Kyrgyzstan's Central Bank Urges Citizens To Own Gold

Tyler Durden's picture

"Gold can be stored for a long time and, despite the price fluctuations on international markets, it doesn’t lose its value for the population as a means of savings," Kyrgyzstan’s Central Bank Governor Tolkunbek Abdygulov said, "I’ll try to turn the dream into reality faster."

A landlocked nation perched between China and Kazakhstan is embarking on an experiment with little parallel worldwide: shifting savings from cattle to gold. As Bloomberg reports,

One of the first post-Soviet republics to adopt a new currency and let it trade freely, Kyrgyzstan’s central bank wants every citizen to diversify into gold. Governor Tolkunbek Abdygulov says his “dream” is for every one of the 6 million citizens to own at least 100 grams (3.5 ounces) of the precious metal, the Central Asian country’s biggest export.

 

In the two years that the central bank has offered bars directly to the population, about 140 kilograms of bullion have been sold, Abdygulov, 40, said by phone from the capital, Bishkek.

 

“We are hopeful that our country’s population will learn to diversify its savings into assets that are more liquid and -- more importantly -- capable of retaining their value,” he said. In rural areas, cattle is still the asset of choice for investors and savers, according to Abdygulov.

 

What makes Kyrgyzstan unique is the central bank’s effort to win converts by providing infrastructure for safe-keeping and investment. The central bank produces bars of different sizes, varying in weight from 1 to 100 grams.

 

The central bank governor believes his plan is realistic, even though it means the population would own about 600 tons of gold, equivalent to 30 times the nation’s current annual output. Abdygulov declined to specify the timeframe for when his goal of 100 grams per person can be met.

 

 

“For Kyrgyzstan, gold is an alternative instrument of investment,” Abdygulov said. “The National Bank has ensured liquidity for gold -- we aren’t only selling, but also buying back gold bars that we produced and sold.”

These somewhat blasphemous words from a central banker echo the thoughts of no lesser elite than Alan Greenspan...

TETT: Do you think that gold is currently a good investment?

GREENSPAN: Yes... Remember what we're looking at. Gold is a currency. It is still, by all evidence, a premier currency. No fiat currency, including the dollar, can macth it.

GREENSPAN: ...remember, we had that first tapering discussion, we got a very strong market response. And then we reassured everybody to have no -- remember, tapering is still (audio gap) of an agreement that the central banks have made -- European central banks, I believe -- about allocating their gold sales which occurred when gold prices were falling down (audio gap) has been renewed this year with a statement that gold serves a very important place in monetary reserves.

And the question is, why do central banks put money into an asset which has no rate of return, but cost of storage and insurance and everything else like that, why are they doing that? If you look at the data with a very few exceptions, all of the developed countries have gold reserves. Why?

TETT: I imagine right now, it's because of a question mark hanging over the value of fiat currency, the credibility going forward.

GREENSPAN: Well, that's what I'm getting at. Every time you get some really serious questions, the 50 percent of the gold price determination begins to move.

TETT: Right.

GREENSPAN: And I think it is fascinating and -- I don't know, is Benn Steil in the audience?

TETT: Yes.

GREENSPAN: There he is, OK. Before you read my book, go read Benn's book. The reason is, you'll find it fascinating on exactly this issue, because here you have the ultimate test at the Mount Washington Hotel in 1944 of the real intellectual debate between the -- those who wanted to an international fiat currency which was embodied in John Maynard Keynes' construct of a banker, and he was there in 1944, holding forth with all of his prestige, but couldn't counter the fact that the United States dollar was convertible into gold and that was the major draw. Everyone wanted America's gold. And I think that Benn really described that in extraordinarily useful terms, as far as I can see. Anyway, thank you.

TETT: Right. Well, I'm sure with comments like that, that will be turning you into a rock star amongst the gold bug community.

*  *  *

Of course, as a reminder, here is Ben Bernanke putting people straight on Gold...

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
peterk's picture

greenspan the traitor!

while in power he did everything counter to what he says,  now to make ammends with history he speaks truth.

observer2017's picture

Greenspan's job was to defend fiat currency. You can't blame him for what Nixon did. 

knukles's picture

Well, I for one don't give a shit.  He's Guilty!   They're both guilty!

observer2017's picture

I don't hear Trump calling for a return to gold backing, or Yellen, for that matter. I think the problem is, if all currencies were gold backed it wouid likely mean that a microscopic piece of gold would buy you a nice house.  

BaBaBouy's picture

Smart, Very Smart...

Chinese also urge their citizens to own GOLD and SILVER ~

BaBaBouy's picture

Everything that Nixxon did in Office should be Undone ~ ~ ~

Low IQ fan of VVP's picture

Everything done since Nixen should be Nixed.

DownWithYogaPants's picture

Un this Central Banker better stay away from nail guns.  He's not singing from the right sheet music.  

mind reset's picture
mind reset (not verified) DownWithYogaPants Feb 18, 2017 6:04 PM

I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... http://bit.ly/2jdTzrM

sinbad2's picture

Johnson sold the gold, the US had pledged to swap dollars for gold, but the US could not honour that pledge, because there was not enough gold to back the dollars printed.

If it had been any other country, the IMF etc would have moved in, and the US would be like Greece.

Because the US had the military might, it simply broke the agreement(defaulted). To stop a run on the dollar, Nixon convinced the Saudis to accept only dollars for their oil, which meant other countries had to hold US dollars to buy oil.

Nixon saved you.

mind reset's picture
mind reset (not verified) sinbad2 Feb 18, 2017 6:24 AM

I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... http://bit.ly/2jdTzrM

kommissar's picture

lyndon b johnson was a theiving, murdering asshole who caused most of our current problems.  if there is a hell, i hope he's rotting in it somewhere in its deepest recesses.

sinbad2's picture

True, but surely that would depend on the number of dollars to the ounce.

