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Russians Buy Gold Again In June – Another 25 Tonnes
Russians Buy Gold Again In June – Another 25 Tonnes
- Russia adds another 800,000 ounces or 25 tonnes to gold reserves in June
- Russia’s has sixth largest gold reserves in the world
- Allocates 13% of FX reserves to gold
- Central bank buys all Russian gold production
- Other Russian gold demand imported
- If billionaire oligarchs diversify into gold, prices will rise sharply
- Russia views gold bullion as “100% guarantee from legal and political risks”
With all the focus on the Chinese lowballing their total institutional gold holdings, combined CIC, SAFE and PBOC, this week and the continuing attacks and manipulation of the gold market on Sunday night, the latest large increase in Russia’s gold reserves has gone largely unnoticed and barely covered by commentators - especially the more vocal bearish ones.
Russia continues to add to its gold reserves and added another 800,000 ounces in June or another 25 metric tonnes, and analysts believe this buying will continue in the coming months.
Its total gold reserves now amount to 41 million ounces or around 1,275 metric tonnes, with a current value of just $48 billion. Russia’s total FX reserves are $362 billion and their gold allocation is now 13% of their total reserves.
In contrast, the U.S. is believed to have over 8,400 metric tonnes of gold and no foreign exchange reserves. The share of gold in foreign exchange reserves is much lower than in many other countries such as the U.S., Italy and France.
This ranks Russia in sixth place globally in terms of gold reserves behind the U.S., Germany, Italy, France and China after their PBOC announcement last Friday.
In 2014, Russia bought more gold in than in any year since the break-up of the Soviet Union. The country acquired over 173 metric tonnes according to World Gold Council figures. Reserve diversification intensified after April -- averaging almost 20 tonnes per month.
Much of the gold bought may have come from Russian gold production which is currently at about 25 metric tonnes per month. In 2014, Russia was the third largest gold miner in the world at 266.2 tonnes, just six tonnes short of Australia in second place and China in first place.
Thus, the Russian central bank is generally consuming all of Russian gold production and sometimes having to import gold. Therefore, all domestic demand for gold and Russia is an increasingly wealthy nation with thousands of millionaires and hundreds of billionaires including mega rich oligarchs.
If any of these oligarchs decide to begin accumulating gold, then the already delicate supply balance in the physical gold market will be impacted and we will see much higher prices.
Data show that throughout the last year’s financial crisis Russia continued to add to its gold reserves. In December - when the rouble had crashed to 68.5 roubles to the dollar, down from 43 roubles six weeks previously - the Russian central bank intervened by selling $2 billion of currency reserves to support the rouble.
Despite the magnitude of the crisis in Russia - or perhaps because of it - the Russian central bank did not sell any gold. Indeed, since early 2007 has only sold gold on two occasions - both in 2012 and both times for relatively small amounts.
As the pressurised economy began to stabilise the central bank refrained from adding to its reserves buying no gold in January and February. In March it compensated by reentering the market with its second largest purchase in almost five years.
Clearly, Russia puts great strategic importance on its gold reserves. Both President Putin and Prime Minister Medvedev have been photographed on numerous occasions holding gold bars and coins as a display of economic stability and strength.
The successful stewardship of Russia’s economy out of crisis by its government in spite of sanctions has even led many investors surveyed by Bloomberg to view Russia as a good destination for investment.
While its gold reserves may not be on a par with western nations it is worth noting that neither is Russia’s debt. It’s Government Debt to GDP ratio is less than 18% whereas that of the U.S. and the UK are 101% and 82% respectively. Many European nations have much higher debt levels.
In the event of a new global debt crisis and an international monetary crisis, Russia is less fragile than many debt-laden western economies.
Investors would be wise to follow Russia’s example by reducing their exposure to debt and having an allocation to physical gold.
Must-read guide: Gold and Silver Storage Must Haves
MARKET UPDATE
Today’s AM LBMA Gold Price was USD 1,096.80, EUR 1002.468 and GBP 702.38 per ounce.
