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As Russia Dumps A Record Amount Of US Treasurys, Here Is What It Is Buying

Tyler Durden's picture




 

Last week we commented that based on TIC data, while "Belgium's" unprecedented Treasury buying spree continues, one country has been dumping US bonds at an unprecedented rate, and in March alone Russia sold a record $26 billion, or 20% of its holdings.

So as Russia is selling record amount of US paper, what is it buying? For the answer we go to Goldcore which tells us that...

Russia Buys 900,000 Ounces Of Gold Worth $1.17 Billion In April

The Russian central bank has again increased its gold reserves by another 900,000 ounces worth $1.17 billion in April.

Russia's gold reserves rose to 34.4 million troy ounces in April, from 33.5 million troy ounces in March, the Russian central bank announced on its website yesterday. The value of its gold holdings rose to $44.30 billion as of May 1, compared with $43.36 billion a month earlier, it added.

The following is a summary from Bloomberg of the April data template on international reserves and foreign currency liquidity from the Central Bank of Russia in Moscow:

Russia's gold & foreign exchange reserves remained virtually unchanged at USD 471.1billion in the week ending May 9. Russia’s reserves have fallen since the crisis began but remain very sizeable. The reserves include monetary gold, special drawing rights, reserve position at the IMF and foreign exchange.

The 900,000 ounce purchase is a lot of physical gold in ounce or tonnage terms but as a percentage of Russian foreign exchange reserves it is a very small 0.24%.

Gold as a percentage of the overall Russian reserves is now nearly 10%. This remains well below the average gold holding as a percentage of foreign exchange reserves of major central banks such as the Bundesbank, Bank of France and the Federal Reserve which is over 65%.

The Russian central bank has been gradually increasing the Russian reserves since 2006 (see chart above). On average they have been accumulating 0.5 million troy ounces every month. Therefore, the near 1 million ounce purchase in April is a definite increase in demand.

This was to be expected given the very pronounced geopolitical tension with the U.S. and west over Ukraine. Indeed the TIC data shows that Russia has been aggressively divesting themselves of U.S. Treasuries.

Russian holdings of U.S. Treasuries fell very sharp, by nearly $50 billion, between October and March 2014 or nearly a third of Russia’s total holdings. Over half of the plunge came in March, when $26 billion was liquidated as western sanctions were imposed. TIC Data for April won’t be available until June and will make for very interesting reading.

Especially given the mysterious huge U.S. Treasury buying that is being done by little Belgium. This has analysts scratching their heads and has aroused suspicions that the Fed and or the ECB may be behind the huge Belgian purchases.


Russian Gold Reserves in Million Fine Troy Ounces - 1995-2014 - Monthly Chart (Bloomberg)

Russia has already made their intentions regarding gold very clear. Numerous high ranking officials have affirmed how they view gold as an important monetary asset and Putin himself has had many publicised photos in which he very enthusiastically holds large gold bars.

On May 25th 2012, the deputy chairman of Russia's central bank, Sergey Shvetsov, said that the Bank of Russia plans to keep buying gold in order to diversify their foreign exchange reserves. 

"Last year we bought about 100 tonnes. This year it will be less but still a considerable figure," Shvetsov told Reuters at the time.

The World Gold Council reported yesterday that central bank purchases were 70% above their 5-year quarterly average, led by Iraq and Russia. The Eurozone actually became a net buyer thanks to Latvia joining the single currency union, adding its gold to the Eurozone reserves as part of the Euro treaty.

Russia may be planning to give the ruble some form of gold backing in order to protect the ruble from devaluations and protect Russia from an international monetary crisis and the soon to return currency wars.

Russian central bank demand and indeed global central banks demand is set to continue as macroeconomic, monetary and geopolitical uncertainty is unlikely to abate any time soon. Indeed, it may escalate substantially in the coming months as we move into the next phase of the global debt crisis.

 

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Wed, 05/21/2014 - 09:00 | 4780724 FinalEvent
FinalEvent's picture

<- my name

<- not my name

 

We are close to the end

Wed, 05/21/2014 - 09:02 | 4780734 Headbanger
Headbanger's picture

Yeah.. Sanction THIS Barry you moe-ron!

Wed, 05/21/2014 - 09:03 | 4780739 jaap
jaap's picture

Belgium selling??

Wed, 05/21/2014 - 09:12 | 4780783 kill switch
kill switch's picture

Let's get this right class, the fucking Belgium’s have an extra $20,000.00 per person to buy fucking toilet paper of U.S. T's ???? This is the biggest kiting scheme in history, thanx Yellen...Proves their NOT tapering...

Wed, 05/21/2014 - 09:51 | 4780826 Arius
Arius's picture

"The 900,000 ounce purchase is a lot of physical gold in ounce or tonnage terms but as a percentage of Russian foreign exchange reserves it is a very small 0.24%."

 

Yes, but month to month is an increase of 4% ... not small change excatly.

 

if they can do it for few more months, it becomes 20% increase in few months ...

guess what: END of the road, i dont believe they will be allowed to accumulate that much

Wed, 05/21/2014 - 10:02 | 4781000 Citxmech
Citxmech's picture

WTF is all this physical supposedly coming from? (They are buying physical, right?)  I just don't understand how the Russia and China can be soaking up this amount of the world market, yet my local dealer can still get supply for today's prices without a ridiculous premium over spot. 

Wed, 05/21/2014 - 10:09 | 4781036 dark pools of soros
dark pools of soros's picture

They always say who's buying and rarely say who sold here

Just like all these outlets pimping gold... If it is so important to buy it NOW why are they offering to sell it to you?

Wed, 05/21/2014 - 10:19 | 4781076 Arius
Arius's picture

@Citxmech

how many are lining up at your local dealer?  i would bet not that many ... most of people went the other way and sold what they had a few years ago with all these Cash for Gold that were all over the World ...

 

I wonder who was stupid enough to buy it when everyone was selling .... it seems like a repeat of infamous Waterloo fiasco ... people never learn ... dahhhh

Wed, 05/21/2014 - 10:32 | 4781148 SMG
SMG's picture

To quote a  thoroughly brainwashed relative of mine "I don't believe in gold".   Basically anyone who has been convinced to sell physical has been scammed.  In the near future after the dollar finally dies it's well deserved death, they will see this truth.

 

Wed, 05/21/2014 - 10:47 | 4781206 saveandsound
saveandsound's picture

Be careful what you wish for. If Gold exceeds 5000 US-$/once, the world will be a diffrent place. Actually, in case we see gold going north of 1500 US-$/once, you better get food and ammo as well.

