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Gold Deposits Of USD 1 Billion To Be Collected By Turkish Bank

Tyler Durden's picture





 

Submitted by Gold Core

Gold Deposits Of USD 1 Billion To Be Collected By Turkish Bank

Today's AM fix was USD 1,589.25, EUR 1,271.40, and GBP 1,025.65 per ounce.
Yesterday’s AM fix was USD 1,593.00, EUR 1,264.79, and GBP 1,023.45 per ounce.

Silver is trading at $28.67/oz, €22.92/oz and £18.52/oz. Platinum is trading at $1,448.00/oz, palladium at $618.00/oz and rhodium at $1,200/oz.
 
Gold 1 Month Chart – (Bloomberg)

Gold climbed $5.60 or 0.35% yesterday in New York and closed at $1,600.20/oz despite stock markets giving up early gains on misguided optimism regarding the Spanish “bailout”. 

Gold fell initially in Asia before trading sideways and this range trading has continued in European trading.    

Gold edged higher Tuesday after hopes were dashed that Spain's bank bailout would be the panacea that would lead to alleviating the eurozone debt crisis.

 
XAU/EUR 1 Month Chart – (Bloomberg)

Gold is consolidating near $1,600/oz as investors are concerned that the sovereign debt of Spain will still be stretched to the breaking point and Greece’s possible departure from the euro will unleash more instability in the region.

The risk of contagion remains real and European finance officials have discussed limiting the size of withdrawals from ATM machines, imposing border checks and introducing euro zone capital controls as a worst-case scenario should Athens decide to leave the euro.

While the technicals are poor, the fundamentals remain sound with the euro zone debt crisis far from resolved. Indeed, the euro zone debt crisis will likely morph into the global debt crisis in the coming months when markets turn their attention to the Chinese property bubble and the poor fiscal position of Japan, the UK and the US.

Market watchers are waiting for the Greek elections on June 17, and also the Group of 20 financial summit plus the US Fed’s policy meeting next week.

Turkiye Is Bankas? AS, Turkey’s biggest bank by assets, plans to collect $1 billion of gold in its deposit accounts by the end of the year, citing deputy chief executive officer Erdal Aral.

As much as 5,000 metric tons of gold is stored “under the mattress” in Turkey, Aral said, according to the Istanbul-based newspaper. Gold deposit accounts have surged to 13.6 billion liras ($7.4 billion) from 3.1 billion liras within the past year, according to data released by the banking regulator, Aral was quoted as saying.

Gold has always been seen as money and as a store of wealth in Turkey and now the country is leading the way with regards to the remonetisation of gold in the 21st Century.


XAU/GBP 1 Month Chart – (Bloomberg)

Turkey remained the world's number one minter of gold coins in 2011. There is an increasing tendency for gold bars to be retail investors' vehicle of choice – although gold coins still retain a majority market share.

Turkish people can pay in gold in certain foreign exchange houses and most jewellers will accept gold as payment. Turkish banks are is now offering digital gold saving accounts.

Turkey expanded its gold reserves by 29.7 metric tons in April. Turkey’s bullion reserves climbed to 239.3 tons last month meaning that Turkey increased their gold reserves by 14% in April.

The central bank on March 27 doubled the share of lira reserves banks can hold in gold to 20%, saying it would provide 6.1 billion liras ($3.3 billion) of extra liquidity.

"This addition," the WGC says, "was the result of a policy change under which the central bank will now accept gold in reserve requirements from commercial banks to help the banks utilize their gold in managing their liquidity."

Some analysts have suggested that the increase in Turkish gold reserves, as reported by the IMF, may actually be a form of “double accounting”. Whereby the gold held in Turkish banks client’s gold account is transferred from the local bank as a reserve to the central bank, from where it then figures as gold reserves.

Besides massive domestic holdings and robust demand in Turkey, the country is also importing and then exporting huge quantities of gold into Iran and ‘Arab spring’ countries with some $1.2 billion of precious metals exported into Iran in April alone.

OTHER NEWS
(Bloomberg) -- Gold Hinges on Emerging Markets, Not Inflation: Chart of the Day
Gold’s prospects are less dependent on inflation than on demand from emerging markets, according to a study released last week.

