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Guest Post: Whom To Believe On Gold: Central Banks Or Bloomberg?

Tyler Durden's picture





 

Submitted by Jeff Clark of Casey Research,

Bloomberg reported recently that Russia is now the world's biggest gold buyer, its central bank having added 570 tonnes (18.3 million troy ounces) over the past decade. At $1,650/ounce, that's $30.1 billion worth of gold.

Russia isn't alone, of course. Central banks as a group have been net buyers for at least two years now. But the 2012 data trickling out shows that the amount of tonnage being added is breaking records.

The following table lists the countries that have added to their gold reserves this year, while the second one tallies those that have been selling. You'll see how recently each country has reported, along with its percentage increase.

Changes in Central Bank Gold Reserves in 2012 (Million Troy Ounces)
 
Year-End 2011
YTD 2012
Last Reported
Net Change
Percent Change
Countries Increasing Reserves        
Turkey
6.28
11.56
Dec
5.283
84.1%
Russia
28.39
30.79
Dec
2.405
8.5%
Bank for International Settlements
15.6
16.71
Dec
1.114
7.1%
Brazil
1.08
2.16
Dec
1.08
100.0%
Philippines
5.12
6.2
Nov
1.079
21.1%
Kazakhstan
2.64
3.71
Dec
1.07
40.5%
South Korea
1.75
2.71
Nov
0.965
54.9%
Iraq
0.19
0.96
Nov
0.773
405.3%
México
3.41
4
Dec
0.596
17.3%
Paraguay
0.021
0.263
Sept
0.242
1152.4%
Ukraine
0.9
1.14
Dec
0.239
26.7%
Belarus
1.21
1.37
Dec
0.164
13.2%
Tajikistan
0.15
0.2
Dec
0.05
33.3%
Brunei
0.06
0.09
Oct
0.031
50.0%
Mozambique
0.08
0.11
Oct
0.025
37.5%
Serbia
0.46
0.48
Nov
0.022
4.3%
Jordan
0.41
0.43
May
0.02
4.9%
Kyrgyz Republic
0.08
0.1
Dec
0.014
25.0%
Greece
3.59
3.6
Dec
0.008
0.3%
Mongolia
0.11
0.12
Nov
0.004
9.1%
Suriname
0.071
0.074
Dec
0.003
4.2%
South Africa
4.02
4.02
Nov
0.003
0.0%
Moldova
0
0.002
Dec
0.002
 
Bulgaria
1.28
1.28
Dec
0.001
0.0%
Pakistan
2.071
2.072
Dec
0.001
0.0%
       
 
 
Subtotal Gross Increases  
15.2
 
Changes in Central Bank Gold Reserves in 2012 (Million Troy Ounces)
 
Year-End 2011
YTD 2012
Last Reported
Net Change
Percent Change
Countries Decreasing Reserves        
Sri Lanka
0.32
0.12
Sept
-0.204
-62.5%
Germany
109.19
109.04
Dec
-0.159
-0.1%
Czech Republic
0.4
0.37
Dec
-0.028
-7.5%
Macedonia
0.22
0.22
Dec
-0.001
0.0%
France
78.3
78.3
Dec
-0.001
0.0%
Malta
0.01
0.01
Dec
-0.001
0.0%
           
Subtotal Gross Decreases  
-0.39
 
       
 
 
Total Net Change      
14.8
 
Sources: IMF, CPM Group. Data as of 1-31-13.

Based on current data, the net increase in central bank gold buying for 2012 was 14.8 million troy ounces – and that's before the final 2012 figures are in for all countries.

This is a dramatic increase, one bigger than most investors probably realize. To put it in perspective, on a net basis, central banks added more to their reserves last year than since 1964. The net increase – so far – is 17% greater than what was added in 2011, which was itself a year of record buying.

Here's a picture of total central bank reserves since the financial crisis hit.

Whatever gold's price movements, positive or negative, central bank officials have continued adding a lot of ounces to their reserves.

But this understates the case, because most of the data exclude China, as well as a few other small countries. China last officially reported gold reserves in 2009, so the totals in the chart since then exclude whatever its purchases might have been.

Here's where it gets interesting: Bloomberg claimed that Russia has been a bigger buyer of gold over the past decade than China – by a full 25%. Based on data about gold imports through Hong Kong and the fact that, for the most part, Chinese production doesn't leave the country, it seemed to me that this could not be right.

The Chinese central bank holds an official 1,054 tonnes of gold in its reserves. Bloomberg states, based on IMF data, that China has added somewhere around 425 tonnes over the past decade.

I can't say exactly what the correct number is, but the Bloomberg number almost has to be wrong. Here's why:

  • Gold imports through Hong Kong in December alone hit a record high of 109.8 tonnes.
  • Imports for 2012 also hit a record high of 572.5 tonnes.
  • If you add 2012 mine production – remember that China is now the world's largest gold producer – roughly 970 tonnes of gold was delivered to various entities within the country last year.
  • Cumulative imports since 2001 have reached 1,352 tonnes.
  • Since 2001, imports plus production total a whopping 4,793 tonnes.

So Bloomberg is essentially saying that roughly 10% of the total gold available inside the country during that period was added to China's reserves. While it's true that Chinese citizens are buying a lot of gold (though perhaps more silver), it's highly doubtful that private parties bought 90% of all the gold brought to the Chinese market during this period. I think – but can't prove – that China's central bank is buying more gold and at a faster pace than its Russian counterpart.

Jim Rickards, a highly respected author and hedge fund manager, said last month that China has probably already accumulated between 2,000 and 3,000 tonnes of additional gold reserves. If he's right, that would be roughly double or triple the 1,054 tonnes it reported in 2009 – not the 40% increase Bloomberg's numbers suggest.

At the very least, we can say that the Bloomberg report left consideration of China's imports and production out of its report naming Russia the top gold buyer of 2012. Okay…but so what?

Well, Jim thinks the next big catalyst for gold will be an announcement from China about its reserve position. Here's what he told me in late December:

"The catalyst for a spike into the $2,500 to $3,000 price range for gold will be an announcement by China, probably in late 2013 or 2014, that they have acquired 4,000 tonnes or more in their official reserve position. This will put China on an equal footing with the US in terms of a gold-to-GDP ratio, and validate gold as the real foundation of the international monetary system. Once that position is validated, gold will move to the $7,000 range in 2015 and beyond."

Even if Jim's estimate is high or China doesn't make an announcement until later, it's clear that central banks around the world are buying gold in record quantities.

It almost makes you wonder… do they know something we don't?

The Russians gave us some hints.

Evgeny Fedorov, a lawmaker for Putin's United Russia Party, said last week, "The more gold a country has, the more sovereignty it will have if there's a cataclysm with the dollar, the euro, the pound, or any other reserve currency."

President Vladimir Putin told his central bank not to "shy away" from the metal, adding "After all, they're called gold and currency reserves for a reason."

The Chinese have been quiet on this topic recently, after being very vocal a few years ago. Here's a recent quote.

"The current international currency system is the product of the past," said Hu Jintao, General Secretary of the Communist Party of China.

Others have provided clues as well.

"We're in the midst of an international currency war," said Guido Mantega, finance minister of Brazil.

"Quantitative easing also works through exchange rates… The Fed could engage in much more aggressive quantitative easing, to further lower the dollar," said Christina Romer, former chair of the Council of Economic Advisors.

Economist Kyle Bass recently spoke to a senior member of the Obama administration about its planned solutions for fixing the US economy and trade deficit. When he asked, "How are we going to grow exports if we won't allow nominal wage deflation?", the answer he got was, "We're just going to kill the dollar."

Yes, we're talking about the US dollar. Perhaps some investors have gotten complacent about the risks to the world's reserve currency – but not central bankers. It's not hard to see why: whether they admit it or not, central bankers must know what it means to run the printing presses the way the US has since 2008, even if price inflation is not immediately obvious. It's no surprise they want to hedge their bets, moving more reserves into something with actual value... something that can't be debased by a few computer keystrokes by an increasingly unfriendly government.

