Cyprus Denies Gold Sale

Tyler Durden's picture

From GoldCore

Cyprus Denies Gold Sale - Debtors Sell Gold; Creditors Buy

Today’s AM fix was USD 1,555.75, EUR 1,012.20 and GBP 1,189.59 per ounce.
Yesterday’s AM fix was USD 1,581.50, EUR 1,207.16 and GBP 1,032.24 per ounce.

Gold fell $26.20 or 1.65% yesterday to $1,558.50/oz and silver slid to $27.50 and finished -1.29%.

Minutes from the U.S. Fed’s 20th of March meeting were released early yesterday due to an early exit by Congress yesterday afternoon.  The minutes reported the following: 

“thought that if the outlook for labor market conditions improved as anticipated, it would probably be appropriate to slow purchases later in the year and to stop them by year-end.” … “Two members indicated that purchases might well continue at the current pace at least through the end of the year. It was also noted that were the outlook to deteriorate, the pace of purchases could be increased.”


Cross Currency Table – (Bloomberg)

In Europe, Cyprus has denied the plan to sell its very small gold reserves of 13.9 tonnes as a contribution to an international bailout.


Gold in USD, 5 Year – (Bloomberg)

Were the sale to happen it would be unlikely to set a precedent for other troubled Eurozone countries as these nations now greatly value their gold reserves as important stores of value that will protect against currency devaluations.

The Central Bank of Cyprus (CBC) said last night however that selling the island’s gold had not been on the table.

“Such an issue has not been raised, has not been discussed and is not being discussed at the moment,” CBC spokeswoman Aliki Stylianou said.

Stylianou added that sale of the gold was a matter handled exclusively by the CBC board.

A spokesperson for the Central Bank of Cyprus told the Cyprus News Agency (CNA) that reports of the $523 million gold sale have not been, “raised, discussed or debated,” with the bank’s board of directors.

The Central Bank of Cyprus denied the gold sale after reports on Reuters said that Cyprus officials had agreed to sell around 400 million euros in excess gold reserves to contribute to the country's bailout. Stylianou, the spokesperson for the Central Bank of Cyprus said that the gold sale was, “never discussed nor are there current or future plans to do so on the board’s agenda.” Reuters based its story on a draft report from the European Commission which assessed the nation's financing needs.

News of Cyprus’ planned sale likely did not contribute to gold's weakness yesterday. The amount of gold is trifling both in dollar or euro terms versus the scale of debts in Cyprus and the wider Eurozone and in terms of tonnage. At just 13.9 tonnes the Cyprus gold reserves is equal to one week's gold demand from Chinese people.


(Charts R US)

Gold imports by China from Hong Kong jumped 89% in February as lower prices led to an increased demand for gold. Chinese buyers purchased 97 metric tons of gold in January alone and the news of the demand was barely covered in the media and led to no impact on the gold price.

Desperate people and nations around the world are being forced by circumstance to sell their gold while creditors are continuing to accumulate gold.

NEWS

Gold losses seen limited on Cyprus bullion sale plan - Reuters

EU mulls bank law to impose losses on depositors – Reuters

Cyprus to dive into its gold reserves
- CNN

Cyprus to sell around €400m worth of gold as part of bailout - RTE

COMMENTARY

Cyprus To Sell €400 Million In Gold, About 75% Of Its Total Holdings, To Finance Part Of Its Bailout – Zero Hedge

Visualizing The "Real" Value Of Everything – Zero Hedge

This is why you don’t want to move gold yourself…
- Soverign Man

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GetZeeGold's picture

 

 

It would be crazy to give away the gold. We've still got taxpayer bank accounts. Our people lead the world in charitable giving.

eigenvalue's picture

10 tonnes of gold is just peanuts. 18 tonnes of physical gold is delivered today in Shanghai. 

new game's picture

just a rumor, mind you. but shhhh, speak softly, china plans to introduce gold backed yaun, shhh, don't tell anyone...

Pladizow's picture

Government denial is confirmation of the opposite!

bank guy in Brussels's picture

Indeed:

"Never believe anything in politics until it has been officially denied"

- Otto von Bismarck (1815-1898), first Chancellor of a united Germany

GetZeeGold's picture

 

 

Stopped out......again. Dang it!

 

10 years now.....still nuttin.

Manthong's picture

Somebody at Reuters should be fired for making that groundless, impossible, inconceivable, implausible and ludicrous story up out of thin air. Everyone knows the  Euronazi banking syndicate places no value on that shiny barbarous relic of the time before the business cycle was eliminated.

