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Gold Wars: Putin’s Mining Buddies Are Stepping Up The Plate

We have been giving the Russian and Asian demand for gold quite some attention lately, but now it looks like there are several more pieces of the puzzle falling into place. More than a year ago, a representative of Shandong Gold told us that when the Federal Reserve would stop its Quantitative easing program (check) and gold would fall to $1150/oz (check), the company would become more active on the M&A front and actively hunt for potential acquisitions.
In another column, we discussed the way China and Russia are growing closer and closer to each other, after Russia got ‘rejected’ by the Western countries. Both countries have signed very important energy deals, and it started to look like Russia is following the Chinese example and has started to accumulate more and more gold in the reserves of Central Bank. There are two things you can be sure of. First of all, Russia isn’t doing just for fun, there must be a central strategy or plan behind this move. Secondly, you can be very sure Russia’s gold is being stored in the vaults in Moscow and not being lent out in dubious gold lease deals.
And in the past few weeks it looks like Russia is stepping up its efforts to secure a continuous increase in its gold holdings. Two of the world’s largest gold mining companies are actually Russian, of which Polyus Gold is the largest one with an expected gold production of 1.7 million ounces of gold for this year, further increasing in the near future as it plans to bring another Russian mine into production. What was drawing our attention was the recent announcement by Polyus that it would be ‘hedging more of its gold production’. As this is a Russian company with Russian mines financed by Russian banks, we would dare to put a lot of money on a bet that the hedge deal involves a Russian bank. That Russian bank will very likely be Sberbank as it is Polyus’ main financier which has recently re-confirmed its confidence in the company through providing a $1B credit facility. And guess who’s the majority owner of Sberbank? INDEED, The Russian Central Bank. So it’s starting to look like Polyus’ hedge program with physical delivery will result in its gold bars being sold to the Russian Central Bank through Sberbank’s hedging program.

On top of that, Polyus was sitting on $1.8B in cash as of at the end of September, and its cash pile is growing at a rate of $2M per day (yes, even at the current gold price). The question is what will it do with the cash and it’s very likely more gold projects will be added to the portfolio and we wouldn’t be surprised if the company was pushed by the Central Bank and Sberbank to do so.
We wouldn’t be surprised to see Polyus Gold follow the ‘international’ approach of Nord Gold, which used to be Severstal’s gold business. Steel tycoon Mordashev still owns the absolute majority of Nord Gold’s shares, and as he’s a self-proclaimed ‘friend of Putin’, there’s little doubt who’s the ultimate buyer of Nord Gold’s output. And Nord Gold has been stepping up its game lately as it entered into two joint venture agreements (in Canada and French Guiana) and it acquired another advanced stage project in Burkina Faso where the company is already operating. But wait, that’s not all, earlier this week, Nord Gold made an offer to acquire a small Canadian exploration company for a total of less than $25M. This might sound low but that specific Canadian company has roughly 5 million ounces of gold in the ground which could be mined at an all-in cost of $644/oz. Throw in the acquisition cost and capital expenditures, and one ounce of gold would cost Nord Gold just $750. Now it’s easier to understand why it offered to acquire Carlisle Goldfields at a whopping 140% premium.
There’s little doubt this is just the starting phase and we expect both major Russian companies to buy more projects and companies to get their hands on as much gold as possible. All the signs are pointing in the direction of an end game as Russia’s major producers have very strong ties to the Putin regime and the Russian central bank, which is ultimately where the gold will end up. The end game has started. Did you take your precautions?
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So, Russia really can't sell any of it's gold, since sanctions prevent most from buying it, they're like the college kid who buys a huge bag of weed intending to sell it to make his student loan money back, but in stead becomes "his own best customer", and says he gets his "head stash" for like, really cheap man...
Awright, Putin!
