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Russia, Greece, Turkey, Other Central Banks Buy Gold; China’s PBOC Buying?
From GoldCore
Russia, Greece, Turkey, Other Central Banks Buy Gold; China’s PBOC Buying?
Today is a national holiday in the United Kingdom and the USA.
Friday’s AM fix was USD 1,385.25, EUR 1,068.95 and GBP 917.81 per ounce.
Gold climbed $5 on Friday and closed at $1,390.25/oz in London and silver closed at 22.482 in NY.
Gold rose 0.45% this morning in quiet European trading with UK and U.S. markets closed for holidays. Silver, platinum and palladium also advanced this morning.
Gold’s gains come on the back of the best week in a month last week when gold rose 2%.
Gold is being supported by continued diversification from central banks and signs of increased physical demand which is countering continued outflows in ETF holdings.
Gold Price (Nominal) and Central Bank Net Buying/ Selling (1971-2013)
Russia, Greece, Turkey, Kazakhstan and Azerbaijan expanded their gold reserves for a seventh straight month in April, buying bullion to diversify foreign exchange reserves due to concerns about the dollar and the euro.
Russia’s steady increase in its gold reserves saw its holdings, the seventh-largest by country, climb another 8.4 metric tons to 990 tons, taking gains this year to 3.4% after expanding by 8.5% in 2012, International Monetary Fund data show.
Kazakhstan’s reserves grew 2.6 tons to 125.5 tons, taking the increase to 8.9% this year after a 41% expansion in 2012, data on the website showed.
Turkey’s holdings rose 18.2 tons to 427.1 tons in April, increasing for a 10th month as it accepted gold in its reserve requirements from commercial banks.
Belarus’s holdings expanded for a seventh month as did Azerbaijan’s.
Interestingly, Greece’s gold holdings climbed for a fourth month, according to the IMF data.
This could be a sign of rising economic nationalism in Greece or that the Greek central bank realises that if Greece leaves the euro and is forced back onto the drachma that gold reserves will offer a modicum of protection. Only a modicum, because Greece’s gold reserves remain miniscule especially considering the scale of their debts.
IMF Greece Gold Reserves, Quarterly 01Jan1956-27May2013, in Mill Fin Troy Oz
Central banks are buying gold as an overall strategy of forex portfolio diversification and the recent price drop will not deter them from a long term policy of diversification into gold.
Central bank reserve managers are conservative rather than speculative and will ignore the day to day noise and price predictions emanating from certain banks in favour of passive allocations to gold as part of their foreign exchange diversification strategy.
IMF World Gold Reserves, Monthly 31Mar2007-31Mar2013, in Mill Fin Troy Oz
While not driven by price, some central banks may have made the most of the lower prices by increasing their holdings by more than they would have if prices had risen in value.
The long term trend for central banks to increase gold reserves remains intact and will support gold.
Central banks bought 534.6 tons of gold last year, the most since 1964, and may add as much as 550 tons in 2013, the World Gold Council estimates. While central-bank purchases fell 5.2 percent in the three months through March, they totaled more than 100 tons for the seventh straight quarter, according to council data.
IMF China Gold Reserves, Quarterly 01Jan1977-27May2013, in Mill Fin Troy Oz
China’s foreign currency reserves have surged more than 700% since 2004 and are now enough to buy every central bank’s official gold supply - twice.
China’s foreign reserves surpassed the value of all official bullion holdings in January 2004 and rose to $3.3 trillion at the end of 2012 and are at $3.4 trillion today.
The price of gold has failed to keep pace with the surge in the value of Chinese and global foreign exchange holdings. Gold has increased just 54% in the last 5 years and 250% since 2004, with the registered volume little changed, according to data based on International Monetary Fund and World Gold Council figures.
China’s Foreign Exchange Reserves vs Gold Monthly (2004-2013)
By comparison, China’s reserves rose 721% from 2004 through 2012, while the combined total among Brazil, Russia and India rose about 400% to $1.1 trillion.
Continuing diversification into gold from the huge foreign exchange reserves by the People’s Bank of China and other central banks is a primary pillar which will support gold and should contribute to higher prices in the coming years.
We are confident that the PBOC is quietly accumulating gold and we expect another announcement from the PBOC, possibly this year, when they again disclose to the market that they drastically increased their gold reserves – possibly from 1,054 tonnes to between 2,000 and 3,000 tonnes.
Central Banks Boosted Gold Holdings in April – Wall Street Journal
Gold Advances as Central Bank Purchases Counter Decline in ETPs - Bloomberg
Gold firm as stocks slip, dollar weakens versus yen - Reuters
Gold Bets Reach Five-Year Low With Prices Whipsawed – Business Week
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First!!!
Sorry, for a moment I thought this was tfmetalsreport.
Contrary to the conclustions of this biased article, the first chart clearly demonstrates that central bank purchases have fallen dramatically since 2009. This should make goldbugz very, very worried. There is absolutely nothing out there that makes me bullish about the gold market.
That there is nothing out there that makes you bullish seems to me a very good reason to be bullishest.
China is the straw that those dying gold bugs are trying to clutch.
Die, gold and silver bugs!
