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Turkey, Russia, Ukraine And Kazakhstan Further Diversify Into Gold

Tyler Durden's picture


From GoldCore

Turkey, Russia, Ukraine and Kazakhstan Further Diversify Into Gold

Today's AM fix was USD 1,583.25, EUR 1,267.41, and GBP 1,013.73 per ounce.
Yesterday’s AM fix was USD 1,569.00, EUR 1,256.41, and GBP 1,009.00 per ounce.

Silver is trading at $27.47/oz, €22.08/oz and £17.64/oz. Platinum is trading at $1,445.25/oz, palladium at $601.40/oz and rhodium at $1,190/oz.

Gold’s safe haven credentials were burnished again yesterday when despite falls in stock indices globally, gold rose $15.10 or 0.99% and closed at $1,586.30/oz. Gold traded sideways in Asia and continues in a narrow range in European trading holding above $1,580/oz. 

Gold is hovering above $1,580/oz and consolidating on yesterday’s gains on the realisation that the EU summit this week will not solve the area’s intractable debt crisis.  

Incredibly, this will be the 20th time EU leaders have met. While gold has not surged in value as many expected, gold has performed well during the period having again preserved wealth.

July options expiry later this afternoon could lead to volatile trading and there has been a pattern in recent years of price rises soon after option expiration.

Nomura Securities cut its gold price target this year to $1,754/oz from $1,791/oz, but lifted its targets for 2014 & 2015. Nomura said that central-bank buying, continuing strong Chinese demand, persistently negative real interest rates, and a growing bunker mentality for those investors who see dark scenarios on the horizon, were all positive for gold.

“The further deterioration of the economic recovery, enhanced potential for quantitative easing and continued structural problems in the euro zone lead us to believe that gold prices will stay stronger into 2014 and 2015,”Nomura analysts said in a research brief Monday.

The physical market noted bargain hunting from consumers. Premiums for gold bars were little changed at between 50 and 80 cents to the spot London prices in Singapore.

Turkey raised its reported gold holdings by another 2% in the month of May. Turkey’s gold holding rose by 5.7 tonnes in May to total 245 tonnes, International Monetary Fund data showed, making it the latest in a string of countries to increase gold bullion reserves this year.

Russia expanded its gold reserves by 15.5 metric tons in May as Ukraine and Kazakhstan increased their holdings of the metal, International Monetary Fund data shows according to Bloomberg.

Russia’s bullion reserves climbed to 911.3 tons last month when gold averaged $1,587.68 an ounce, data on the IMF’s website showed. Ukraine’s climbed 2.1 tons to 32.7 tons and Kazakhstan boosted reserves by 1.8 tons to 100 tons, the data show.

Central banks are expanding reserves due to the Eurozone debt crisis and concerns about fiat currency debasement. 

Central banks are on course to buy more bullion this year than the purchases of about 456 tons in 2011 as countries diversify their reserves.

Gold in USD, EUR & GBP – (April 2011 to Today) - Shows July August 2011 Price Rise

Turkey has allowed banks to hold more of their reserves in gold to provide extra liquidity. The central bank this month raised the proportion of reserve requirements that can be held in foreign exchange to 50 percent from 45 percent, while the limit for gold was increased to 25 percent from 20 percent. The changes will add as much as $2.2 billion to gold reserves.

Gold accounts for about 9.1 percent of Russia’s total reserves, 5.1 percent of Ukraine’s and 15 percent of Kazakhstan’s, according to the World Gold Council. That compares with more than 70 percent for the U.S. and Germany, the biggest bullion holders, according to Bloomberg figures.

Kazakhstan plans to raise the amount of gold it holds as part of its reserves to 20 percent, Bisengaly Tadzhiyakov, deputy chairman of the country’s central bank, said earlier this month.

Central bank demand and Chinese demand alone should be enough to put a floor under prices near these levels and gold looks well positioned for another summer rally akin to the one seen last July and August (see chart above).

(Reuters Global Gold Forum) -- Turkey raised its reported gold holdings by 5.692 tonnes in May to a total 244.986 tonnes, International Monetary Fund data showed, making it the latest in a string of countries to increase bullion reserves this year.

(Bloomberg) -- IShares Silver Trust Holdings Unchanged at 9,876 Metric Tons 
Silver holdings in the IShares Silver Trust, the biggest exchange-traded fund backed by silver, were unchanged at 9,875.75 metric tons as of June 25, according to figures on the company’s website.