What happens if (when?) gold for whatever reason plummets to $850? Will Vlad be holding the bag for a bunch of angry Russians?
buy rubles BITCHEZ! (they're backed with gold)
one of these days chinas going to catch the snb, and, or others in the middle of one of their gold swaps, and place an order on the comex for as much as you have up to 6 trillion yuan, you know you're going to get 4 trillion yuans back.
then in a month have an undisclosed high ranking govt. official secretly leak that chinas going to sell 2,000 tons into the open market.
wait a week, and place another order into comex, with the remainder of it into the spot market all you have up to 6 trillion yuan, wash, rinse, repeat.
chase that worthless yellow metal down, and buy it.
there's only one good thing the swiss will get with their referendum, you'll be able to cut in line ahead of the germans.
The relic is doing just fine. Always will.
Central banks behave differently than individuals do. They have to manage their curency, we want to see a profit. Some CBs may want to see gold go lower but shit happens in the Forex markets in such huges quantities that selling a few hundred tons of gold (XAU) may be more about a currency play than gold price suppression.
Trying to figure out what is really happening right now is hopeless. Most 'gold' is really just fractional reserve gold being traded just like dollars or yen or euros. For us as individuals...just keep piling up the gold. If you want to play a very risky game, stack silver but note well...all these central banks are dealing in GOLD...not a single one is holding silver.
Medvedev: Vlad, why are you taking these US Treasuries for Oil?
Vlad: Take them down to the gold shop and load up.
Med: Ohhhh... I get it.
Brandon Smith from Alt-Market persistently makes the case that Putin and the Chinese leadership are members of the Rothschild global run the world oligarch club and the east west conflict we are seeing is a Hegelian dialectic designed to shepherd in a new global fiat currency. The transition phase to this currency would be a basket of sovereign fiats administered by the World Bank which would eventually give way to an SDR administered by the BIS. His points are not without substantial merit.
The question is are Russian/Chinese nationalist leaders playing the western money powers to use Rothschild money strategies for their own national benefit then moving from fiat to stored specie when the ponzi burns out, thereby packing a one two punch; I.e. are they behaving like Jews with the Jews. Or are they members of an international club with absolutly no cultural or national sentiment who are following the Jewish lead to a Feudal/fascist NWO where they become nobles under a Jewish king? I don't know but Putin reviving Russian Christian values don't fit the go along with the global oligarchs in secret scheme. And you can bet the Chinese and Russian leaderships are far from stupid and know more about Jewish leadership culture and their elitist Talmud than I do. For me the real nature of the east west conflict is unknown.
moving from fiat to stored specie...
That's the thing, eventually even soveriegns have to come to grips with turning loose of the stuff in order to maintain trust. Call it a "Nixon Moment" or whatever, the end game is trust and it seems to me whatever powers that be are seriously involved in destroying whatever shreds of honesty, decency and trust persist in our dealings with one another. The US could still at that time point to a 40%ag coin and con our way into believing nothing changed, but in our heart of hearts we knew then as in 1965 we were discounting the values of our nation. Just another manifestation of "moneychanging" in action.
jmo.
I would agree with your assessment, there is a question whether a plan is in place to create a NWO currency with both the Russians and Chinese playing a key role and will benefit in the end. However, your comment about Putin reinforcing Christian ideals makes one wonder if it isn't a showdown with the international banksters. Who are the authors of said plan? Having a showdown could be part of the plan. It certainly is unknown.
The Rothschild conspiracies are fun to watch on YouTube, up there will aliens and reptilians. The truth is the French branch lost their bank twice. the Nazis stole it in 1939 and the commies nationalized it in 1982. I'm sure the family is not on food stamps but they have their worries too. The biggest worry of all wealthy people is envy. Once gold is repriced many here will know what i mean.
Expect to read about 'the evil Zero Hedgers and their secret societies in the near future...on YouTube.
"The biggest worry of all wealthy people is envy"
hence all the bullshit "class warfare" rhetoric...coming from RICH people.
There is and always has been class warfare, with regular folks getting their asses kicked 99% of the time since time immemorial
Well, it is a possibility, although one can hope they are not in bed with the Secret Tribe and its HQ in Rothslandia.