Wed, 05/21/2014 - 10:57 | 4781238 Arius
Arius's picture

"Be careful what you wish for."

like we have any say on it ... lol

Wed, 05/21/2014 - 11:33 | 4781418 strannick
strannick's picture

Russias buying gold? That explains why its down today....

Wed, 05/21/2014 - 11:46 | 4781486 dontgoforit
dontgoforit's picture

Obama is a Russian plant.  We've been duped.  And our own system protects him while the system itself is destroyed.  What a country (we used to be)!

Wed, 05/21/2014 - 12:07 | 4781568 economics9698
economics9698's picture

Is the tribe intentionally selling gold and silver futures to buy their way over to Singapore when they ditch the USA?

Will Russia and China accept this traitorous behavior from the tribe and allow them to set up shop in Singapore, Hong Kong, and Moscow?

Or will they do what has been traditionally done to traitors, kill them by firing squad?

My bet is they take advantage of the cheap gold as long as the tribe lets them and then set up the firing squads.

Wed, 05/21/2014 - 12:38 | 4781731 Kirk2NCC1701
Kirk2NCC1701's picture

The real question isn't what will other countries do to our traitors, but what will 'Mericans do about it?  Will we hang traitors?  Are we, are YOU making a list, checking it once, checking it twice, to see who's been naught or nice?

Hell, you can't even get people to demonstrate/protest in DC or our cities -- much less take a Revolutionary stand.  Given that other countries don't have the guns & ammo that 'Mericans have, they got a helluva lot more balls than we do.  We're all talk.  A nation of well-fed, well-armed pussies -- who are too worried about a bad credit score or job review/loss than taking to the streets.

History shows us times and again, that revolution only comes when a people have their backs to the wall, and there is no food or hope.  We're light years from that.  So, in spite of all the ego and testoterone-driven chest beating on blog sites, I suggest you plan accordingly:  Moar shit, different day.

Wed, 05/21/2014 - 13:00 | 4781815 Save_America1st
Save_America1st's picture

so 34 million ounces comes to 1,057 metric tons of gold, right?  Are they really saying that Russia only has a little over 1000 tons of gold reserves? 

Does that seem right?  I guess I thought it was much higher than that.  They've got some stackin' to do, big time...and you know that means competition with China, India...

and us!!!  We better keep stackin' folks before the paper farce finally collapses and true valuation explodes to the moon. 

Wed, 05/21/2014 - 13:56 | 4782012 economics9698
economics9698's picture

Kirk the only thing that is certain is change.  Change will come and I do not look forward to it.  Not because of me, I am worthless, but my children who must go through the inevitable civil war that will engulf some areas of the former USA.

Wed, 05/21/2014 - 13:58 | 4782014 john39
john39's picture

coming soon to a pm dealer near you:

http://i.dailymail.co.uk/i/pix/2014/05/21/article-2634933-1E0FDF9A000005...

"The dying days of a regime: This photo, taken in Shanghai in 1949, shows a queue to exchange worthless paper money for gold"

Wed, 05/21/2014 - 16:50 | 4782575 MagicHandPuppet
MagicHandPuppet's picture

All y'all need to settle the fuck down.... and report to your nearest mega mall for consumer therapy!  Then go home and watch a minimum of 2 hours of mainstream teevee.

Wed, 05/21/2014 - 22:12 | 4783534 Manthong
Manthong's picture

..if godless commies are buying the barbarous shiny stuff, we need to step up to the plate and counteract their solid resource investments with genuine, un-backed, un-insured 100% USA  bank debt.

..it’s the only patriotic thing to do.

Wed, 05/21/2014 - 23:07 | 4783658 Manthong
Manthong's picture

crud.. maybe going postal is patriotic if you can find 49 cents between the sofa cusions.

Thu, 05/22/2014 - 00:30 | 4783838 FEDbuster
FEDbuster's picture

A few people stood up when they came for a rancher's cattle.  A few more are going to have to stand up when they come for your savings and retirement accounts.  Everyone will have to stand up when they come for your guns.  That was the trigger point for the first Revolution, and I beleive it will be the trigger point for the next one.  CT is their testing ground.  Molon Labe.

Wed, 05/21/2014 - 22:32 | 4783592 Dr. Destructo
Dr. Destructo's picture

Yeah, that's what makes the coming revolution bittersweet. It gives us a chance to free ourselves from the shackles of debt, tyranny, and lies, but TPTB will not go quietly or willingly. I am prepared and have been active for quite some time in nonviolent protests, but I truly worry about the children since the government has shown that it will resort to violence without provocation and will have no problems using children as one of many cards in their hand. However, this revolution must happen for their sake so they won't become enslaved like we are today. I have no children, and I don't plan on having any, but I will fight for the children's chance (including yours) to live in peace and liberty.

Wed, 05/21/2014 - 15:30 | 4782276 magnumpk
magnumpk's picture

A little over 1,000 tons sounds right.  They, along with China (and others) are trying to reach parity with the US and other major powers.  The threshold is probably around 3-4% of a given nation's GDP.  Russia and China need more - speculation is that China hits the mark in early 2015.  I'd guess Russia would like to get where they need to be by that time as well.  Get's them a good seat at the table when the international monetary system is reconfigured. 

Wed, 05/21/2014 - 16:05 | 4782394 Sirius Wonderblast
Sirius Wonderblast's picture

And here in the UK, Gordon "is a moron" Brown sold off a load of our gold at  the bottom of the market.

Wed, 05/21/2014 - 13:03 | 4781834 Four chan
Four chan's picture

mericans still think we are on the gold standard, thats why step one was to destroy the basic education system last century.

Wed, 05/21/2014 - 17:23 | 4782700 Xibalba
Xibalba's picture

yeah...let's pick a fight with these guys: https://www.youtube.com/watch?feature=player_embedded&v=1niUv0ieNSs

 

 

Makes perfect sense if you believe in ameriunexceptionalism

Wed, 05/21/2014 - 13:44 | 4781972 Monty Burns
Monty Burns's picture

Will we hang traitors? 

 

No siree.  All they need is about 90% of the people to be sheep blinded by endless brainwashing.  The actual figure in America imho is well in excess of that. I'm told that Lucky Larry ('pull it') Silverstein was an honored guest at the opening of the 9/11 Memorial.

Wed, 05/21/2014 - 21:08 | 4783374 paddyirishman
paddyirishman's picture

we can only hope the snakes get the firing squad, but unfortunately the tribe are an old hand at this, they've helped to destroy many countries, after all they've mnaged to pull off the biggest fairytale ever, that an Austrian gassed many of them.

