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Russia And Mexico Both Buy Nearly $1 Billion Worth of Gold in March

Tyler Durden's picture




 

From GoldCore

Russia And Mexico Both Buy Nearly $1 Billion Worth of Gold in March

Gold’s London AM fix this morning was USD 1,638.75, EUR 1,244.68, and GBP 1,014.83 per ounce. Yesterday's AM fix was USD 1,632.00, EUR 1,240.97 and GBP 1,014.42 per ounce.

Silver is trading at $30.85/oz, €23.43/oz and £19.10/oz. Platinum is trading at $1,550.00/oz, palladium at $671.25/oz and rhodium at $1,350/oz.

Gold fell $3.80 or 0.23% in New York yesterday and closed at $1,638.20/oz. Gold has been trading mostly sideways in Asia and within a narrow 8 point spread.  In European trading it remains near the close seen in New York yesterday. 


Cross Currency Table – (Bloomberg)

The perfect storm trifecta of bad political and economic news yesterday out of France, Holland and Germany led to risk off and falls in many markets. Gold performed well and was resilient considering the sell off seen in equity markets.

Dutch Prime Minister Mark Rutte speaks in parliament today after tendering his Cabinet’s resignation to break a deadlock over further austerity. 

French President Nicolas Sarkozy and Francois Hollande will face off in a 2nd round ballot on May 6th and the prospect of Hollande taking power is making European markets jittery.  

The euro region has government debt at 87.2% of GDP last year, which is the highest since the start of the euro in 1999.

Manufacturing data from Europe and China contracted in data released yesterday showing how economic conditions appear to be deteriorating.

With the euro zone political landscape in crisis mode and data showing business contracting many investors are putting their capital in dollars and US Treasuries.


Gold 1 Year Chart – (Bloomberg)

So far gold has not been a prime beneficiary of these risks but this will likely change soon – especially if financial conditions deteriorate which seems very likely.

Gold has recently displayed short term correlations with paper assets such as equities and bonds but these correlations will again be shown to be fleeting as gold’s long term inverse correlation with paper assets will reassert itself in the coming months.

Mexico, Russia and Central Banks Continue Diversifying into Gold
While gold demand from the western investors and store of wealth buyers has fallen in recent months, central bank demand continues to be very robust and this is providing strong support to gold above the $1,600/oz level.

IMF data released overnight shows that Mexico added 16.8 metric tons of gold valued at about $906.4 million to its reserves in March.

Russia continued to diversify its foreign exchange reserves and increased its gold reserves by about 16.5 tons according to a statement by its central bank on April 20.

 
Changes to Gold Holdings in IMF (March) - Reuters Global Gold Forum

Other creditor nations with large foreign exchange reserves and exposure to the dollar and the euro including Turkey and Kazakhstan also increased their holdings of gold according to the International Monetary Fund data.

Mexico raised its reserves to 122.6 tons last month when gold averaged $1,676.67 an ounce.

Turkey added 11.5 tons, Kazakhstan 4.3 tons, Ukraine 1.2 tons, Tajikistan 0.4 ton, and Belarus 0.1 tonnes, according to the IMF. 

Ukraine, Czech Republic and Belarus also had modest increases in their gold reserves.

Central banks are expanding reserves due to concerns about the dollar, euro, sterling and all fiat currencies.

There is an increasing realisation amongst central bankers that gold is a less risky alternative to most paper currencies and a recent survey showed that that majority of central bank reserves managers were favourable towards gold. 

Signifying the mood of caution among the world’s central bankers, 71% of those polled said gold was a more attractive investment than it had been at the start of last year.

Central banks added 439.7 tons last year, the most in almost five decades, and may buy a similar amount if not more in 2012, the World Gold Council and many analysts believe. 

Turkey’s central bank increased the proportion of required reserves that commercial banks can deposit in gold last year. The changes have increased the amount of bullion the country, which owns 209.6 tons, declares in its official reserves. 

President Vladimir Putin

Gold accounts for about 3.9 percent of Mexico’s total reserves and 9.7 percent of Russia’s, according to the World Gold Council. That compares with more than 70 percent for the U.S. and Germany, the biggest bullion holders, the data show.

