 2 Years – (Bloomberg)

Gold was slightly lower on Monday, as the poor short term technical picture dimmed bullion’s safe haven appeal.

European banks will repay more than 130 billion euros of crisis loans to the European Central Bank next week, making payments earlier than expected.

European leaders still warned although the single currency has stabilized the crisis in Europe has not abated, noting it will take years to recover and highlighted the mass unemployment on the continent. The euro is now on an eleven month high verses the U.S. dollar.

The U.S. CFTC numbers for the week finished January 22nd show that net long bets were raised for gold and silver.

The Standard & Poor's 500 Index closed above 1,500 for the first time in over 5 years on Friday on strong U.S. earnings reports, including Procter & Gamble's, helped the benchmark extend its rally to 8 days. 

Silver in USD, 2 Years – (Bloomberg)

Russia, Kazakhstan and Turkey expanded their gold holdings in December, seeking to diversify their foreign reserves and protect from currency devaluation risk.

Russian gold holdings climbed 2.1% to 957.8 metric tons or 30.793 million ounces, according to data on the International Monetary Fund’s website.

The increase in December takes the increase in Russian gold reserves in 2012 to 8.5%. 

The Russian central bank has said that they will continue buying gold. The pace of the purchases may vary, First Deputy Chairman Alexei Ulyukayev told reporters this month. 

He denied that there is a 10% target for gold’s share in the reserves according to Bloomberg

Kazakhstan’s gold reserves expanded 1.7 percent to 115.3 tons or 3.707 million ounces last month, and surged 41% over the year, the data showed.

Turkey’s holdings jumped 14.5% to 359.65 tons last month, according to the IMF data. The amount has increased due to it accepting gold in its reserve requirements from commercial banks. 

Philippines gold reserves fell 1% in November from October while Mexico’s holdings were down 0.1 percent in December to 4.004 million ounces, according to the IMF. 

Iraq cut its gold holdings by a quarter to 29.9 tonnes in November, reversing some of the country's recent efforts to bolster its reserves. 

Countries bought 373.9 tons in the first nine months of last year, according to the producer-funded World Gold Council, which said in November that full-year additions for 2012 would probably be at the “bottom end” of a range from 450 to 500 tons. Central banks purchased 456 tons in 2011.

Central bank diversification will continue to give long term support to gold.

Palladium in USD, 2 Years – (Bloomberg)

Tightness in the platinum and palladium markets has begun to see prices move higher.

Palladium reserves in Russia, the world’s largest producer of the metal, are “pretty much exhausted” and sales this year may be only 3 metric tons, according to Johnson Matthey Plc. 

Russian inventory sales dropped 68 percent to 250,000 ounces last year from 775,000 ounces in 2011, according to Johnson Matthey.

Shrinking Russian stockpiles at a time when output is falling helped send the metal into the biggest shortage in 12 years. 

Output in South Africa, the second-biggest producer, was disrupted by labor disputes and strikes, while lower grades contributed to a decline in Russia.

Palladium for immediate delivery has risen again today and is trading at $741/oz. Palladium, last quarter’s best-performing precious metal, has risen 5.4% this year after advancing 7.5% in 2012. 

Palladium supply declined 12% in 2012 to 6.48 million ounces on the South African disruptions. 

Platinum in USD, 2 Years – (Bloomberg)

Platinum supply dropped 10% to 5.68 million ounces because of declines in top producer South Africa, coming to less than the 5.84 million ounces forecast in November, according to Johnson Matthey.

Zimbabwe was the only major producing nation to increase output, Duncan said.

Platinum supply probably will be curbed further because of difficulties in South Africa, while auto catalyst demand is expected to stay “flat” this year, before a “much stronger” 2014, according to JM.