TeamDepends's picture

Cyprus Denies

Should have left it there.

widget's picture

When things get serious you have to lie

Mugatu's picture

Who gives a shit if Cyprus Central Bank denies the sale? Like Cyprus has a "say" in the matter.  At this point, Cyprus is a debtor-in-possession and the bankruptcy judge is the ECB.  If the ECB tells Cyprus that they need to use newspaper to wipe their asses, the tomorrow there would be a lot of red asses in Cyprus!

They have no choice.

Obadiah's picture

moar double jedi mind tricks from the elites

Example

O says he's from hawaii, fathered by a kenyan and whittie.  Puts out fake story he's not from nigeria, puts up fake birthcert on official whitehouse website all to get the dogs to chase that story rather than the fact that Frank M Davis was his father.

took six months to wrap my mind around that one, but nicely played

Bastiat's picture

DNA - I wonder if Reggie Love has a blue dress. . .

dick cheneys ghost's picture

Per Pepe Escobar....Here is what Putin recently denied:

 

''When Putin stressed that he does not see the BRICS as a "geopolitical competitor" to the West, it was the clincher; the official denial that confirms it's true. Durban may be solidifying just the beginning of such a competition. It goes without saying that Western elites - even mired in stagnation and bankruptcy - won't let any of their privileges go without a fierce fight.''

 

http://www.atimes.com/atimes/World/WOR-01-260313.html

johny2's picture

often you can just omit the word "not" to see the real intent or belief.

''When Putin stressed that he does see the BRICS as a "geopolitical competitor"

and than you have soros

"I do expect the gold to go down"

these two are on the opposite sides.

Azannoth's picture

They simply checked their vaults and discovered they were already empty, can't sell what u don't have at least when it's physical

Dewey Cheatum Howe's picture

They don't get the 7 year delivery plan?

Dishonesty Fatigue's picture

They can't sell their gold. It would contadict the provisons of the Constitution of the Republic of Cyprus and Article 1 of the First Protocol of the European Convention of Human Rights.

http://www.zerohedge.com/news/2013-03-29/oooops

TheGardener's picture

The will just post the gold as collateral, lease it back
and get a call option at 20000$/oz as part of the deal.

As long as it is in the books, it must be there. Good
non-deliverable central bank gold claims are held for tradition. The barbaric vaults have already been converted
into museums for gold art exhibitions, with re-enactment
imitation bars endorsed by royal visitors.

Bearwagon's picture

Lead time for delivery of a few ounces today would be 6 days or more. Just asked a few hours ago. So, even real peanuts can't be had instantly ... should tell us something ...

disabledvet's picture

Tells me the French Legionaires are on their way "to protect zee Cyprus gold"...from...from...from...well, you know. "those people." next up...Portugal "and their controversial gold." I must say the interview went well...the gold bars were quite chatty. Questions like "how does it feel to be loved by the whole world" and "still...people can't keep their hands off you" and "what are your plans? Are there any new shows we have to look forward to?" all went over great. They even gave a wry smile when I popped "the controversy" question. The bosses said I wasn't hard hitting enough...they wanted some "red meat" and felt let down. To be honest I was quite taken by their presence though. It was...well, difficult...to get all "Sid Viscous" (sp?) on them. Anywho...happy trading!

ziggy59's picture

Agreed! with fear, you can create panic...

The excuse roulette must be massive!

Everybodys All American's picture

The spokesman is always the last to know.

beaker's picture

Well why shouldn't we believe them?  They seem like straight up guys.

H E D G E H O G's picture

"in excess gold reserves", pardon moi, but I don't belive in EXCESS GOLD.....another "what the fuck" in this endless charade. has the World really become a planet of idiots, jesters, con men, egotistical psychopaths, theives, dupes, little boys wearing gucci suits deciding what the fuck is good for everybody else, lazy sheeple, swindlers, dictators of the masses, propagandasizing bullshit media, no rule of Law, cronyism, and the never ending, all encompassing  greed that is flaunted in our faces each and everyday? i might not live long enough to see it, but there will be blood in the streets from this collasal fuck over. i just hope the blood is from the ones who perpertrated this mass fleecing.

swani's picture

I agree with some of the comments below that Gold will be the new GDP, and it will be owned by the same monopolistic interests, the same oligarchs, so that they can back a new more 'solid' Gold backed currency. This new currency will be controlled by the same Central Banks, and Gold backed or not, the results will be the same old shit all over again. Isn't it obvious? 

 

 

Vlad Tepid's picture

They said they lost it in a trireme accident.

MortimerDuke's picture

Kudos for the trireme reference.  It did not go unnoticed.

Gunga's picture

We haven't sold it,, we just don't know where it is.

GetZeeGold's picture

 

 

That line only works on the Germans.

Bearwagon's picture

Do you think the worlds finest armory will not get gold for their merchandise, if they demand it? Come on!