The US dollar has been the world's reserve currency since WWII. That's beginning to change, and the movement into gold is just one facet of that change. The buying by central banks is exactly what one would expect to see as we approach the end of the dollar hegemony.

The message from central banks is clear: they expect the dollar to move inexorably lower. It doesn't matter that it's been holding up against other currencies or that the economy might be getting better. They're buying gold in record amounts because they see a significant shift coming with the status of the dollar, and they need to protect themselves against that risk.

This leads to a second message: gold is not overpriced, in spite of the 500%+ increase since 2001. Indeed, with the recent correction, central banks are likely buying more, even as you read this.

Central bank gold buying will continue, of that we're certain. Even after Putin's binge, gold accounts for only 9.5% of Russia's total reserves. China's 1,054 tonnes is roughly 2% of its reserves. It's clear that both countries, along with others, have decided to accumulate as much gold as they can, as quickly as they can, before the dollar's decline becomes more pronounced... and permanent. This could explain why some central banks don't publicize their purchases. It also means that Bloomberg and other mainstream media outlets could be caught off guard when China announces higher gold reserves than expected – perhaps much higher.

Clearly we should take notice. If central banks are preparing for a major change in the value of the dollar, shouldn't we? The fact remains that the US dollar cannot and will not survive the ongoing abuse heaped upon it by government planners and federal officials. That not only means the gold price will rise, but that many, if not most currencies, will lose a significant amount of purchasing power. This has direct implications for all of us.

Embrace the messages central bankers are telling us – the ones they tell with their actions, not their words. Buy gold. Your financial future may very well depend upon it.

While buying gold will protect your purchasing power, your best bet at growing it substantially is to stake claims in little-known companies that mine precious metals. That's how Doug Casey, Rick Rule, and other well-known contrarian speculators made their millions. To learn exactly how they did it – and how you can too – sign up for Downturn Millionaires, a free video presentation from Casey Research.

 


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Tue, 03/26/2013 - 22:16 | Link to Comment Ahmeexnal
Ahmeexnal's picture

BTFD!

Tue, 03/26/2013 - 22:23 | Link to Comment ZerOhead
ZerOhead's picture

Just BTFG!

(16 ounce limit per cup...)

Tue, 03/26/2013 - 23:28 | Link to Comment TwoShortPlanks
TwoShortPlanks's picture

Isn’t it high time we all called that Ducky-looking thing over there a Duck, once and for all?!

Let’s face it, most of the rumours are probably true and most logical assumptions are realistic and likely, such as;

1.       Western Central Banks have been caught with their pants down buying-wise (dollar-ego and barbaric relic nonsense).

2.       Non Western Central Banks have had a good head-start on their future-vision.

3.       The BIS has opened up the throttles, not to catch up, but to take the money [Gold] off the table.

4.       Manipulation is there for the ‘everything is alright’ illusion.

5.       Manipulation & Orientation (setting up Gold IF a collapse occurs).

6.       Less than 1 in 1,000-5,000 people have any meaningful amount of Gold.

7.       With respect to #6, confiscation would be meaningless in the West.

8.       More than 95% of above ground Gold is in either vaults of the elites, scattered throughout the Asian sub-continent, in museums, or held by Central Banks. The Global Middle Class has less that 5% physical Gold.

9.       Western Central Banks have leased out up to 80% of their Gold holdings (fucktards!).

10.   Subject to a run, there would be less than 1/10th of one Ounce, for each person within the Global Middle Class, on sale, on the Open Market…..3 grams per person!!!

11.   If Gold re-enters the financial picture, strong hands will ensure that there will be less than 1oz of refined Gold for each person on the Earth, for every 50 year period!

12.   The world is undergoing a protracted Global Slowdown.

13.   Balance Sheet expansions and/or Austerity are here for the duration of the Global Slowdown and more than likely will overshoot well into the next boom cycle.

14.   Assuming a collapse, debt jubilee, or default does not occur, the bottom of the slowdown is at least 20 years away at current trends.

15.   Gold will be suppressed until it is either needed, or when physical runs dry and lead times hit 6mths (ie panic).

16.   The general public is either too inept or stupid to see the writing on the wall. Those who will understand ALREADY understand (The mental Life Boats have already left).

There are a thousand such assumptions which can be made, most of which are now completely obvious (The Emperor Has No Clothes), but the general public do not want to know the truth, and will pay dearly if things slip.

If the worst happens, then 10oz physical Gold is ample.....coz that's 1 in 10,000 - 50,000 ( alluding to sale bids).

Tue, 03/26/2013 - 23:31 | Link to Comment ZerOhead
ZerOhead's picture

That was a deeply thought out and spot-on post except for the glaring typo on your third last word... on your second last paragraph...

IF > WHEN

Tue, 03/26/2013 - 23:34 | Link to Comment TwoShortPlanks
TwoShortPlanks's picture

My Editor charges too much!.....but thanks...MUM!!! :)

PS. #11...everyone needs to sit with that statement for a while. Think about annual global production.

Tue, 03/26/2013 - 23:40 | Link to Comment AlaricBalth
AlaricBalth's picture

My question is a simple one. Who are the blockheads willing to trade their gold for central bank fiat?

Tue, 03/26/2013 - 23:52 | Link to Comment TwoShortPlanks
TwoShortPlanks's picture

"Blockheads" like me, who will happily use "central bank fiat" as a medium of exchange when I convert my physical Gold across to distressed Real Estate.

Fiat has its uses, and only bad when you choose to hold onto it.

Wed, 03/27/2013 - 00:34 | Link to Comment Troll Magnet
Troll Magnet's picture

Well, I doubt any land/property owner will give up his hard asset for your gold. The ONLY way you can make a killing off of gold/silver is...

1. You buy a shitload of gold and silver. $100,000 to $1 million worth.

2. You take out millions of dollars in loans to purchase homes/buildings/land, stakes in businesses and/or other hard assets.

3. You keep making your payments until the SHTF.

4. The $ becomes trash and PMs go to the moon, say, $7,000 to $20,000 an ounce for gold and $500 silver.

5. Say the nominal balance of your loan is $10 million. Your investment in gold was $1 million but now it's worth $15 million. You take your stack to your lender and pay off your nominal loan.

The bottom line is, you'll have to be extremely lucky in your timing to make out like a bandit with gold and silver. If you're not into timing things, get some ammos, stock up on water and non perishable food as well as lots of alcohol and tobacco.

Wed, 03/27/2013 - 00:47 | Link to Comment TwoShortPlanks
TwoShortPlanks's picture

"I doubt any land/property owner will give up his hard asset for your gold"

Reckon? I reckon most people won't have a choice. I'm not speaking from a perspective of theory or what I think people would like to do, I'm speaking from a perspective just after looking out the damn window: http://www.reuters.com/article/2013/03/26/us-cyprus-property-idUSBRE92P0P820130326

Also, do you really think that a Bank holding obscene Billions of Dollars/Euros in distressed Real Estate would rather hold titles against debt than my Gold?

Wed, 03/27/2013 - 01:07 | Link to Comment Manthong
Manthong's picture


owning property is a loser unless it is purely supportive of your living needs and is in a non-hostile political jurisdiction  

Wed, 03/27/2013 - 03:25 | Link to Comment Oracle of Kypseli
Oracle of Kypseli's picture

I've seen numerous articles about buying tons of gold listing the countries and so on. What I don't see is who is selling.

The buying exceeds the annual world production by far. (I am guessing) Can Casey research please enlighten us who sold all the gold that was bought shown in your charts?

Anyone else?   