The IMF data records the People’s Bank of China data showing that at the end of March China’s gold reserves remained unchanged at 33.88 million ounces.

This seems hard to believe and it remains likely that China is again quietly accumulating gold reserves and the PBOC will announce a material increase in their reserves when they are ready to do so.

OTHER  NEWS
(Bloomberg) -- Russian Gold Holdings Rise to 28.8 Million Troy Ounces in March
Russia’s central bank increased its gold holdings to 28.8 million troy ounces last month, from 28.3 million troy ounces at the end of February, according to a statement published on its website today.

The stockpile was valued at $47.8 billion as of April 1, compared with $50.2 billion a month earlier, Bank Rossii said.

(Bloomberg) -- Gold Is ‘Still in An Uptrend,’ Credit Suisse Says in Report
Gold is “still in an uptrend and with the exception of silver, the sector is not overvalued,” Credit Suisse said in an e-mailed report today.

(PTI) -- India Post offers 6 pc discount on gold coins 
India Post today said it will offer a six per cent discount on gold coins on the occasion of Akshya Tritya.

Customers would be able to purchase gold coins of any denomination and get a six per cent discount from across 31 designated post offices in the Delhi Postal Circle, India Post said in a statement.

These include post offices in Ashok Vihar, Civil Lines, Connaught Place, Greater Kailash, Hauz Khas, Janakpuri B-I and Paschim Vihar, among others.

'Akshya Tritya', a day in the Hindu calendar, is considered auspicious for buying the precious metal. Also known as 'Akha Teej', Akshya Tritya this year will be celebrated on April 24. The gold coins are available in denominations of 0.5 grams, 1 grams, 5 grams, 8 grams, 10 grams, 20 grams and 50 grams of 24 carat with 99.99 per cent purity.

India Post, in association with World Gold Council and Reliance Money Infrastructure Ltd, commenced the sale of gold coins manufactured by Valcambi, Switzerland. This arrangement was started in October 2008.

India Post at present sells gold coins through more than 800 post offices across the country.

NEWS

Gold May Decline as Concern Over European Debt Bolsters Dollar - Bloomberg

Gold edges down amid euro zone worries; Fed eyed - Reuters

Euro, shares recover, debt sales eyed - Reuters

Bank of Japan likely to ease, may buy longer-dated government bonds - Reuters

Silver ETP Holdings Slump by Most in More Than Four Years - Bloomberg

COMMENTARY
The unwitting move towards a global gold standard – Financial Times

Warren Buffet and the New Calculus of Gold – The Spellman Report

The Best Reason In The World To Buy Gold – Jim Sinclair’s MineSet

The Implications Of China Paying In Gold - Jim Sinclair’s MineSet

The Exter Inverted Pyramid - A Refresher  – Zero Hedge

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

 

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Tue, 04/24/2012 - 08:43 | 2369420 Momauguin Joe
Momauguin Joe's picture

Tradition!

Tue, 04/24/2012 - 08:45 | 2369426 achmachat
achmachat's picture

it's probably for Christmas with the family... just like any other tradition... knit sweaters, wrapped gifts under the tree, stockings hanging over the fireplace...

Tue, 04/24/2012 - 08:52 | 2369450 GetZeeGold
GetZeeGold's picture

 

 

Gringo gold is on sale cheap amigos.

 

Dah.......vee vill transmit information to Valdimir.

 

Tue, 04/24/2012 - 09:04 | 2369495 Think for yourself
Think for yourself's picture

so... let's say that somebody... a friend, yes, a friend... had finally saved enough to buy his first gold coin (because I... uhhh, that friend, has only bought gold sheet by the gram before), then what would that friend need to ascertain authenticity? He already did his homework, looked up the coins available in the area (krugs, eagles, maples) and noted down weight and size characteristics... Would a precise balance and micrometer be enough? It's a bit hard for me, uh, for that friend, to find gold test chemicals in Panama...

Tue, 04/24/2012 - 09:12 | 2369516 Momauguin Joe
Momauguin Joe's picture

PCGS or NGC graded coins and bullion are fairly reliable as being legit.

