The Trend Away From the Dollar to Gold Continues, Turkey Significantly Increases Reserves

The Trend Away From the Dollar to Gold Continues, Turkey Significantly Increases Reserves


Written by Nathan McDonald, Sprott Money News


The trend of accumulation continues onward, with no signs of slowing down despite a sluggish precious metals paper market that at this point is nothing more than a complete and utter farce.

In the West, our central bankers appear blissfully ignorant as the world becomes more and more financially unstable. With nothing truly solved since the 2008 crisis—only papered over—we head into the great unknown, awaiting the next crisis.

Meanwhile, they continue to dis-hoard our vital gold reserves, moving our assets towards the East, which is ecstatic to purchase every ounce, every gram they can get their hands on.

As the Sprott Money blog has well documented, both Russia and China have added to their gold reserves in a massive way, with no signs of slowing down. In fact, they have been increasing their purchases, perhaps sensing the need for the protection only hard money can offer.

Adding to this demand in the physical markets has been the ongoing repatriation of gold reserves by various countries around the world, as they realize their hard money is held by foreign entities that have become increasingly hostile towards them over the last few years.

This double whammy has created a sucking sound in the physical precious metals markets, which was already thin to begin with. Yet, the cartel have done a fantastic job at keeping the canary in the coal mine silent during this time, suppressing the spot price in the process.

One other country that has joined the fray over the years has been Turkey. They have proven to have a bad case of the yellow metal fever, buying gold hand over fist and repatriating whatever they can get their hands on.

Adding to their reserves, Turkey has continued their accumulation trend, tripling their gold imports from 106 mt in 2016 to 361 mt in 2017. A massive increase.

Still, this has not been enough for them , as they are reporting huge investor and central bank demand. This has resulted in a continued accumulation of precious metals, adding another 30 mt in the first quarter of 2018.

Sadly, this gold has to come from somewhere, and it is widely speculated by precious metals experts that this gold comes directly from the vaults in the West, as they continue to re-hypothecate their reserves.

Sooner or later, the jig will be up and the farce will be over. However, they have defied the markets for far longer than anyone would have ever guessed.

The question many of us have been asking for years now is: how long? How long can they last, and how much longer can this fiat dam hold?

The answer is the same as it has always been: who knows. But one thing is certain. Eventually the dam will break, and one of the greatest bull markets this world has ever seen will unfold, as precious metals are set loose and the free market asserts itself.

Until then, keep taking advantage of these artificially reduced prices. And as always, keep stacking.

The Trend Away From the Dollar to Gold Continues, Turkey Significantly Increases Reserves 

Written by Nathan McDonald, Sprott Money News

Check out these other articles by our contributors:

GOLD PREPARING TO LAUNCH- David Brady (16/05/2018)

The Gold Spec Washout Begins-Craig Hemke (15/05/2018)

Metals and Miners – The Sleeping Giant Trade - Chris Vermeulen (14/05/2018)



BobEore Pearson365 Sun, 05/20/2018 - 22:19 Permalink

An admirable response Admiral! 

When confronted by a message totally devoid of any connection to anything real, a mere HAIL MARY of an effort to keep up the pretence of some kind of 'action' in the turgid world of gold

a pathetic advert wrapped up in the tattered rags of a "story" about a country sufficiently far off so as to be able to get away with any manner of bizarre twistings of truth... 

yet another exercise in shooting blanks and creating smoke...

the only correct response can be .......

and more                  ..........! 

Unfortunately for "Nathan" and his fellow fake news frontmen for the funnymoney power, you've tickled my funny bone enough that I'll play Sidekick Bob to your salt-encrusted Krusty! Let's do this thang! 

Nutzo would like us to believe that the land of the Turks has been "importing" ... as in "buying" GOLD hand over fist. Relying solely on our collective cupidity/stupidity and over the top naivety, he presents us no evidence for such an assertion - being - like his role model in mendacity, SUPERROCCO, content to supply us 'charts' from sources who he they themselves used to deride as 'disinformational' in intent.

A broke and lying rogue state can - in this Goldburg version of the news... 

can effortlessly "add" to its' 'stocks of gold' by simply supplying lazy and witless "gold industry" information repackers with faked statistics involving the ledger entry additions of "gold" to "reserves" which are no longer audited or requiring anything as tangible as actual "gold" to merit acceptance as gospel truth. 

And even that canard is not enuff for Nathan! The country in question - having been forced in the heady aftermath of conducting a coup against itself back in 2016 - to liquidate most of its acquired gold stocks after trashing its own sources of capital inflows (like tourism)

has now - he he heh - "significantly accumulated" ...more gold and "are reporting huge investor and central bank demand" 

in a fashion similar to guys reporting HUGE growth in penile proportion after popping certain "extension" pills available 'on the internet' for modest price! What's not to believe about any of it>? Just 'back up the truck.' 

More sober minded assessors long ago dispelled all such nonsense. Turkey no longer has the financial wherewithal to be importing tungsten, let alone real gold even at low low everyday prices. Instead, as I reported years ago - they simply scammed their own citizens out of their precious metal "under the mattress" savings, by inducing them to bring their real savings to 'the bank' to be redeemed for "real paper" gold accounts, and melted down the take to be taken into the maw of a central bank which promptly shipped most of it off to Iran in return for oil. 

