Turkey Gold Demand Spikes To 8-Year High (As Price Drops)

Tyler Durden's picture




 

As gold prices have fallen, yet another nation is choosing to use the drop to build its reserves. As Bloomberg notes, Turkey’s gold imports that doubled this year are set to reach the highest level since 2005 as the metal's price heads for the first annual drop in 13 years. As Commerzbank notes "there seems to be a lot of interest in physical gold at the current low price," as Turkey imported 251.4 metric tons of gold since January - the biggest tonnage increase since at least 1995 (a rate almost 60% more than 2012's average monthly rate). Turkey was the fourth-largest buyer of gold last year, after India, China and the U.S., World Gold Council data show.

 

 

Source: Bloomberg

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Fri, 11/08/2013 - 13:38 | 4135771 Xibalba
Xibalba's picture

Amazing how a few banking elite can fight against the entire world and think they can win. 

Fri, 11/08/2013 - 13:40 | 4135780 LawsofPhysics
LawsofPhysics's picture

That which cannot be sustained, won't be. 

hedge accordingly.

Fri, 11/08/2013 - 13:41 | 4135782 James_Cole
James_Cole's picture

World Gold Council data show.

Take note peoples.

Fri, 11/08/2013 - 13:46 | 4135795 Dr. Engali
Dr. Engali's picture
About the World Gold Council

The World Gold Council is the market development organisation for the gold industry. Working within the investment, jewellery and technology sectors, as well as engaging in government affairs, our purpose is to provide industry leadership, whilst stimulating and sustaining demand for gold.

Fri, 11/08/2013 - 13:52 | 4135824 kito
kito's picture

Doc the Reuben is ready!!!! Pick it up!!!!

Fri, 11/08/2013 - 13:59 | 4135842 Dr. Engali
Dr. Engali's picture

Thank you kito. On what shall we bet next? :) I have one with Fonz on the 6 month price of Twitter.

Fri, 11/08/2013 - 14:04 | 4135862 Manthong
Manthong's picture

gee.. it's not like possesion of the underlying is important or anything..

..snicker  :-D

Fri, 11/08/2013 - 14:24 | 4135954 DoChenRollingBearing
DoChenRollingBearing's picture

Each of us can be our own central bank.   Buy gold.  Turkey is being smart (in addition to getting Iranian oil for cheap).

Fri, 11/08/2013 - 15:01 | 4136200 kito
kito's picture

nooooooo!!! im done for now. your sandwich place knows me by name already

Fri, 11/08/2013 - 13:44 | 4135785 Pladizow
Pladizow's picture

How do you get around US Gov Sanctions? - for 1oz Alex.

Fri, 11/08/2013 - 14:19 | 4135931 Manthong
Manthong's picture

I'll take rebellion for 690 grains, Alex.

Fri, 11/08/2013 - 14:39 | 4136050 Jonas Parker
Jonas Parker's picture

"Pitchforks & Torches" for 1/10 oz, Alex...

Fri, 11/08/2013 - 13:44 | 4135789 uncle.bigs
uncle.bigs's picture

That which cannot be sustained can be sustained longer than you can remain liquid.

 

 

Fri, 11/08/2013 - 13:46 | 4135799 LawsofPhysics
LawsofPhysics's picture

Define "liquid".  Your statement implies that somehow all forms of trade/exchange can be regulated/controlled.

Good luck with that.

Fri, 11/08/2013 - 14:01 | 4135852 Harbanger
Harbanger's picture

liquid is the stuff that drains out of your cash deposits.

Fri, 11/08/2013 - 13:39 | 4135775 Dr. Engali
Dr. Engali's picture

In 20 days my turkey import is going to spike to a record high....turkey and stuffing bitchez!

Fri, 11/08/2013 - 13:43 | 4135787 uncle.bigs
uncle.bigs's picture

Folks this chart isn't bullish:

 

http://finance.yahoo.com/q/ta?s=GLD&t=5y&l=on&z=l&q=l&p=&a=&c=

 

Gold is going to $1000 or $750.  Sorry fellas.

