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Gold Rises After Unusual Russian Central Bank Gold Buying Announcement
Gold Rises After Unusual Russian Central Bank Gold Buying Announcement
Russia’s central bank bought about 150 metric tons of the metal this year, announced Governor Elvira Nabiullina yesterday. The pronouncement immediately created buying in the market, prompting gold to rise to a two week high at $1,200 an ounce.
Head of Russian Central Bank Elvira Nabiullina -Jr/Bloomberg
Russia's central bank Governor Elvira Nabiullina told the lower house of parliament about the significant Russian gold purchases. She is an economist, head of the Central Bank of Russia and was Vladimir Putin's economic adviser between May 2012 to June 2013.
This announcement is unusual and to our knowledge has not happened before. The announcement by the Russian central bank governor was likely coordinated with Putin and the Kremlin and designed to signal how Russia views their gold reserves as a potential geopolitical and indeed financial and currency war weapon.
Gold currently constitutes for around 10% of the bank's gold and forex reserves, she added. Official purchases were about 77 tons in 2013, International Monetary Fund data show.
MARKET UPDATE
Today’s AM fix was USD 1,200.75, EUR 957.61 and GBP 766.08 per ounce.
Yesterday’s AM fix was USD 1,202.00, EUR 959.68 and GBP 767.81 per ounce.
Gold climbed $10.40 or 0.88% to $1,196.80/oz yesterday. Silver rose $0.06 or 0.37% to $16.22/oz.
Gold remained firm at $1,200 an ounce as the market digested very robust Russian central bank demand and announcement and await next week's Swiss gold referendum and later today, the U.S. Federal Reserve minutes at 1900 GMT.
If the Fed increases interest rates it could hurt non-interest-bearing gold in the short term. However rising interesting rates are more bearish for stocks and bonds as was seen in the rising interest period of the 1970s when gold prices surged.
The Swiss gold referendum is around the corner on November 30th and if passed this could force the Swiss National Bank to keep 20% of its holdings in gold bullion, force the SNB to repatriate gold holdings and end all gold sales.
The dollar hit a seven-year high against the yen today. Silver was up 0.5% at $16.24 an ounce. Spot platinum was up 0.5% at $1,206.65 an ounce, while spot palladium was flat at $769.98 an ounce.
Shares fell in Europe and Asia on Wednesday while the dollar rose broadly, hitting a new seven-year high against the yen, as investor nervousness on the diverging outlooks for the world's major economies.
The dip in gold prices has spurred purchases from Asia. Trading volumes on the Shanghai Gold Exchange’s (SGE) benchmark bullion spot contract jumped this week and India’s imports surged in October.
Russian President Vladimir Putin holds a gold bar while visiting an exhibition at Russia's Far Eastern gold mining center of Magadan November 22, 2005. Putin on Tuesday supported the idea of boosting the share of gold in Russia's central bank reserves, which are the largest of any country outside Asia. (Photo: REUTERS/ITAR-TASS/PRESIDENTIAL/)
The International Monetary Fund said the latest figures showed an almost double jump over the country's registered purchases of 77 tonnes in 2013. It said that historically, Russia started buying gold again since the end of September, perhaps at an initial 35 tonnes.
Nabiullina, who said the bank's total foreign reserves is made up 10 percent of gold, likewise told the Russian parliament on Tuesday there is no need to place restrictions on gold exports. A number of lawmakers had proposed to put a moratorium on the exports of the safe haven yellow metal so the country would be able to secure enough gold amid the sanctions it is experiencing.
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so you want to inflate her balance sheet?
I might consider making a small deposit...
Yes, and Forbes has her at #72 on it's list of the world's 100 most powerful women. It's a stupid list however. Beyonce Knowles is #17, Ellen DeGeneres is #46, Angelina Jolie is #50 and Lady Gaga is #67.
Looks like the girl you bring home to Mom. However, considering her position, it's a sure bet there are bodies buried somewhere. Certainly figuratively, maybe literally.