Wed, 05/21/2014 - 11:51 | 4781502 Midas
Midas's picture

I don't know about that.  When gold was $270 an ounce the thought of $1000+ for an ounce was in a near doomsday scenario.  We have quickly adapted to $1200 being the result of a "crash" and evidence that gold is not a good store of value.  I think we could make the transition to $5000 just as easily.  Just my opinion, which isn't worth much, even in fiat.

Wed, 05/21/2014 - 18:00 | 4781630 Quus Ant
Quus Ant's picture

The difference between a managed rise to $5K and panicked free for all to $50K.  I'm sure TPTB have pulled hair out tying to find a way to de-monitize gold.  Convince everyone gold isn't competing currency and letit can goo to the moon.

Wed, 05/21/2014 - 15:29 | 4782274 DaveyJones
DaveyJones's picture

it's kinda a slef feeding circle isn't it? As the dollar continues to circle the toilet, inflation might take gold higher and because everything else is circling the toilet, it might take gold higher

Wed, 05/21/2014 - 15:35 | 4782296 magnumpk
magnumpk's picture

Well, I'd say it will be a different world, because it will be a world with a new intermational monetary system.  $5,000 or more per ounce simply means that the new system will be at least partially gold backed.  In order to do it in a non-deflationary manner, you would need a price north $5,000.  Simply a function of existing money supply (growing as we know) and supply of gold.  Right now, 40% gold backing gets you around USD$9,000/ounce.

Wed, 05/21/2014 - 19:11 | 4783080 new game
new game's picture

gold will NOT be in any future currency. these leaders/rulers/traitors/fuck heads will have nothing to do with a currency they can't manipulate. wish/think and wake the fuck up!

admit they are in complete control of our monetary system, and anything new willbe moar of the same, no matter what group decides what is next...

Thu, 05/22/2014 - 01:22 | 4783899 UselessEater
UselessEater's picture

what about a gold backed trade note between nations?

that wouldn't be applicable to we the serfs, just at the level of the "nation" that we pay taxes to, paving the way for a new global currency form at a global-national trade level...and of course more fiat currency for us serfs with inexplicable debt increases despite austerity policies /sarc.

something along the lines of Jim Willies guess-timation??

Thu, 05/22/2014 - 08:28 | 4784272 Squid-puppets a...
Squid-puppets a-go-go's picture

you'd be a fool, though, to think that there is only 1 power-that be. The oligarchy is as hopelessly factionalised as any country or region - and while it looks like a united seamless front now, when TSHTF they will fracture

this is why people have come back to gold for 6000 years - its not the great unwashed clamouring for monetary fairness, its the ELITES WHO HAVE LOST TRUST IN EACH OTHER

Wed, 05/21/2014 - 23:17 | 4783709 Syrin
Syrin's picture

How does this relate to the IMF's SDR?

Wed, 05/21/2014 - 10:50 | 4781220 813kml
813kml's picture

My cousin is a VP at Zion's Bank, he looked at me like I had three heads when I told him at Xmas that China was hoarding gold in attempts to launch a gold-backed yuan.  He agrees that the economy is still in rough shape but all that is needed is more liquidity.  According to him, gold is unimportant in the grand scheme of things and its only value is for jewelry and coins. 

I was a little surprised that he wasn't more aware of what's going on in the world, but he also dismissed me when I told him in 2007 that the mortgage market was close to imploding.  American bankers have myopic mindsets, I would expect a mad rush to the exits when the SHTF.

Wed, 05/21/2014 - 11:03 | 4781262 BrosephStiglitz
BrosephStiglitz's picture

Similar problems here.  A few family members are long in stawx, but not US equities (thankfully).  I was talking about gold & silver and it was generally met with revilement and the Warren Buffett response: "You can cuddle, cajole and caress gold all you want and it will never go to work for you."

I responded, with "Okay, but I don't see any of you buying up tracts of arable land either."  

Sad really. 

Wed, 05/21/2014 - 11:24 | 4781370 813kml
813kml's picture

Western bankers still think they are Masters of the Universe, it's going to get ugly when they are marginalized.  That's why I don't see all of this ending in anything but war, power has to be pried from cold dead hands.

Wed, 05/21/2014 - 11:29 | 4781397 john39
john39's picture

they must remain myopic... to see the big picture and understand it would destroy their entire world.  most are not strong enough to let go of the illusions.  they won't wake up until the illusion turns to smoke and blows away.

Wed, 05/21/2014 - 11:53 | 4781515 dontgoforit
dontgoforit's picture

Not sure how history is going to write the next few years but you can rest assured it won't be a chapter that we will recognize in hindsight.

Wed, 05/21/2014 - 11:57 | 4781538 Herd Redirectio...
Herd Redirection Committee's picture

I've been reading two books about the 16th century.  The time of American silver (although primarily Bolivian at that time).  And a bimetallic standard.

And its VERY amusing to see how both authors treat our 'forefather's obsession with shiny metal'.  LOL.  They just make it seem absolutely ludicrous, and a sign of superstition that India and China traded their spices, silks and pepper for... Wait for it.... Shiny metal!

Oh how different history could have been if India and China had not been obsessed with shiny metal, the implication seems to be. 

Its funny also that they have to absolutely spell it out.  The Spanish sent galleons FULL of silver to Manila.  So the author explains: "It was a ship FULL OF MONEY."  

Wed, 05/21/2014 - 14:37 | 4782138 hot sauce technician
hot sauce technician's picture

I'd be long real estate as much as I'd be long gold. Cities are overcrowded. There is huge demand. That demand won't disappear; it might only change in nature, according to economic factors (energy costs, social trends, whatever). People will still need places to live. I don't think war is on the table. Humanity has suffered too much from it.

I hope there will be an usurpation of the banker-cronyism complex via a mass refusal to recognize its legitimacy to rule brought about by a mass adoption of a decentralized currency. No guns would be necessary. The oligarchs will then one day wake up and discover that they are vastly outnumbrted and outgunned, and will do whatever possible to survive intact. Power will be yielded to the sheeple, who at that point will be educated by unique individuals who will lead by example. I hope.

A sovereign only has authority where the money he issues is accepted. And that's not a rule I made up.

Wed, 05/21/2014 - 22:14 | 4783539 KnightTakesKing
KnightTakesKing's picture

Hot Sauce: I think that's wishful thinking. If they can kill 4 to 6 billion of us, land will be cheap and they will still have their gold. That's the end game -- kill as many of us as they possibly can. 