And if you ever need to Sell gold, sell it to another stacker at Spot Plus shipping & premium.. screw the coin shops and resellers at 20% under spot etc. the Price APMEX will deliver it to your door is what it's worth. to any real buyer.
just remember when they ask where your stack is say you paid off a politician and some hookers, and ask them if they want the list of the Politicians you Bribed.
Off topic but about Putin, Putin sings "On BLueberry Hill"
Worth a look, skip to 1:04
https://www.youtube.com/watch?v=IV4IjHz2yIo#t=88
Good, more nails for the fiat coffin.
It's quite telling to see the Americans printing currency and the Russians mining for money. That in itself tells us quite clearly that America has chosen the path of monetary, political and ideological bankruptcy.
Whether Russia is preparing for deeper economic war or a new system outside the clutches of the USA remains to be seen.
Either way, the USA is headed in the wrong direction unless it thiinks it can win a nuclear confrontation.
we won't win a nuke contest.
hitlery, however, will still be getting off from huma's tongue deep inside the bunker.
I agree with you. Unfortunatrely, i had to down vote you because I just finished making a tuna fish sandwich and reading your comment made me throw it away without even taking a bite. Keep it up and I might even lose a few pounds...
OK!
Its really just going back to an old game of accounting for deficits by adding gold to the settlement mix. 40 years of silly accounting gimicks had to come to an end sometime.
"Secondly, you can be very sure Russia’s gold is being stored in the vaults in Moscow and not being lent out in dubious gold lease deals."
Wrong, China has used the same games re both Fiat and gold that the west has... In fact, China has been part of the manipulation to get gold cheaper. Why would its mentor and trading partner do differently?
Take off your Putin Mancrush beanie hat and think!!!
Russia, as a major gold producer, has no interest in supressing the price of gold in USD. Take off your Yellen Mancrush beanie hat and think.
OK, birdbrain, how much of that gold is leaving Russia??? NONE.
So international price is only useful towards purchases, which is why Russia and China are interested in assisting the US toward suppressing the Gold price. Therefore they can buy more.....
Russia is not selling gold, they are buying gold....
Stop being stupid and take off your Putin Beanie cap and think.
Oh and stop gazing at your shirtless posters of Putin. It apparently clouds your thinking.
The international POG is being suppressed by selling future contracts in the paper market. Who's selling? Western central banks, Hedge funds and speculators.
Who's buying? India, China, Russia and other current account balanced nations. Sooner or later Western central banks will recall their leased gold, and Margin requirements will be upped creating a world class short squeeze on anyone foolish enough to be caught short.
I doubt Russia China et al. will be available for fleecing.... double birdbrain with shit on top.
Putin is probably just recognizing that when the physical and the repothicated, paper world diverge, it will be ownership of the physical that matters.
There would be no way one loan of 100 loans would win the physical.
Is it safe to order gold and have it delivered to your house? Do you stackers have a reccomendation for a newbie? I have mining stocks but am ready for the next step. What about storing it outside the U.S.? I know there are professionals out there but would like some feedback from regular people who have experience.
Yeah I keep mine in a shoe box by the back door.
Yes, it is safe for you to have it delivered to my house.
How can I get ahold of you?
ten years good relationship and no problems with Nashvillecoin.com,
I've exchanged Au for Ag at good rates there also...Tell Mike that Arnie sent yah...
PS: my ex wife took my stash...
You can buy all you want and if anyone ever asks, it was stolen or lost. Fuck them
Unless you have absolutely no house, property, IRAs you could just say that, but I'll bet they will force you to cough up your gold by taking liens out on your property. Then you will see what a monster this government really is.
"You guys back again?
"What do you mean, serf? We're here to get your PMs
"I just gave them to you- I mean, not You, but another crew in your uniforms. They said they were headed to Mcdonald's down Highway 61."
"Let's go, men! Now!"
It is good to be paranoid to a point. The authorities will come after your Pension and IRA before any gold simply because there is more of it, next will be property. Increases in fees, taxes etc.
