Global Central Banks Continue Longest Gold-Buying-Spree Since Vietnam War

Tyler Durden's picture

While "greed was good" in the '80s, it appears "gold is good" in the new normal. As much as the barbarous relic is despised by all the mainstream money-peddlers in public (aside from those who have left the familia like Alan Greenspan), it seems to be loved in private. Central banks have been net buyers of gold for eight straight years, according to IMF estimates, the longest streak since the first troops were deployed in The Vietnam War.

 

Chart: Bloomberg

As Bloomberg notes, Russia, China and Kazakhstan among the biggest hoarders, International Monetary Fund data show.

Countries purchased almost 590 metric tons last year, accounting for 14 percent of annual global bullion demand, the World Gold Council estimates. Central bankers are using the metal to diversify from currencies, particularly the dollar, said Stefan Wieler, a Toronto-based vice president at GoldMoney Inc., a financial bullion services firm.

While physical demand has been consistently strong, paper prices have roller-coastered over the same period. However, gold's recent "golden cross" as the world goes NIRP (and protectionist), just as The Fed unleashes tightening hell, suggests something is different this time...

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nope-1004's picture

"Tradition, I guess".

- Bernocchio, past pathological yet Honorable Fed Chairman

septicshock's picture

So this time it's different?

Hypocrisy?

Ignatius's picture

When the debt fails we'll hear the immortal words, "Well, what else ya got?"

RAT005's picture

If central banks are buying for all of that time,  then which vaults are being emptied to meet global demand that exceeds mining? 

wee-weed up's picture

 

 

"Global Central Banks Continue Longest Gold-Buying-Spree Since Vietnam War"

No fukin' shit! The Fed and TPTB need to keep illegally monkey-hammering (naked shorts) the price of gold down in order to protect their self-preservation practices. Therefore, the ChiComs and others are like happy kids in a candy store...

jeff montanye's picture

rat i would guess fort knox, the bank of england, banque de france and banca d'italia.

well and libya's and the ukraine's of course.

Break_the_Bank's picture

And, "nobody could have seen this coming."

nmewn's picture

Knock me over with a feather.

sober_kiwi's picture

Goldilocks and the three bears; equities, bonds and real estate. 

Wow72's picture

Two Words:  WORTHLESS RELIC.... believe away if your an IDIOT!

Wow72's picture

Two More:  PEDDLING FICTION .......everything is opposite.

Everything is Awesome!

kliguy38's picture

Like why would I wanna own a gold coin when I can have some green paper in my possession that will depreciate another 90% in buying power over the next 10 years.....of course with NIRP, I might even go NEGATIVE.....

Caveman93's picture

Thailand during the Vietnam era, Dad alays told me they hated the US $. As I stare at his gold tiger's eye ring. :)

Yen Cross's picture

   The pinheads at CNBS are using the excuse to buy miners, as an excuse to be long physical metals.

  Q-4 earnings are/were a joke. Tyler exposed GAAP p/e ratios earlier. Let's discuss book values, vs revenue?

 

 OOPps, lets discuss balance sheet vs debt ratios?

       Let's discuss FREE cash on hand? [non collateralized funds]

 Welcome to the world of derivatives Bitchez.

jeff montanye's picture

do you want to buy on the cannons or the trumpets?

Seasmoke's picture

So basically everyone is buying Gold everywhere. And yet Gold has been smacked down $1900-1250. Seems impossible !!!!

SumSUN's picture

The CBs felt sorry for the majority who haven't got in yet and are giving them another opportunity to buy at reasonable levels.

Arnold's picture

Lemme show you something I learned in 'Nam.....Bitchez.

T-NUTZ's picture

only $4500 to control a 100 toz contract on the CRIMEX

daedon's picture

The key word is "contract".

runswithscissors's picture

you would think gold is one of those things that can be created out of thin air with everyone buying it...I'm thinking some of that gold belongs to someone else many times over

 

Wow72's picture

yes and some is FAKE and anyone who thinks someone else is storing it for them...guess what? they probablty already took it.  They are doing everything they can to extend and pretend.