Thu, 05/22/2014 - 00:32 | 4783844 Sambo
Sambo's picture

Sadly, you are right. The aim is to reduce population by 50% by 2020. World war is the only way to achieve this level of mass extermination.

Thu, 05/22/2014 - 07:34 | 4784157 hot sauce technician
hot sauce technician's picture

Who will eliminate 4 to 6 billion of us? Destruction on that scale won't spare ANYONE. Only a Hitler can be that suicidal in a quest for complete human subjugation. And he was a one time phenomenon. WW2 will never be repeated. That was the birth pains of an ultimately free world. Obviously we haven't gotten there yet, but on the whole I feel much luckier to be alive today than 100 years ago. And it's all Darwinism. Humans who are kind to others have better odds of sutvival than those who aren't. Of course, it's always wise to have weapons around.

Wed, 05/21/2014 - 14:46 | 4782171 Simplifiedfrisbee
Simplifiedfrisbee's picture

The natural disintegration of our civilization is occurring. This is a simple and natural human development process that history has proven to be completely unavoidable. The term "internal proletariat" and "external proletariat," as coined by a hierarchal British scholar, represent two opposing forces which occur at the infant stages and elderly stages of civilizations. The time of the internal proletariat is upon us and soon after the external aggressor conquers.

What is the fundamental flaw in humanity? The answer is Extremism. Balance is key to longevity. Western and Eastern Nations have lost the fundamental relationship shared by human virtue and the creative nature that surrounds us.

It is no coincidence that humanity has exploded to the magnitude of billions and transformed the landscape of the world as never before in all of human history. Jesus Christ was the internal proletariat who is responsible for humanity to not destroy itself before reaching such heights. These times call for more than your preparation but rather require your virtue. Leave your existence on earth with Love and speak with conviction so to pierce the ego of man and the deceptive nature which has been developed for all of humanity is going to experience this epic disintegration and it is unavoidable.
Yet, that is precisely why it is such a wonderful time in humanity. We are at the epicenter of a shift in civilization. Opposing forces will finally meet at the epitome of of human development! Live and Love. Love and Build. Build and Enjoy.

Wed, 05/21/2014 - 16:00 | 4782358 hot sauce technician
hot sauce technician's picture

You can argue that the disintegration started already wih the French and American revolutions. They shattered the notions of kingship, a heavenly mandated political rule. Thomas Paine uses the religious argument as his main one in 'Common Sense'. Also qith the industrial revolution that was progressing at the same time, which turned economics on its head; writers like Rousseau, Adam Smith, David Hume and more.

The past 200 years have indeed seen the greatest increase in human population. We are at the end of times. But it didn't start with us, nor will it end with us. We're slowly progessing - Adam and Eve's sin is one tremendous thing to repair...

 

Read Martin Buber's Gog and Magog. The disciples od the Ba'al Shem Tov knew very well what the events in their time i.e. the Napoleonic wars portended. As did the Gra - his disciples moved to Israel to hasten the "rebuilding of Jerusalem", according to his wishes.

I reiterate though: the practical means to bring about the "love" is a decentralized, severed from politics currency. 

Wed, 05/21/2014 - 17:54 | 4782818 Simplifiedfrisbee
Simplifiedfrisbee's picture

The idea of currency is fundamentally brilliant because the challenge to obtain it also challenges the creative intelligence within humans. This challenge facilitates the growth of civilizations and enhances our quality of life, albeit at the cost of destroying our nature(both environment and human). As reiterated by the saying, "we can not have our cake and eat it too."

Our innate "sin" is for many reasons a destructive force, but no one can argue against the fact that for us humans to become civilized and further distant ourselves from this precipice of human degeneration, we must utilize and apply our intelligence. One can not force another to do so unless by Authoritarian means and that will degrade the human experience not enhance it. So incentives are indeed a necessary component for human development. Again, the counter balance is suffering and we must always contemplate and recognize it no matter how great our achievements are. Hedonism is not balanced.

To separate currency from politics is a foundational rule for the civilized growth of nations. However, I am no advocate of unregulated free markets. A free market society is a horrible concept. The same goes for a completely regulated market society. A balance is once again needed.

The first step for all is to understand what money and currency are and why the human race utilizes it and values it. Second, the people of all civilized communities must participate in their local environments and local governing bodies.

Remember, new ideas are needed in life but they come at a cost. To understand the current problematic condition we are facing in American economic policy and government, is the very internal proletariat that enhances the disintegration of a civilization. This notion leads the dominant minority to usurp the rights of the majority. This is evident today.

You are correct and I agree, the disintegration has begun long ago however, the internal proletariat is blossoming and the ideas that the IP holds are is very force that the current Dominant Minority will fight against at all and any costs.

Wed, 05/21/2014 - 15:40 | 4782313 magnumpk
magnumpk's picture

That doesn't surprise me.  I find it difficult to find people who have even a basic understanding of gold.  I think most people are afraid to contemplate it, and would rather laugh it off and find comfort in the fact that few people understand it, let alone own it.  Just saying "gold bars" seems to be a punch line for most people. However, popular opinon will likely swing the other way in a year or so, probably rapidly and violently.

Wed, 05/21/2014 - 15:52 | 4782344 DaveyJones
DaveyJones's picture

this flood is in bad shape but all it needs is more liquidity

Wed, 05/21/2014 - 12:13 | 4781607 Richardk888
Richardk888's picture

Who needs to go to a dealer.  Physical is soooo heavy whereas paper gold GLD is not

Wed, 05/21/2014 - 12:54 | 4781785 813kml
813kml's picture

It's all part of American aversion to physical activity.  On the plus side, when they find out the gold doesn't exist they can use the certs to make paper mache versions of the bars and coins they should have bought.

Wed, 05/21/2014 - 11:08 | 4781290 10mm
10mm's picture

Kind of like Real Estate and the agents.

Wed, 05/21/2014 - 10:13 | 4781050 luckylongshot
luckylongshot's picture

Part of the explanation is in the article where it says the Fed and Germany have much higher percentages of gold than Russia- the writers nose hopefully shot out 10 cms when he wrote this as Germany's gold has been stolen by the US, along with the Ukraine's and as the Fed will not allow an audit of its gold reserves one must conclude they do not exist.

Wed, 05/21/2014 - 10:41 | 4781187 Spitzer
Spitzer's picture

Another thing wrong with the article is that it claims the Fed has gold. The Fed has no gold at all. The US treasury has the imaginary 8000 ton. And the EUrozone has more then 8000 ton

Wed, 05/21/2014 - 17:12 | 4782658 Xibalba
Xibalba's picture

Wait...these 'certificates' aren't gold?  But my phd says.....