GetZeeGold's picture

 

 

Well.....they haven't yet....just sayin

Bearwagon's picture

There's plenty of time. No need to disturb allegiant customers because of a diddly squat of a few tons gold. The business relations are worth much more ...   ;-)

GetZeeGold's picture

 

 

There's plenty of time.

 

Yeah.....last I heard it was 7 years. Not exactly.....on demand.

scatterbrains's picture

here it is! Remember we switched the name plates on the vault door.   Just duck tape over it until Goldman straightens this little matter out.

 

Hongcha's picture
Sell it for Biteuros issued by the Troika.
Bearwagon's picture

Deny, deny, deny! And there is no B-3 bomber, which is why I can't understand, how comes everybody is talking about it. Deny, deny, deny ...

Stuart's picture

Wash, rinse, repeat. .... The gold market behaviour is now simple conditioned response to blatant price rigging in the paper markets.    To think such a story would've been planted, simply to drive the price lower, nah, too conspiratorial.   There are concerted efforts targeting the suppression of gold.  Those who believe in gold as a solution to this mess (red pill) over the forced intervention of repressive central planning (blue pill) need to pick one.   Welcome to the real matrix.   

eigenvalue's picture

Gold is not so important as silver. Silver is the main battleground these days. However, I wonder why Goldcore doesn't provide any info on silver.

NoWayJose's picture

Gold and silver were flying higher and shorts were starting to panic - so plant a false gold selling story and then leak Fed minutes early. Panic over. Back to slam down.

Al Huxley's picture

Along with the Goldman 'sell gold' recommendation.  Still, if 'the market' is stupid enough to believe that shit, why wouldn't they do that.  Now if only I could find some real gold or silver to buy at this price.

Cone of Silence's picture

Remember that gold goes down in a recession. Does anybody think that we are not in a recession?  In a recession,  the line of people waiting to buy a gold future contract in NY gets shorter.  That marginal reduction of buyers in a recession  drives the price of gold down.

Al Huxley's picture

Gold has been following the money supply for at least 13 years.  Look at this chart and tell me if you see any indication that it's going to change direction any time soon.  Do a quick review of activities in Washington over the past 10 years and tell me if you see any indication that they're suddenly going to find a way to cut $85 billion/month in spending.

 

http://research.stlouisfed.org/fred2/series/BASE

 

And the buyers of gold aren't the public (until maybe the very end, when it's way too late), they're the central banks working to displace the USD as reserve currency.

Cone of Silence's picture

Agreed,  the buyers of gold that matter, do not read zero hedge.  Look down on your ring finger.  If that is the only gold that you own,  congratulations,  you are a member of the 99.99% of people. ( I made that up)  If you own more than one gold bar,  27 pounds,  or 439 ounces of gold,  that puts you into the 0.0000001 percent of investors.  ( I made that up too.)  Everyone else that  is in between with one or more gold coins  (I hope that you have several)   You can go here   to see a good technical analysis of where gold is going right now.  http://lewrockwell.com/orig14/williams-robert1.1.1.html   I do not agree with the analyst conclusions.  He is shilling for the gold bugs.  The squid goldman analyst looked at the exact  same chart, and  came to the same future  number for gold.  If 1522 is pieced to the downsided for gold, then the next level of resistance is around 1447.  The Fed can print all the money it wants, and until the banks start loaning it out, no inflation.  See the M2 money velocity chart.  Its at an all time low.  The new money is not being batted about the economy.  It is getting sucked into excess reserves right away. 

MortimerDuke's picture

What?!?!  But Bob Pisani said that the Fed minutes were interpreted by the stock market as the spigot will remain open.  Bertha Coons, reporting on gold yesterday, said that the gold traders interpreted the Fed minutes as if QE were ending tomorrow.  Either CNBC has no clue what is driving markets right now, or somehow the DNA of the average gold trader is dramatically different from the average stock trader.  I'll go with the former.

Everybodys All American's picture

The fleecing can't be far off. The signs are all in.

1. Blackrock. Blackrock says that they are against the Fed and want no more QE. Which means they are ready to sell this market big time in my estimation.

2. Downgrades are coming forward now. Downgrades of Nicrosoft. The semis. Downgrades from all over the place. When was the last time we saw this.

3. The Fed release early of their minutes to a select group. This tells me the QE spigot is about to be turned off and these people are demanding an early warning.

It's all in place to pull the rug and the newbies will be slaughtered.

Al Huxley's picture

I understand your argument as far as the market prices go.  But tell me, who's going to fund the deficit if the Fed ends QE - because that's what it's really all about. 

Ewtman's picture

If you are going to renege on your debts what difference does it make how much deficit you accumulate?