The Treasury still has 8000 tons of Gold, FED reserve vaults are empty. They might increase the capital gains taxes on Gold and silver long before they confiscate.
Payne..Property Taxes? Their official name is "Civil Asset ForfeitureAct." It has begun. You see, governements around America believe that the real estate go-go years never ended and are taxing accordingly. My usual annual property taxes where I live have been about $1400/annum. They zoomed up to $32,000 and a fight ensued, you might add.
They offered to "wipe my tax slate clean if I handed over the title to my house." Un-hook your property taxes AND house insurance from your escrow, PLEASE...if you are able. Mortgage companies are driving in Trojan Horses and hidden, special fees. My county assesor was angry that I rec'd their fraudulent tax bill and not my mortgage company.
I doubt that the USG will need more gold, I believe they still have the 8133 tons they claim. They will only need so much to back the currency and at a higher price they will have enough.
In the future they will just want wealth it won't matter if it is yellow.
...anyone know the story (true?) about the Japanese GOLD supposedly hidden in the Phillipines...Yashimoto's Gold...anyone?
yeah, William Holden, Charles Bronson and Ernest Borgine head a motley crew of misfits, ex-cons and 3-time losers on a secret mission to Manila....
the treasury has how many tons of gold? 8000? really?
Gold and silver are not taxed at regular capital gains rates. Even though they are not collectables, the government has classified gold and silver as collectables and, therefore, tax any gains at 28%. Even gold and silver ETFs (have NOTHING to do with collecting) are classified as collectables so are taxed at 28%. Totally dishonest and sucks but welcome to the U.S. government.
When you sell your gold/silver you just bought it yesterday.
they won't come after your IRA, instead they will force it into myRA.
why do you say the treasury has 8000 tons of gold, how do you know that?
why do you say the treasury has 8000 tons of gold, how do you know that?...
That's been the figure, (8133), kicked around since Nixon closed the trade isn't it? The US mint still produces and "sells" Au and Ag coins at a USD floating value that has very little if any relationship to the stamped "face" values further obfuscating the fact we are content in our pig sty of lies and have no desire to leave
Their supply of gold used for this coinage is supposed to be strictly from USA origin but we all know it takes nothing more than an Executive Order to circumvent any decision the 535 and courts claim to have over the sovereign citizenry.
Theoretically this supply is from newly mined sources as the 8133 tonnes is part of our “strategic” stockpile. Kinda like the massive oil “reserves” the US Government pumps back into the ground after spending huge amounts of human capital and resources to pump it out of the ground in the first place.
It makes that Chinese guy 2200 years ago outfitting nine thousand 450 pound clay statues with the latest advanced weaponry seem downright brilliant.
Jmo.
"Look, honey, where the MyRA says 'next of kin' it has 'Backdoor Barry' written in."
I used to buy online but now prefer my local coin shop. They know I come in with cash, no questions asked and sell me a few coins every month. Their prices are similar to online however I get it in my hands immediately and never pay shipping. Again, I am known as Mr Cash only and they have no problem with that.
So You are the other "Mr. Cash."
I have used http://sdbullion.com/ with good success...
sdbullion
7 days ...credid card
to post office box...
eazy transactions
no problems..
Assuming you're not buying in bulk, start here: http://www.goldprice.com/gold-american-eagles. You can see the BBB ratings for all vendors. I have bought from Texas Precious Metals with excellent service.
Thank you!
Seconded on Texas Precious Metals. Nothing but excellent service and they only sell what's in stock. You're not responsible for anything until you sign for the package. Never had any issues. The problem is the goddamn silver and gold got lost when my buddy's boat capsized off Half Moon Bay.
Thirded! I bought a couple boxes of their Texas SIlver Roundsa and some gold from them as well. They ship before the check even clears. They also buy back at good prices. The only other dealer I have found that comes close is Provident Metals. Another bonues is that they are not far from the historic Shiner Brewery.