Wed, 05/21/2014 - 23:18 | 4783711 DoChenRollingBearing
DoChenRollingBearing's picture

My understanding is that the +/- 7000 tonnes of gold held at the Federal Reserve Bank of NY mostly belongs to foreigners, they store it in NYC to make it easier to manipul, er, to settle trade balances and similar.  The Fed also owns some $11 billion worth of CERTIFICATES for gold (@ $42.22 / oz) that FDR took from them (the banks) in 1933.

Ft. Knox reputedly holds the bulk of the US national gold (8100 tonnes total of US national gold), smaller amounts are held at mints in Denver, SF and West Point.

My comments above are hard to prove, but are apparently true.

Wed, 05/21/2014 - 17:43 | 4782773 BrosephStiglitz
BrosephStiglitz's picture

People forget the Dutch gold..

The Dutch had a higher per capita gold store than even the Americans.  Of course it is "stored" in Ft. Knox or wherever these empty facilities are these days. 

Wed, 05/21/2014 - 10:18 | 4781057 Arius
Arius's picture

dublicate

Wed, 05/21/2014 - 10:21 | 4781096 Panafrican Funk...
Panafrican Funktron Robot's picture

FOFOA goes into pretty good detail regarding the differences between buying gold in size vs. buying gold as an individual; the CB gold moves have very little to do with the spot price of the USD, until such a time that the USD fully experiences its paradigm shift away from its reserve status. 

Wed, 05/21/2014 - 11:40 | 4781448 Ensowatt
Ensowatt's picture

WTF is all this physical supposedly coming from? (They are buying physical, right?) 

Most of the gold comes out of Switzerland... I have a Physicist friend in Eastern Europe who is convinced that the Large Hadron Collider CERN was built for the purpose of making gold. I used to think this idea was crazy, but occasionally i have to wonder...?

 

Wed, 05/21/2014 - 12:13 | 4781608 BlindMonkey
BlindMonkey's picture

It wasn't crazy. He was fucking with you.

Wed, 05/21/2014 - 23:12 | 4783694 DoChenRollingBearing
DoChenRollingBearing's picture

Correct, no real physicist would claim that particle accelators make economical amounts of gold.

Wed, 05/21/2014 - 16:51 | 4782578 r00t61
r00t61's picture

It's not crazy.  It's theoretically possible to create gold in a particle accelerator.  All of the natural gold that currently exists in the universe was created by suns going supernova and expelling their core materials at relativistic speeds.  Some of those light elements collided with each other to form gold.

It's just that at current prices for electricity, it costs far more to make synthetic gold than it does to mine natural gold out of the ground.  I can't find the article at the moment but I think the price to create a synthetic ounce of gold was in the millions of dollars.  Compare that to the price of creating artificial antimatter, which is somewhere around billions of dollars per gram.

Thu, 05/22/2014 - 01:53 | 4783928 August
August's picture

If ten million dead civilians each have one gold tooth, what would that add up to?  Whatever the sum, you can bet the lion's share went into Switzerland.

Wed, 05/21/2014 - 17:14 | 4782664 AmCockerSpaniel
AmCockerSpaniel's picture

A question here; "Gold as a percentage of the overall Russian reserves is now nearly 10%. This remains well below the average gold holding as a percentage of foreign exchange reserves of major central banks such as the Bundesbank, Bank of France and the Federal Reserve which is over 65%." Do I read this right?

Does the Fed (a privet bank) have that much gold? Was that gold the property of the people of the USA at

one time? At one time the USA's gold was stored at Ft. Knox, West Point, and the Denver mint. What

happened?

 

 

Wed, 05/21/2014 - 19:06 | 4783062 BustainMovealota
BustainMovealota's picture

Its called gold price manipulation.  If you research a little you will see (or start to see) the complex way they do it.

Thu, 05/22/2014 - 07:54 | 4784189 Lionhearted
Lionhearted's picture

Looks like China is sharing the gold they don't export in exchange for gas.

Wed, 05/21/2014 - 10:42 | 4781190 lakecity55
lakecity55's picture

They could buy a lot moar Au from all the USTs they sold. I wonder if they just can't obtain it.
I mean, it's practically on sale. Vlad could create an account and buy ALL of Apmex today!

I also suspect the Gas Deal might involve some Au+Yuan.

We'll see.

Wed, 05/21/2014 - 15:13 | 4782227 Anasteus
Anasteus's picture

A nice name for the new reserve currency... Auyuan

Wed, 05/21/2014 - 11:17 | 4781314 Drifter
Drifter's picture

"Yes, but month to month is an increase of 4% ... not small change excatly."

JW says Russia has 20,000 tons of gold, China has 20,000 tons.

40,000 tons between them. No, that's not something to dismiss.  It's new superpower alliance in the making that will dwarf America.

And it's very thermonuclear.  Bristling with thermonuclear weapons.  Way more than we and all of our "allies" have.  And the "allies" part is fading fast.

 

Wed, 05/21/2014 - 11:56 | 4781528 dontgoforit
dontgoforit's picture

Yeah, maybe so, but you don't need a RPG to kill an inch worm.

Thu, 05/22/2014 - 17:32 | 4786466 Eyjafjallajökull
Eyjafjallajökull's picture

Unlike many other Central Banks - including Deutsche Bundesbank, Bank of England. Bank of Finland etc. - the Central Bank of Russia holds physical metal instead of IOU notes.

Wed, 05/21/2014 - 09:24 | 4780827 Ghordius
Ghordius's picture

yes, you are right, but the theory of Russian sovereign holdings of USTs held through intermediaries at the EuroNext was sound, and might still be true, regardless of this gold buying

in other news, lots of national banks have now signed the Fourth Central Bank Gold Agreement. note the list, and as in a conversation between Jesuits, note who is missing:

...the Nationale Bank van België/Banque Nationale de Belgique, the Deutsche Bundesbank, Eesti Pank, the Central Bank of Ireland, the Bank of Greece, the Banco de España, the Banque de France, the Banca d’Italia, the Central Bank of Cyprus, Latvijas Banka, the Banque centrale du Luxembourg, the Central Bank of Malta, De Nederlandsche Bank, the Oesterreichische Nationalbank, the Banco de Portugal, Banka Slovenije, Národná banka Slovenska, Suomen Pankki – Finlands Bank, Sveriges Riksbank and the Swiss National Bank

Wed, 05/21/2014 - 09:30 | 4780863 wanderintheland
wanderintheland's picture

Very interesting. Almost all of Europe.

