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Russian Banks Buy 181.4 Tons Of Gold In 2013

Tyler Durden's picture




 

With headlines crowing of gold's worst year since 1981 as a signal that the status quo is winning and proof positive that fiat-currency naysayers must be wrong, it would appear that the rest of the world's central banks (and banks) have used the price depreciation to stack the precious metal. As Bloomberg reports,

  • *RUSSIAN BANKS BOUGHT 181.4 TONS OF RUSSIAN GOLD IN 2013: RIA
  • *RUSSIAN BANKS BOUGHT ALMOST 90% OF RUSSIA 2013 GOLD OUTPUT: RIA

This 5.834 million ounce addition (8.3% YoY) is more than double that of Russia's central bank additions in 2013 with Bitcoin-favoring Sberbank piling up 48.5 tons alone in 2013.

 

Russia's central bank added 2.485 million ounces to November - so the bank additions are very large...

 

Biggest buyers according to Finance Ministry include Sberbank (48.5 tons), VTB (38.9 tons), Gazprombank (29.1 tons), Nomos Bank (19.6 tons), Lanta Bank (8.6 tons).

So, like China, we are sure Russia will be sending a big "Thank You" to the Fed (and BIS) for their efforts.

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Tue, 12/31/2013 - 14:59 | 4289062 devo
devo's picture

This is why the saying goes: "Sell once Central Banks are buying"...

Are ZH writers 12?

Tue, 12/31/2013 - 14:58 | 4289074 realWhiteNight123129
realWhiteNight123129's picture

Sell when nobody even yourself, your wife and parents beg you not to sell while people pass on stocks paying 8-10% dividend yield. There will be such a time when nobody wants financial assets and people who want to swap their gold for finanical assets are considered insane. We are not at that point yet by any stretch of the imagination.

 

Tue, 12/31/2013 - 15:07 | 4289095 devo
devo's picture

Whatever. You're spouting YouTube bunker-dweller rhetoric.

I like gold and it's still in a bull market and will go up again, but ZH seems clueless sometimes. Like pretty much everyone who follows financial markets knows you never fight the FED, sell gold when CBs are buying, etc. It's all been smart advice this time around, too, despite the doom and gloom end of the world talk.

I'm just an equal opportunity propaganda hater.

Tue, 12/31/2013 - 15:13 | 4289113 Temporalist
Temporalist's picture

Well...everything is propaganda so just label yourself a nihilist and call it a bad 2013.

Tue, 12/31/2013 - 15:12 | 4289117 devo
devo's picture

That's pretty much what I do. Sometimes the bullshit is too much and I lash out. I have to bench press my girlfriend while watching Jim Cramer so ZH is still one up on the mainstream media.

Tue, 12/31/2013 - 15:29 | 4289162 BaBaBouy
BaBaBouy's picture

Meanwhile... Canada Selling Last Few Ozs Of Its GOLD!

WTF ???

RESULT: AMERICA Will Be Broke!!! LEFT Holding ALL THE FUCKING PAPER!

Tue, 12/31/2013 - 15:52 | 4289233 Racer
Racer's picture

No will be, IS broke already!

Tue, 12/31/2013 - 16:06 | 4289262 nope-1004
nope-1004's picture

Devo,

So is the US central bank buying gold?  Hmmm...  news to me.  I guess I should sell it then - except, they're NOT buying gold.  Foreigners are to diversify out of UST's..... the writing is on the wall for the US dollar.

Which life raft do you want to cling to when the ship sinks?

 

Tue, 12/31/2013 - 17:04 | 4289460 Four chan
Four chan's picture

bought from whom?

Tue, 12/31/2013 - 23:33 | 4290267 americhinaman
americhinaman's picture

devo -

one should do the opposite of what WESTERN central banks do, which is buy gold at the highs and sell gold at the lows.  western cb's also tend to telegraph far and wide what they are going to do, so that their citizens can get front-run by hedge funds and other traders.

on the other hand, EASTERN central banks (from eastern europe, through the middle-east, and asia) buy gold when it falls.  They rarely sell it, except during crisis periods, which I'd argue is exactly when anyone should consider selling.  they do not pre-announce that they're buying; they try to do it quietly and in a way that will not increase the price of gold.  they have so much in governmental savings (forex reserves) that they are constantly evaluating the best holdings for; it benefits them when prices of assets they want to accumulate decrease in nominal terms of the other reserve assets they hold.  they tend to post-announce that they have bought gold, if they announce at all.

Thu, 01/02/2014 - 08:25 | 4292787 TwoShortPlanks
Tue, 12/31/2013 - 16:05 | 4289271 Carpenter1
Carpenter1's picture

I live in Canada, people and government here are beyond clueless. Remember, 2008 had little effect on most people here(due to epic amounts of debt racked by gov't to hide the effects), so don't be surprised by Canadian govt stupidity.

