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.

(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.


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

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

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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...

GetZeeGold's picture



Gringo gold is on sale cheap amigos.


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


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...

Momauguin Joe's picture

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

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.

inzider84's picture

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

Rubicon's picture

resonance frequency machine.

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.

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... 

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

DoChenRollingBearing's picture


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.

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.

Rubicon's picture

Them there miners are in de bed with JPM.

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 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)
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)

Hobbleknee's picture

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

Badabing's picture

Is that what caused the price pop last month!      sarc

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.

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.

Gully Foyle's picture


That's like 625 pounds of Silver.

Where you putting that much metal? Build a statue?

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.


gmrpeabody's picture

Lot of guys like to keep it in their boats.

Gully Foyle's picture


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.

achmachat's picture


a mint box = 500 troy ounces

a mint box is about the size of a cereal box


20 times 500 = 10000 troy ounces

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...

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.

gmrpeabody's picture

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

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.

Al Gorerhythm's picture

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

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

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.

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.

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!

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.

Stoploss's picture

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

whopper's picture

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


Stoploss's picture

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


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?


GetZeeGold's picture



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


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."

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.

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.

q99x2's picture

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