Wed, 03/27/2013 - 04:33 | Link to Comment nod2glod
nod2glod's picture

God damn wifi

Wed, 03/27/2013 - 04:31 | Link to Comment nod2glod
nod2glod's picture

What I was waiting for the article to mention and it didn't is that all the central banks which are buying except Russia, china and Iran do not take physical delivery.

Yep, they are just buying paper gold stored in the fed or boe. So this buying has no impact on the supply of gold because it's just rehypococated, again.

Why do you think ze Germans have to wait 7 years to get their gold back from the fed. If / when other central really start to ask for their gold and start to push for it, and get told to wait 10+ years, that is when the panic will start to set it. Whether they can keep a lid on gold at that point will be interesting. I believe at that point you will start to see legislation on gold being passed around the world as governments will realize that they have been had.

Wed, 03/27/2013 - 07:41 | Link to Comment ArgentoFisico
ArgentoFisico's picture

All wonderful but... 30000 - 32000 TONS/Year bought by central banks alone when global annual production is 2500 - 2700 tons?! Did Casey put a wrong name on the axis of the first chart?

Wed, 03/27/2013 - 09:12 | Link to Comment Croesus
Croesus's picture

Argento:

Methinks you may be misinterpreting the chart, due to the title. He's saying banks have been net accumulators, and showing yoy increases of 500+ (thereabouts) tons, not 30,000.....

Wed, 03/27/2013 - 07:37 | Link to Comment Pegasus Muse
Pegasus Muse's picture

I've seen numerous articles about buying tons of gold listing the countries and so on. What I don't see is who is selling. 

==== 

Sprott: Do Western Central Banks Have Any Gold Left? Part II

http://www.zerohedge.com/news/2013-03-19/sprott-do-western-central-banks-have-any-gold-left-part-ii 

Wed, 03/27/2013 - 07:46 | Link to Comment Sudden Debt
Sudden Debt's picture

Somewhere, there's a donkey pissing out gold to supply the world...

Wed, 03/27/2013 - 07:51 | Link to Comment DblAjent
DblAjent's picture

What I don't see is who is selling.

Good Point (and above, a good explanation - "they are just buying paper gold stored in the fed or boe") however I see the chart of those countries "decreasing" their gold supplies as moot. The changes in percentage are insignificant and inconsequential. Therefore, summarizing the article and rounding off, EVERYBODY is buying, or at least holding, for the most part.

Wed, 03/27/2013 - 11:18 | Link to Comment obewon
obewon's picture

Eric Sprott and analysts at his company (Sprott Asset Management) has answered your question, based on their very detailed analysis over the past 6 months. Go here for his most excellent commentary.

http://sprott.com/markets-at-a-glance/do-western-central-banks-have-any-gold-left-part-ii/

Hint: The US government has very little of their 8,300 tons left!

Wed, 03/27/2013 - 03:59 | Link to Comment Troll Magnet
Troll Magnet's picture

all i'm saying is that gold will "hold" its value but don't expect to get rich off of it. 100 years ago, an ounce of gold bought you a nice suit. it still buys you a nice suit and that's it. it doesn't buy you a house.

Wed, 03/27/2013 - 08:20 | Link to Comment TwoShortPlanks
TwoShortPlanks's picture

During Weimar Gold only doubled in value (not in price) simply because there were other desirable currencies and commodities which people could buy around Europe and other nations able to sell to (export uplift onfalling currnecy and wages etc). Think about it, this time it's GLOBAL...where can you run to? Nowhere!

We have never seen this situation in human history...ever!

The uplift on Gold will be very large...beyond your imagination.

Eventually Gold will be extremely valuable however, productive agricultural land of the same value will be a fee earner.

Wed, 03/27/2013 - 07:06 | Link to Comment Cloud9.5
Cloud9.5's picture

Here in the states, you don't own property.  You rent it from the county government.  Fail to pay the rent and you will be on the street in a heart beat.

Wed, 03/27/2013 - 09:29 | Link to Comment CuriousPasserby
CuriousPasserby's picture

Well, not a heartbeat. Here in Florida a few years. They sell the "tax certificate" to someone who pays your taxes and a few years later he can ask for the property to be sold to get paid off.

I used to think land was risky because of rising taxes, but with years to pay them and high inflation, you could pay off the taxes easily. (Unless they change the laws.)

Wed, 03/27/2013 - 03:47 | Link to Comment Professorlocknload
Professorlocknload's picture

"Well, I doubt any land/property owner will give up his hard asset for your gold" 

What if the word Gold is replaced with the word money?

"Well I doubt any land/property owner will give up his hard asset for your money/hard asset"

Then the phrase "I doubt any land /property owner would give up his hard asset for fiat," might be also applicable.

But, some don't buy PM's to make a killing. They look at them as a means of transferring their wealth to the other side of this mess. It may then be transacted in exchange for whatever the currency of the day will be.

On timing, in the long run, metal is more stable than paper. At least over the last few millennia.

Wed, 03/27/2013 - 05:24 | Link to Comment css1971
css1971's picture

Landowners borrow money from bank to buy land.

Landowners default on debts.

Banks take land.

Banks sell land for gold.

 

Does that seem more probable to you?

Wed, 03/27/2013 - 00:09 | Link to Comment ZerOhead
ZerOhead's picture

I think about #14... (no collapse)

That's one hell of an assumption when the clowns in charge still think that it's the stock market and bond prices that drive the economy.

While golds usefulness as an alternative exchange/currency mechanism may be debated... if the present kleptocratic structure remains in place post-shitstorm gold will be in even greater demand by the 1% of the 1% at the same time as both supply and production tank.

Bernanke simply has no options left... any economic contraction must be QE'ed into a further financial sector created wave of (eventual) hyperinflationary disposession in order to relieve the remnant economy of the crushing debt burden created by the world's CB's and the same financial institutions.

It's like playing Monopoly on steroids where the TBTF bankers (and friends) are playing against us with unlimited access to FedBucks.

There can only be one possible outcome.

We are fucked.

Wed, 03/27/2013 - 00:15 | Link to Comment TwoShortPlanks
TwoShortPlanks's picture

To clarify: I say 20 years simply because I whole heartedly believe that First and Second World citizens are so at easy with Credit and Debt that they will not panic until the very bitter end. Since it is the public which is the Elephant In The Room when it comes to an explosive uplift in the Gold Price, then Gold Bugs must be patient....we will be banging our heads against the wall for a very long time until we see the fucktards come to their senses.

Gold may not skyrocket until years after a collapse.

I doubt the 1% of the 1% would complain about manipulation when they know the future is so certain, and they will be counting the days by until the masses wake up.

So, my message to everyone is simple, leverage up as much as you wish; so long as you have physical tucked-away some place safe who cares! Just make sure that you can service up to 9.5% interest rates and you are within the first 1/3rd.

Wed, 03/27/2013 - 00:20 | Link to Comment fourchan
fourchan's picture

i believe in all of human history.

Wed, 03/27/2013 - 04:00 | Link to Comment Professorlocknload
Professorlocknload's picture

"i believe in all of human history."

 

I'll take that. And add that gold will most certainly outlast the Fed, the US Treasury and the human race. Will the dollar?

Wed, 03/27/2013 - 08:28 | Link to Comment lakecity55
lakecity55's picture

Gee, simply look at history.

Build up a reserve of PM.

If you are a numismatist, buy moar.

Wed, 03/27/2013 - 00:21 | Link to Comment ZerOhead
ZerOhead's picture

Gold may not skyrocket until years after a collapse

I disagree... it will be immediately prior to the main event. 80 million troy ounces annual production is less than $150 billion at todays prices. The Forbes top 400 Americans are worth 1.7 trillion alone.

http://www.reuters.com/article/2012/09/19/us-usa-billionaires-forbes-idU...

Wed, 03/27/2013 - 00:31 | Link to Comment TwoShortPlanks
TwoShortPlanks's picture

So how come I can still buy Gold and at an affordable price?