No UK.

Wed, 05/21/2014 - 10:43 | 4780942 SoilMyselfRotten
SoilMyselfRotten's picture

So, Russia sold $26 Billion in US notes. A wild stab says Belgium bought $26 Billion in US notes at the exact same moment?

Wed, 05/21/2014 - 10:40 | 4781179 Urban Redneck
Urban Redneck's picture

You're missing the (non-European) 800lb gorilla who previously signed...

Wed, 05/21/2014 - 13:01 | 4781804 Day_Of_The_Tentacle
Day_Of_The_Tentacle's picture

Who is it? I have compared the lists of signatories of the four agreements, and I can only see BOE missing.

 

Edit: And the BOE left with the 2004 agreement, so that is not new. If you are thinking about the IMF sales in 2009, then these were referenced in the agreement, but the IMF was not a signatory.

Wed, 05/21/2014 - 13:11 | 4781872 tonyw
tonyw's picture

those not in the euro?

Wed, 05/21/2014 - 13:11 | 4781875 Divine
Divine's picture

Very interesting Ghordius, I hope these mofos would leave Suomen Pankki alone.. 

 

My first tought about "

  • The signatories note that, currently, they do not have any plans to sell significant amounts of gold;

" was that someone used quite much effort to make sure that no EU country with gold holdings in USA / UK 

would sell large amounts of gold and thus reveal the ponzi. This also assures no more repatriations if there is no itent to sell.

 

Damn these bitches are good..

 

Wed, 05/21/2014 - 11:28 | 4781369 SokPOTUS
SokPOTUS's picture

Came for a good time

Left on the run.

Bedlam in Belgium

Who's to blame, it's a shame

 

Bedlam in Belgium

It was bedlam

You gonna run out

 

Stage was staged

Cops enraged

Crying for more

It was war, war, war!

 

http://www.youtube.com/watch?v=C5tBuPTn3Mk

 

Wed, 05/21/2014 - 12:18 | 4781633 Monty Burns
Monty Burns's picture

It certainly is not 'Belgium' that's buying the bonds.  That's well known.  What's not well known is who is buying them, or more to the point who's paying for them in the final analysis.

Wed, 05/21/2014 - 15:15 | 4782234 SAT 800
SAT 800's picture

In the final analysis; you're paying for them. Think about it.

Wed, 05/21/2014 - 12:27 | 4781657 Kirk2NCC1701
Kirk2NCC1701's picture

Ok, by the time we crunch the numbers ($400B over 30 years = $13B/yr or about $1B/mo), we can all agree that it's a large step in the right direction, even if it's "small potatoes" for the binary-thinking, all-or-none Doomsdayers.  As a huge precedent, it will cause further such agreements to be signed between the BRICS and Developing countries (who are fed up with Club Fed). 

Given that the ECB is "in bed" with the Fed, getting the EU to pay for energy with its fiat currency is no Final Solution either.  Russia needs to get the EU to pay in part with Rubles, and part with PM bullion.  That would put the cat among the canaries! 

But the clock is ticking, because oil+gas will flow to the EU from Africa (via Spain and Italy) in a few years, when the pipelines are complete.  At that point the EU could care less about Russian gas/oil, and Russia would be beholden to China as its main customer.  With China being in the driver's seat, and possibly Putin out of power. 

Russia must remain proactive with PR, plans and deeds.  Tick, tock.

Wed, 05/21/2014 - 22:34 | 4783598 paddyirishman
paddyirishman's picture

And Africa has a reputation of being stable and safe......

Thu, 05/22/2014 - 18:07 | 4786600 Eyjafjallajökull
Eyjafjallajökull's picture

Would that African gas be coming out of the first-generation-arab-springers-controlled Libya (shrinking fast, it seems) or from the parts held by second-generation-warlords, under command of general Hifter (presently supported by CIA). And are the pipelines to Europe being constructed by the tribes affiliated with Egypt or by those, supported by Tunisia and Algeria? Would Moslem Brotherhood have a say in exports?

With this kind of stability, who needs Russian gas? I'm surprised the EU has not stopped buying it already.

 

Wed, 05/21/2014 - 09:08 | 4780758 jbvtme
jbvtme's picture

long amerikan favelas

Wed, 05/21/2014 - 09:14 | 4780796 Tabarnaque
Tabarnaque's picture

Sell the trash and buy the real stuff. Way to go Putin! And the gas deal in the hand on top of this.

Wed, 05/21/2014 - 11:26 | 4781381 SokPOTUS
SokPOTUS's picture

At least Russia has a leader who is Pro-Russian...

Wed, 05/21/2014 - 15:18 | 4782242 SAT 800
SAT 800's picture

My point exactly; nobody expects a national leader to be a silver plated angel; but at least being on your side is kind of a minimum entrance requirement. We used to have a President who was Pro-American; Eisenhower. Not so much, lately, tho.

Wed, 05/21/2014 - 09:16 | 4780810 Old Man River
Old Man River's picture

Indictment for Elvira Nabiullina in 5...4...3...

Wed, 05/21/2014 - 09:31 | 4780875 Abitdodgie
Abitdodgie's picture

I think they just bought the Gold from the Ukraine back.

Wed, 05/21/2014 - 09:02 | 4780736 Mi Naem
Mi Naem's picture

You misspelled it.  :)

Wed, 05/21/2014 - 09:13 | 4780790 MeMadMax
MeMadMax's picture

Not yet.

We need china to dump the dollar before things get crazy.

Wed, 05/21/2014 - 09:21 | 4780828 Hippocratic Oaf
Hippocratic Oaf's picture

FUCK YOU, obama

Wed, 05/21/2014 - 15:22 | 4782254 SAT 800
SAT 800's picture

T here was once an English King who managed to irritate nearly everyone in power at Court. He was also a flaming fruit and loved Anal Intercourse; and telling other people how much he enjoyed it. When it came time for the Palace Revolution they killed him by inserting a Red Hot Poker up his Anus; and laughing at him while he screamed for mercy and finally, died. Just a random thought. I forgot his name, but I'm sure you can look it up.

Wed, 05/21/2014 - 10:16 | 4781067 MeMongo
MeMongo's picture

Man final event I hope it is the end, if that means Mongo doesn't have to look at that fucked up recent picture that keeps popping up above of Goldie Hahn. She's looking more and more like Golda Meir nowadays!

Wed, 05/21/2014 - 10:23 | 4781107 JRobby
JRobby's picture

Bullwinkle pulls a rabbit out of his hat?  Oh right, the hat is busted.

