Russia Buys 600,000 oz Of Gold In May After Dumping Half Of US Treasuries In April

  • Russia adds another 600,000 oz to it's gold reserves in May
  • Holdings of U.S. government debt slashed in half to $48.7 billion in April
  • ‘Keeping money safe’ from U.S. and Trump - Danske Bank
  • Trump increasing the national debt by another 6% to $21.1 trillion in less than 18 months
  • Asian nations accumulating gold as shield against dollar devaluation and trade wars
  • Russia dumps Treasuries for gold and in a Trade war China and others may do the same ...


Source: Goldchartsrus.com

Bloomberg, Reuters and other media are now reporting that Russia dumped Treasuries in a major way in April and today comes news that Russia bought another 600,000 ounces of to add to its already sizeable and growing gold reserves.

This is something we have written about since 2004 and have spoken about on Bloomberg TV, CNBC etc for many years.

It is not just Russia that is diversifying into gold in recent months and years. India, Turkey, Mexico, Iran, Kyrgyzstan, Kazakhstan, Belarus, Uzbekistan, Tajikistan, Mongolia and of course China have been increasing their gold reserves.

Trump's erratic and risky economic and foreign policies pose a risk to the dollar as the reserve currency of the world.

The deterioration in the US fiscal and financial position has been happening slowly for many years but accelerated under Bush II and Obama. Trump inherited a heavily indebted U.S. with nominal debt just under $20 trillion (19.9T). In just 17 months this has increased by another 6% to $21.16 trillion. There are unfunded liabilities of around $100 trillion...

We are moving to a multi polar world which will see China become a more dominant player and Trump is exacerbating this trend.

Source: Bloomberg

The risk for the US and global economy is that if trade wars intensify with China, Russia and other nations then this trend may deepen. This would likely lead to a lower dollar, higher interest rates and much higher inflation.

It is creating a very bullish scenario for gold and the present bout of weakness presents a buying opportunity for value minded investors to diversify and accumulate gold while it remains weak.

The end of the dollar reserve standard and the petrodollar and the flow of gold from the West to East and what this what means is something we covered in the latest Goldnomics podcast:

News and Commentary

PRECIOUS-Gold prices drop to 6-mth low on strong dollar, U.S. rate outlook (Reuters.com)

Gold prices inch up, but firm dollar limits gains (Reuters.com)

Powell, Draghi express concern over trade wars (MarketWatch.com)

U.S. existing home sales fall for second straight month (Reuters.com)

US: Current-account deficit increased to $124.1 billion Q1 of 2018 from $116.1 billion (FXStreet.com)

Deutsche Bank fined over 'improper' forex conduct (FT.com)

Russia Dumps US Treasuries For Gold - China Next? (BloombergQuint.com)

Tiny Asian Nation Hoards Gold as Shield Against Trade War (Bloomberg.com)

Trump's Fickleness Is "Dulling" Gold's Appeal For Now - Deutsche Bank Say (Bloomberg.com)

More on COMEX "Exchanges For Paper" (GoldSeek.com)

Silver Broke Down in 1971, Then Skyrocketed In The 1970s (KingWorldNews.com)

 

Listen on SoundCloud , Blubrry & iTunesWatch on YouTube below

Gold Prices (LBMA AM)

20 Jun: USD 1,273.25, GBP 967.29 & EUR 1,100.60 per ounce
19 Jun: USD 1,279.00, GBP 971.14 & EUR 1,108.89 per ounce
18 Jun: USD 1,281.25, GBP 966.96 & EUR 1,103.93 per ounce
15 Jun: USD 1,300.10, GBP 978.98 & EUR 1,120.04 per ounce
14 Jun: USD 1,305.30, GBP 971.27 & EUR 1,103.89 per ounce
13 Jun: USD 1,294.40, GBP 971.58 & EUR 1,101.92 per ounce
12 Jun: USD 1,298.30, GBP 968.27 & EUR 1,100.44 per ounce

Silver Prices (LBMA)

20 Jun: USD 16.29, GBP 12.38 & EUR 14.09 per ounce
19 Jun: USD 16.36, GBP 12.42 & EUR 14.16 per ounce
18 Jun: USD 16.61, GBP 12.53 & EUR 14.29 per ounce
15 Jun: USD 17.23, GBP 12.96 & EUR 14.86 per ounce
14 Jun: USD 17.12, GBP 12.75 & EUR 14.48 per ounce
13 Jun: USD 16.91, GBP 12.68 & EUR 14.37 per ounce
12 Jun: USD 16.85, GBP 12.58 & EUR 14.30 per ounce