Tue, 04/24/2012 - 09:23 | 2369560 anonum
Tue, 04/24/2012 - 09:57 | 2369668 achmachat
achmachat's picture

those are very handy indeed.

unfortunately if you have a gold plated tungsten coin, the coin will still pass the test.

to be sure, you'd have to check the coin's resonance frequency.

Tue, 04/24/2012 - 10:48 | 2369871 inzider84
inzider84's picture

How do i do that, and what do i need to buy to do it?

Tue, 04/24/2012 - 13:12 | 2370455 Rubicon
Rubicon's picture

resonance frequency machine.

Tue, 04/24/2012 - 14:36 | 2370805 DaveA
DaveA's picture

No equipment needed, my 6-yo daughter can do this experiment. Take a pre-1982 solid copper penny and a modern zinc penny. Flip each coin by balancing it on a curled index finger and striking hard with the thumbnail.

Spinning into the air, the solid copper coin makes a long "pingggggg", while the zinc-cored coin makes a dry "thuck" and falls silent. Modern dimes still ring, but at a higher pitch than old silver dimes.

The reason is simple. Hard metals (and alloys) have a higher speed of sound then soft metals, so they ring at a higher pitch. Boundaries between different metals reflect sound waves, quickly silencing the ring.

Tue, 04/24/2012 - 12:31 | 2370287 Think for yourself
Think for yourself's picture

Thanks for all the tips. Unfortunately, this... friend... is in Panama, and has no access to shipping. He'll have to deal with coin shops, and has made his research to find an hopefully trustworthy one, but he still needs to act with as much due diligence as possible. The coin balance looks great but he'll have to do the same with a micrometer and balance. Is usually checking diameter and thickness, combined with weight to the tenth of a gram sufficient? Or would it need to be to the hundredth?
I don't think it is good manners to whip out the chemicals in a coin shop, which are tough to find in Panama anyways, but I - I mean, my friend - wouldn't mind busting $50-$100 on a good micrometer and balance if it means securing the authenticity of his first oz coin... 

Tue, 04/24/2012 - 09:54 | 2369663 jumbo maverick
jumbo maverick's picture

big pharma has made the oxycotin tamper proof so you cant crush it up any more. also a big crackdown in their distribution making it harder to get. so addict still wants high. what does he do? he turns to heroin. heroin is going like gangbusters. heroin is not a recreational drug. the addicts have $1000 a day habits. next time your home or your neighbors gets broken into and all your stuff stolen remember addict took all your gold and gave it to cash for gold. mexico, russia and others buy up all this american gold. gold leaves usa never to return. watch out for needles everybody on heroin

Tue, 04/24/2012 - 12:14 | 2370210 DoChenRollingBearing
DoChenRollingBearing's picture

+1

That's an interesting take, jumbo.

A declining lack of morality can indeed have real effects.  Massive negative productivity (crime) leaves terrible results for America.  A good observation about gold leaving the USA.

Tue, 04/24/2012 - 12:18 | 2370228 DoChenRollingBearing
DoChenRollingBearing's picture

@ GetZ

+ 1

I note that Peru, the world's number five producer of gold, has very little gold in their reserves and did not appear on this buyers' list.  Of course, they could always steal it from the miners in extremis.  But, that would just drag Peru down (as has happened before) by driving away foreign investment.

Tue, 04/24/2012 - 13:14 | 2370462 Rubicon
Rubicon's picture

Them there miners are in de bed with JPM.

Tue, 04/24/2012 - 08:58 | 2369468 Gully Foyle
Gully Foyle's picture

No stems, no seeds that you don't need...Acupolco Gold is some BAD ASS WEED!!!
(Camera Pan Left)
Hi there folks! Smoking more now, but getting high less? Well, try new Acapulco Gold Filters (in regular and menthol). And, don't forget to save the grooovy coupons on the back...how do you think I got this outta sight hash pipe?! But don't take my word for it...take Ashley Roachclip of the Jefferson Hairpie Institute...let's hear what he had to say:
(Enter Ashley Roachclip)
*cough*cough*
Uh...hey there...everytime I lay some of this Gold on my friends...they light it up...and they take ONE toke...and they look at me...and they say "Roach! This weed's a muthafucka man!"
(Fade to Black)

Tue, 04/24/2012 - 09:49 | 2369651 Hobbleknee
Hobbleknee's picture

I bought nearly $1 billion worth of gold in March.  Sadly, my boat was too small to stay afloat.