The CHART OF THE DAY shows the relationship between gold and the U.S. consumer price index since 1975, when futures on the metal began trading. The inflation gauge was set equal to the gold price as the period began.

Assuming that gold moved in lockstep with the CPI, the implied price would be about $780 an ounce, according to Duke University Professor Campbell R. Harvey and his collaborator, Claude B. Erb. Yesterday’s price on the Comex in New York, $1,596.80 an ounce, was more than twice that number.

“If gold is an inflation hedge, then on average its real return should be zero,” Erb and Harvey wrote. Instead, returns from 2000 through March of this year averaged 13 percent a year on an inflation-adjusted basis.


Cross Currency Table – (Bloomberg)

Emerging markets are in a position to sustain the surge, they wrote, because gold accounts for a smaller portion of central-bank reserves in those nations than it does in the U.S. and other developed countries.

Brazil, Russia, India and China would have to increase their total holdings of the metal by 153 percent to match the Federal Reserve’s investment as a percentage of gross domestic product, the report said.

Erb is based in Los Angeles, and Harvey is based in Durham, North Carolina. Their study was first published June 6 on the Social Science Research Network, an online repository for academic research.

(Bloomberg) -- IShares Silver Trust Holdings Unchanged at 9,669 Metric Tons
Silver holdings in the IShares Silver Trust, the biggest exchange-traded fund backed by silver, were unchanged at 9,669.08 metric tons as of June 11, according to figures on the company’s website.

================================================================================

                   June 11     June 8     June 7     June 6     June 5    June 4

                      2012       2012       2012       2012       2012      2012

================================================================================

Million Ounces     310.868    310.868    310.868    311.838    310.868   309.898

 Daily change            0          0   -970,176    970,184    970,196  -137,357

--------------------------------------------------------------------------------

Metric tons       9,669.08   9,669.08   9,669.08   9,699.25   9,669.08  9,638.90

 Daily change         0.00       0.00     -30.17      30.17      30.18     -4.27

================================================================================~
NOTE: Ounces are troy ounces.

(Bloomberg) -- Philippines Says Gold Smuggling Hurting Value of Metal Output
The value of Philippine metal production in the first quarter fell 38 percent to 19.6 billion pesos, largely due to gold smuggling, Environment Secretary Ramon Paje said in a statement.

Gold purchases of Bangko Sentral ng Pilipinas from small miners declined 92 percent in the three months ended March to 618 kilos worth 1.35 billion pesos from 7,493 kilos a year earlier worth 14.1 billion pesos, Paje said. The official asked the Presidential Anti-Organized Crime Task Force to help stop gold smuggling, saying that the drop in central bank’s gold purchases “clearly means that gold outputs are going to the blackmarket and smuggling activities.”

Output of silver and chromite also dropped in the first quarter while copper, zinc, nickel and iron rose, Paje said. Gold output is expected to rise this quarter with the entry of a new producer while production of nickel, chromite and iron are seen to increase this year, Mines & Geosciences Bureau Director Leo Jasareno said in the statement.

(Bloomberg) -- Ghana Gold Output Fell 1.7% to 2.92 Million Ounces Last Year
Gold production in Ghana, Africa’s second-biggest producer of the metal, fell 1.7 percent to 2.92 million ounces last year as output at Gold Fields Ltd., the biggest gold miner in the West African nation, declined.

Revenue from sales of the metal increased to $4.63 billion from $3.62 billion a year earlier, as the average price climbed to $1,583 per ounce from $1,219 in 2010, the Accra-based Ghana Chamber of Mines said in an e-mailed statement. Total earnings from minerals rose to $4.78 billion from $3.72 billion, it said.

Operational difficulties, including power-supply problems, at Gold Fields’ Tarkwa mine led to a decline in production to 717,342 ounces from 735,034 ounces a year earlier, the chamber said. AngloGold Ashanti Ltd. and Newmont Mining Corp. also operate mines in Ghana.

Diamond production fell 8.2 percent to 283,369 carats in the year, according to the chamber, which didn’t give a reason for the drop.

Bauxite shipments declined 22 percent to 400,069 metric tons and revenue from exports of the metal slowed to $13.4 million from $15.1 million, the chamber’s data showed.

Shipments of manganese rose to 1.8 million dry tons from 1.2 million tons.