Gold Little Changed in Asia on Weak Technicals; Precious Metals ... – Wall Street Journal

Gold Climbs as Russia, Kazakhstan Central Banks Boost Holdings - Bloomberg

Russia, Kazakhstan Expand Gold Reserves as Central Banks Buy - Bloomberg

$80 Million Worth of Gold Flown Out; Officials Tight-lipped – Ghana Web

Silicosis suit could crush S.Africa’s gold mining sector – South China Morning Post


Video: Bianco and Marcin Like Gold, Expect Price to Rise - Bloomberg

How to profit from a plummeting pound – The Telegraph

Sinclair: Defend Yourself By Not Giving In – JS Mineset

US Facing Fresh Financial Shock to Economy - CNBC

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GetZeeGold's picture



Crazy Ivan......dead ahead.

sullymandias's picture

Same single source - Matthey - for this rumour about Russian Palladium supplies being exhausted. I've heard it repeated about 2 dozen times now and I think it's about 2 weeks old. I don't believe it. I think Russia just stopped selling. Why would they be selling their Pa and buying up their Au reserves at the same time? Quite the opposite they are preserving/increasing their stockpiles.

francis_sawyer's picture

Don't they use 'Palladium' in catalytic converters?


If that's the case, then there's PLENTY of it in all the idle "channel stuffed" cars sittin around waiting for CASH 4 CLUNKERS II to be rolled out...

AldousHuxley's picture

Russia learned their lesson after currency reset.


Americans' lesson learning momemnt coming soon...

Cast Iron Skillet's picture

I think the main element used is coldfusonium ... need to start stacking that, but I hear there are delivery problems.

disabledvet's picture

Reserves? Gold is CAPITAL as well. We all know interest rates are so low out of "fear that their capital won't be returned." for example Germany's so called "German gold" (how much was pledged to rebuild Germany after the war? All of it of course. "and then some") can only be repatriated over time. By "centralizing" gold reserves Russia and Turkey appear to be on the road to creating a Central Bank ala the an "implied gold reserve" that would be backed up by their own bailout regime. "this is why you don't go there." bailouts are the sugar here comes the competition over money itself. matter...that is why I'm sticking to my position that it is the RULE OF LAW that matters most and not some Hitler loving "triumph of the will" mularkey. Not because human will doesn't matter...but when that becomes the sole raison d'ete then confidence is undermined and no final demand is created. In short "only the Government wins." (again look at Germany. No Government over there? Just the opposite right?!)

LawsofPhysics's picture

Barbarians!  < sarc off >

achmachat's picture

this is the strangest situation ever as all the big players (e.g. central banks) keep buying record amounts of gold, while at the same time market prices for said gold seem to be falling or, at best, going sideways.

I need John Nadler to explain this to us in all seriousness.


GetZeeGold's picture



The big buyers keep buying and Ben Shalom keeps selling.......that will show them.


But you still can't get the stuff in Germany.

savagegoose's picture

boy will they be pissed when thy find out its all been sold to the chinese! :o

MassDecep's picture

Nadler sings the banksters tune. Banksters program algo's to desired price levels and trade amongst themselves to achieve. The ETF's and lack of prosecution back this policy. Cannot let prices soar yet. Must instill faith in Fiat.

TotalCarp's picture

Murky as hell, a lot of subcurrents here. i dont buy the story of asset rotation at this time, but if the rates bounce hard again gold will get slapped, at least for a short while.

Charts look awful, stackers keep buying but the reality is that for the moment the "traders" are keeping very nimble, supports at 1650 and 1550, down trend has been tested 3 times and held.

I am sure the buy and hold crowd will down arrow this, but it really looks like you will be able to buy (and hold) soon at a better price. My personal feeling is too many weak hands in gold, until the gullible suckers will not get cleared out there will be no new push to 2k.

LawsofPhysics's picture

Rates cannot rise for the foreseeable future, period.  Far too many sovereign governments would default in an instant.

TotalCarp's picture

Not true, Laws. They dont need to climb in parallel on the entire curve but we are likely to start seeing curve dislocations soon enough as holding entire curve down will become unfeasible (ie there will be selective monetization - look at boj allocating majority of qe to short dated paper). Also i do understand your point but it wont happen "in an instant".

The trap is certainly set, the and the slide will progress in a geometric fashion, but not in an instant. 