Fri, 11/08/2013 - 13:53 | 4135804 LawsofPhysics
LawsofPhysics's picture

Wake us when I can take delivery for under $300 (I did this less than 15 years ago, certainly you expect to live for more than 15 years douchebag). 

will not happen. 

But yes, that paper "trust" you cite on yahoo will definitely go much, much lower.

Fri, 11/08/2013 - 13:54 | 4135830 James_Cole
James_Cole's picture

Gold isn't looking as bad as the gld chart suggests, most of the selling over the past year has been in ETFs (which makes a lot of sense). 

http://www.gold.org/investment/statistics/demand_and_supply_statistics/

Fri, 11/08/2013 - 13:57 | 4135838 LawsofPhysics
LawsofPhysics's picture

shorting the paper has been a great call (for the last year)  and may still be, right up until the yield on the the ten-year hits 4%.

that's my call.

Fri, 11/08/2013 - 14:04 | 4135859 Ham-bone
Ham-bone's picture

Laws - anything is possible but I don't really understand why you would call for a 4% yield on 10yr when the US is so interest rate sensitive...this would blow the economy out of the water?!  Given this coupled w/ the Fed's seeming ability to maintain QE...well, forever, why would they not do so and allow the rates to destroy the economy???  What scenario do you see that allows this to play out?

Fri, 11/08/2013 - 14:19 | 4135935 LawsofPhysics
LawsofPhysics's picture

There is enough extra cash in the system for the eCONomy to "muddle" through with a return to historic averages.  The Fed must regain some confidence.  We all know this and this is my contrarian play.

Fri, 11/08/2013 - 14:23 | 4135951 Variance Doc
Variance Doc's picture

Look Lassie, the private Fed does NOT have control over the interest rate as they claim, and you believe, given your Pavlovian response.  The bond "market" dwarfs the private Fed; hence the rise in interest rates recently against their will.

Fiat systems are nothing more than confidence schemes.  Once the confidence goes, watch out below.  What will lead to a loss of confidence?  That is the $64K question that no one can answer.  All we (those who pay attention to the writing on the wall) can say is that there will be a loss of conficence in the near-term future.  Get ready.

Fri, 11/08/2013 - 14:55 | 4136089 Ham-bone
Ham-bone's picture

VD (if I may call you that?),

not sure how bond market dwarfs Fed -

$17 T in Federal treasury debt

$5 T in "intragov non-marketable debt" (SS and the like...will be rolled indefinitely...though it could be argued that the loss of the SS surplus was the harbinger of the Fed's QE to patch a leak that began long ago)...so $12 T in marketable debt ($1.5 T in Bills, 7.8 T in Notes, $2.4 T in Bonds/ TIPS). 

$1.5 T in Bills used as short term liquidity...Fed and foreigners own next to none.

Fed owns $2.5 T (20%) of the remaining $12 T in Notes / Bonds / TIPS...foreigners own $5 T of these (40%)...so there is "only" $4.5 T in the market...and Feds QE is more than mopping up new issuance and rollover. 

Only flaw and rise in rates comes if QE cannot be maintained...but I see no reason it will not be maintained. 

@ Laws...disagree that economy can sustain 3% yields let alone 4%...everthing depends on ever lower rates...and that is the Feds job

Fri, 11/08/2013 - 14:56 | 4136163 new game
new game's picture

look to the far east-abe boy, to see the future OR loss of faith as in china dump because the mic crosses the line.

or that black swan shows up....

Fri, 11/08/2013 - 15:13 | 4136256 Squid-puppets a...
Squid-puppets a-go-go's picture

im startin to feel like im waiting for Godot, not the black swan

Fri, 11/08/2013 - 15:37 | 4136338 Variance Doc
Variance Doc's picture

Last I checked (and my math is never wrong), foreign holdings (in billions) of treasuries is 5,443.4 > 2,125.5, which is the amout of treasuries held be the private fed.  Get it?  And this is just a partial picture of the size of the bond market.