Babe alert! "Take me to your snow-peaked mountains way out back. Come and keep your comrade warm!"
Why can't the USA find anyone who looks like a lady and acts like an actual fiduciary of the public trust?
Lady? We'd settle for someone who looks like she was born as a woman.
What??? You got Peloser, Ficklestein and Condomleeza. That's a win treble any cuntry should be proud of.
Has everyone already forgotten about that hottie Michelle Bachman? I bet she is a screamer.
150 tons? Is that all?
"150 tons? Is that all?" -----bluskyes
It doesn't seem like much, but that is in addition to domestic production as well as what they have bartered with China in exchange for petro. And remember, that's all that they're 'fessing up to. Most likely he's playing his cards close to the vest and keeping the true resrve totals a secret; much like our Fed, only our side lies about gold that they don't have.
http://rt.com/business/171840-russia-gold-production-increase/
http://rt.com/business/171840-russia-gold-production-increase/
That's official (central bank) purchases
I'm more interested in what Vlad might have put in the Gokhran piggy bank/warehouses (since that's where the Russians traditionally manipulate the PGMs from). If someone could only provide a copy of their current balance sheet or warehouse inventory...
http://www.gokhran.ru/
OK, I have never held any amount of gold in my hands, at least bullion. What is the denomination of gold that the Putin is holding. It looks far larger than a kilo? I have heard of larger bars that CBs use for investment bars, is that one?
TIA
A kilo bar (32 oz. troy) will fit easily in your hand, like a small chocolate bar. These are good delivery bars weighing 12 to 13 kilos (380 to 420 oz. troy).
Looks like an LMBA good delivery "440's" as they're often referred to ... right dimensions, appears to be "proper" type of assaying, weight marks, etc. I'd assume that he'd be visiting someplace that is an LBMA registered assayer/refiner/producer ... So yes, as dearth mentioned, some 350+ to 430- oz good delivery bars.
Also take a note of the bars often shown in photos of the FRBNY and Ft Knox. Most of those are like a rectangular building brick. Not LBMA good delivery. Most the photos of BoE vaults are. Just sayin'
If you go to the LBMA pages you'll find all the excruciating details.
A brief is here: http://en.wikipedia.org/wiki/Good_Delivery (with links)
Kolyma Refinery in Khasyn, Magadan Oblast. Sara Palin can see it from her house.
If you get lost anywhere in East Siberia, just ask how to get to the highway. No need to specify which one because there IS only one. Keep following it. If you get to North Korea, you went the wrong way. Turn around and you'll eventually end up in party central on the north shore of the Okhotsk: Magadan. Now back up 20 miles and you're at the refinery. Bring an automatic weapon and something to drink.
Russian Bar Porn here.
looks like maybe a 400 oz bar to me. A 100 ozt bar is somewhere around 6.85 lbs, so the one he's holding is probably around 27.5 lbs.
edit. Actually, the number at the bottom right of the bar seems to indicate the weight in grams - about 421.56 ozt or around 29.5 lbs
vladimir's pretty strong, but that's all he could carry.
Hope Russia will bring us back to the GOLD Standart....or at least GOLD Exchange Standart
Only a socialist would want the government to declare the price of gold. They love that role. At first it sounds sweet ($5,000/oz say) and then they print enough paper to make it worth $20,000/oz. but of course keep it priced at $5,000. Governments ALWAYS over value the paper and suppress the gold price....ALWAYS.
Only Hard Money Socialist dream that dream.
I'll take free market pricing anyday. Once the paper gold market vreaks you will too.
I think Russia and China are about to double team the West in a very sado-masochistic kinda way. I can hardly wait. I have a 5 gallon bucket of Albolene by the bed.