If say an ounce of gold was worth US$100,000 then you would still need a few ounces to buy a house.

They like to pretend that fiat money has a fixed value, and the price of gold fluctuates, but really it's the other way around.

Socratic Dog's picture

Blasphemy is right.  Two points: I'd wager my 100 grams of gold the guy ain't a jew.  And I'd wager another 100 grams he's gonna find his head on a pike, a US-made pike, in the very near future.  Countries with blasphemous central banks seem to get invaded more than most.

observer2017's picture

I'm not getting where you are coming from. Who is not a jew, and why would the US want his head on a pike and which central banks are blasphemous?

observer2017's picture

For fuck sake, who the fuck is down voting a question to clarify?  I gather that SD is talking about Tolkunbek Abdygulov not being a jew and the US wanting to take him down. I just want clarification, fucking troll morons. 

sinbad2's picture

I will explain to you, the US, which is a virtual colony of Israel is against gold, because it doesn't have any, but does rely on other nations buying dollars to support the US economy. If nations start swapping their US dollar reserves for gold, it will lower the value and importance of the dollar.

In the past, any country or influential person that tried to move away from the US dollar, has been destroyed by the US.

sinbad2's picture

The US has been trying to destabilize Central Asia, and has had some success in Uzbekistan and Tajikistan, but the stans have powerful neighbours, who keep the CIA in check.

Low IQ fan of VVP's picture

Just let the USA try. Central Asia is now the "near abroad" of three allied power and China especially won't take any US meddling very kindly; no way the US would be allowed in such a good position to threaten both Xinjiang and those railways/road China's building in Kazakhstan

sinbad2's picture

Actually it was Johnson who sold US gold reserves and trashed the dollar, Nixon fixed it the best he could.

observer2017's picture

That's interesting, I've not heard that, could you provice links to the story? My take is that the french president at the time, 1971-72, demanded that the US pay debt in gold. Nixon, who was running a war and expanding social programs, closed the gold window. 

Croesus's picture

Once in a great while, you hear a glimpse of the truth from bankers.

knukles's picture

Easy guys.  The people over there just ain't right by some.
Borat know.

Dennisen's picture

...from cattle to gold? No more bullsh*tting around.

Socratic Dog's picture

For once, the central banker will have a valid point when he says "you can't eat gold".

BlindMonkey's picture

I fucking love this guy!  Where do I sign up for perm residency?

small axe's picture

Cattle, gold, and a central banker who has puts people's best interest first rather than banker profits...Kyrgyzstan is my kind of place.

Muddy1's picture

Maybe this will be THE new destination for all of those US citizens who are renouncing their citizenship?  I suppose a person could move there and take their gold with them.  Hmmmmm, if only mine hadn't sunk in the lake when I was out in my canoe!!!

Suleyman's picture

They have other problems, like it takes a week to transfer money via the banks to the next city.

booboo's picture

I can get a good look at a Gold Krugerrand by sticking my head up a Kyrgyzstanians ass, but I'd rather take Greenspans word for it. *Apology to Tommy Boy*

Herdee's picture

Kingworldnews, Michael Belkin. Metals outperforming all so far this year. Recommends his Silver Stocks. Hi-Ho Silver, Away!

http://kingworldnews.com/michael-belkin-2-17-17/

 

JailBanksters's picture

Must mean the Price of Gold is going to drop

 

Bunga Bunga's picture

Gold can be stored for a long time... until the governments bans and collects it. It's a trick!

Low IQ fan of VVP's picture

It seems that the word som is Turkic for, fittingly, 'pure gold', at least according to Wikipedia.

Justin Case's picture

If central banks are buying gold, it's an asset that covers their asses.

Seasmoke's picture

I still think it's money too Dr. Paul. 

sinbad2's picture

Kazakhstan has also been increasing its gold reserves.

The Central Asian economies are starting to bloom, thanks to the new silk road project.

Once the Chinese finish the rail links, they will find willing markets for their cattle, in exchange for gold.

2_legs_bahhhhhd's picture

No matter where you store your wealth, it all ends up in hotel California. Get some fiz, keep as much out of the system as possible, have minimal interaction with the system, and starve the beast. Until that succeeds gold can never be honest money. why would they let it be, when they can create currency with a mouse click.

PrometeyBezkrilov's picture

Greenspan is a spin master. Gold is not currency, gold is money. Currency and money differ in only one thing. Currency does not store value, gold does.

withglee's picture

gold is money.

Gold is not money. I repeatedly "prove" it here in less than 300 words. Get a clue! You goldbugs are dangerous to stupid people.

Not My Real Name's picture

Gold is money. It can also function as currency.

And Withglee ... the only thing you prove here regularly in 300 words or less is your ignorance on the subject. 

withglee's picture

And Withglee ... the only thing you prove here regularly in 300 words or less is your ignorance on the subject.

And all I get is slurs like yours ... never a rebuttal (except religious ones) ... never a proof to the contrary.

Define currency if gold functions as it.

Macavity's picture

"How to paint a target on your own back" in greed-rabid predatory world. They're not greedy, the parasitic NWO is. Should we expect Kyrgyzstan to be the next Libya? Gold reserves for large powerful countries are an asset, gold reserves for small countries are a liability.

SoDamnMad's picture

Then you would get a real test of the F-22 and the F-35 against the Mig-35 and SU-35 and not in a 1 on 1 air battle.  

Davidduke2000's picture

a great advice from a banker to his people, save real money not worthless papers, while Trump is praising the hyper inflated stock market where people can lose all their savings in a single minute.

Western banker pray on the population and defraud them.

withglee's picture

Gold is no more real money than cement blocks or rib-eye steaks. Get a clue!