Recent Market Updates

- In Gold, Silver and Bitcoin We Trust? Goldnomics Podcast with Ronald-Peter Stoeferle
- Own A “Bit Of Gold” As We Are Moving Ever Closer To A Trade War
- Bitcoin Price To $0 Or $1 Million In One Year? MoneyConf 2018 Poll
- Cashless Society – Good or Bad? MoneyConf 2018 Video
- Do We Still Need Banks In The Age Of Fintech?
- Total US Government Debt Is $200 Trillion – Debt Clock Ticking To Next Crisis
- All Gold is Not Equal - Goldnomics Podcast (Episode 4)
- "Without Gold I Would Have Starved To Death" - ECB Governor
- Swiss Government Pension Fund To Buy Gold Bars Worth Some €600 Million
- Turkey Uses Gold Bullion To Stabilise Its Currency And Economy
- Case for Gold in a Diversified Investment Portfolio
- Get “Positioned In Gold” Now As “You Will Not Have Time To Get Positioned” Later
- Consequences of Ignoring Economic Reality Are Dangerous
- Are Gold And Silver Bullion Obsolete In The Crypto Age?

Comments

opport.knocks Vilfredo Pareto Thu, 06/21/2018 - 16:29 Permalink

What Russia buys is mostly their own domestic gold production using their trade surplus in natural resources. 

So it is win-win no matter what time it is in the market.

http://www.miningweekly.com/article/russias-2018-gold-production-expect…

600,000 oz = 18.75 tons which is about 5.7% of Russia's total annual production of 328 tons. Big to be sure, but not market altering.

In reply to by Vilfredo Pareto

Montana Cowboy Quantify Thu, 06/21/2018 - 18:35 Permalink

If gold is rigged, which I doubt, where is the evidence that it can't be rigged forever? I realize its a catchy thing to say that it can be manipulated only for so long. But where is the evidence? Even GATA's official position is now that rigging can't possibly end until the physical supply goes to zero. But if you agree with the down-rigging theories, then the supply should have gone to zero a long time ago at alleged fire-sale pricing. And if gold can't get depleted at down-rigged fire-sale prices, then how can it ever be expected to endure price increases? Sorry, but there are just too many logical fallacies with the rigging theory. Rogue traders spoofing and rigging just to exit their positions profitably do not support a pervasive price rigging theory.

Remember, there is nobody with any financial interest in bringing you this side of the story. Without any opposition, the Church of Gold an Silver (dealers and miners) are free to escalate their stories to fantasy levels. Like Rob Kirby claiming that actual large physical purchases are really selling at 200% of Comex pricing. And that silver longs are secretly being paid off under the table not to call for delivery. These are the kind of bullshit stories that must get created to explain why decades of down-rigging can't deplete the physical supply. Be careful what you believe.

In reply to by Quantify

Montana Cowboy Scuba Steve Fri, 06/22/2018 - 00:25 Permalink

Bill Murphy now makes that statement in interviews almost every time he is pounded with the WHEN question. It is now the only answer he can give and preserve any credibility. Listeners are tired of his bullshit.

Did you ever trade the paper markets? I do - and for over 20 years. Traders know there is really no such thing as a long and a short in paper markets. If you open your position long, you must close it with a short. If you open it short, you must close it with a long. The term "long" or "short" is based only upon which card you play first. You must always play the opposite card, and have the opposite influence on the market, in order to close. But gurus don't tell you this. Most sheeple attending the Church of Gold and Silver actually think there is a one-sided trade possibility. Like someone can sell a billion dollars of notional gold without ever having to buy that same amount to close.

Think about what you are believing. Do you really think any commodity can possibly be put on sale for decades without depleting the supply? Another way to look at it is, if selling it at fire-sale prices for decades can't deplete the supply, then it was never really a bargain. After all, things are put on sale to get rid of inventory.

I can make a much better case that the metal markets are up-rigged than down-rigged. Paper traders only need to put up margin money to sell a 100oz gold contract or a 5,000 oz silver contract. The short sellers are mostly bullion banks that really do have the metal. The longs are mostly speculators that really don't have the USD to call for delivery. So who are the riggers now? The longs don't have the cash to call for delivery and the shorts know it. It is the longs with no cash that are up-rigging the price much more than shorts with no metal are down-rigging the price. If Comex suddenly required every contract to be fully performed, that is every short must bring the metal and every long must bring the cash, the shorts could mostly perform and the longs would mostly be filing bankruptcy. Watch out what you believe.

In reply to by Scuba Steve

Montana Cowboy platyops Fri, 06/22/2018 - 01:16 Permalink

Now I finally understand. Metals are rigged because a Big Mac and a shake costs $13.38. Brilliant. I learn new stuff every day. I will take this amazing discovery and integrate into my trading. The only amazing thing about this story is that there are still people out there dumb enough to pay $13.38 for a burger and a shake, particularly when no cow had anything to do with either of them. Enjoy your synthetic dinner.