Grandmaster Putin's Golden Trap
Dmitry Kalinichenko
Fort Russ
18 November
SUMMARY via excerpts from the 3052-word post:
The game is over… In chess the situation in which Putin has put the West, led by the US, is called "time trouble"…
After realizing its failure in Ukraine, the West, led by the US, set out to destroy Russian economy by lowering oil prices…
Last time, under President Reagan, such actions of the West's lowering of oil prices led to 'success' and the collapse of USSR. But history does not repeat itself all the time. This time things are different for the West. Putin's response to the West resembles both chess and judo, when the strength used by the enemy is used against him, but with minimal costs to the strength and resources of the defender…
No matter how strange it may seem, but right now, Putin is selling Russian oil and gas only for physical gold.
Putin is not shouting about it all over the world. And of course, he still accepts US dollars as an intermediate means of payment. But he immediately exchanges all these dollars obtained from the sale of oil and gas for physical gold!...
In this brilliantly played by Putin economic combination the physical gold is rapidly flowing to Russia, China, Brazil, Kazakhstan and India, the BRICS countries, from the reserves of the West. At the current rate of reduction of reserves of physical gold, the West simply does not have the time to do anything against Putin's Russia until the collapse of the entire Western petrodollar world.
To understand this, it is enough to look at the dynamics of growth of gold reserves of Russia and to compare this data with foreign exchange earnings of the RF coming from the sale of oil and gas over the same period…
…Putin sells Russian energy resources in exchange for…US dollars, artificially propped by the efforts of the West. With which he immediately buys gold, artificially devalued against the U.S. dollar by the efforts of the West itself!...
This truly brilliant economic combination by Putin puts the West led by the United States in a position of a snake, aggressively and diligently devouring its own tail...
Especially interesting in this context looks the November statement of the first Deputy Chairman of Central Bank of Russia Ksenia Yudaeva, which stressed that the CBR can use the gold from its reserves to pay for imports, if need be. It is obvious that in terms of sanctions by the Western world, this statement is addressed to the BRICS countries, and first of all China...
…the solitaire of Russian-Chinese relations is extremely successful for Moscow and Beijing. Russia buys goods from China directly for gold at its current price. While China buys Russian energy resources for gold at its current price. At this Russian-Chinese festival of life there is a place for everything: Chinese goods, Russian energy resources, and gold - as a means of mutual payment. Only US dollar has no place at this festival of life…
Russia's currency is down against the major currencies. Could this be a result of Russia converting its holdings of western currencies into gold? Not a bad idea if you think that those currencies are over-valued in real terms.
The media act as if the ruble's decline is a sign that Russia is hurting (of course, it's also a problem if your currency is rising). But it seems that going on a gold-buying spree would also lower your exchange rate.
The sanctions and lower oil prices must REALLY be hurting Russia. Why else would you see so many posts from Putin's useful idiots argueing that they are counterproductive.
Dmitry Kalinichenko. Sounds like are neutral observer to me.
I'm not that useful.
Have you considered the hurt caused by the EU to member states ?
Some members states of the EU will slip in recession ....... Great policy the one of the sanction against Russia as efficient as shooting your own foot !
The sanctions are counterproductive and are hurting the Russian people. That's what happens when Israel-firsters infest the U.S. government: any other nation on earth that doesn't blow Israel is a Gaza and their people must be made to suffer. Eventually, Putin won't distinguish between Israel and the U.S. anymore and figure that nuking the fuck out of both will solve 99% of the world's problems. Every other nation on earth (besides the U.S. and Israel) will agree.
That's the consequences of letting foreign interests usurp your government. The founding fathers warned us - we have nobody but ourselves to blame.
As far as the article goes, I have to wonder if the authors read anything but their own newsletters. The sanctions are the reason Russia is buying so much gold for the state. The Russian bullion banks don't need any because foreign banks are reluctant to do any business with them because of the sanctions. Either Russia buys the Russian producer's gold or all the Russain producers go out of business. The Russain bullion banks would be buying and selling plenty to foreign banks if the sanctions were not in place.