LawsofPhysics's picture

Go ahead, let the 10 year yeild climb above 2.0%.  You care to make a wager that it will never happen?  Rates might not rise "in an instant", but time is relative and in terms of a state or country's history, currancies sure as hell can die in an instant. Many examples of that.

So many paper promises, so little collateral and assets of real value.

TotalCarp's picture

You dont need me to make that wager.. plenty of ways to trade that view if you have enough balls for that. But good luck. 

Do tell me when was the last time a reserve currency of a country with the dominant military died in an instant? Look back all the way to Alexander the Great, Rome, etc etc. Seriously go back 3k years, pls tell me if i am wrong on this. Ccys die i do agree but the sudden cliff did not happen in histrory of main global ccys. 

Wars and taxation come first, then slow creaping devaluation. "thinning out" of silver coins is how it was going down in Rome. Check it out. 

LawsofPhysics's picture

Again, relative to the several hundred year lifetime of England they lost over 40% of their "wealth" in the pound when they lost reserve status after WWII (with a very dominant military).

Like I said, so many paper promises, so little collateral.

I remain long revenue generating and defensible phyical assets of all kinds and dependable employees.

being in agriculture, I have faith that there will always be demand for our products.

fonzannoon's picture

Spot on Totalcarp. Too many weak hands. Traders still having fun, and it does look like rates might climb a bit. Hard to argue any of that.

a growing concern's picture

From Bruce's reading of things, the Bernank may try to get the Fed policy back to a neutral position for his successor by the slow reversal of ZIRP, which would be negative for PMs.  I just don't see how ZIRP can be undone at this point, as the US's borrowing and refinancing costs would render the debt unmanagable instantly.  Unless that's the plan.

TotalCarp's picture

I suspect they wont touch front end of the curve - as you say they cant. what will likely see is slow but steady levitation of 10y and out to begin with as a test case. This is unlikely to slam PMs but will certainly send cash out of the govvies and PMs into the private sector assets. 

GetZeeGold's picture



End ZIRP and commit's a way to go I guess.

DanDaley's picture

Like Peter Schiff says, sooner or later interest rates must rise, not because of the debt ceiling, but because of the credit ceiling; who wants to buy your crappy debt and not get seriously paid for it? Then it's inflate or default time; let's hope we have the wisdom to choose correctly.

Karlus's picture

Govt will buy your debt as they are the only ones that can backstop a loss with printing. There is a reason why the GSE's are the only one that will buy a loan from an originator.

LawsofPhysics's picture

"they are the only ones that can backstop a loss with printing. "


Works until those paper promises are no longer accepted.  Tell me, what is the price of something no one wants?  Even better, what is the "price" of something I refuse to sell?

AgAu_man's picture

^ green to LoP.  The ONLY reason in the world that the Fed's Ponzi scam is still ongoing and why they could beat the USSR into fiat-death, was that the Fed is the only one with the GRC (Global Reserve Currency) printing press.  Communism was a Fool's Errand and the 'cover' for the MIC to expand the USD base, along with its own mil.bases.  For all their brains, the KGB did/could not figure out this Magician's Trick... they were too busy pursuing the distraction, to go after the real (GRC/Fiat) action.  I think they learned their lesson now.  As have the Chinese and... many others.

If you kill the GRC press, you kill the fiat beast.  And that is why the Elite/TPTB/TBTF are 1,000% (100% times 10x for FRB) for undermining, impoverishing, marginalizing or -- if need be -- destroying any person, group or country:  To keep their Ponzi-Press going for their own benefit.  For those still tempted by other side-shows:  Take your ADD pill!

TideFighter's picture

Production is Stalin, Putin' the Hammer down.

edifice's picture

Because they were Lenin' and leasin' it all.

Village Smithy's picture

All around the world governments are buying up gold with both hands while the U.S. government colludes with Blythe and Co. to suppress the price. All this in an attempt to convince the sheeple that it's nothing but "a barbourous relic".