Wed, 05/21/2014 - 10:30 | 4781137 ZH Snob
ZH Snob's picture

why not get in on the FR sale of the century?  especially in preparation for the burial of the USD.

Wed, 05/21/2014 - 14:20 | 4782078 Bokkenrijder
Bokkenrijder's picture

So? Did Russia sell those Treasuries because they no longer WANT them, or did Russia sell those Treasuries because they NEED (!) to defend the Ruble due to the fall out from this Crimea/Ukranian adventure? Big difference if you ask me.

Selling $26 billion worth of Treasuries vs buying $1,17 billion worth of Gold. Hmmm...where did the other $24,83 billion go?

Wed, 05/21/2014 - 17:23 | 4782680 cooky puss
cooky puss's picture

I'm quite unsure of the source but maybe they went in the retake of foreign stocks from all Russian energy companies! ;)
http://openews.eu/le-genial-coup-du-cavalier-de-poutine-a-fait-gagner-a-la-russie-20-milliards-de-dollars-en-quelques-jours/ 

Ruble falling -> Russian stock value droping -> US+EU holders pussying out (selling) -> Poutin buying -> Western ex-holders screwed + ruble back up without liquidity injection!
And voila ^^ 

Thu, 05/22/2014 - 03:26 | 4784002 CHX
CHX's picture

Well anyone making a 26 bln bid for physical gold will bust the market in a VERY unorderly way. Do the Russians want that (or the Chinese, for that matter?). No, if you want to accumulate as much metal as possible, "moderate" purchases at bargain prices (~current levels) is the best you can do. So, it may well be China and other big buyers that paper push gold down, to allow them maximum PM purchases. Half the world (India, China + Russia) is buying, which will put a solid floor on PMs (in addition, lower prices here and production will drop off significantly, adding even more pressure to the physical market). For now it's a sleeping bull, about to be re-awakened.

Wed, 05/21/2014 - 15:11 | 4782222 SAT 800
SAT 800's picture

"Latvia added its gold reserves to the central gold holdings of the Eurozone, as required as part of the treaty--"" Oh, boy are they going to have a long time to be sorry for that. So, that's why those shysters like to sign up countries for their cluster fuck. I shoulda guessed; the world's oldest scam; a protection racket. By time you figure out there's no protection and no gold; it's too late.

Wed, 05/21/2014 - 15:42 | 4782316 RangerRiley
RangerRiley's picture

You and everyone else around here posts this or something like it every fucking day. Cheer up, get outside, teach a kid to read or volunteer at a children's hospital.

Thu, 05/22/2014 - 08:33 | 4784286 pelican
pelican's picture

Please the fed is printing at least 40 billion a month.  This is nothing.

Wed, 05/21/2014 - 09:00 | 4780725 _ConanTheLibert...
_ConanTheLibertarian_'s picture

Going down comradz!

Wed, 05/21/2014 - 09:39 | 4780904 Cpl Hicks
Cpl Hicks's picture

Meltdowwwwwwwwwn!

Just saying, gold is a long term loser.

Wed, 05/21/2014 - 10:25 | 4781116 Panafrican Funk...
Panafrican Funktron Robot's picture

"Just saying, gold is a long term loser."

Basis for this statement?  

Wed, 05/21/2014 - 10:49 | 4781214 SoilMyselfRotten
SoilMyselfRotten's picture

Gold in 2000 ~ $250/oz. Gold in 2014~$1300/oz. Ohhhhhh, you mean longer term, please define this longer term for us barbarous relic holders.

Wed, 05/21/2014 - 11:40 | 4781446 Pure Evil
Pure Evil's picture

If gold is a long term loser somebody should send a memo to the Chinese.......fast!

Wed, 05/21/2014 - 14:25 | 4782103 Bokkenrijder
Bokkenrijder's picture

@ Pure Evil

Perhaps the Chinese have yet to read the memo warning them not to plough 3 trillion into USD and US Treasuries?

Wed, 05/21/2014 - 12:17 | 4781623 Kaiser Sousa
Kaiser Sousa's picture

"Basis for this statement?"

stupidity.

Wed, 05/21/2014 - 14:39 | 4782147 superflex
superflex's picture

FED lackey promoting those Janet Bucks.

 

Wed, 05/21/2014 - 15:13 | 4782228 SAT 800
SAT 800's picture

Whereas, you for instance, are a shining example of a just plain ordinary everyday loser. Have a nice day, Hoser.

Wed, 05/21/2014 - 09:01 | 4780727 Anasteus
Anasteus's picture

It seems like a concerted Russia-China action already.

Wed, 05/21/2014 - 09:01 | 4780730 LawsofPhysics
LawsofPhysics's picture

good luck taking delivery Russia...

 

And still the miners are getting crushed.

Maybe the folks making shovels are doing better...

Wed, 05/21/2014 - 09:57 | 4780981 Osmium
Osmium's picture

Good point.  Did they buy physical, or paper?  The US can't give Germany back their gold, where did Russia find that much gold?

Wed, 05/21/2014 - 10:09 | 4781033 yogibear
yogibear's picture

The US Federal Reserve has to buy Germany's gold on the open market. It's giving itself time to work the naked gold shorts in so the price drops.

Russia and others can expose the Federal Reserve's paper gold sham by buying and taking delivery.

 

Wed, 05/21/2014 - 10:15 | 4781065 dark pools of soros
dark pools of soros's picture

Taking delivery from who? That money mineaswell of bought beach front property in Kansas

Wed, 05/21/2014 - 11:31 | 4781340 FeralSerf
FeralSerf's picture

Taking delivery from the Swiss. The CIA and the Saudis have large accounts there.

Wed, 05/21/2014 - 12:01 | 4781546 dontgoforit
dontgoforit's picture

I still can't get the "I'll have more flexibility once the election is over," comment from O to P before the last pres election out of my head.  This has all been in planning for some time; just now coming to a point where they have the inside on us and are crushing us from within.  Impeach the imposter: treason! contempt of country!  Lies and balderdash, NWO face is on the deceiver.  God help us.

Wed, 05/21/2014 - 11:11 | 4781305 Kirk2NCC1701
Kirk2NCC1701's picture

900,000 Toz = 28 metric tons.  Not so difficult to buy on the world market. 

Shipped via Swiss Air or Aeroflot.  Or Russian Navy.  So fuck off CYA/NSA!

The point is, they can use it to help back their currency with two precious, fungible and universal assets: Gold + Energy.  Plus gold can be used for backing currency at, say, 40% level.  Whereas Energy (electrical, gas, oil) must have a direct 1:1 backing of currency.  Either way... fuck off Fed!