For breaking news and commentary on financial markets and gold, follow us on Twitter.

NEWS
Gold inches down as Spain bailout boost fades - Reuters

European financial crisis tempers gold price gain - BusinessWeek

Gold Futures Shoot Up to Nearly 5-Year High – AdvisorOne

Exclusive: Euro zone discussed limiting the size of withdrawals from ATM machines & capital controls - Reuters

COMMENTARY 
Stay The Course As Gold Continues Its Progressive March – Jim Sinclair’s Mineset

Visualizing China's Voracious Appetite For Gold – Zero Hedge

Greyerz - Worldwide Package Coming From Fed, ECB & IMF – King World News

Ned Naylor-Leyland Reveals Actual Owner of Bob Pisani’s GLD Gold Bar – Silver Doctors

Is Gold in a Bubble? – Paper Money Collapse

 


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Tue, 06/12/2012 - 09:03 | Link to Comment tarsubil
tarsubil's picture

Hmmm, which will run out first? Printed fiat or gold? Place your bets.

Tue, 06/12/2012 - 09:15 | Link to Comment Clint Liquor
Clint Liquor's picture

Ponzi schemes have two characteristics: One, they go on longer than one would think possible. Two, they end much faster than one would think possible.

Tue, 06/12/2012 - 09:35 | Link to Comment tarsubil
tarsubil's picture

It is like torture. Things have already gone on longer than I would think possible; although, I would still like to buy more real wealth before they fall apart.

One thing that is becoming more obvious to me is that the gold in Ft Knox has mostly been or is currently being Corzined.

Tue, 06/12/2012 - 09:50 | Link to Comment Badabing
Badabing's picture

i rember when i was in the army in Germany, "back in the day" the Turks would sell hashish the only problem was it looked a lot like camel shit. It was a golden color some called blond hash, and most times a person would get camel shit.

So now they want 20 tons of gold, in a way it seems appropriate for them to eat tungsten.

Tue, 06/12/2012 - 10:18 | Link to Comment fourchan
fourchan's picture

they have to love ny fix manipulating the price down.

Tue, 06/12/2012 - 10:27 | Link to Comment old naughty
old naughty's picture

...and then they hypothecate and re-hypothecate...

and they will have a thousand swimming pools size of "stored" gold "some"where.

Tue, 06/12/2012 - 09:07 | Link to Comment youngman
youngman's picture

Now this is the first economic news today that makes sense to me....when fear is ruling the day...you invest in real things..gold is a real thing...you do not open a new savings account in Greece...or Spain..or anywhere in the EU right now..run to bonds that pay a negative rate of return.....WTF....

Tue, 06/12/2012 - 11:04 | Link to Comment Ignatius
Ignatius's picture

"Turkish banks are is now offering digital gold saving accounts."

Ah, the market....

Tue, 06/12/2012 - 09:17 | Link to Comment reload
reload's picture

Forgive me if I dont rush to a bank to get a `digital gold saving account`

Tue, 06/12/2012 - 11:56 | Link to Comment Temporalist
Temporalist's picture

What is more important is that this is a sign of the times and people will wake up to the reality of it, it being gold and silver as money (an asset with no counterparty risk) after it's too late.

Tue, 06/12/2012 - 09:18 | Link to Comment oldgasII
oldgasII's picture

What is interesing to me is the increase of the bad mouthing of a gold standard by the talking heads.  Why I wonder. After all if gold is a relic of the past and if only a tiny minority of fanatics are devoted to it, wouldn't the talking heads be ignoring it instead of bad mouthing it at an increasing rate?

I smell fear. 

Tue, 06/12/2012 - 09:19 | Link to Comment GMadScientist
GMadScientist's picture

"Mehmed guaranteed that the city's residents, including their riches, beliefs and honor, would be safe. Unfortunately for the Byzantine Empire, Constantine did not take the deal."

http://www.youtube.com/watch?v=IqJXxHi6RwQ

 

Tue, 06/12/2012 - 12:01 | Link to Comment Think for yourself
Think for yourself's picture

Same scene, better presentation:
http://www.youtube.com/watch?v=4TlPo0yCSa4  

Tue, 06/12/2012 - 09:22 | Link to Comment eddiebe
eddiebe's picture

Erb and Harvey sound like an idiots to me. Academics! Good thing there are still people who actually do something productive.