Cookie's picture

The USA has influence in the only 3 sellers of gold

youngman's picture

I don´t think there are any weak hands holding gold and silver now.....they were washed out two or three years its the phsycial vs the paper war going on..I think the German 7 year return was the fist big battle the physical guys won...there will be more as the physical disappears....and the problems will come to light in missed or delayed deliveries...this year is going to be the battleground year..physical will not move once it is bought and put in a safe....while paper will be all over the place..expecially at the end will be like holding Enron stock...

TotalCarp's picture

Anecdotally i hear of too many retail types who would never consider physical getting into gold in the last 6 months. waaay too many. these are the weak hands, and i think there has been an influx.

sorry i have no numbers to confirm this, but the price action certainly is not reassuring at the moment - unless you think its all one big JPM conspiracy. 

Sudden Debt's picture

Gold is like water. You don't need it untill you don't have any in the middle of a desert.


_ConanTheLibertarian_'s picture

Come on Russia! My gold reserve is 50% and I did it in one go. You can do it too.

blabam's picture

"Iraq cut its gold holdings by a quarter to 29.9 tonnes in November, reversing some of the country's recent efforts to bolster its reserves." 

They were bolstering their reserves? I guess they got the memo.

AgAu_man's picture

Duh, yeah, they are offsetting the 'unbolstered' gold from the days of Shock & Awe.  How are they gonna 'bolster' all that Babylonian antiquity that also vanished around the same time?  Needed for the rebuilding of a Baal temple?  ;-)

edifice's picture

Once they magically find more reserves, they need to re-issue the Ballerina coin. They are beautiful!

Broomer's picture

Yes, very beautiful.

However, having Palladiy .9995 written on them wouldn't hurt.

Meanwhile, I'm staying with the Maples.

Edit: why can't I post Russian letters?

Likstane's picture

Russians are private people.  They don't need their dirty laundry aired.

TWSceptic's picture

Palladium may be a good investment in the coming years as supply is limited, the problem lies with demand. If one believes that the recovery is phony then at best that is a limiting factor for the palladium price.

Broomer's picture

Oh, by the way... this weekend USGS released data for commodities production in 2011.

Gold production was 2,660 metric tons, above the previous record from 2001.

We have a new production peak.

AgAu_man's picture

Per Turk's interview with Chris Martensen last week (, Turk said there are two CB camps regarding AU: 1. The US-controlled and dominated CB's are shorting/selling gold, while 2. The rest, i.e. non-Fed-controlled or dominated CB's are buying gold.  And an increasing number of them are bringing it home from London, Paris, NY.

Kitco's Jon Nadler cited a pro-Fed prognosis from banks (including the recently-spanked HSBC) for PM-bashing: 

Personally.. I'm in the Fed-zone, but am 'longing' and expatriating the hard-PM from the Fed-zone.  Thank you Fed and BOC, for making the prices affordable.

In 'gratitude' to Bernanke & Buffe(t), here's a little number for you -- sing along per Bon Jovi's song "You give Love a Bad Name:

"An angel's smile, it's what you sell, you promise me heaven then put me through hell.  Chains of fiat got a hold on me, with presses and prisons -- you can't break free.  Whoa, whoa, you're a loaded gun, whoa whoa there's no place to run, no one can save me from the damage you've done.  Shot through the wallet and you're to blame, you give gold a bad name, I played my part and you play your game, you give gold a bad name.  A bad name." [machine-gun like guitar riff... time for war with 'Oceania'].

Bansters-in-my- feces's picture

This article makes me understand better why Gold is going down in price,with countries increasing thier reserves and all.
Demand usually drives prices down ....right...?

Ps....Fuck yous at the USA Treasury and the ESF terrorism account that yous use in your Precious money suppression game....
......................Fuck Yous...............

Curt W's picture

The world is fore seeing a lack of confidence in fiat currency.

I read at least a dozen stories this weekend about central banks easing.

And the smart countries are repatriating their gold or actively buying more.

AgAu_man's picture

It's a real beaut' and real CAD currency (that can't be confiscated), but not everyone has Paypal.  Do you take Plastic?  BTW, your 22K is competing against the 1/2 Oz. 24K (0.9999)  Golden Maple:, going at $880.

stiler's picture

what do u guys think of this analysis (ifyou can get past the intro):