\and now they have none.\ Everybody's a winner!/Don't be  a whiner! Get aboard the fake news train and ditch your brain. Yup. "The Trend" is indeed continuing!

"Sadly, this gold has to come from somewhere, and it is widely speculated by precious metals experts that this gold comes directly from the vaults in the West, as they continue to re-hypothecate their reserves."

Widely wrong speculators - of the scribbling kind - continue to write about things which they know absolutely zero of... for an audience which has now reached absolute zero in savings after being induced to part with cash for banker directed 'gold is money' schemes in the age ol fashion. "Zero point energy" must be next... as those poor souls "enlightened" of the contents of their wallets must be close to being able to drift like leaves in a wind... 

no longer burdened by sense, savings, or even sanity. 

Till next time!

In reply to by Pearson365

TheRideNeverEnds Mon, 05/21/2018 - 00:36 Permalink

So they dumped the most valuable asset in the known universe (USD) for some bullshit that any retard can find in a river?  


Great job, what’s the next step in their master plan, storing canned peaches to prepare for an asteroid strike or is it converting shipping containers into off the grid homes for the inevitable solar flares that will take us back to the Stone Age?  


Im wondering how many water filters they have bought, I know a guy who can give em quite a deal if they buy in ten year supply, sign up for my newsletter to learn this secret and more, it could save your life! 

platyops Mon, 05/21/2018 - 00:56 Permalink

Gold is the only real money. Now cases of fine Scotch are probably better for barter, or even toilet paper or how about aspirin and antibiotics. The fact is that money is and will be needed to grease the wheels of trade and the only real money is gold and silver!

Keep Stacking!

rtb61 Mon, 05/21/2018 - 06:41 Permalink

Lost of trust in the US loss of trust in it's money. They are swapping from the US dollar to gold as safe gaurd against not only the collpase of the US with it's dollar but as protection from the US and it's dollar, attacking their economy. Gold is the easiest way to get rid of US dollars, other ways are much more difficult.

The higher gold goes the worse it is for the US dollar.

InnVestuhrr Mon, 05/21/2018 - 06:53 Permalink

"The Trend Away From the Dollar to Gold Continues, Turkey Significantly Increases Reserves"

More hype from the shiny-shit profiteers and cultists.

The trend IS away from the USD, but it is to the Yuan, NOT shiny shit.

What Turkey does is irrelevant, all that matters is what China does, and the Chinese regime wants the Yuan to be the world's currency, not shiny shit.

Chief Joesph Mon, 05/21/2018 - 06:58 Permalink

Its apparent Trump hasn't discovered the relationship between trade, the trade wars, and the demand for the dollar.  The only thing that keeps the U.S. dollar afloat is its demand in trade.  Without that, the value of the dollar heads to zero value, as, there is nothing else backing it.  So, sure, if I were Turkey, or any other country, I would have had my gold out of the New York vault long ago.  Because, you can bet, if America tanks in anyway, they will confiscate your gold holdings in New York, and there is not much you can do about it then.  Germany was the first to confront this, because New York was trying to find excuses for not giving back the German's gold, by saying it would take 7 years to do so.  Fortunately, Germany was able to engineer a way of getting it back in 3 years.  America cannot be trusted.

Singelguy Chief Joesph Mon, 05/21/2018 - 07:10 Permalink

The only problem with your argument is that the US dollar has no competition. No other currency is large enough or in sufficiently wide circulation to replace the dollar. The only way the dollar heads to zero is when the global investment community loses confidence in it. However, at this point in time, other major currencies have far bigger problems than the dollar. America cannot be trusted but at no point in its history has the dollar been defaulted upon. Unlike other currencies, the India rupee being the most recent example where the 500 and 1000 rupee were deemed worthless after a specific period of time, every dollar bill in circulation still has value. As such the confidence level in the US dollar remains very high.

In reply to by Chief Joesph

Chief Joesph Singelguy Mon, 05/21/2018 - 07:41 Permalink

It goes beyond investment markets to cause the dollar to loose its value.  All OPEC has to do is end its 1975 agreement to trade oil in dollars. Then you will see panic everywhere in the U.S.,.  (Investment markets, being what they are, are reactionary, and are not in control of the dollar). 

 And, actually the U.S. has defaulted four times before.  In 1933, the U.S. defaulted on its domestic debt obligations, and repayment of its gold based obligations.  The dollar then was devalued from $24 an ounce to $35 an ounce.   There was a Liberty bond default in 1934, and a "momentary default in 1979, (refer to the lawsuit: Claire G. Barton v. United States).  With the huge size of the U.S. debt, default could easily happen within minutes.

In reply to by Singelguy

1952angus Chief Joesph Mon, 05/21/2018 - 08:03 Permalink

A few inaccuracies here, in 1934  gold was devalued from $20.67 an ounce to $35 an ounce. the liberty bond was in 1917 to help fund  ww1. there are probably more but i cant be bothered to do the research. Now,

the us cannot default on its obligations unless it wants to, but everyone else can. The fed creates the worlds monee and buys its own debt thats surplus to other countries reserve requirements, some people don't get it.

In reply to by Chief Joesph

Money_for_Nothing Mon, 05/21/2018 - 12:16 Permalink

Gold is a good investment only if you can keep it and ship it safely. Having gold just turned Col Qaddafi into a target. Col Qaddafi would have done better to open a desalinization plant with oil money. Grown hashish.