Tue, 04/24/2012 - 10:09 | 2369701 krispkritter
krispkritter's picture

Bullionish!

Tue, 04/24/2012 - 12:04 | 2370166 DoChenRollingBearing
DoChenRollingBearing's picture

Nice!  + 1

Tue, 04/24/2012 - 08:55 | 2369423 Badabing
Badabing's picture

Is that what caused the price pop last month!      sarc

Tue, 04/24/2012 - 08:46 | 2369428 SAT 800
SAT 800's picture

Well, I just bought another Silver Contract, basis June 2012; so I'm holding for 10,000 oz. at a center price of $30.77; having bought the first one at $30.54 as reported here yesterday. So, we'll see how that works out. Personally, I don't think peace and prosperity are breaking out any day soon; but that's just my opinion.

Tue, 04/24/2012 - 08:54 | 2369448 achmachat
achmachat's picture

please tell us that's intended for delivery...

if you take delivery of 10.000 oz of silver, you'll actually increase the value of that silver because of the massive leveraging they do while your silver is with them.

Tue, 04/24/2012 - 09:01 | 2369482 Gully Foyle
Gully Foyle's picture

achmachat

That's like 625 pounds of Silver.

Where you putting that much metal? Build a statue?


Tue, 04/24/2012 - 09:04 | 2369493 achmachat
achmachat's picture

I'm pretty sure that the majority of 10.000 oz traders can find room for just 20 mint boxes.

yes. that's 20 boxes the size of a large cereal box.

 

Tue, 04/24/2012 - 09:15 | 2369531 gmrpeabody
gmrpeabody's picture

Lot of guys like to keep it in their boats.

Tue, 04/24/2012 - 11:14 | 2369982 A Nanny Moose
A Nanny Moose's picture

We're gonna need a bigger boat...

http://www.youtube.com/watch?v=8gciFoEbOA8

Tue, 04/24/2012 - 10:00 | 2369670 Gully Foyle
Gully Foyle's picture

achmachat

Are we talking 10,000 oz (as in the op) or 10.000 oz?

(SAT 800 said : Well, I just bought another Silver Contract, basis June 2012; so I'm holding for 10,000 oz. at a center price of $30.77)

Because 625 lbs, 10,000 oz is much larger than 20 cereal boxs. 16 oz in a lb.


Tue, 04/24/2012 - 10:06 | 2369682 achmachat
achmachat's picture

*sigh*

a mint box = 500 troy ounces

a mint box is about the size of a cereal box

 

20 times 500 = 10000 troy ounces

 

http://upload.wikimedia.org/wikipedia/commons/3/34/American_Silver_Eagle_monster_box_from_United_States_Mint.gif