Answer: The vast majority of the Forbes 400 believe the same MSM bullshit as do the public (barbaric relic and dollar ego).

......since collapse is SO certain!

Wed, 03/27/2013 - 01:07 | Link to Comment ZerOhead
ZerOhead's picture

Probable unreported liquidation of some major CB inventories, re-rehypothecation of physical and synthetic paper substituting for real demand to name but a few.

The introduction of inflation into the goods and servives (real) economy is the only way to achieve any real degree of debt relief. Preferably with investment that yields cheaper energy, healthcare options, ag and manufactured goods etc. combined with a severe structural and regulatory fix for the financial sector. But that outcome just can not happen with underutilization of capacity, wage depressing labor surpluses and a bought and paid for congress and the current tools st Bernankes disposal...

Wed, 03/27/2013 - 06:39 | Link to Comment Anasteus
Anasteus's picture

I don't know whether some know or not but few weeks ago I came across an unusual forum archiving posts of a contributor writing under the pseudonym "ANOTHER (THOUGHTS!)". His series of remarkable postings started appearing back in 1997 on Kitco then it continued on the Usagold forum. He brings a stunning view on gold market far exceeding everything I have ever read before. Some guess he is/was a BIS insider. I again realized how little we possibly know about gold and gold market and what's going on behind the scenes. He gives plausible answers on many questions we're racking our brains over.

Fascinating reading...

ANOTHER (THOUGHTS!) POSTINGS

Wed, 03/27/2013 - 06:47 | Link to Comment Toronto Kid
Wed, 03/27/2013 - 07:04 | Link to Comment TwoShortPlanks
TwoShortPlanks's picture

Reading it now. Thanks heaps!

And keeping three points in mind: "9. Western Central Banks have leased out up to 80% of their Gold holdings (fucktards!)......10. Subject to a run, there would be less than 1/10th of one Ounce, for each person within the Global Middle Class, on sale, on the Open Market…..3 grams per person!!!.....11. If Gold re-enters the financial picture, strong hands will ensure that there will be less than 1oz of refined Gold for each person on the Earth, for every 50 year period!"

I still believe $134k/oz Gold is possible.

Wed, 03/27/2013 - 02:58 | Link to Comment noless
noless's picture

"Gold may not skyrocket until years after a collapse."

 

the law is the true leverage, any claim on your future labor will be transferred, as debt historically has been.


you're confusing timeframe with price.

 

these things do not have succinct and timely ends and beginnings, move beyond speculation.

 

i do not necessarily disagree with your assertions.

 

if it does not "skyrocket" then it is due to overt manipulation to cull the herd, I am a contrary indicator.

Wed, 03/27/2013 - 00:01 | Link to Comment Never One Roach
Never One Roach's picture
Japanese Pension Funds & ETPs to Buy Gold

 

January 8, 2013

 

Japanese pension funds and gold-backed exchange traded products are going to more than double their gold holdings over the next two years to $1.1 billion, buying some 27 tons of gold at current prices, according to veteran World Gold Council representative Itsuo Toshima who is quoted today on Bloomberg.

“Bullion’s role as an inflation hedge, long ignored by Japanese fund operators, has come under the spotlight thanks to Abe’s economic policy,” said Mr. Toshima. “Gold may be a standard asset-class in the portfolio of Japanese pension funds as Abe’s target is realized.”

 

http://www.resourceinvestor.com/2013/01/08/japanese-pension-funds-etps-t...

 

 

Tue, 03/26/2013 - 22:34 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

Buy the dip or buy the spike, it really doesn't matter.

Just BUY it!

EDIT:

I notice Peru has not increased its reserves.  Must be "Deep Storage"...

Tue, 03/26/2013 - 22:44 | Link to Comment dick cheneys ghost
dick cheneys ghost's picture

Jim Willie indicates Russia as being LARGE buyers of Gold.......Great interview btw.........

 

http://www.youtube.com/watch?v=P5OBHqQkiAI

Wed, 03/27/2013 - 04:13 | Link to Comment Professorlocknload
Professorlocknload's picture

Yup. On sale every day.

Wed, 03/27/2013 - 16:07 | Link to Comment misitu
misitu's picture

@DoChenRollingBearing: reportedly in order to maintain USDPEN, the BCRP continues to buy USD in chunky quantities.

Tue, 03/26/2013 - 23:08 | Link to Comment zorba THE GREEK
zorba THE GREEK's picture

I bought the dip back in 2002,2003,2004,2005,2006,2007,2008,2009.2010,2011,2012, and

I am still buying the dip in 2013. Average yield; 16% per annum. I believe this bitch is

getting ready to take off.

Tue, 03/26/2013 - 22:22 | Link to Comment Holleyman
Holleyman's picture

Bring TFD and will happily BTFD

Tue, 03/26/2013 - 22:23 | Link to Comment PSEUDOLOGOI
PSEUDOLOGOI's picture

Gold bitchez!!

Tue, 03/26/2013 - 22:36 | Link to Comment HulkHogan
HulkHogan's picture

Wish I could increase my holdings like Paraguay. 1152.4%!

Tue, 03/26/2013 - 22:38 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

Paraguay is catching on...

Tue, 03/26/2013 - 22:42 | Link to Comment Harbanger
Harbanger's picture

The US has the most tungsten.  But we'll never know for sure.

Tue, 03/26/2013 - 22:40 | Link to Comment PSEUDOLOGOI
PSEUDOLOGOI's picture

Too bad you lost it in that boating accident after your qudruple-digit increase... my condolences...

Tue, 03/26/2013 - 22:25 | Link to Comment Stuart
Stuart's picture

What central bankers tried to do in Cyprus demonstrates in spades why owning physical gold outside the banking system is your only protection.   Central bankers vs main street.  Protect yourselves.  

Tue, 03/26/2013 - 22:29 | Link to Comment francis_sawyer
francis_sawyer's picture

Barbarous relic... Tradition!... Only useful to sew into hemlines...

~~~

If the BRIC's decide to pool their gold, things could get interesting...

Tue, 03/26/2013 - 22:41 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

I doubt that the BRICs trust each other enough to pool their gold.  If it were ME heading up a BRIC CB, I would trust no one else.

Except of course the Central Bank of DoChenRollingBearing.  Whose reserves include 52100 steel products...

Wed, 03/27/2013 - 00:03 | Link to Comment francis_sawyer
francis_sawyer's picture

Well I suppose that makes them patently smarter that almost anyone in Western Culture who trusted the City of London & the 'families' who are the shareholders for the United Stated [non]Federal [non]Reserve... & who seem to be amateur hobbyists at moving it around from vault to vault via an underground subway system...

~~~

Until someone else wants to step up and tell me how inaccurate I am with my conjecture...

Tue, 03/26/2013 - 22:38 | Link to Comment ZerOhead
ZerOhead's picture

Barbarous relic for barbarous times...

Get yours while supplies last!

Tue, 03/26/2013 - 22:37 | Link to Comment kliguy38
kliguy38's picture

Yes and to cover bars of tungsten with............don't worry gold is the money of kings.......there won't be any for the peasants by the time the sheep figure out the game.....ask the Cypriots......

Tue, 03/26/2013 - 22:29 | Link to Comment otto skorzeny
otto skorzeny's picture

i thought russia also produced alot of gold.

Tue, 03/26/2013 - 22:30 | Link to Comment eigenvalue
eigenvalue's picture

Another piece of pump and dump by snakeoil charlatans. Jim Sinclair the shill said that we wouldn't see $1600 again. BUT $1600 is once again with us. $2000 gold is only a wet dream of mad goldbugs. We won't even see $1800 again in our life time.