Tue, 06/12/2012 - 12:04 | Link to Comment Temporalist
Temporalist's picture

Yes they sound like "an idiots" to you too.

Tue, 06/12/2012 - 09:23 | Link to Comment MFL8240
MFL8240's picture

I would encourage the Turkish people not to bother trading Gold in the US, the market is courrpt!  Secondly, who cares about the Gold Turkey holds, how much does the USA hold?  I think the number is zero??

Tue, 06/12/2012 - 10:45 | Link to Comment SeniorD
SeniorD's picture

Better use Google, The US has huge amounts of GOLD in Ft. Knox

Ever watch the Movie Goldfinger?

Tue, 06/12/2012 - 11:03 | Link to Comment No Euros please...
No Euros please we're British's picture

And would this be physical GOLD in Fort Knox or paper derivatives? I look forward to seeing your audited 100% proof inventory which I assume you will find on Google?

Tue, 06/12/2012 - 11:59 | Link to Comment Temporalist
Temporalist's picture

It's comical the reasoning I have heard when it comes to arguing against an audit.  That it will "cost millions" and yet they are willing to spend millions on a banquet or campaign stop or to test if tsetse flies actually have tiny teetsies.

Tue, 06/12/2012 - 09:45 | Link to Comment silverdragon
silverdragon's picture

Go Silver.

Tue, 06/12/2012 - 09:50 | Link to Comment Gunther
Gunther's picture

Turkey is the biggest minter of gold??
In 2010 the Istambul min produced 1083065 oz of gold coins while the US mint produced 1220500 oz.
For 2011 I do not have data for the Istambul mint; where did the author get the info and how many ounces did they mint?
The number of coins is different since the weight of the turkish coins (Meskuk and Ziynet) is less then an ounce.

Tue, 06/12/2012 - 11:03 | Link to Comment JOYFUL
JOYFUL's picture

Did yu pause to read the article, Mageister  - \>: ???? Are Teutons somwhat anal or is that a misperception Mein Herr???

The mint produces coins n bars...the demand has been shifting to bars increasingly over the last three years...therefore the Mint's output has been a combination of coins n bars...

the Ziynet is 1.607 gr fine...the coins are minted in 91.1(22k)

The Turkish State Mint has issued 134 million Meskuk  and Ziynet  gold bullion coins (13 million ounces equals about 405 metric tonnes), making them the world’s best-selling gold bullion coins over the past decade. 

The Turkish State Mint is unusual in that any company or private individual can ask it to mint a nominated size of Meskuk or Ziynet provided there is a minimum order of 1 kg of the nominated size of coin, and larger orders are in multiples of 1 kg. In addition, the Mint does not stock or sell the coins. It mints coins only when approved kilobars (99.5% gold purity) are supplied by the entity placing the order – delivery of the coins occurring within two working days.
The Mint covers its minting costs for most coin sizes by retaining a part of each kilobar supplied by the ordering entity.

If yu are ready to step up and be an "entity"/:{ ...here are all the contact details yu will need: Turkish State Mint Dikilitas Mah.YendoganSok. No 5534349 Besiktas Istanbul Turkey
Tel: +90-212-370 9000 Website: www.mint.gov.tr...

uh, yup, it's that easy - to get yur own coins made...or buy 99.5 fine bars...the integrity of the gold market here is unreally real, compared to the shenanigans of Camp Fema ... some things just be what they are...outside the Euro-merikan prison zone...

I could go on, but I see my good bud & personal censor e-recep be in the house...I better shut up or I'll get my wrist slapped for some grammatical eroor....>:\ yu want to no moor bout buyin turkish gold, msg me.

Tue, 06/12/2012 - 21:00 | Link to Comment Gunther
Gunther's picture

Just interested in facts.
I was astonished to see that the Istambul Mint produces so many coins compared to say the US mint or the South African mint. http://goldbarsworldwide.com has some data available about the number of coins produced by various mints but the data cover only up to 2010 for the Istambul mint.
Thank you for the info.
Gunther

Tue, 06/12/2012 - 10:12 | Link to Comment e-recep
e-recep's picture

Turks hold gold as a backup currency for harsh days like war, famine, medical emergency, coup d'etats or financial collapse. They won't fall for this. The bankers are clueless stupid scumbags.