Yesterday’s AM LBMA Gold Price was 1,108.00, EUR 1,021.15 and GBP 711.47per ounce.
Gold fell a marginal $3 to $1100.20 per ounce and silver rose 0.6% or 10 cents to $14.81 per ounce yesterday.
Today, gold in Singapore ticked lower, prior to gold bullion in Zurich moving sideways..
Silver for immediate delivery fell 0.6% to $14.86 an ounce. Spot platinum rose 1% percent to $973 an ounce, while palladium fell 1.2 percent to $622 an ounce.
Breaking News and Research Here.
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I think our government considers any purchasing of physical gold or silver unamerican. So this puts American buyers in the same position as Russia and China in this regard.
USA gold is gone, gone, gone...to China, India and why not Russia! Bye, bye.
I want to have a ship wreck with 25 tonnes.
"In contrast, the U.S. is believed to have over 8,400 metric tonnes of gold and no foreign exchange reserves."
Believed ... By whom?
Nixon said so, and he wasn't a crook!
http://www.youtube.com/watch?v=sh163n1lJ4M
If they were buying before now, you can bet they are absolutely buying at this moment with the rigged price down.
Evert time I leave the US I stack up on Rubles at the FX. They are gonna bounce back. I hope to stash 1,000 dollars in rubles at today's prices.
I have also been collecting Yuan since I flew into a far east airport and they had a sign in the terminal, a big one, advertising Yuans. "Something is up their sleeves," I thought.
Great photo op Vlad has there.
"Show me your Au, Bath House!"
"Err, uhh, we're ah painting the vault this week."
Sorry Tsirpas, Mother Russia can't afford to piss 10 billion away in trying to resurrect the deadbeat Greek economy. There's a sale on gold right now and we need to get ours before everyone catches on.
See, paper gold is still making producers give away their precious metals and we just don't know how much longer they will give us shiny rocks for Disney Dollars.
And the Chinese are buying it too.
https://youtu.be/kMsKWo_W-vQ
"OK, buddy, that'll be 40 for the gas."
"Here ya go."
"WTF? Dollars? What does the sign say out front?"
"OK, how about these Yuan?"
"Now yer talkin'! Got Rubles? I give discounts on them."
yes, and these are much wiser Chinese than those who were buying shares in the Chinese stock market:-)
China and Russia have both been buyers for awhile now. You have to wonder if something is being planned.
SDR's.
http://redefininggod.com/nwo-schedule-of-implementation/
I think we can safely assume something Big is being Planned.
And what exactly will Russia do with their gold reserves? $48 billion won't even pay for the Sochi Olympics, never mind a global conspiracy to unhinge something.
Same goes for China.
Please correct me if I am wrong but isn't a ton of gold equal to 2000 pounds, and a pound equal to 12 ounces? So, shouldn't the 25 tons calculate to 600,000 ounces? (25x2000x12) Or am I all wet?
I wouldn't call you "all wet". It's just that a pound is 16 ounces. You must be thinking of weeks... there are 12 days in every week.
Anyway, just to confuse things, those ounces are in the ancient "avoirdupois" system. That's the system you and I use every day. But precious metals are measured in "Troy" ounces, which are 6% heavier. So 16 troy ounces do indeed make up a "pound" of gold, but it is a pound worth of Troy ounces. Therefore it would actually weigh 16.96 ounces on your bathroom scale. On a side note, nobody on earth actually knows where these systems came from.
So to be more accurate, 25 tons of gold would be 25x2000x16 = 800,000 troy ounces.
Hope that helps.
Troy oz is 31g ish 32 troy ox in a kilo, 32151 toz in a ton. 803775toz to 25 tonnes
"This ranks Russia in sixth place globally in terms of gold reserves behind the U.S., Germany, Italy, France and China after their PBOC announcement last Friday."
The real metric is unencumbered Gold, which is unknown
Picture caption:
"I touch gold, my dick get hard like this."
Just passed by 2 of my LCSs and they are out of both AU and AG in nearly all products. Since Monday a steady stream of buyers cleaning them out. Overheard one guy trying to buy $30k of silver and they told him it would take a month at least to get it.