The Russian state does want more gold, but doesn't want to be forced to buy it simply because the U.S. is sanctioning them. It pisses them off. They could use the cash for a lot of other stuff right now. The idea seems to be for the Israeli-U.S. government oligarchs to bleed Russia to death - especially to prevent them from building the Southstream and new Chinese pipelines.
Everyone also conveniently forgets Israel can't monetize the Leviathan Basin gas until Syria is destroyed. After that, they can bring gas onshore at Haifa, across the Golan and through the existing Arab Gas Pipeline north to the Nabbuco connection in Turkey. Israel has no intention of building Nabbuco - that's a job for American taxpayers.
On the other hand, they don't want Kurdish OIL going north into Turkey and over to Ceyhan. They want the oil coming across Iraq as originally planned and through Jordan to Haifa. Iraq would never build the pipeline for Israel or sell any oil to them, so Israel had the U.S. invade and install a Israel-pipeline friendly government.
Anything Russia does anywhere in the region interferes with both the oil and gas plans because it makes everything Israel needs to connect to impractical from a political and cost perspective. It is in Israel's direct interests to see Russia collapse economically. They are using their U.S. bitches to try and make that happen any way they can, e.g. Ukraine. Any unrest in the Middle East now benefits them because it prevents anyone else from competing with Israel's planned pipeline. They could give a crap if the U.S. and Russia went nuclear, as long as they can start selling Leviathan gas in a few years.
It's not a 'Israel wants to take over the world' conspiracy. It's a simple matter of fact that they want an unfettered ability to tap and sell Leviathan gas to eager buyers, and they want that ability as soon as possible. Russia, Syria and Iran all interfere with that scheme.
Russia's gold purchases were an unintended consequence. That's going to hasten the destruction of the dollar, meaning no Nabbuco and no fresh U.S. meat to feed Israel's wars in Ukraine, Syria, Lebanon and eventually Iran. They are getting desperate and need to make something happen. 'Owning' a Republican congress isn't enough. Israel needs Russia to implode as soon as possible.
Putin is damn well aware of all of this but his hands are tied because Obama seems oblivious to being Israel's bitch. Hillary will be worse. So Putin builds ties with China and buys gold that foreigners won't buy. And also beefs up his nuclear arsenal for the Hillary-Republican aggression that's sure to come. I'm sure he and Elvira didn't sit down one afternoon and suddenly come up with a random idea of buying the entire Russian production of 50t of gold every quarter.
Paveway IV - excellent comment.
So in short the geopolitics of this planet suffers from one primary problem...Zionists.
@ Paveway IV (or whoever else knows the answer): P IV suggests that the gold purchased by Russia is domestic. My firm expectation is that the numbers quoted is in addition to all of Russia's domestic gold production.
I find your comment good except I cannot beleive that the Russians are buying there own gold because of " Russia's gold purchases were an unintended consequence." I am sure China would purchase all of their gold, based off of their current purchasing rates.
Nice big picture. It goes beyond the all too common "Evil Zionist" level of discussion to specific economic motivations. Thanks.
useless talkings
The more important question: Do you think Putin banged her ?
I think you should get some history books. Not even the massive slaughter and casualty the Russians endured made them lose against Hitler. They would die by millions yet would continue their attack... Do you really thinnk that Russia will flinch for a few slaps on the wrist?? Get serious.
Sanctions will hurt the little guy in Russia. Russian leaders will gladly sacrifice their peasantry just like our leaders.
Sanctions starting to bite. Even for the toothless Russians.
http://www.businessweek.com/news/2014-11-18/russian-accountant-loses-too...
"The West is the Best." Jim Morrison
The mansion is warm, at the top of the hill
Rich are the rooms and the comforts there
Red are the arms of luxuriant chairs
And you won't know a thing till you get inside
Dead president's corpse in the driver's car
The engine runs on glue and tar
Come on along, not goin' very far
To the East to meet the Czar
Run with me
Run with me
Run with me
Let's run
Not To Touch The Earth Doors