What it shows is that Central Bankers the world over are bullshitters and liars when it comes to gold and silver. If they truly believed in their fiat system then they would let their inventories run out with time and not restock. They are doing the opposite. Cowards.
Everyone knows that gold and silver will be the only thing left....so the great PM race is on. Don't expect anyone to tell you that.
Million$Bonus=eigenvalue=TimGeithner
Though the third member of your 'power trio' is somewhat suspect, I do agree that MDB+eigenvalue=a value proposition...
and as usual, we owe MDB a vote of thanks, for bringing to our attention the obvious deficit of his(and all those of his ilk!) attention to the simple details of the chart from which he chose to launch his bombastic assault pon truth n accuracyin media:
read n weep MDB..."central bank buying...exclusive of China!"
Ok/// Where do we start...?? how bout here... http://www.marketoracle.co.uk/Article40622.html - wherein GM's Alistair McLeod gives the most reasoned and powerful explanation of just where the cards lie at this exact moment in time... a moment in which ... to quote the man in just one critical part of his brilliant assessment
As the Porker used to say..... Thathathat's all folks!
The balliffs are arriving on scene... "Big" Jim Willie asserts now that China owns +10 tons... and Russia at least 20. There's absolutely no need to be 'alarmed' ... just run and scream in total terror fiat folks!
And as eigenvalue has correctly pointed out ... for us gold\silver bugs... the 'die' is indeed 'cast'...and the 'straw house' that is the collapsing western ponzi scheme is about to be blown down by the "Circus Lupus" setting up it's tents on the edge of town!
We who have stayed the course... and the heat of the kitchen... are now ready to scarf up the just desserts of our travails... whilst our richly deserving bud MDB can look forward only to the bitter grounds of his chronic failure to 'pay attention to the details!'
As for 'timmy' n friends... I believe that somewhere south of Benghazi an inscription is ready made, but perhaps already scraped by the vast desert sands to illegibility... all we can say for sure...
"Die, gold and silver bugs!"
Just what we need - A piece of shit collaborator, banker ball sack-licking stool pigeon motherfucker spewing a bunch of Wall Street bullshit on our beloved Fight Club.
YOU go die, you FUCK!
No fight club here. Exhibit A: http://www.zerohedge.com/help/notice-racism
>> , the first chart clearly demonstrates that central bank purchases have fallen dramatically since 2009.
Dramatically? How can you come to that Drama Queen conclusion when the chart clearly excludes China, the largest single buyer? And since the central banks have cut back "dramatically", gold has gone from mid $600 to $1,400. Folks like Gordon Brown are not always the best market oricles.
Who sold gold? And was it physical or just a registry shift?
It appears that the world does not accept the word of America's financial media that gold is done. Rather, they are using the paper smack down as an opportunity to trade paper for money.
So what? Do as they do, not as they say! Should be a no-brainer ....
Marble mouth summers says it is a demand issue.
http://www.rferl.mobi/a/24998205/full.html
Yuan keeps setting at new highs as gold price flushes. ying to USD yang.
Greece??? Vhy are zey not paying back ze debt?!!
Greece very smart: Buy gold with debt. Default on debt.
Same as Americans: Buy foreclosed house accross the street at half price of yours and rent it. Stop paying the mortgage on the first house. Live there for two years or so and when you get kicked out throw out the renters across the street and move there. Bingo free house.
Hmm I hear Greece has got a lot of terrorist better send in an army to loot liberate the place.
Ask Greece where "their" gold is stored and whether they took advice from Mexico.
And when the price drops, central banks have to buy even more to catch up to the same reserve percentage as they had been at before. This is also interesting:
http://www.gotgoldreport.com/2013/05/courtesy-release-of-new-video-got-gold-report.html#more
Basel III tier 1
well the "operation" planned for tonight should be another fabulous gift to them all.
If there is indeed an "operation" tonight, I will be waiting at the coin store to open with fiats.
why are you waiting at coin shop in the morning? go online to the reputable dealers and caught the slaughter prices......
then send a money order.....every single one of these bloodbaths, I've managed to catch bargains with the various dealers who update prices constantly.
I wait at the coin shop and pay cash as to not be traced.
Yuan over usd
http://m.scmp.com/business/economy/article/1247209/china-adviser-sees-yu...
i don't think its going to take thirty years. More like two years. Party is ending...faster than anyone is willing to acknowledge.
If I were going to save fiats, the Yuan is very tempting to buy and hold.
these days, i keep most of my cash in yuan
no point in USD. don't want to being sitting in USD when the big slide starts
I think I will go to the credit union and see if I can buy someof these mysterious oriental Yuans for safekeeping, of course.
Does anyone know which "banks" in larger towns may have these Yuans?
Thanks.
lakecity55,
Go to any large bank that has Chines tellers.
I think he meant months. We will be lucky to still be around in 30 years.
Barbaric trend.