Tue, 12/31/2013 - 16:15 | 4289298 robertocarlos
robertocarlos's picture

The govt is selling really old, bent, (probably tarnished) gold coins for more than their melt value.  Those 1-800-sell gld ads work.

Tue, 12/31/2013 - 16:43 | 4289400 Freddie
Freddie's picture

I like Candian gold more than Canadian beer.  American beer is mainly dog piss.

Tue, 12/31/2013 - 15:12 | 4289119 CrazyCooter
CrazyCooter's picture

... everyone who follows financial markets knows you never fight the FED ...

This is good advice all the way up to the day the Fed LOSES control and the economic forces of nature overtake it.

Tick. Tick. Tick.

Regards,

Cooter

Tue, 12/31/2013 - 16:48 | 4289409 TheLoveArtist
TheLoveArtist's picture

I cant vote you up scoots whats up with that

Tue, 12/31/2013 - 15:14 | 4289125 maskone909
maskone909's picture

ZH operates under the pretense that the market is rigged and that CB's not only buy gold, the lend it like FRB.  In an unstable environment like this its impossible to predict when the game is up.  however, when the time comes, you will most likely not be able to find any gold for sale.  You mad bro?

Tue, 12/31/2013 - 15:26 | 4289159 devo
devo's picture

Isn't "you mad bro" some obnoxious millennial saying from urban dictionary or forums?

That's a stupid thing to ask someone.

But yeah, I understand their thesis. Do you understand there have been guys predicting this since the 1940s? Yes, it will come true one day due to sheer mathematics, but ZH would do everyone a much greater service creating models to predict that exact day. That's at least interesting. Instead they instill fear so paralyzing people dig holes in the ground and live there. It's propaganda. Now with regard to this article, everyone who follows gold has heard that you're supposed to sell once CBs buy. ZH seems clueless to this. They seem amazed gold is down yet CB buying is up.

Tue, 12/31/2013 - 15:25 | 4289171 CrazyCooter
CrazyCooter's picture

but ZH would do everyone a much greater service creating models to predict that exact day.

I think you tipped your hand right there. :-)

Regards,

Cooter

Tue, 12/31/2013 - 15:29 | 4289177 maskone909
maskone909's picture

"Isn't "you mad bro" some obnoxious millennial saying from urban dictionary or forums?"

well no shit. do you have aspergers? the only argument you have is that, "it hasnt happend yet so it must be a lie". 

come at me bro

Tue, 12/31/2013 - 16:17 | 4289306 Carpenter1
Carpenter1's picture

Logic 101: The fact that something has not happened has nothing to do with the chances of it happening in the future. If it had already happened, the chances of it happening again would likely go down, particularly if we're talking about an event like a market crash or Black Swan.

 So, the argument that it hasn't happened, therefore it won't happen is illogical. Referencing contributing factors, which can affect the likelihood of the event taking place, is the logical approach to ascertaining the chances of the event taking place.

Tue, 12/31/2013 - 16:56 | 4289418 devo
devo's picture

No idea if I have Aspergers because I don't know what diagnosis entails, but even if I do, that's your retort? To make fun of a serious illness. Good one. You're a classy guy.

Tue, 12/31/2013 - 16:58 | 4289430 NidStyles
NidStyles's picture

I have Asperger's and I would likely crush you in any form of competition, mental or otherwise. We Aspies tend to be very competitive. ;-)

Tue, 12/31/2013 - 16:55 | 4289421 NidStyles
NidStyles's picture

Ah ok, so not only are you a prick, you are also a sophist and an ignoramous.

Tue, 12/31/2013 - 17:10 | 4289415 Harbanger
Harbanger's picture

@ Devo "Like pretty much everyone who follows financial markets knows you never fight the FED, sell gold when CBs are buying, etc."

Why do you look at "central banks" as a single entity?  The Fed is not buying Gold, they're selling what's left of the country's Gold.  The Central banks of China and Russia are doing exactly what's in the best interest of their particular Nation.

Wed, 01/01/2014 - 15:21 | 4291185 TheReplacement
TheReplacement's picture

Questions:  Are the western CBs selling or buying?  Is there any gold in Fort Knox?  Why is the gold price so low when demand is so high? 

I think that if demand for something that has staying power like gold is in high demand and you can get it at a fairly low cost then you should get it.  If prices rise, you can sell.  If prices lower you can buy more. 

Your point of view seems to be that it is a short term speculation.  I think most here look at gold as a long term store of value, an investment.  I also think people need to start differentiating between investing (long term) and speculating (short term) when discussing their own little points of view.

Thu, 01/02/2014 - 16:57 | 4294082 Notarocketscientist
Notarocketscientist's picture

I suppose if you thought that the fed could print money forever with no toxic side effects i.e. total economic collapse then ya - why fight them....

 

But I am of the opinion that you cannot print trillions forever - that the global economy will collapse - and it will happen very quickly - like it was happening in 08 until it was bailed out --- this time there will/can be no bail outs....  there will be a last gasp of massive printing --- then there will be a massive implosion (explosion?) leaving all asset classes virtually worthless.