                   June 25    June 22    June 21    June 20    June 19   June 18

                      2012       2012       2012       2012       2012      2012


Million Ounces     317.513    317.513    315.767    315.767    315.767   315.233

 Daily change            0  1,745,942          0          0    533,507 1,940,108


Metric tons       9,875.75   9,875.75   9,821.45   9,821.45   9,821.45  9,804.85

 Daily change         0.00      54.30       0.00       0.00      16.60     60.34


(Reuters Global Gold Forum) --  Nomura has cut its gold price forecast by 2 percent for 2012 to $1,754/oz and by 4 percent for 2013 to $1,981. A note says: "2H 2012 is expected to be stronger for gold, with 3Q traditionally a strong seasonal period for Indian demand."

Cross Currency Table – (Bloomberg)

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Tue, 06/26/2012 - 07:37 | 2560843 CPL
CPL's picture

What was old is now new again.


Gold and silver, the only currencies of choice for those that wish to remain liquid in two days time.

Tue, 06/26/2012 - 07:41 | 2560853 GetZeeGold
GetZeeGold's picture



Make way for the barbarians. Chucky Munger is not amused.

Tue, 06/26/2012 - 07:46 | 2560868 Colombian Gringo
Colombian Gringo's picture

Suck it Buffet, Suck it real hard.

Tue, 06/26/2012 - 08:16 | 2560974 old naughty
old naughty's picture

but, but, why is it everytime one hears nations buy more gold, be it Russia, China, or these latest, prices hardly move?

Aren't they taking physical delivery (not counting skids movement inside HSBC vaults)? Or perhaps they had difficult time charter large planes?

Wonder who the sellers were?

Tue, 06/26/2012 - 08:59 | 2561146 francis_sawyer
francis_sawyer's picture

My guess is that Turkey reads ZH & that they carry their gold around with them in F-4's...

Tue, 06/26/2012 - 09:30 | 2561253 Praetor
Praetor's picture

Yeah, Turkey was trying to diversify their gold into Syria as to avoid having all their stash in one juristiction.

Tue, 06/26/2012 - 07:41 | 2560855 Rubicon
Rubicon's picture

And Jaffa Cakes

Tue, 06/26/2012 - 07:44 | 2560862 BBullionaire
BBullionaire's picture

 and spam and spiderman towels

Tue, 06/26/2012 - 07:49 | 2560870 GetZeeGold
GetZeeGold's picture



When do they come out with the Beanie Baby towels? I'm all in dat!!!


Tue, 06/26/2012 - 11:06 | 2561593 malikai
malikai's picture

Is it just me or does anyone else suspect that there is crank in Jaffa Cakes?

Tue, 06/26/2012 - 07:42 | 2560856 Rubicon
Rubicon's picture

Gold to $55k, jaffa cakes to $20

Tue, 06/26/2012 - 09:17 | 2561207 whatsinaname
whatsinaname's picture

Does the INR need to be so beaten up versus the EUR ?

Does not make sense to me.. probably will impact Gold purchases on the sub-continent.

Tue, 06/26/2012 - 07:38 | 2560848 Hulk
Hulk's picture

Physical Gold, the only commodity on the planet that gets cheaper as demand rises !!!

Tue, 06/26/2012 - 07:51 | 2560878 CPL
CPL's picture

Math-wise the world has two more days of sale prices before the next leg up and the crippling of all JPM position in the downgrade.


As much as I despise Soro's, he is absolutely correct in the EU collapse, then the massive world banking implosion that follows after.  His assumption that he gets to play with fiat currencies after the fact is naive and childish.  Like all post war boomers, their biggest Achilles heel is their hubris regarding how they get to "bounce back" and they get to keep their old toys.


I've already made space at my place for the inevitable arrival of my parents once the financial system blows up in two day time.



Tue, 06/26/2012 - 07:58 | 2560901 Ghordius
Ghordius's picture

as much as I'm quite indifferent to Soros, IMO he is talking his book. would not be the first time

Tue, 06/26/2012 - 08:25 | 2561030 CPL
CPL's picture

Of course he is, he is a con-man, no shell game would be complete without the patter of the conman in talking the game up to the Mark. 

The problem right now isn't a point of valuation or effiencies in the system, it is every system is flat assed broke.  Completely bereft of value, hundreds to thousands of years in the hole of labour and products yet to be produced.


It's truely one of the most insane losing gambits I think any of us will get to see.  Soro's though, he'll win his gamble on his books, but when he does everyone pays.  Including him and everyone he knows.