Tue, 04/24/2012 - 10:49 | 2369878 francis_sawyer
francis_sawyer's picture

 "Where you putting that much metal? Build a statue?"

~~~

Maybe he's puttin together a few cruise missles to send your way...

Tue, 04/24/2012 - 13:12 | 2370449 akak
akak's picture

.... if we're lucky.

Tue, 04/24/2012 - 09:13 | 2369520 SAT 800
SAT 800's picture

Dude, it's called Commodities Futures Trading; I'm talking about Comex Contracts, that's what "June Basis" means. It's a statement of my opinion that I'm willing to speculate at the price; that I'm bullish at this price; in case that of interest to someone; the idea is to sell the contracts again and have a profit in my trading account. At the present moment, "dollars" are still useful for yearly expendititures.

Tue, 04/24/2012 - 11:39 | 2369540 gmrpeabody
gmrpeabody's picture

Whoa..., all this technical talk. You must be, like, a businessman, or something.

Tue, 04/24/2012 - 09:25 | 2369570 tarsubil
tarsubil's picture

I was thinking the other day, the money is just sitting there waiting for you to take it but MF Global among other things makes me think twice.

Tue, 04/24/2012 - 10:37 | 2369705 Al Gorerhythm
Al Gorerhythm's picture

Some advice from Jon Corzine. He comes to you from a future date..

http://www.youtube.com/watch?v=NPjhEsZr8Nw

Edit: ..... or from Gerald Celente if you believe in FEMA (conspiracies).

Tue, 04/24/2012 - 12:20 | 2370243 tmosley
tmosley's picture

You gonna get MF'ed.

Tue, 04/24/2012 - 09:09 | 2369507 SAT 800
SAT 800's picture

No delivery; it's a trade; I spend the dollars if I make a profit; it's a business model. There's some "other Silver" somewhere else that doesn't get sold.

Tue, 04/24/2012 - 08:55 | 2369461 chubbar
chubbar's picture

Are you taking delivery? If so, let us know how that works out for you, I'm curious. Also let us know if you are contacted with a bribe to roll or sell the contract as seems to be indicated by some in the industry.

Tue, 04/24/2012 - 09:06 | 2369488 Badabing
Badabing's picture

Sure, take delivery and you end up with a delivery receipt, just another piece of paper hold out long enough for  the real thing and you get ETF’s the little guy doesn’t have a chance with COMEX.


Technically the COMEX has already defaulted two years now!

Tue, 04/24/2012 - 09:17 | 2369504 Silverhog
Silverhog's picture

Your a brave man. You may end up with a gift certificate to Applebee's and a signed photo of Blythe's crotch.

Tue, 04/24/2012 - 09:23 | 2369563 EvlTheCat
EvlTheCat's picture

ROTFL

Tue, 04/24/2012 - 08:47 | 2369431 bernorange
Tue, 04/24/2012 - 08:49 | 2369436 Stoploss
Stoploss's picture

Looks like, been there done that, is out weighing fiat insanity.

Tue, 04/24/2012 - 08:48 | 2369432 whopper
whopper's picture

Newmont and the rest of the miners should really sell off on this news. sarcasim, but they probably will anyway.

 

Tue, 04/24/2012 - 08:51 | 2369445 Stoploss
Stoploss's picture

You do realize the miners are being shorted due to the expectation of nationalization.

 

Tue, 04/24/2012 - 08:48 | 2369433 DavidC
DavidC's picture

And meanwhile the ninnies in JPM and elsewhere think they're being clever by supressing the price via the paper market. How stupid can you get?

DvidC

Tue, 04/24/2012 - 08:55 | 2369460 GetZeeGold
GetZeeGold's picture

 

 

Blythe is not amused.....she looks even more bitchy than usual.

 

Tue, 04/24/2012 - 09:05 | 2369497 disabledvet
disabledvet's picture

That's the Fed and the Treasury market now...not IOU incorporated. And they own thousands of TONS of gold...unlike the banks which still search...elusively I might add...for that banking elixir called "loan growth." that's with TRiLLION DOLLAR balance sheets I might add. "good luck prime time."

Tue, 04/24/2012 - 08:49 | 2369438 j0nx
j0nx's picture

Watch what these countries and the people in charge of them do, not what they say. They will lie and tell everyone that things are fine and getting better all the while on the back end they are loading up on PM and other commodities. Fucking slimy little weasels.

Tue, 04/24/2012 - 08:49 | 2369440 yabyum
yabyum's picture