Tue, 03/26/2013 - 22:46 | Link to Comment HulkHogan
HulkHogan's picture

There is a limited supply of gold and more people on the earth everyday. Unless there is new black plague or mining technology figures out a way to completing empty a mine at a low cost, the price will go over $2000. In fact the price of all earth-made commodities will increase over time (coal, oil, timber, water, ect.), until there is either a population reducing event or a technology that can decrease the cost. Thanks for the advice, but I'll hold my gold until they learn how to frack it from the ground.

Tue, 03/26/2013 - 22:47 | Link to Comment Tinky
Tinky's picture

"We won't even see $1800 again in our life time."

Tell you what, let's bet $50,000 on that tomorrow. We'll put the $100,000 in an escrow account, and when – oops! I mean if  it hits $1800, I'll collect.

Tue, 03/26/2013 - 23:37 | Link to Comment Pseudo Anonym
Pseudo Anonym's picture

i wouldnt bet until it was clear which price of gold would not reach, or exceed, $1800.  the crimex paper gold price may not ever see $1800 again and, in fact, go down to zero once it becomes clear that those are just iou instead of claims on metal.  however, the price of bullion on the open market is, of course, something else entirely.

Tue, 03/26/2013 - 23:42 | Link to Comment Tinky
Tinky's picture

Why don't you take a wild guess which I was referring to?

Wed, 03/27/2013 - 01:35 | Link to Comment LostAtSea
LostAtSea's picture

correction:  the bankers will collect.

 

Wed, 03/27/2013 - 04:32 | Link to Comment Professorlocknload
Professorlocknload's picture

Yeah, they are going to lose a minimum of 6 to 8% on that escrow account, per year, to devaluation/inflation if the call side doesn't hit pronto.

Tue, 03/26/2013 - 23:41 | Link to Comment Pseudo Anonym
Pseudo Anonym's picture

if you're talking about the price of paper gold as quoted on crimex

We won't even see $1800 again in our life time.

then i would tend to agree.  if you're talking the price of bullion, then i suggest you get off your meds

Tue, 03/26/2013 - 23:45 | Link to Comment Stuart
Stuart's picture

A certain market analyst up in Canada said the same thing to john Embry about $500.  Embry retorted, you're right Brian, once it clears $500 it'll never look back.   Same thing applies here to $1,800.

 

Tue, 03/26/2013 - 23:52 | Link to Comment eigenvalue
eigenvalue's picture

You can't simply extrapolate past performance into the future

Wed, 03/27/2013 - 09:26 | Link to Comment Acidtest Dummy
Acidtest Dummy's picture

The longer things have lasted, the less likely they are to fail in the near future. So... the nearest star (Sol) is likely to outlast humanity, and humanity is likely to outlast the US dollar. What might the US dollar outlast? Obama's term in office... BOA JPM GS?

Years ago, I heard, "Banks fail from time to time, no big deal, but when an insurance company fails -- pay attention."

Oh also, P. the W. Cs!

 

 

Wed, 03/27/2013 - 00:38 | Link to Comment Kirk2NCC1701
Kirk2NCC1701's picture

Eigenvalue, here's an Eigenvector on my hand:  Value = 1.  Phase = pi/2.  Math guys will get this.

Jest/Ridicule aside...

Even though you and many here treat PM as commodities, for which a speculative/investment fiat-buck is to be made and then used for something else, I do not treat it as such.

I treat PM's are "STORES OF VALUE".  TPTB, the CB's cannot print or make or manipulate its hard-bullion supply or its material properties.  And unlike paper/tertiary wealth, it cannot be tracked or traced by Big Bro.  Or by Big Ho, now that the SS has a new head.

I'm gonna keep BTFD while I can at these Fed-subsidized prices (Blue light special!), and keep stacking for the great day of Monetary Reckoning, when my FRN confetti won't be worth jack.  Kinda like your advice.

Wed, 03/27/2013 - 04:38 | Link to Comment Professorlocknload
Professorlocknload's picture

Thanks for saving me the keystrokes there Cap'n Kirk. Bed time.

Tue, 03/26/2013 - 22:32 | Link to Comment Cacete de Ouro
Cacete de Ouro's picture

Bloomberg gets the data from the IMF eLibrary site using a media login which allows it to query the data source "International Financial Statistic" and to pull up the data "concept" or basically some fields that give data on "Official Reserve Assets, Gold, Volume in Millions of Fine Troy Ounces".

Countries report this data to the IMF. It is not independently audited by the IMF or anyone else. Just the central bank auditors who in most cases just audit pieces of paper that list gold held and weight.

Tue, 03/26/2013 - 22:53 | Link to Comment Kastorsky
Kastorsky's picture

 

now that cash is effectively trash, here is what one can do about it.

I know few guys in "cash for gold" "enterprise", that are doing it for years.

they cashed out there 401s, emptied bank accounts and started buying scrap - gold and silver.

worst of them are buying around 100G of scrap/year, better 500G or more.

the best "cash for gold" places pay 70% of the spot on gold and even less for silver.

As far as I know in most states it is a wholesale second hand property purchasing operation - so all can be done in cash, 

no cash register, no checks required. 

There are expenses - rent and util's, but if you keep all you buy (or even some) - you have no income -hence no tax.

Paying 50-70%, in the worst case, with rent etc - one will break even, and it's very unlikely.

Some are using the sq footage to live on, since one only needs couple of sq ft for "performing transaction" - saves on housing.

And by 100G I mean melt price, not counting stones and expensive watches etc.

So - you get untraceable, nontaxable, un-confiscalable (it is not coins or monetary instruments - it is scrap or personal accessories) gold, that worth just as much as numbered bullion, or coins purchased and recorded by a coin dealer.

And all of acquired at (after all the expenses) at 10-20% discount.

Ah, yes, you can move jewelry through borders so much easier than bars.   

 

Tue, 03/26/2013 - 23:04 | Link to Comment HulkHogan
HulkHogan's picture

But now those places are running out of people to buy from. The stock is nearly all dried up. And the refineries are making phone calls, looking for stuff to melt - looking for diamonds to buy. I've said for years now, that when the people run out of gold to sell, the price will spike. We are getting pretty close to that point.

Wed, 03/27/2013 - 14:01 | Link to Comment Kastorsky
Kastorsky's picture

not the ones I know.

It's business as usual.

Could be in the future. 

Wed, 03/27/2013 - 04:41 | Link to Comment Bobbyrib
Bobbyrib's picture

What will happen when people start to make fake gold jewelry on a massive scale?

Wed, 03/27/2013 - 13:57 | Link to Comment Kastorsky
Kastorsky's picture

they do it now.

there are many ways to make sure you are getting the real thing.

Tue, 03/26/2013 - 22:57 | Link to Comment essence
essence's picture

Sorry, while I have alot of empathy toward PM aficionados   please spare me yet ANOTHER article from someone in the business of SELLING PMs/PMs stocks/PM reports.

Answer me this, does Casey Research BUY PMs? or are they strictly a seller of PM related material?

Simply put .... just as I've had my full of Real Estate/Stocks/Commodities whatever brokers, the same goes for PM brokers. Show me articles from someone whose income isn't directly derived.

Jim Sinclair came out and called for a big move by March27th. So where is it Mr Gold (and why are you so insistently PRO Euro when the principals behind it are so obliviously evil)?

Same for Jim Rickards. Was reading his Twitter account just today. Effectively he says the Euro is here to stay because it has "political backing". Says the American sheeple just don't understand Gold or the Euro. OK Jim, please explain. Politics (as we all by now know)  is simply Mega money (not the politician puppets du jour). So what MEGA MONEY is behind the Euro and a future return to a Gold Standard?

This is a case of the "dog that didn't bark". When two huge insiders just outright ignore exactly who and what is behind the gold marked to market   Euro ...well, I'd say that their silence speaks volumes.

 

 

 

Tue, 03/26/2013 - 23:03 | Link to Comment Tinky
Tinky's picture

While some skepticism is certainly warranted, especially of those who benefit directly from gold purchases, I'd argue that the fundamentals so powerfully suggest that gold will increase in value, and in the not too distant future, the rest is mostly noise.