Sources:

http://www.treasury.gov/resource-center/data-chart-center/tic/Documents/...

and

http://www.federalreserve.gov/releases/h41/current/h41.htm

 

Fri, 11/08/2013 - 16:20 | 4136529 new game
new game's picture

so you saying the mopper of last resort will mop like a mutha fuk? they can do that, but what about the dollar value when this confidence goes. ben can not print euro's , yuans , reals and so on....

game over...

Fri, 11/08/2013 - 16:43 | 4136596 Ham-bone
Ham-bone's picture

Not sure how you can say that as the data is exactly opposite...

China has increased it's T holdings from $520 B in '08 to $1.1 T now...Japan from $550 B in '07 to $1.1 T now...Belgium from $16 B in '09 to $133 B today...Brazil from $33 B in '06  to $236 B today...Fucking Norway went from $5 B in '09 to $68 B today...get the picture...Russia, Taiwan, UK, Switzerland, Ireland all have huge increases in T holdings!!!  There are no foreigners selling...the real question is where they are getting the money with which to buy these.  Dollar swaps???  And in the same period, the dollar has no significantly weakend. 

Can you say collusion on a nation state level???  They all seem to be holding hands...no matter what they say in public their actions are clear.

Fri, 11/08/2013 - 14:06 | 4135871 James_Cole
James_Cole's picture

Need the ETFs to come back for the gold price to pick up though. Gold bugs hate this, but it's reality.

http://www.goldfields.co.za/reports/annual_report_2012/img/pg47_pic2.gif

http://www.refinedinvestments.com/wp-content/uploads/2011/08/chart-of-th...

Fri, 11/08/2013 - 15:47 | 4136407 Bay of Pigs
Bay of Pigs's picture

The reality is that you don't know what the fuck you are talking about.

Fri, 11/08/2013 - 19:56 | 4137200 auric1234
auric1234's picture

Need the ETFs to come back for the GLD price to pick up though. GLD bugs hate this, but it's reality.

You misspelled GLD. There, fixed it for you.

 

Thu, 11/14/2013 - 20:44 | 4156143 MeelionDollerBogus
MeelionDollerBogus's picture

it's not.
GLD will be at 500 while gold bars are at 5000 per oz.

Fri, 11/08/2013 - 13:50 | 4135809 Ham-bone
Ham-bone's picture

Man, I hope you are right and gold (and silver) does go to nearly half of the price to mine the stuff...there can be no greater bang to the upside than a market in which exploration is completely shut down and mines mothballed.  Please please please let this anti open market massive imbalance of high demand and low supply resluting in lower prices continue...for the bang up at the end is only that much more spectacular.

Fri, 11/08/2013 - 13:51 | 4135817 LawsofPhysics
LawsofPhysics's picture

Exactly.  Good luck taking delivery when the price goes below $700 an ounce.  Will real market player be willing to wait 7 years like Germany?  I think not.

Fri, 11/08/2013 - 13:59 | 4135841 uncle.bigs
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Gold mining can completely shut down and the 175,000 tons in existence will continue to be bought and sold.  Annual production is relatively immaterial to price of gold.  I guess goldbugs just can't think rationally about gold.  Platinum is 16 times more rare than gold yet only trades at a 10% premium to gold.  Gee, you think gold might still be a bit bubbly?  LOL.  I guess you'll have to learn the hard way.

Fri, 11/08/2013 - 14:07 | 4135873 Variance Doc
Variance Doc's picture

Because platinum is NOT money like gold is, dumbshit.

Fri, 11/08/2013 - 14:19 | 4135930 uncle.bigs
uncle.bigs's picture

Why does the US mint produce platinum coins?  LMFAO

Fri, 11/08/2013 - 14:27 | 4135973 Variance Doc
Variance Doc's picture

JFC, it's almost impossible you're that dumb.  Look up the definition of money and you can answer your question.