Not to mention Platinum. Both dealers I use are completely cleaned out of anything platinum. Not surprising considering the stuff is now $100/oz cheaper than gold, much scarcer and only substantially mined in three hell-hole places in the world. If you can find it; buy it.
Yep, I temporarily swapped off Au buying to go Pt.
......less than 18% whereas that of the U.S. and the UK are 101% and 82% respectively. Many European nations have much higher debt levels......
Many?
Out of 30 only 2 are better.
double
Perhaps they are just keeping a large mining operation afloat that got in trouble and now is highly productive. Why would they want to sell in this stupid market cjlimate.. The just successfully inflated their currency in a very controlled manner (, but not obvious without long term hindsight) and are securing their economy from future turbulance..
Love that picture of Putin - like 'Grrrrrrrhmmmph - now this is Real Money right here...!!! And rough & tumble 'ole Gennady in the backdrop with a grin of approval...
Proof?
...is in the pudding.
Who knows?
It's in the eating.
Market smashed by selling maybe 10 tons but Russia pulls 25 tons off the market shelf and nothing but crabs and ice water.
Russia bought 25 tons over a month
The smash seller sold over seconds or minutes.
Well, that . . . and only paper matters.
How is this different than the US buying GM? What would happen to the Russian miners if they tried to sell their gold on the open market? Think they would still be in business? Hardly, they would be in worse shape than the rest of the miners in the world. This is simply Russia bailing out a failing domestic industry.
Hey numb nuts...you've brought a cat to a dog show.
Now fuck off.
Too bad you can't see the truth for what it is, the gold ship sailed and when oil was getting crushed in 1986, what was the price of gold and where did it go from there?
How low do you think the gold price would be if the Russian producers had sold 25 tons on the open market for $?
Forget a bunch..if ONE billionaire tried to move entirely into gold the price would skyrocket as the demand could not be met. Selling gold is easy...as long as you do not have to deliver.
If there is a real move into physical the market would break in a day...maybe quicker than that.
We small fry should get what we can...NOW.
America's money is backed by "In God We Trust"....in Russia it is increasingly backed by "In Gold We Trust"...
If Russia didn't buy the gold with rubles they printed, who would buy it?
Russia is not "buying gold with Rubles" they are using the useless fiat green paper (so to speak)... they are utilizing all the "Full Faith & Credit of the United States".... they need to get shed of it while there are still factions that will accept it in exchange for something real.
http://www.treasury.gov/ticdata/Publish/mfh.txt
They've sold about 37 million oz's worth($1100/oz) of US debt in the last year.
The bought it from their own domestic producers, of course they paid rubles.
China, India, whoever. It's real gold, not paper shit.
They bought it with printed rubles. What's it really worth? How are printed rubles different than seashells or printed $?
I sincerely hope you don't buy any.
I wouldn't waste my money. I bought all my gold back in 1999-2002 at prices far lower than today. Much of it was in the $265-$290 range and then some at $350 and a little at $400. After that I quit buying. If gold gets to $1000, I will book all my profits and never look back.
The IRS will thank you. The US debt load is far worse than it was then($5 Trillion up to $18 Trillion). While the industrial capacity has been given away. They need your help and I'd like to buy $1000/oz. gold. Thanks.
"In contrast, the U.S. is believed to have over 8,400 metric tonnes of gold and no foreign exchange reserves. The share of gold in foreign exchange reserves is much lower than in many other countries such as the U.S., Italy and France."
...is believed to have...
Surely this is true, full faith and credit, right?
Eventually the US is going to have to show its hand, or start a world war distraction.
The more they hammer PMs, the faster I pick 'em up.
I think it's the corollary to "You know who rules you if you cannot criticize them."
"If the press are hammering PMs, it's time to buy!"
Uncle Sam has already blown in Joe Six-pack's mouth.
I don't care what they do. I won't sell and the good thing I do not have to. So let them believe that fiat-money is money.