And by the way, Kyle Bass is no gold bug, yet his advice at the recent conference to retail investors was (paraphrasing) "Buy gold and short the JPY." I'm inclined to agree with him.

Tue, 03/26/2013 - 23:11 | Link to Comment essence
essence's picture

Ya got me there concerning Kyle Bass.  I've followed him and can find no hypocrisy and he appears one very sharp and savvy guy.

And I'm not anti PM, but do VET everyone. 

 

What was that famous quote from Ronnie Regan
"Trust ... but verify".

 

Tue, 03/26/2013 - 23:17 | Link to Comment eigenvalue
eigenvalue's picture

But the selling is extremely heavy these days and it's a fact. Besides, the season is not on the bulls' side. The peak season is coming to an end in India and China. Unless we have some big crisis, gold price will still remain depressed.

Tue, 03/26/2013 - 23:40 | Link to Comment Let The Wurlitz...
Let The Wurlitzer Play's picture

Gold is good insurance because it will never be worthless, but the fact that central banks have been buying gold tells me that I want to short it on a valuation play.  I have never seen a central banker, planner or government that knows what the fuck they are doing when it comes to investments, finance or macro economics.

 

Wed, 03/27/2013 - 14:07 | Link to Comment Professorlocknload
Professorlocknload's picture

Yeah, central bankers aren't the sharpest knives in the drawer. And for that reason, might not make good contrarian benchmarks! Kinda like playing poker with a newby. No tells, no game logic, and like that.

Tue, 03/26/2013 - 22:58 | Link to Comment disabledvet
disabledvet's picture

i'm sorry but without the rule of law "Houston we have a problem." There are wonderful banks in Japan and Hong Kong obviously...same is true of the USA and Europe. I'm really struggling with "parting with gold" to Mother Russia and her wonderful babushka's. Long ruble? Long renminbi? not giving me the warm and fuzzy either. is such activity going to make a meaningful adjustment in price higher? sure. it's possible. but if your deposits aren't safe in Europe your gold isn't safe there either. that says New York or London to me (if we're talking retail.)

Tue, 03/26/2013 - 23:02 | Link to Comment Schmuck Raker
Schmuck Raker's picture

It would appear I got back from the bar just in the nick of time......

Whom To Believe[]: Central Banks Or Bloomberg?

 

A: NEEEDER

Tue, 03/26/2013 - 23:02 | Link to Comment LongBalls
LongBalls's picture

Fiat for gold is a DAMN GOOD DEAL AT ANY PRICE. You can no longer protect yourself by sitting on the sidelines.....you gotta get in the game!

Tue, 03/26/2013 - 23:07 | Link to Comment newengland
newengland's picture

Boomberg is a putz, a Nazionist control freak.

Alan Greenspan knows better, and said so in a 2011 interview which chimes with his belief in a gold standard when he was a young economist, perhaps an idealist, in his youth:

'“We have at this particular stage a fiat money which is essentially money printed by a government and it’s usually a central bank which is authorized to do so. Some mechanism has got to be in place that restricts the amount of money which is produced, either a gold standard or a currency board, because unless you do that all of history suggest that inflation will take hold with very deleterious effects on economic activity… There are numbers of us, myself included, who strongly believe that we did very well in the 1870 to 1914 period with an international gold standard.”

Forbes reported it last week here:

http://www.forbes.com/sites/nathanlewis/2013/03/14/if-alan-greenspan-wan...

I'm not the only one saying End the Fed.

However, Greenspan is somewhat disingenuous when he puts the blame on government alone, in my opinion. The privately owned Federal Reserve Board is not federal in any meaningful sense and has no reserves, but the old guy has a cute way of covering his ass for past failures.

Tue, 03/26/2013 - 23:03 | Link to Comment Vint Slugs
Vint Slugs's picture

The above article talks about central bank buying, therefore demand, but what I have asked here before is where is the supply coming from (who is the seller/sellers)?  If the on-balance CB buyers don't have the bullion in-vault, then they have bought rehypothecated gold.  In that case they will never reconcile their balance sheets in favor of their reported reserves and the reserves are vastly overstated. 

Here's a link that technically justifies (yeah, I know that the un-monied ZH conspiracy theorists think that technical analysis doesn't "work" anymore) the next upleg in gold to $4200:  http://eideticresearch.com/whats-new.html

Tue, 03/26/2013 - 23:14 | Link to Comment newengland
newengland's picture

Paper is manipulated. Physical is owned. Greenspan says End the Fed. Google charts and technical analysis as much as you like.

Money and power will decide. Not charts.

Want to fight the Fed on its own turf? You will lose.

Tue, 03/26/2013 - 23:20 | Link to Comment NoWayJose
NoWayJose's picture

If Bitcoin can catch on, imagine how popular a gold-backed currency put forth from the BRICs would be. I do not see them giving up their own currencies, but they would all love to see the US Dollar get replaced.

Tue, 03/26/2013 - 23:28 | Link to Comment newengland
newengland's picture

The USD and commodity currencies including BRICS will do just fine. The euro EUSSR experiment has failed.

Gold and silver will be preferred by people who want a fiat-free store of wealth.

Wed, 03/27/2013 - 11:19 | Link to Comment are we there yet
are we there yet's picture

Yes China is hiding their gold reserve numbers. Simple, they have a glut of US treasuries and cash. They want their Yen low versus the dollar low to keep their employment up. They aspire later to be an eastern reserve currency when they wish on their own timetable when they need the US consumer. China may miscalculate because internal corruption and economic downturn could mimic the Arab spring.

Tue, 03/26/2013 - 23:32 | Link to Comment Tunga
Tunga's picture

one drone to rule them all.

Tue, 03/26/2013 - 23:46 | Link to Comment JustObserving
JustObserving's picture

Indian consumers have at least 18,000 tons of gold.  India has been importing an average of 800 tons per year over the last decade.

Gold that was purchased for Rs 200 in 1968 is now worth Rs 100,000.  No other investment in India provides that kind of return. Besides, it is needed for cultural reasons.

Wed, 03/27/2013 - 01:05 | Link to Comment Dane Bramage
Dane Bramage's picture

Gold: the best Bhang for your Rupee!  :D

Wed, 03/27/2013 - 00:08 | Link to Comment Manipuflation
Manipuflation's picture

I know that I have never sold gold, not even a sliver of it, since ever.

Wed, 03/27/2013 - 00:17 | Link to Comment fijisailor
fijisailor's picture

Tylers and ZHers,

When I am on ZH an invasive process called stij.exe gets installed on my computer.  It runs in "processes" in the Task Manager.  This appears to be some sort of Spyware.

Wed, 03/27/2013 - 00:46 | Link to Comment Manipuflation
Manipuflation's picture

There is some junk flying around on ZH but have not seen that one.  I will check it out.

Wed, 03/27/2013 - 00:54 | Link to Comment fuu
fuu's picture

It doesn't come from ZH, it comes from Perion. I'm reading ZH and I don't have that process running. Do you use Incedimail or Smailbox?

Wed, 03/27/2013 - 01:02 | Link to Comment fijisailor
fijisailor's picture

No I do not have either of those.  I think I have blocked it with Windows firewall but I will see with time. 

Wed, 03/27/2013 - 01:10 | Link to Comment Manipuflation
Manipuflation's picture

Yes you do Fiji!  Go uninstall it and reboot.

"I think I have blocked it with Windows firewall but I will see with time."

You are trolling now right?

Wed, 03/27/2013 - 01:31 | Link to Comment fijisailor
fijisailor's picture

No I am not trolling and no I do not have either of those.  I just checked and neither is an installed program.