Whats not to like? Trade in your tired fiat dollars for  the real deal. Dollar is becoming worthless and golds on sale.

Tue, 04/24/2012 - 08:50 | 2369443 q99x2
q99x2's picture

You can tell who's jealous in that photo. Putin's girlfriend.

Tue, 04/24/2012 - 09:03 | 2369487 SAT 800
SAT 800's picture

Check out the guy in the black suit in the background; no earpiece; never any sunglasses; but if he's who I think he is, you;ll be laying on the floor dying before you understand that somethings wrong. Spetznaz on special duty to the GRU; No Mercy, No Warning; No Mistakes. Their version of the Secret Service.

Wed, 04/25/2012 - 06:46 | 2372718 RafterManFMJ
RafterManFMJ's picture

I'll bet if they get caught with a busty whore, they just admit it with a wolfish grin, and then high-five. 

Tue, 04/24/2012 - 08:53 | 2369454 Platypus
Platypus's picture

Ok..assuming the news is correct we can get to two conclusions:

The countries that historically have being on the wrong side of the market suddenly became experts and are now making the right bet.

 

The countries that have being historically on the wrong side of the market are getting lured just to get ripped off AGAIN ;)

 

 

 

Tue, 04/24/2012 - 10:08 | 2369694 Temporalist
Temporalist's picture

I've concluded you are posting on the wrong website.  I've also concluded your sense of humor was strangled and abandoned as a child.

Tue, 04/24/2012 - 08:53 | 2369456 gold-is-not-dead
gold-is-not-dead's picture

yet buffet would name 'em barbarians

Tue, 04/24/2012 - 08:54 | 2369458 SheepDog-One
SheepDog-One's picture

FED lovin media pumpers hate gold coins, but they sure do love all their gold watches and jewelry. Weird huh?

Tue, 04/24/2012 - 08:58 | 2369466 SAT 800
SAT 800's picture

71% of the Bank Managers said Gold was more attractive for them than it was at the start of last year; yeez, someone should explain the virtue of silence to them. Don't they understand that they're undermining the official story that gold is a barbarous and usless relic of a bygone age?; if they keep on like that they might distract us from the one and only thing that actually makes any difference now; the latest breathlessly important anouncements from Ben Bernanke. They're kind of in the position of the GMC Dealers who all buy Fords; don't look Kosher to the public, ya know.

Tue, 04/24/2012 - 08:59 | 2369470 Stuart
Stuart's picture

The shortsightedness of the West is astonishing.  They're being sucked dry and the Western checker players can't see the chess game in front of their faces. 

Tue, 04/24/2012 - 09:03 | 2369491 Quinvarius
Quinvarius's picture

They are actually playing Chutes and Ladders in the West.

Tue, 04/24/2012 - 10:50 | 2369885 francis_sawyer
francis_sawyer's picture

emphasis on the chutes... (the ladders are only used for putting out fires)

Tue, 04/24/2012 - 13:14 | 2370463 Rahm
Rahm's picture

golden chute for some...

poop chute for everyone else...

Tue, 04/24/2012 - 09:04 | 2369494 FubarNation
FubarNation's picture

I remember that a few years back when Central Banks were falling all over themselves selling Gold.  At the time I was accumulating when the price was low.  That seemed to work out pretty well for me.

Now Central Banks are buying.......Hmmmmmmmmm.............

Tue, 04/24/2012 - 09:14 | 2369527 Quinvarius
Quinvarius's picture

Of course you were...not.

Tue, 04/24/2012 - 11:05 | 2369750 oddjob
oddjob's picture

C'mon, people always refer to winning trades as 'pretty'.

Tue, 04/24/2012 - 09:11 | 2369513 disabledvet
disabledvet's picture

Mexico will soon devalue so this is Quixotic indeed. Russia on the other hand is an interesting case. "Strangelovian" perhaps? Since unlike the USA "back in the gold standard days" which had an amazing legal system (at least New York and Massachusetts did) no one claims Russia can't simply throw you in jail for having property ala Khodorkovsky. I must say the American variant is rather terrifying as well.

Tue, 04/24/2012 - 09:19 | 2369549 PaperBear
PaperBear's picture

What are the reporting intervals for foreign reserve changes ?

Saying 'in March' could mislead people to think these additions were made since February.

Tue, 04/24/2012 - 09:35 | 2369609 PaperBear