Not busting balls but why participate in a market that is clearly fixed? Gold is the only item in world history that is decreasing in value as demand rises. Except for the armageddon angle, I refuse to play a game that is controlled by something other than market forces.
check out Quin's 9 am post, video brightened my day
Where is that 'market' that is subject to market forces? Everything is being heavily manipulated....there is no free market.
and my response to this, yes, why participate indeed? why not just buy gold bullion, take delivery, and not participate in any of this?
you can't actually buy any gold in size at the Comex -- fixed -- price.
the CTFC isn't going to regulate the market.
so why play at all? just take your gold and silver and go home.
MDB has to be Bennie or Jack(off) Lew.
"A 7 Sigma move in gold prices happens once in 1 Billion years"
GW.
Am so glad that i bought the DIP
We are seeing a great rotation - from paper into physical.
As much as I sympathize and share the gold bug sentiment, I have to admit that this article is pure wishful thinking. There is no way, if it is true, that the Chinese will report their purchases. Why would they do that? It would be very stupid on their part and they are not stupid.
The only time they will announce will be when their reserves are greater than twice the US
as a % of GDP.
It will be a joint effort with all the BRICS ,and the non aligned nations.
The only question right now is;
Will WWIII break out before ,or after they do it ?
I'm begining to think this year at 50% probability of WWIII, the end of 2014,at 90%.
Don't buy gold. It's value will be zero in a few short months, after the economy will pass this rough patch. Green shots everywhere! Soon we will all have three meals a day and free electricity - all day long.
Note: no need for /sarc tag
I was promised a phone
China wont want to advertise its strong buying....unless for political reasons to help break the USD as a sole reserve currency.....
Kina,
What percentage of Chinese exports are to US. What percentage is it to Europe. European market is about 400 million people, US is about 320 million. If the dollar implodes as many here wish, do you think that the trading would be "normal". The whole system would grind to a stop.
Yet people still claim that the US govt conspires to make the gold price lower. Why? So Russia, China et al can buy it cheaper?
They are just trying to keep the fiat paper debt system from imploding. Once the fiat system implodes, a sound money system will reappear globally.
-cheaper for China..
According to some people recently interviewed on other sites.........Yup.
Thanks Max
All these central banks are buying gold, yet the price stays low. Makes no sense. Either these central banks are not really getting physical in their hands, they are lying, or they are taking all the supply from suckers who are selling it. I can't imagine there are any large sellers out there selling this kind of quantity. It's possible these central banks are buying it from another central bank that is not actually shipping it, just allocating it for them. In which case it's a fraud and would make sense as there is no physical exchange and hence supply is not being taken off the market.
you don't know what they are paying for physical. The Crimex price doesn't mean dick.
And where are the US Gold Reserves?
Gone that's where. Arrest Dimon, BlankFein and Bernanke.
Greece is "buying" (anything)? With what?
country with most gold stronger? (relativity)
country with all gold rules? (absolute)
methinketh not to both.
country with most (more/less) first must be self sufficient, otherwise gold physically must be transferred out of country over time. (no no no! 'gold backed currency' is still piece of paper that says "trust me" ). in the case of world economy 'over time' is faster than fed ex squared. not possible to maintain gold world economy. world collapses. (relativity).
country has all gold. same problem as above, plus boycott of one country by rest of planet easy as saying "food". country collapses. (absolute)
best case for world bankers is that people believe that gold is their savior. much like bible requires belief in that god for its worth.
both gold and gods require hell to achieve maximum 'value'.
both sets of believers will die and kill for their go(l)ds.
least that can be deduced is silly to hold beliefs that require damnation as their foundation for existence of maximum value.
Author neglects the fact that Greece has to start from ZERO as all previous gold holdings were pledged to the ECB for the last bailout.
http://www.zerohedge.com/news/greece’s-lenders-have-right-seize-national-gold-reserves
<--- Turkey is buying gold for Iranian oil
<--- Turkey is buying gold for itself only
You get the picture why TPTB want Turkey to 'toe the line', and be on "the right side" in the Israeli-Syrian-Iranian conflict?
turkey pays iran with turkish lira in turkey for oil and gas, and iran buys gold with that turkish lira and smuggles it to iran. on paper, turkey seems to be importing gold in vast quantities but actually it's iran who is importing it.
but of course, this has nothing to do with turkish central bank stockpiling gold for itself.
Freegolders say they are AGAINST gold as money but that they are FOR gold at the same time.
Who is AGAINST gold or honest money?
THE BANKERS.
Fregolders say that gold is neither commodity nor money. What kind of bullshit is that?
Freegold=Freebullshit
If gold is a barbarous relic, or "tradition" as Bernanke says, then why are central banks actively accumulating it, right now, in the year 2013, and every year since 2009?
Do they know something we don't? Are they lying to us even while they act to protect themselves?
One of the keys going forward is, if you choose to buy gold, to make sure it's outside of the banking system. All gold that is within commercial banks will ultimately be confiscated by the central bank, if it hasn't left the vaults already. The central bank isn't going to go after private gold, because there's comparatively less of it and they know it's in strong, secret hands, and they don't want to be seen as "uncivilized" or let the cat out of the bag.
On the other end of collapse, the central bank is going to buy your private gold, but at much higher fiat prices.
On the other end of collapse, the central bank is going to buy your private gold, but at much higher fiat prices.
So sorry for them, mine is not for sale at any price in ponzi paper.