Wait till other countries get on board the Barter Train:  Precious Assets for non-USD currencies! 

On your marks, get set... [bang!] False Flag!

Wed, 05/21/2014 - 11:12 | 4781306 Kirk2NCC1701
Kirk2NCC1701's picture

removed double post.

Wed, 05/21/2014 - 09:01 | 4780731 Seasmoke
Seasmoke's picture

The West is in trouble. The Gold is gone and they can't steal any more. I guess they will try one more shake of the tree and get price under $1000. Not a very good plan, if you ask me. 

Wed, 05/21/2014 - 10:26 | 4781118 JRobby
JRobby's picture

Desperate times yield desperate measures?

(WTF does yield matter at this point?)

 

Wed, 05/21/2014 - 10:54 | 4781228 SoilMyselfRotten
SoilMyselfRotten's picture

Right now gold is in strong hands. If they want to loosen it from their hands the price will have to go UP not down. Downward pressure will only ignite paper selling, not phyzz.

Wed, 05/21/2014 - 12:58 | 4781808 FeralSerf
FeralSerf's picture

As long as The West has the largest military in the world, it can still steal more. And they will.

Wed, 05/21/2014 - 09:02 | 4780732 InvalidID
InvalidID's picture

 

 Yawn.... Wake me when there's a solid alternative, and it's widely accepted.

Wed, 05/21/2014 - 09:04 | 4780741 JustObserving
JustObserving's picture

More on the Belgium Treasury Purchase

Paul Craig Roberts and Dave Kranzler

In response to our account of the mysterious large rise in Belgium’s Treasury purchases , it was suggested that the transaction would show up on the Fed’s balance sheet. However, the Fed is under no obligation to show the transaction.

The $141.2 billion in Treasuries purchased into the Belgium account represents 3.2% of the total current size of the Fed’s balance sheet. The Fed is a private corporation and is therefore not beholden to GAAP accounting standards. However even with GAAP standards applied, a corporation does not have to itemize and disclose the details of any event that represents less than 5% of its assets. In other words, the Fed can easily bury a 3% transaction in its financial statements.

http://www.paulcraigroberts.org/2014/05/20/belgium-treasury-purchase/
Wed, 05/21/2014 - 09:07 | 4780751 Chupacabra-322
Chupacabra-322's picture

" The Fed is a private corporation"

As is the Criminal UNITED STATES, CORP. INC.

Wed, 05/21/2014 - 10:48 | 4781210 lakecity55
lakecity55's picture

The US INC is a wholly owned subsidiary of The FED INC, a wholly owned subsidiary of the BofIS INC

At the TOP of the Pyramid, Chairman of the Board, The Red Shield; below: their vassals!

Wed, 05/21/2014 - 09:39 | 4780902 whatsinaname
whatsinaname's picture

what hapens after 4.99 % has been bought ? Does the Fed have to publish the information.

Wed, 05/21/2014 - 10:27 | 4781125 JRobby
JRobby's picture

GAAP? Laugh track getting louder, louder. deafening, "pop" the speakers blew again......

Wed, 05/21/2014 - 13:53 | 4782004 Frank N. Beans
Frank N. Beans's picture

yes, the world according to gaap

 

Wed, 05/21/2014 - 14:42 | 4782155 Herd Redirectio...
Herd Redirection Committee's picture

I still remember ('fondly') the day the AcSB (Accounting Standards Board) 'temporarily suspended' mark to market accounting.

LOL.  That was an organized crime white collar coup if I ever saw one.

Wed, 05/21/2014 - 09:05 | 4780742 Chupacabra-322
Chupacabra-322's picture

Gold builds Nations, Sliver is a Gentlemen's Currency.

Wed, 05/21/2014 - 09:12 | 4780781 semperfi
semperfi's picture

golden rule:  he who has the gold, rules

Wed, 05/21/2014 - 09:54 | 4780973 Kirk2NCC1701
Kirk2NCC1701's picture

Golden Rule in the East = He who has the gold, rules.

Golden Rule in the West =Treat others the way you want to be treated.

Who's winning?  IOW, just because the sheep treats the wolf the way it wants to be treated, does not mean that the wolf will behave differently.

Wed, 05/21/2014 - 10:59 | 4781250 sdmjake
sdmjake's picture

"a wolf does not concern himself with the opinions of sheep"

Wed, 05/21/2014 - 12:02 | 4781551 dontgoforit
dontgoforit's picture

Just need a herd with some eff'n attitude.

Wed, 05/21/2014 - 11:22 | 4781359 FeralSerf
FeralSerf's picture

"Golden Rule in the West =Treat others the way you want to be treated."

Bomb the fuck out of them until they get "regime change" and the gold?

Wed, 05/21/2014 - 11:18 | 4781328 Time for Titus
Time for Titus's picture

"Sliver is a Gentlemen's Currency."

 

I suggest getting more than a sliver.

Wed, 05/21/2014 - 09:07 | 4780750 NoDebt
NoDebt's picture

And still the price of gold goes nowhere.  Russia and China stacking it deep and wide like a bunch of doomsday preppers, still the price goes nowhere.

Why?  Because it isn't traded on "the market".  All privately arranged deals, offset by a bunch of derivatives.

Wed, 05/21/2014 - 09:11 | 4780772 semperfi
semperfi's picture

Right.  The visible markets are just for muppets.  The real markets are reserved for elite club members.  Do you really think the global oligarchy is going to let the serf muppets gain any power by having a fair priced gold market?  

Wed, 05/21/2014 - 09:58 | 4780984 Kirk2NCC1701
Kirk2NCC1701's picture

So what!?  Just buy more: BTFD!  While you can.

BTW... You don't sound like someone who believes in gold, but like a jaded speculator.

Wed, 05/21/2014 - 10:37 | 4781167 n8dawg84
n8dawg84's picture

I agree that the visible markets are reserved for us muppets, but on whether the serfs will regain any power or not through a fair priced gold market has yet to be determined.  IMO, the elite already have so much gold reserves that giving the ~5% who have any exposure to gold a fair priced market won't effect them too much.  So many in the west have no gold as it is, no one will care if/when gold reaches $50k/oz and silver reaches $2k/oz.  The elite will have consolidated their power overall and many many people will still have nothing and live in poverty.

Wed, 05/21/2014 - 09:12 | 4780780 Tabarnaque
Tabarnaque's picture

The day will come. Just be patient. Be right and sit tight.

Wed, 05/21/2014 - 09:13 | 4780789 semperfi
semperfi's picture

but what will the world look like on that day? 

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