PaperBear's picture

"Russia’s central bank increased its gold holdings to 28.8 million troy ounces last month, from 28.3 million troy ounces at the end of February,"

There you go, 15 tons in a 30 day period.

Tue, 04/24/2012 - 09:27 | 2369576 resurger
resurger's picture

Dah! Kharasho!

 

Tue, 04/24/2012 - 09:29 | 2369584 hermes trismegistos
hermes trismegistos's picture

DO NOT FALL FOR THE GOLD STANDARD.MONEY IS WHATEVER PEOPLE AGREE UPON AS A MEDIUM OF EXCHANGE.USE GOLD AS A SPECULATION/WEALTH PRESERVATION UP TO A CERTAIN EXTENT , BUT STUDY AND LEARN THE IDEA OG GOLD STANDARD. SHOULD WE REALLY GET BACK TO THE GOLDSTANDARD ( AS RON PAUL ADVOCATE ) WE WOULD JUST BE SWITCHING MASTER.NO REAL CHANGE HERE

 

Tue, 04/24/2012 - 09:32 | 2369599 PaperBear
PaperBear's picture

Yep, who has all the gold ?

An even more important question is: has anyone got any silver ?

Tue, 04/24/2012 - 10:18 | 2369726 Temporalist
Temporalist's picture

You are just another troll who has no idea what you are talking about.  Ron Paul advocates competing currencies and the gold standard as a means to keep the government and central bank printing in check.  If you could read you'd know that the gold standard was never the problem but the kleptocrats in charge of it were .

 

I would rather serve a master that has an even level playing field for all than one that serves the wealthiest first while destroying the middle class and poor.

Tue, 04/24/2012 - 10:24 | 2369747 AmCockerSpaniel
AmCockerSpaniel's picture

Are not the "kleptocrats" always the problem?

Tue, 04/24/2012 - 10:40 | 2369786 AmCockerSpaniel
AmCockerSpaniel's picture

It is a "little more than just switching masters. The good part is the NOT being able to hide the money printing. The currencies peg to Gold will shift as more money is printed (the amount of Gold the government will pay out in return for it's money, and this must always be less than what the price of Gold is sold back to the government). This will have to be very public info. So; Those who would print, or have to print (like in war), will be answerable to the voters.

Tue, 04/24/2012 - 10:53 | 2369894 lakecity55
lakecity55's picture

Is that you, Ben?

Tue, 04/24/2012 - 09:31 | 2369590 Sojourner.
Sojourner.'s picture

So if the central banks are buying that much gold, who are the sellers?

Tue, 04/24/2012 - 10:27 | 2369759 oddjob
oddjob's picture

I'm going out on a limb here, but it could be the miners.

Tue, 04/24/2012 - 10:37 | 2369812 AmCockerSpaniel
AmCockerSpaniel's picture

I'll get out on that same limb with you. I think it's the LME where those who get it from the miners (further contract seller). The miners sell contracts on their production (then have to deliver the Gold to the exchange).

Tue, 04/24/2012 - 09:41 | 2369628 Hober Mallow
Hober Mallow's picture

what is the big deal?

1B of Gold is nothing

Tue, 04/24/2012 - 10:05 | 2369688 Robslob
Robslob's picture

 

 

So true Homer but what inquiring minds really want to know is how much they printed and then divide by the amount of gold purchased and presto...the true price of gold!

Tue, 04/24/2012 - 10:13 | 2369710 Temporalist
Temporalist's picture

There are a lot of gold haters lately.  That is just signs of more bullishness.  Or, perhaps they've had a loved one that has OG'd:

"Cause of death looks like OG"

http://www.dailymotion.com/video/xm3xmx_og-over-gold_shortfilms

Tue, 04/24/2012 - 10:15 | 2369721 Richard Head
Richard Head's picture

OT: has anyone else experienced severely delayed deliveries of physical from major retail dealers in the US?  I just received a monster box of ASE's.  Took a month to deliver compared to the usual week or so.

Tue, 04/24/2012 - 10:52 | 2369890 lakecity55
lakecity55's picture

Yes! Just received a 5oz block, slightly delayed from the past deleiveries.

But, I am still backlogged on delivery of 1oz bullion.

This is from a major supplier.

Anyone else having the same problem?

Keep Stackin' !

(I'm headed for the coin store shortly to pick up culls; the last two times they had a dwindling stock).

Tue, 04/24/2012 - 12:30 | 2370284 Winston Churchill
Winston Churchill's picture

Don't remember seeing anything on ZH.