Wed, 03/27/2013 - 01:51 | Link to Comment Manipuflation
Manipuflation's picture

Alright, I had to ask.  Fuu is correct.  So you can not find this in your programs?  Have you tried MBAB?(MalwareBytes).  Download from CNet if you trust us.  Run the full scan and quarantine everything.  It takes a while but you can still do whatever if you have enough RAM and processor which most comps do these days.  Just run it in the background.

http://download.cnet.com/Malwarebytes-Anti-Malware/3000-8022_4-10804572.html

What happens when you go to your start tab and go to RUN--> type in msconfig-->startup(top tabs)  Do you see the offending exe file in there?  What is running on startup?  Is everything checkmarked?

Wed, 03/27/2013 - 07:08 | Link to Comment fijisailor
fijisailor's picture

Already have malware bytes and it does not pick it up. Also I have Avira and Spybot S&D and they do not pick it up either.   Also not in startup programs. 

Wed, 03/27/2013 - 08:53 | Link to Comment Manipuflation
Manipuflation's picture

Now I am intrigued.  I am guessing you tried this but can you find it here?  C:\Windows\SysWOW64\jmdp\

Wed, 03/27/2013 - 10:24 | Link to Comment Manipuflation
Manipuflation's picture

OK Fiji, I spent a good hour reading up on this .exe file.  It definitely comes from Perion.  It does not appear to be dangerous but I respect your concerns.  It looks like it could be several things but it all tracks back to IncrediMail.

I hesitate to suggest this but you go to start-->run--> type in regedit-->ok--> .exe  Open your .exe files and see what is in there.  It's going be a bunch of files that look something like this...

0BFE56711FC8CA748CA1578CDB77F1F7

Your stij.exe is in there(but won't be named that) because it can't hide anywhere else save maybe the IE browser.(that's why we use Firefox)  The registry IS your OS.

BE CAREFUL of what you do in the registry and don't delete anything unless you are CERTAIN of a rogue file.

If you check here, you can see what files you will be looking for.(note the certificate is the same on all but that's your browser)

http://www.isthisfilesafe.com/filename/stij.exe_details.aspx

If you take this serial # and paste it in a google search you are going to find some .dll references.

45F87694FE8D1984719796AEC8031DF4

I have had some battles in the past and found the .dll is where rogue script likes to hide.  It can be very hard to find because it will always be in a sub-root.  Before you go Rambo on your registry make sure to read and check everything else first.  Fucking with your registry is akin to the Cyprus "solution" and is liable to not end well.

If your system is running slow, I would go back to msconfig--> startup and uncheck every box and then restart.  Then go back in and see what automatically restarted on the reboot.  Look up every program in your startup queue  and uninstall those that are not critical then run disk cleanup and defrag.  Yeah, I know that the Microsoft OS will tell you a defrag is not necessary but it is necessary because you will be removing up to 20 garbage programs that simply steal resources leaving gaping holes on the hard drive in the wake of your wanton destruction of worthless resource consuming software that no one ever uses.  Reboot and then give it a go.

You probably know most of this already but I had to assume otherwise.  Let us know if you find a way to kill that .exe.  Best of luck.

Wed, 03/27/2013 - 01:21 | Link to Comment fuu
fuu's picture

Incredibar is also a common vector and is carried by freeware. Check for that one too. It's listed as a harmless file from what I can see, but who knows.

Wed, 03/27/2013 - 01:38 | Link to Comment fijisailor
fijisailor's picture

I had incredibar installed in google chrome so I uninstalled google chrome because incredibar was not listed as a separate application.  Maybe that will work.

Wed, 03/27/2013 - 08:38 | Link to Comment fuu
fuu's picture

That may have been extreme but could be effective. I stopped using Chrome a while ago and switched to Firefox.

Wed, 03/27/2013 - 08:49 | Link to Comment Manipuflation
Manipuflation's picture

Agreed.  I predominantly use Firefox and NoScript with the adblock plugin.

Wed, 03/27/2013 - 01:05 | Link to Comment Manipuflation
Manipuflation's picture

Get rid of Incredimail and stij.exe will go with it.  It's not coming from ZH.

Wed, 03/27/2013 - 01:15 | Link to Comment dark pools of soros
dark pools of soros's picture

Incredimail was teh shizzle back in the day...  a friendlier day before fake friendbooks

Wed, 03/27/2013 - 00:50 | Link to Comment Kirk2NCC1701
Kirk2NCC1701's picture

The currency war is an integral part of the overall geopolitical war.  Only the uninformed, simple and the naive see it in isolation as a mini-world of pure economics.  Think of it like this:  "If war is diplomacy by other means" (von Klausewitz), then I claim that

"Currency wars are also diplomacy by other means".

 


Wed, 03/27/2013 - 00:40 | Link to Comment Motorhead
Motorhead's picture

Of course, the US is nowhere to be seen on any of those lists.

Still amazed (somewhat) that despite the announcement that the US would take seven years to give Germany back some of its gold, the price of gold has essentially gone nowhere.  Certainly not up.

 

Wed, 03/27/2013 - 00:58 | Link to Comment Bear
Bear's picture

I love (hate) it. Every morning US banks sell tons of gold and every day the rest of the world buys it up. We are eviscerating our nation one day at a time.

Wed, 03/27/2013 - 01:12 | Link to Comment dark pools of soros
dark pools of soros's picture

So Benny can buy that decade of gold in 10 days?

Wed, 03/27/2013 - 07:19 | Link to Comment geewhiz
geewhiz's picture

Good question. Benny is issuing 53 million troys of gold every month valued at paper gold rate of 1600 per troy. (85 billion/1600). Thats 3+ times all the years purchases of all the central bank on the table above, every month. Awsome, man of the year award for benny.

Wed, 03/27/2013 - 08:03 | Link to Comment dark pools of soros
dark pools of soros's picture

Just shows people can't wrap their head around what a billion is...and are truly lost on the cosmic space of what a trillion encompasses

Wed, 03/27/2013 - 01:42 | Link to Comment Monedas
Monedas's picture

Why don't we have a stealth gold aquisition plan like the Russkies, Chinks and Indians .... couldn't Bernanke take 1% of the fresh fiat and quietly sop up some gold !  We went from 20K tons down to 8.5K tons .... where are we now ?  I'm afraid of the answer .... it could be worse than no stock pile .... we could be OWING 10K tons to the IMF or the UN .... I'll be so disgusted .... I may go bonkers ! Economic sabotage is treason .... Obama, Bernanke, Dodd, Frank, et al .... deserve the death penalty .... treason is .... treason ! What Obama has done to the economy .... is the moral equivalent .... of shooting a 13 month old baby in the face !

Wed, 03/27/2013 - 05:06 | Link to Comment css1971
css1971's picture

Who is this "we"?

I've been accumulating gold for a while.

Wed, 03/27/2013 - 07:08 | Link to Comment geewhiz
geewhiz's picture

Treason is actively and deliberately in progress. How we going to get a one world govt without breaking some eggs?

Wed, 03/27/2013 - 01:58 | Link to Comment Joebloinvestor
Joebloinvestor's picture

I can see a cold winter in Europe and Russia will demand payment for gas in gold.

Payback is a bitch.

Wed, 03/27/2013 - 03:14 | Link to Comment Watson
Watson's picture

Gold is not a particularly good hedge against inflation.

It _is_ good, in small physical units, as a hedge against a total catastrophic societal breakdown - say the aftermath of foreign invasion.
Depending on where you live that might be valuable to you, but before you invest really significant amounts you might want to think about things like 'alternative passport' and 'legal rights of residence in some other country'.

I do not consider that central banks aggressively buying anything is a good reason to go the same way...mostly because central bankers are not normally employed on a profit-sharing basis.

Wed, 03/27/2013 - 03:51 | Link to Comment ebworthen
ebworthen's picture

Actions:  buying Gold and Silver, firearms, and ammo.