Tue, 06/26/2012 - 10:38 | 2561473 tonyw
tonyw's picture

When it's imaginary gold you can hold 100% of your reserves in it and it can be any price you like.


Tue, 06/26/2012 - 07:38 | 2560849 Ghordius
Ghordius's picture

four countries that always loved gold. barbarians! ;-)

Tue, 06/26/2012 - 07:42 | 2560859 BBullionaire
BBullionaire's picture

Nomura Securities cut its gold price target this year to $1,754/oz from $1,791/oz, but lifted its targets for 2014 & 2015. Nomura said that central-bank buying, continuing strong Chinese demand, persistently negative real interest rates, and a growing bunker mentality for those investors who see dark scenarios on the horizon, were all positive for gold.


We all know that but why does it keep going dowm huh? answer me that one. Where's that huge rally I been promised by the KWN crew for the last few months?


Tue, 06/26/2012 - 11:43 | 2561786 Shigure
Shigure's picture


"but why does it keep going down huh?"

Could part of the reason be that gold has a 50% risk weighting?



Tue, 06/26/2012 - 07:43 | 2560860 Tom Green Swedish
Tom Green Swedish's picture

And here lies the problem.  The rest of the world is suffering from inflration, while the USA is not.  They have no choice other than to buy a worthless yellow rock, because that yellow rock will surely bring them prosperity, because the only thing they care about is money.

Tue, 06/26/2012 - 07:50 | 2560865 GetZeeGold
GetZeeGold's picture



I'm civilized......I prefer pretty worthless paper with rainbow colors.


Tue, 06/26/2012 - 07:51 | 2560877 LULZBank
LULZBank's picture

 because the only thing they care about is money.

Not true. I only do it for teh LULZ.

Tue, 06/26/2012 - 07:50 | 2560872 Sudden Debt
Sudden Debt's picture

They will all feel like such fools when Bernanke has his say about all of this :)



Tue, 06/26/2012 - 07:51 | 2560876 GetZeeGold
GetZeeGold's picture



Clearly we need Ben Shalom to say something about this.......again.


Tue, 06/26/2012 - 07:50 | 2560874 disabledvet
disabledvet's picture

China and Japan have a trillion in reserves each and you call this a story? hahahaha. Pathetic. Taiwan (not even a member of the worthless United Nations!) has more in reserves than all these countries combined...

Tue, 06/26/2012 - 07:52 | 2560881 GetZeeGold
GetZeeGold's picture



Reserves of what again?


Tue, 06/26/2012 - 07:57 | 2560897 No Euros please...
No Euros please we're British's picture

yeah these countries are pretty stupid buying gold, I just cannot imagine why they're not loading up on apple and facebook stock to underpin their financial systems. In fact a unicorn told me that they'll fix Europe this weekend, China will donate $5trillion to the IMF and gold will crash back to $500/oz.

Tue, 06/26/2012 - 08:01 | 2560911 belogical
belogical's picture

One of the problems I see in this, is are they taking physical delivery of these amount or are they willing to hold paper equivalents to just protect themselves against dollar devaluation?

Tue, 06/26/2012 - 08:03 | 2560920 EmileLargo
EmileLargo's picture

Putin is smarter than people think he is. I wouldn't be surprised if the Russians held no Dollars when the Dollar finally collapses. They seem to be ahead of the curve.

Tue, 06/26/2012 - 08:05 | 2560926 LULZBank
LULZBank's picture

Putin would'nt be able to hold on to his position in Syria and then it would'nt matter.

Tue, 06/26/2012 - 08:08 | 2560944 EmileLargo
EmileLargo's picture

Syria is irrelevant to Putin's survival. The Russian position in Syria is a power play against the US. Unlike Yeltsin, Putin does not subscribe to the view that what is good for the US NWO crowd is good for Russia. That view is not indefensible.

Tue, 06/26/2012 - 08:06 | 2560930 Mr. Lucky
Mr. Lucky's picture

Barbarians have more fun.

Tue, 06/26/2012 - 08:06 | 2560932 EmileLargo
EmileLargo's picture

If China held its foreign exchange reserves in gold in the exact same ratio as the US where would the gold price go?

Tue, 06/26/2012 - 09:41 | 2561291 fuu
fuu's picture

These days? $700-800.

Tue, 06/26/2012 - 09:41 | 2561289 catch edge ghost
catch edge ghost's picture


Also, can we include China and call them the TRUCKs?

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