EXCEPT GOLD --- because gold has never and will never be worthless. 

And when this happens YOU will be eating dog food - warmed over a fire of plastic bags under a bridge - and your daughters and wife will be whoring themselves to pay for your grand meal - and I will drive by --- and spit you

Tue, 12/31/2013 - 15:09 | 4289097 Xibalba
Xibalba's picture

I suppose that doesn't apply to treasuries....Or your logic is just upside down

 

 

Tue, 12/31/2013 - 15:10 | 4289107 devo
devo's picture

Not really, because that's not a 100 year old axiom tied explicitly to treasuries. Let's keep things real.

Tue, 12/31/2013 - 15:13 | 4289123 Xibalba
Xibalba's picture

I agree, let's keep thing real.  But then, gold priced in paper isn't real, is it? 

Tue, 12/31/2013 - 15:28 | 4289132 devo
devo's picture

I don't know how to answer that. I see guys selling it at the spot, paper price, so I conclude it is. You're basically saying CEOs who operate mining companies are stupider than you, me, etc. I also see it all over craigslist near spot price. If you mean GLD is fake, then yes, agree totally.

Tue, 12/31/2013 - 15:53 | 4289230 Xibalba
Xibalba's picture

Yes.  Was ref GLD, AGQ, ZSL, and the myriad of other derivative plays.  

Tue, 12/31/2013 - 15:18 | 4289143 ChaosEquilibrium
ChaosEquilibrium's picture

Devo: historically that adage holds true.............I digress and state the current state of affairs is atypical, abnormal and ANY reliance on past observations and trends is moot.....and can be quite dangerous and fatal!

 

Unprecedented policy can have chaotic outcomes!

Tue, 12/31/2013 - 15:26 | 4289164 AngelEyes00
AngelEyes00's picture

China buys gold

Russia buys gold

US prints fiat

Japan prints fiat

Winners/Losers

Tue, 12/31/2013 - 15:37 | 4289203 BanksterSlayer
BanksterSlayer's picture

@williambanzai7 tweeted 30 Dec :

There are signs that say do not flush foreign fiat down the toilet.

Tue, 12/31/2013 - 17:08 | 4289462 resurger
resurger's picture

you are against the tradition.

Tue, 12/31/2013 - 17:10 | 4289468 goldflows
goldflows's picture

Are you cenile?

Tue, 12/31/2013 - 17:55 | 4289591 Overfed
Overfed's picture

Yeah, well, when the check cashing places, pawn shops, and jewelery stores take down their "We Buy Gold" signs, then I'll start thinking that PMs are no longer a buy. 'Til then.....

Tue, 12/31/2013 - 14:55 | 4289069 astoriajoe
astoriajoe's picture

Barbarians!

Tue, 12/31/2013 - 15:00 | 4289073 Payne
Payne's picture

And Central banks are always right except for the last 100 years of Fed disasters.  

Tue, 12/31/2013 - 17:10 | 4289478 Harbanger
Harbanger's picture

"And Central banks are always right..."

Which central bank.  Every country has one?

Tue, 12/31/2013 - 15:01 | 4289075 DoChenRollingBearing
DoChenRollingBearing's picture

Having reached its goals in 2013, the Central Bank of DoChenRollingBearing will be buying less gold in the future.

This does not mean that our Bank is less confident in gold, merely that the Bank has attained its real goal: diversification!

If only 1% of Americans own any physical gold, their Central Banks better start moving while there still is gold.

Tue, 12/31/2013 - 14:58 | 4289077 orangegeek
orangegeek's picture

jump on board everyone - let's do what the communists do

Tue, 12/31/2013 - 15:13 | 4289112 Dr. Engali
Dr. Engali's picture

When you say communists I'm guessing you are talking about the current occupant of the White House. According to Reich we are all socialists now.

Tue, 12/31/2013 - 15:00 | 4289081 Grande Tetons
Grande Tetons's picture

Russia and China trying to pull a Lybia. 

Tue, 12/31/2013 - 15:15 | 4289127 JailBank
JailBank's picture

That is not allowed.

Tue, 12/31/2013 - 16:30 | 4289361 Conax
Conax's picture

No, I pulled the Labya and got my hand slapped once.

Tue, 12/31/2013 - 17:44 | 4289564 Herd Redirectio...
Herd Redirection Committee's picture

I think GT was thinking of Libya, not labia.

Tue, 12/31/2013 - 18:38 | 4289702 Sashko89
Sashko89's picture

by saying that they are trying to pull a Libya, are u saying that the USA and France are going to go in and bomb em???.. Bwhahahahahahahba please... Wake up

Tue, 12/31/2013 - 15:07 | 4289089 Fight-Club
Fight-Club's picture

My god, once Russia and China (let alone Venezuela) have enough physical they can destroy the US economically by raiding treasuries/spiking interest rates...decimate the west without a single nuke.

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