A year or so ago Bulliondirect.com went under and everyone who had anything stored in their vaults found out it was already gone. 

Trojan Duck's picture

why woud one "buy gold" and not actually hold it themselves? Isnt that the same as someone giving me $%n and me handing them an iou. I mean whats different in a gold note vs a frn? WHY do people think thats a good idea.

 

Oh, ad they'll hold the gold I just bought, in a super secure location called haha you fucking suckers gold hut (tm)

doubledutch's picture

Yes we can.....and naked shorts in combination with HFT insider  fraud we believe in .

doubledutch's picture

Yes we can.....and naked shorts in combination with HFT insider  fraud we believe in .

MontgomeryScott's picture

This quote should scare anyone who still thinks that the USD FEDSCRIP is worth more than the paper it's printed on:

"Central bankers are using the metal to diversify from currencies, particularly the dollar, said Stefan Wieler, a Toronto-based vice president at GoldMoney Inc., a financial bullion services firm."

(OOOH, LOOK! Kim Kardashian is showing her phat ass again!)

UM... The PETRODOLLAR is done. Cooked. Kaput. 'Team America: World Police' is about to become another has-been empire that kids read about in history textbooks (a hundred years hence).

I guess those gold-plated Tungsten bars from Ft. Knox weren't such a good idea after all.

"PARTICULARLY THE DOLLAR..."

TRUMP will save us, though. He's got TEN BILLION Fedscrips (but I have three cases of Scott toilet paper stashed in the closet). HAH! I traded FEDSCRIPS for it, and MY ass will sure feel a lot better when I wipe that HIS will!

Pay attention, kiddies. The dissasembly of the former United States is in 'Full Metal Jacket' mode.

Ignorance is bliss's picture

The Dollar is a simple paper illusion as thieves loot the nation. At some point in the not too distant future the ponzi will end and a dazed Amerika will wonder why they were so enraptured by Kim's twerking ass.

Kirk2NCC1701's picture

Yeah, right. Lemme know when things that really matter start happening. E.g. The Blue Light Special on gold ends for China, and the price normalizes.

blackkitty's picture

Except Kanada.

Canada sells off most of its gold reserves

http://www.cbc.ca/news/business/gold-canada-reserves-1.3443700

Anopheles's picture

Canada sold off it's gold reserves in the 1990's.  Before that it had over 1,000 tonnes. 

If Canada had kept it's reserves, it would rank above Switzerland and just below Russia.  

. . . _ _ _ . . .'s picture

 

 

If someone is vehement about not wanting you to buy something, it's probably because they want it for themselves.

Additionally, if they vehemently want you to sell them that same thing, this can only serve to reinforce the impression that gold really is the only thing worth having.

"Awww, forget about gold, it's so 'passé.' What you want are these financial instruments - 'paper gold'. They're more modern, and sexier, easier to trade, and no storage fees; not to mention that there are 400 times as many of these as gold! By the way, if you want to sell me some of your gold, I have a few of these choice opportunities for you. Besides, would you prefer carrying a briefcase, or a trunk? C'mon let's go have a drink and talk it over."

If you can't spot the sucker, the sucker is you.

Fred123's picture

I've read the same garbage for 10 years, "THE BANKS ARE BUYING ALL THE GOLD!!! GET IT NOW!!!" Here is what will happen. You have gold, the gov't will steal it by saying it is illegal to own. Now you have nothing.

. . . _ _ _ . . .'s picture

Just don't buy it on your credit card or attach your name to the purchase. Then bury it.

Theonewhoknows's picture

In addition to this topic it is interesting to look at China's gold reserves and situation around it http://independenttrader.org/why-china-hides-their-gold-reserves.html

katchum's picture

Amazing what is happening in GLD, they buy 10 tonnes a day there.

frankly scarlet's picture

nice post by gold money inc...and what business are they in?  despite this obvious sales pitch one would be wise to hold some PMs as an insurance policy.

honestann's picture

Did Bloomberg say "hoarders"?  So now, "savers" are "hoarders"?  Hey, has Bloomberg spent his every penny?  Or, he has savings?  I mean, "is Bloomberg a hoarder", or is he broke?