Tyler(s) please bring back the captchas!

Fri, 11/08/2013 - 15:54 | 4136435 Bay of Pigs
Bay of Pigs's picture

He's been here a week...

Maybe a new troll? Oh goodie. We need moar gold trolls.

Thu, 11/14/2013 - 20:42 | 4156137 MeelionDollerBogus
MeelionDollerBogus's picture

metals ain't money, we're told

as if the story never gets old

paper issued by a felon

most recently Yellen

and so, once again, we're troll'd

Fri, 11/08/2013 - 16:39 | 4136581 DoChenRollingBearing
DoChenRollingBearing's picture

- 1

Proof platinum coins for collectors only.

Fri, 11/08/2013 - 14:19 | 4135936 johny2
johny2's picture

Both Platinum and SIlver are a money in the same sense that Gold is. 

Fri, 11/08/2013 - 14:29 | 4135988 Variance Doc
Variance Doc's picture

They are not as universally accepted as gold is.

Thu, 11/14/2013 - 20:38 | 4156130 MeelionDollerBogus
MeelionDollerBogus's picture

Dumbass, platinum is among the ISO currencies & the Royal Canadian mint also issues Platinum maple coins.

Fri, 11/08/2013 - 14:18 | 4135929 Ham-bone
Ham-bone's picture

Uncle - I get your scenario assuming gold is sold freely as the price goes down (not subscribing but get it)...but if I apply the same to silver where there is relatively low supply (2 to 3 mo's at present consumption) above ground supply, the result looks quite different.  Thoughts?

Fri, 11/08/2013 - 14:21 | 4135939 uncle.bigs
uncle.bigs's picture

Most silver is produced as a by-product to copper and zinc mines.  Silver was getting produced at $6.50 per ounce and there is no reason it wouldn't do so again.  It's largely the same sources of production.

Fri, 11/08/2013 - 14:37 | 4136006 James_Cole
James_Cole's picture

Most silver is produced as a by-product to copper and zinc mines.  

Uh oh, you're going to break a few hearts if you keep going this direction..

Last year in Dec, people on here were claiming I was this guy:

http://www.maxkeiser.com/2012/12/jeffrey-christian-silver-demand-is-weak...

'Cept he was way too optimistic on gold. Either way, people need to understand what they're buying better. Good to see someone else on here rationally explaining a bit about the game. 

Fri, 11/08/2013 - 15:09 | 4136231 Ham-bone
Ham-bone's picture

not disputing that 2/3rds of silver is "by-product" but given everything is priced on the margin...I don't see anything but flat'ish zinc / copper and significant slowdowns in primary silver miners / explorers.  Can't see how a silver price drawdown is anything but bullish in the simple matter that demand remains elevated while supply is constrained?  I don't see how mining prices will come down when looking at input costs rising and ore grades declining. 

Glad to hear your thoughts.

Fri, 11/08/2013 - 15:45 | 4136399 James_Cole
James_Cole's picture

The grades that the charlatans like to promote are highly skewed by the mines which have come online due to the elevated prices, I would take those with a grain of salt. 

Mine supply rose for the tenth consecutive year, to a new record high of 787.0 Moz (24,478 t). The primary silver mining sector increased output by only 0.8% in 2012, with most growth coming from the by-product sector, particularly the lead/zinc mining industry. Meanwhile, scrap fell by 1.6% to 253.9 Moz (7,897 t), which is still the second highest level on record. 

Total fabrication fell by 6.6% last year, to 846.8 Moz  World Investment rose by 0.8% in 2012, to 252.7 Moz (7,860 t), as implied net investment increased, compensating for falls in physical bar investment and coins and medals. https://www.silverinstitute.org/site/wp-content/uploads/2013/06/WSS2013S... https://www.silverinstitute.org/site/supply-demand/
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