In reply to by platyops

el buitre hondah35 Fri, 06/22/2018 - 09:47 Permalink

Three questions:  How is it rigged, why is it rigged, and how will it end?

1)  It is rigged through the futures market, primarily in COMEX which no longer is a phyz market.  In order to do this, TPTB have to conflate paper gold (which would better be described as electron gold) with actual physical gold both in the markets and in the public's mind.  They have been quite successful in doing this.  At one point the amount of electron gold was about 100X phyz.  Manipulation of a futures market by a major capitalized organization is fairly simple by naked shorting, which is permitted in the COMEX, but is child's play for criminal organizations which can print money out of thin air and has no concern for their balance sheet, namely the Fed and the ESF.  The smack down of gold and silver when its future price exceeds the excepted range of TBTF is not done in a way that an honest trader would attempt to maximize profit on a sell off, but rather to break the weak hands at a great loss to the perp.  Of course, since the perp can print money, it doesn't care.  The great advantage to this system is that very little PM's are traded by the COMEX.  It is basically a casino with fiat in and fiat out.  If futures expirations were settled in physical stuff, such as pork bellies, the way other commodities are, the COMEX would be out of phyz on the next expiration day.

2)  The primary reason that PM's are being put into an inverse bubble is to hide real inflation.  If gold is the only real money, as JP Morgan (Rothschild American frontman) once said, if phyz were allowed to reach fair value, the exponential inflation from the massive printing by the CB's would be exposed as would be the phony Bureau of Lying Statistics price inflation numbers of less than 2%.  Hedonics anyone :-)  This price suppression is keeping PM's as the only tangible commodity that has no counterparty risk and in the bargain basement.  It is allowing the big boyz to suck it up at terrific prices, some of which is coming from gold "bugs" cashing in their weak hands.  Russia and China have gold stores at least 10X their official numbers.  Other than pissant weak hands, the majority of gold flowing to the East is coming from the BIS and the Vatican, though both have indicated recently that they do not wish to continue to feed the flow.

3)  The world's debt is unsustainable.  A 1% increase in average global interest rates will bring the global fiscal markets down.  This is often referred to as the "great reset."  At that point the Russia and China (and perhaps others) will offer gold and maybe silver backing to their currencies, and some form of fractional reserve basis the way the US Treasury backed its cotton prior to the Fed at a 40% fractional reserve.  But even with this fraction, the price of PM's must skyrocket to enable commerce to continue.  So when will the reset come?  These TPTB events are prior event driven though they also like to use occult numbers in their dates.  But all indicates that it is coming soon.  The fact that the top managers of major corporations are calling in their options and selling their stock back to their respective corporations by a yuuuge ratio against purchases, indicates that the miscreants in the know are bailing out.  It may be triggered by a true black swan or something entirely predictable like the failure of Douchebag Bank or the Italian banking system in general.

In reply to by hondah35

Augustus Vilfredo Pareto Thu, 06/21/2018 - 22:13 Permalink

Anyone have any guess as to how much gold the Ruskies would have to buy to cause the price to increase?

All of the reports of China and Russia loading up on gold have been coming out for three or four years.  So far, all that has been accomplished is to prevent a price decline.  If they doubled their purchases would that be enough to send prices higher?

In reply to by Vilfredo Pareto

PaulKwiatkowsk… HoserF16 Thu, 06/21/2018 - 17:28 Permalink

Human beings not smart. A.I. posing as Humans even dumber ....... 

 

In Russia as well as in the West, research has been under way https://www.youtube.com/watch?v=f1PTQZykGf0
for many years in biological synthesis--that is, artificial life http://w11.zetaboards.com/WiolawaPressForum/topic/30567699/1/#new
forms; and according to high intelligence, a stunning
break-through took place in Russia some years ago. The Russians 
refer to this break-through as a "providential discovery",
something they learned almost by accident. They discovered the
key to creating what are known as "organic robotoids." An
organic robotoid is an artificial robot-like creature, it looks
and acts exactly like a human being and yet it is not human. A
robotoid is alive in the biological sense but it is an artificial
life form. Robotoids respond to conventional routine medical
tests in the same way as humans do; they eat, they drink, they
breathe, they bleed if cut; and they can be killed. Robotoids
can also think, but they think only in the sense that a computer
thinks. Like any other computer, the brain of a robotoid has to
be programmed for each assignment it is given; but unlike many
electronic computers, the biological computer brain of a robotoid
possesses an enormous memory. As a result, robotoids can be
programmed to communicate and think in such complex patterns that
they act human. http://w11.zetaboards.com/WiolawaPressForum/topic/10360800/1/#new

In reply to by HoserF16

HRClinton HoserF16 Thu, 06/21/2018 - 23:32 Permalink

In BTC, ETH, AU, CHF and HKD I trust.  Perfectly cut, shiny, crystalline Carbon will do nice too.

