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CHINA Boosts Gold Reserves 57%, Top Russian Reserves in First Disclosure Since '09
Today’s AM LBMA Gold Price was USD 1,143.00, EUR 1,049.25 and GBP 730.68 per ounce.
Yesterday’s AM LBMA Gold Price was USD 1,145.10, EUR 1,050.12 and GBP 732.79 per ounce.
For the week, gold is marginally lower in dollars and pounds but has eked out gains in euros to above €1,050 an ounce.
Yesterday, gold fell $4.20 to $1,144.10 an ounce and silver slipped $0.10 to $15.01 an ounce. Gold in Singapore for immediate delivery was flat and gold bullion in Switzerland was marginally lower.
Gold looks set for a fourth weekly loss, the longest retreat since February despite strong coin and bar demand - particularly in Germany and wider Europe and indeed in the U.S.
U.S. Mint gold bullion coin sales surpassed the January 2015 level yesterday and are currently at the highest level since January 2014.
Gold in EUR - 1 Week
China has announced a smaller than expected increase in its gold reserves. China's gold reserves stood at 53.31 million fine troy ounces or 1,658 metric tonnes by the end of June, the People’s Bank of China announced today.
It was the first public adjustment to its reserve figures in more than six years. It last announced its reserve figure in April 2009, when the level was increased to 33.89 million troy ounces from 19.29 million troy ounces.
Chinese gold reserves increased by 57 percent and China’s holdings have now surpassed those of Russia to become the fifth-largest. The U.S. is believed to have the biggest reserves at 8,133.5 tons.
Gold is no longer used to back the trillions and trillions of paper and digital money of today, however it clearly remains money contrary to assertions to the contrary. Gold bullion remains a substantial part of central bank reserves in the U.S. and Europe. China became the world’s second-largest economy in 2010 and has stepped up efforts to internationalize its currency - the yuan.
This is the continuation of the trend of China positioning the yuan as global reserve currency and we would not be surprised if China begins to accumulate a minimum of 100 metric tonnes a month going forward. The Chinese are pushing for full convertibility of the RMB and increasing their gold holdings will create confidence in the fledgling reserve currency and aid them in this regard.
Gold in GBP - 1 Week
The short term trend remains lower. Gold may be in the process of having one last sell off and capitulation. The move lower this week may signal the start of that phase.
Good physical supply demand fundamentals and a very supportive macroeconomic backdrop are being ignored and the momentum driven and increasingly computer driven futures market is dominating and pushing prices lower again.
Concerns about a Fed interest rate increase are also weighing on the market. Although to an extent we would be surprised if that was not already priced into the gold market - as it has been very well flagged at this stage.
Silver for immediate delivery was flat at $15.04 an ounce, marginally lower for a fifth day. Spot platinum fell 0.6 percent to $1,008.51 an ounce, while palladium fell 1.1 percent to $625.95 an ounce.
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Can someone give me an intelligent answer as to where everyone is buying their gold? Who is selling!?
Tuco;
"The U.S. is believed to have the biggest reserves at 8,133.5 tons."
If the U.S. really has this much gold then why not prove it by allowing an audit/examination?
As long as you "believe" all your money is in the bank, it don't matter that the vault might be empty.
"the ravenous buying of physical gold China has been engaging in for the past 5 years. "
All I have heard the last few years is how China and Russia are increasing their gold reserves by leaps and bounds. Since worldwide gold supply increases by only about 1.3% per year, someone must be selling. Can someone give me an intelligent answer as to where everyone is buying their gold? Who is selling!? Or, perhaps gold stats are like the most other stats we read about, a figment of someone's imagination.
Tuco
I picked the wrong day to quit sniffing glue.
You have to sniff some glue to believe this ridiculous report.
.........It was the first public adjustment to its reserve figures in more than six years.........
what about US treasury to disclose the Gold Inventory...no disclosure in more, then 40 years now.
Only makes sense to release the holdings if you want to drive the price higher/calling a high in price.
Hard to tell what folks will sell their gold for in this environment. There just aren't a lot of dollars right now. I did read Delta Airlines bought a couple of Supertankers worth of oil that have floating around for months with no buyer. Probably ten bucks a barrel.
They own a refinery in Philly which has become a huge profit center for them.
This is pretty bearish for Gold. If China is releasing their numbers that means two things; they have about as much as they want right now and that they have more gold than the numbers they just released.
Since they have been pretty much the only buyer this entire decade for the metal there goes the bid in gold and down goes the price to the lows of the decade. Next stop Gold $1000 on its way to @250
The financial bubble is real alright, in gold.
A couple weeks ago I priced I oz gold coins vs. Kg bars in Zurich. The coins were floating between $200-300 per ounce!
On this side of the pond, the difference was about $45 difference which is in line with previous differentials over the years. Of course this was during the drama peak in Greece. I'm not suggesting that Greece factors in the equation, just providing more base for analysis.
I would appreciate what any of you ZHers think are the causes of the dynamics baffling some of us. Simple supply demand dynamics doesn't make sense.
A clerk forgot to put 1 in front of the 1658, LoL. correction due any minute.
China (net) hasn't purchased a single US treasury since July '11 while still running record trade surplus with the US...they have to use all those dollars for something (see last chart in link).
Also noteworthy is the big grouping of "foreigners" have turned to net sellers of US treasury debt in 2015...as has the Intra-Governmental holdings...and even the Fed has (net) not increased it's holdings (simply maintaining). In fact these 3 groupings have net sold $150 billion this year leaving the only source of treasury buying to US domestic sources (banks, pensions, insurers)...these US sources are supposedlly buying over a half trillion in low yielding US debt??? They supposedly had a half trillion sitting in cash since they didn't even bother to sell anything to make these purchases?
http://econimica.blogspot.com/2015/07/2015-is-truly-unbelievable-in-us.html
China has tons of debt. So much its coming out there ears. They just print to buy gold. We print money to buy more crap
But they can manage it not the case with yours
China boosts Gold, US boosts debt!
It is likely closer to 20X's if the truth be known.