Why?:  I have ZERO (0) trust in Wall Street and Washington.

Actually, judging by their actions, I have -0 (less than zero) trust in them.

"Less Than Zero" by the one, the only, Elvis Costello (Declan McManus):

http://www.youtube.com/watch?v=MHQK3yo9CBA

Wed, 03/27/2013 - 03:53 | Link to Comment Gavrikon
Gavrikon's picture

So is gold held in a safety deposit box in a Swiss bank a good idea?

Wed, 03/27/2013 - 03:55 | Link to Comment Cap Matifou
Cap Matifou's picture

Only if you live in a walkable distance, plus you pay some insider to warn you about a pending lockdown. Otherwise forget it.

Wed, 03/27/2013 - 04:07 | Link to Comment pcrs
pcrs's picture

How come that if CB's bought last year what they bought since 1964, the price did not explode?

Probably since most of the past they have been selling under the washington agreement, so all that seling accumulated, does make a year of net buying look exceptional.

Wed, 03/27/2013 - 04:31 | Link to Comment Black Markets
Black Markets's picture

Yet more sensationalism and extremely poor journalism from Zerohedge.

Tsk tsk, this website continues to fly in the face of its mission statement whenever reporting on (pandering to) gold and PM's.

Lets look again...

Gold reserves have increased from 30,000 tonnes to 31,750 tonnes over 5 years.

That's a total increase of (31.75/30.00)*100 = 5.83%

Which is an annualised increase of just 1.14%

ZH needs to stop warping reality to suck up to it's reader base. Give us the truth and cut the spin.

Go and reread the ZH mission statement about sloppy financial journalism. Then do as you preach.

Wed, 03/27/2013 - 05:55 | Link to Comment resurger
resurger's picture

huh!

then go read other sources and dont come here.

Wed, 03/27/2013 - 06:59 | Link to Comment geewhiz
geewhiz's picture

I ran my finger down the total gold in all central banks in 2011 and got maybe 250 million troys. That increased by 15million troy by 2012. Thats somewhere around 6% increase year over year. The way they explained the charts is not too clear.

Wed, 03/27/2013 - 06:49 | Link to Comment eclectic syncretist
eclectic syncretist's picture

Keep a cap on it Bernanke, you stupid motherfucker!  Keep creating enough capital misallocations and you'll stimulate the economy eventually just by dumb luck.  The economy would be stimulated a lot faster if you and the Fed reserve didn't exist, you worthless sack of horse shit.

Wed, 03/27/2013 - 08:22 | Link to Comment earnulf
earnulf's picture

Please correct me if my math is off, but 14.8 million ounces is like 6,700 tons of gold.

World Gold Production is like 2,400 tons per year.

SO......last year CB's took up 2.5 years worth of gold production?   Yet the price has slowly slid from near 1800 to 1600 per ounce.

What was that law again about supply and demand?

 

Wed, 03/27/2013 - 08:24 | Link to Comment orangegeek
orangegeek's picture

Below is a chart of Gold vs US Dollar which shows an inverse relationship between the two (when gold goes up, USD goes down and vice versa of course).

 

http://bullandbearmash.com/chart/weeklies-spot-gold-diverges-dollar-doll...

 

One could argue that the US Dollar is going to collapse.  Fair enough.  But that would mean the Euro, JPY, GBP and CDN will climb (primarily the Euro).  If these four currencies rise, the USD will likely fall.

 

Currently, the USD is climbing and the Euro is near 1.28 and falling.

Wed, 03/27/2013 - 08:50 | Link to Comment eddiebe
eddiebe's picture

Even though I have not read all the comments, I wonder how many of you think about the possibility that the Fed or IMF will create some sort of fiat/gold link at some point? I do.

 Most likely at gold/dollar valuations considerably higher than where they are now. After all, it is a good guess that insiders like Greenspan and especially those calling the shots know the score in regards to value, and they ultimatlely want valuations of the metal vastly higher, because they have their serious stash, and are stacking.

 Playing volatility games and using paper markets and leasing and all the other games are tools to extract value and add metal to the stores of the puppet masters.

Wed, 03/27/2013 - 09:27 | Link to Comment Mr. Hudson
Mr. Hudson's picture

The central bankers will never create a gold backed currency. They will continue to create currencies backed by debt for the purpose of keeping the goyim as their slaves.

Wed, 03/27/2013 - 09:01 | Link to Comment Passage
Passage's picture

In the past 3months, China didn't manage to whack JPY so they can only masturbate with gold.

However, a week ago, China's Central Bank Chief Zhou Xiaochuan and his deputy mentioned that China imported about 400-500tonnes of gold annually and claimed that buying more will propel gold into higher territoriries. To avoid that from happening, I guess they are now busy buying masturbating machines in Australia and Africa.

Wed, 03/27/2013 - 09:22 | Link to Comment kw2012
kw2012's picture

So where is all of that gold coming from? certainly not the miners.

 

Where is the United States total?

Wed, 03/27/2013 - 09:52 | Link to Comment topshelfstuff
topshelfstuff's picture

"""""""""Bloomberg reported recently that Russia is now the world's biggest gold buyer,""""""

 

I guess China and India aren't being included, kinda like not including Food & Energy in Cost of Living

Wed, 03/27/2013 - 10:07 | Link to Comment topshelfstuff
topshelfstuff's picture

a few pasted blurbs to go along with above post, Why were China & India omitted?

Feb 6, 2013 – China replaced India sometime last year as the world's largest consumer of gold and gold imports to mainland China from Hong Kong

[[[ while only Hong Kong is mentioned here, the Shanghai Gold Ex takes Physical Gold Delivery equal to the approx Total World Gold Production, monthly....it has increased since Dec 2012 to get to this point ]]] and China keeps their own Production, the largest Producer of Gold Globally

” If it is assumed that China itself produced almost 400 tons of gold last year, the total Chinese gold demand will have been over 950 tons, which would mean that China had overtaken India as the world’s number one consumer of gold on a yearly basis,” writes Commerzbank this morning.

January 10, 2013

NEW DELHI--India's gold imports have surged this week as traders rushed to place orders ahead of an expected rise in the import tax, stockists and bank officials said Thursday.

Last week, Finance Minister P Chidambaram said the government was considering measures to make gold imports more expensive as its demand was straining the country's current account deficit.

He didn't spell out the measures, but the market expects the import tax on gold to be raised to 5%-6% from the current 4% in the run-up to the federal budget in end-February.

Traders have imported between 25-30 metric tons in the past one week compared to five to seven metric tons in the previous few weeks, said Prithviraj Kothari, managing director of Ridhi Sidhi Bullion Ltd.

The increase in gold imports by India, the world's largest consumer, has prompted overseas suppliers to charge a premium of 30-50 U.S. cents per ounce of gold,

Wed, 03/27/2013 - 17:04 | Link to Comment cognus
cognus's picture

Doesn't this article imply the false assumption that "buying" = "receiving" ?

of the total purchases that the table implies, someone authoritative here tell me what percentage  of the total is actually physical bullion IN THE POSSESSION of the buying entity, realtime?

my guess is 25% tops.  therefore, this article is about paper trades.  which are worthless according to many of you experts.  In this case, you're probably right.  it was worthless to sadam hussein.  worthless to poor Col Quadaffi. maybe worthless to Germany and Mexico and the UK and France and on and on and on.....

Secondly, exactly what entity actually is the OWNER of each row in the above table?  i.e. do "the legal citizenry of Turkey" 'own' the gold that is implied by the data?  I think not.  is it the current incumbent ruling elite that own the gold?  I sorta doubt it.  is it "the central bank"?  what exactly IS the central bank?  paper... paper 'stock' owned by other banks who are run by international thugs.

I say that whoever has ACCESS to the bullion that  has been physically delivered and stashed... those very very few persons are the winners when the smoke clears, assuming any are left alive

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