One more time, for the slow-learning and obtuse ZH members:

Don't give a shite what the fiat valuation is. As long as you have plenty of Real Money from the Parallel Economy, who cares what the fiat Dollar chits are doing with their Bookie operation?

Real Money in Parallel Economy = DIY, PM, Crypto, Gems, Appreciating Collectibles.

When the fiat casino burns, will you have the right mix of Real Money?

 

In reply to by HoserF16

BallAndChained HRClinton Fri, 06/22/2018 - 06:25 Permalink

> When the fiat casino burns, will you have the right mix of Real Money?

Bitcon is fiat too, but without the benefit of government and military backing. If you haven't noticed, the Bitcon casino is burning. Just look at the plunging price.

> Perfectly cut, shiny, crystalline Carbon will do nice too.

Carbon is common, not rare. An unlimited amount of diamonds can be man made, just like an unlimited amount of cryptos.

The only thing on your list that is rare and can't be produced by humans is gold, which requires the extremely rare collision of two neutron stars to produce.

In reply to by HRClinton

BallAndChained Pickleton Fri, 06/22/2018 - 14:05 Permalink

Did you invent an alchemy to produce gold??

The sun isn't hot enough or has enough pressure to fuse atoms into gold. Didn't you read the science article on the collision of two neutron stars to create the heavy elements?

Or are you saying scientists see stars and neutron stars collide every day?

If you think you can get heavy elements at the center of the galaxy, how much $ per ounce will it cost to build a rocket to go to the center of the galaxy without getting killed by the gold and heavy elements shooting through your body?

If you think gold miners "produce" gold, then you are an idiot because gold miners don't create gold.

In reply to by Pickleton

keep the basta… GotGalt Thu, 06/21/2018 - 23:35 Permalink

Yes. Spending their converted us treasuries on internally mined gold is a sweet deal. Russia still owns the proceeds in whatever currency was used in the treasury sale.

The Russia central bank woman is smart, in the past made decisions beneficial to Russia..like not defending the rouble a few years back. Been offloading us treasuries for a while.

In reply to by GotGalt

1033eruth 1033eruth Fri, 06/22/2018 - 06:03 Permalink

HA, this is funnier than shit.  The only thing I did was say the truth and it resulted in a 3 to 1 down vote by the "stackers".

Why, because they are ever so disappointed with the fact that the price of gold has gone NOWHERE, instead of skyrocketing like the NASDAQ as example.  

Its extremely funny.  I merely told the truth and it was practically universally disdained in what is yet another gold ponzi article.  

DOWNVOTE AWAY, its not going to make the price of gold go up.  LOL!!!!!!!!!  It might make you feel a little better though.  Check your morals and ethics when you find yourself downvoting someone telling the truth.

In reply to by 1033eruth

BallAndChained 1033eruth Fri, 06/22/2018 - 06:51 Permalink

> the fact that the price of gold has gone NOWHERE

No, you are a big liar. Gold rose from $35 to over $1200 since the gold standard was removed in 1971. That is as big or bigger percent gain as your NASDAQ which doesn't include all the companies that went bankrupt. Gold doesn't have the risk of going bankrupt. The next dotcom crash will take the shine off of the overpumped NASDAQ containing companies with currently nosebleed historically high P/E ratios.

Gold went to infinity in many currencies which contradicts your claim of it going nowhere.

In time when the US debt burden gets overwhelming, gold is likely to eventually go to infinity in US dollars too. Fiat currencies start to fail when debt to GDP ratio gets over 100% and the US dollar is getting close to that.

In reply to by 1033eruth

1033eruth BallAndChained Fri, 06/22/2018 - 20:28 Permalink

https://goldprice.org/gold-price-history.html

Here you go, you lying puerile prick.  Price of gold AS OF TODAY and how much it has increased over various periods of time:

(2.78%) over last 30 days
(0.63%) over last 6 months
 0.89%  over last year

(0.76%) over the LAST FIVE YEARS - that means its GONE NOWHERE you lying sack of shit!
Now if you bought it SIXTEEN YEARS ago, it has appreciated 288.3% which is much, MUCH less than any of the stock exchanges.  

You misdirecting ponzi pumping fucking piece of shit!  You should just keep your mouth shut, before you stick your foot in it, like you just did.

 

In reply to by BallAndChained