Trying to find a link to post about the change in LME

settlement from USD to Remimbi.

Might well be screwing up deliveies.

Game changer.

Tue, 04/24/2012 - 10:20 | 2369728 AmCockerSpaniel
AmCockerSpaniel's picture

It is said that one can not make a profit owning Gold. So; Think about this. If the price of Gold goes up, it's because the frat money is losing it's value (takes more of it to buy the same amount of Gold).   This also means the money every one has in their wallets is worth less too. Now the Gold owner is king (they have made money while the rest have lost it). I think this is a profit.

Tue, 04/24/2012 - 10:50 | 2369883 Temporalist
Temporalist's picture

Actually many say that gold maintains its value and the value of the fiat drops, which is true, but I believe that gold value also increases as more people realize its inherent value as money, which they forgot but are quickly learning again.  Since only 1%-2% of investments globally are in gold that is a lot of value that potentially will be "added" to gold..or the reward is far far greater than the risk.

 

I have watched the gold meme growing and it's getting bigger all the time.  Just in the past two weeks alone the word "gold standard" was used in numerous artilcles, that actually discussed a gold standard, when over the past several years it probably was mentioned two or three times a year.

 

Besides the majority of people that purchased gold over the past decade have a profit, even if it's not realized, in their gold holdings as compared to stocks and bonds and certainly savings.

 

Or one can try to be the fastest HFT:

 

High-Speed Trading: My Laser Is Faster Than Your Laser

http://www.businessweek.com/articles/2012-04-23/high-speed-trading-my-la...

 

 

Tue, 04/24/2012 - 10:34 | 2369800 johny2
johny2's picture

I would like to have a job at suisse credit, to be able to talk about silver being overvalued in relation to gold, and still recieve money for crap like that. Must be a great feeling, knowing that any stupid idea that crosses my mind will make someone pay me bonus. 

Tue, 04/24/2012 - 10:44 | 2369849 Bansters-in-my-...
Bansters-in-my- feces's picture

Let me guess,all these central banks store thier gold with the USFed and JP Morgan.

Tue, 04/24/2012 - 10:45 | 2369853 Ted Baker
Ted Baker's picture

TIME TO BURN DOWN ALL FIAT CURRENCIES AND BUY PHYSICAL GOLD AND KEEP IT SAFE AT HOME....

Tue, 04/24/2012 - 10:48 | 2369872 lakecity55
lakecity55's picture

Keep Stackin' !

Tue, 04/24/2012 - 10:51 | 2369889 cranky-old-geezer
cranky-old-geezer's picture

 

 

Gold is a great store of value bankers can't print and debase, but central bankers buying gold thinking it will make their currency "better" or "stronger" are crazy.  None of their currency is redeemable for any of that gold they're buying (and "hoarding" by the way). 

Gold "backing" is a myth.  It means nothing. 

Redeemable is the only thing that counts.

Tue, 04/24/2012 - 10:53 | 2369897 Printfaster
Printfaster's picture

To the idiots who say "keep stacking", the central buying buying in the face of investor disinterest, is about the best sign of a top in gold, as the central bank selling in the 90s was the best sign of a bottom in gold.

Central banks are clearly the stupidest of all investors, except for those that follow the central banks in their investments.

Tue, 04/24/2012 - 11:05 | 2369952 Jack Sheet
Jack Sheet's picture

"IMF data ..........shows that Mexico added 16.8 metric tons of gold valued at about $906.4 million to its reserves in March."

"Russia .....and increased its gold reserves by about 16.5 tons according to a statement by its central bank on April 20."

Goldcore unfortuantely does not specifiy whether that is tungstenless gold bullion physically transferred to Mexico City or Moscow, or a paper ownership claim / electronic bookkeeping entry at the B.I.S. Subtle difference.

Tue, 04/24/2012 - 12:15 | 2370217 EmileLargo
EmileLargo's picture

Putin is smarter than people think he is.

Tue, 04/24/2012 - 15:16 | 2371066 tocointhephrase
tocointhephrase's picture

Nice pocket money for Iran

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