Tue, 06/12/2012 - 10:21 | Link to Comment savagegoose
savagegoose's picture

so whats everyone plan to trade their gold for when it hits $6k / oz?

 

Tue, 06/12/2012 - 12:01 | Link to Comment Temporalist
Temporalist's picture

That depends on how undervalued silver still is.

Tue, 06/12/2012 - 10:26 | Link to Comment prole
prole's picture

It is my understanding that Turks, Iranians, and Indians use gold as money. That is to say, in their respective countries, the national currencies are debased (every year, or constantly) by their governments for whatever reason, but the people hold physical gold as their money, so the condition/decline of their paper currencies is not so much a concern to them.

The above mentioned countries also have active, robust gold markets, where gold can be bought and sold daily at right around spot price by every citizen who chooses.  Coins and jewelry depending on country.

         Americans and Europeans would be in a much better condition if they did the same

If you have a friend or meet someone from the above three countries ask them and they can comfirm or deny my observations.

Tue, 06/12/2012 - 11:52 | Link to Comment JOYFUL
JOYFUL's picture

Watch AU break loose today as news of the purchase of the Turkish subsidiary of Belgian dead zombie bank by Russia's biggest bank hits the wire...

Sberbank buys Sekerbank...from Dexia...follow the bouncing ball...

money moves east...and with it... the power...

Iran\Russian\Turkey...tomorrow's players...

Merika,UK/Eurozone...toast.

the e-vol-ution will not be televised!

 

Tue, 06/12/2012 - 10:29 | Link to Comment HungrySeagull
HungrySeagull's picture

Tons of Gold being purchased by Nations.

Why isnt the Gold Price above 2000.00?

Tue, 06/12/2012 - 12:28 | Link to Comment LoneCapitalist
LoneCapitalist's picture

Because the banks also sell tons of paper gold which drives the price down without changing the supply.         Im sorry, was that rhetorical?

Tue, 06/12/2012 - 10:39 | Link to Comment Floodmaster
Floodmaster's picture

1 January 2005, the old Turkish lira (TRL) was converted to the New Turkish lira (TRY) at a rate of 1,000,000 old to 1.

1 January 2020, the old Us DOLLAR (USD) will be converted to the New US DOLLAR (USND) at a rate of 1,000,000 to 1... and 2 grams of gold will still buy 1 barrel of crude oil.

Tue, 06/12/2012 - 10:49 | Link to Comment SeniorD
SeniorD's picture

You might like this:

Does Gold’s “purchasing-power-protection” Price History Suggest Gold is Over-priced?  http://bit.ly/KAWZvc

Tue, 06/12/2012 - 10:58 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

Herb and Harvey's zero return only works in their overly simplistic calculation of absolutely no detailed complications deriving from slowly increasing CPI.  The result is a kindergarten construct. Nevermind supply, demand, the market, other markets, other commodities, lapsed faith, criminals running funds, Bernanke's shiny fuckin dome, etc.

 

Tue, 06/12/2012 - 10:58 | Link to Comment Unbezahlbar
Unbezahlbar's picture

I suspect the Turks don't invest with Buffet and Munger.

Tue, 06/12/2012 - 11:06 | Link to Comment No Euros please...
No Euros please we're British's picture

Put your gold in the bank so we know where to vaporize it.

Tue, 06/12/2012 - 12:25 | Link to Comment devo
devo's picture

Didn't they try to have citizens trade it in for certificates recently?

Now gold bank accounts is their new plan? Don't they realize people who own gold do so because they don't want it within a skunk's fart of a bank?

Tue, 06/12/2012 - 19:52 | Link to Comment Muc Metals
Muc Metals's picture

Gold purchases of Bangko Sentral ng Pilipinas from small miners declined 92 percent in the three months ended March [...]. The official asked the Presidential Anti-Organized Crime Task Force to help stop gold smuggling.

There is an easy remedy against gold smuggling:
Pay for that gold the same price what the world market is paying, banksters.

BTW: Who are the organized criminals here?

  • Those who are working hard digging for gold?
  • Those who are forcing others to sell below market price?

 

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