Precious Metals in the News

Politics and religion.

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PostPosted: Sun Apr 26, 2015 1:55 pm
Russia continues to accumulate large volumes of gold each quarter

http://www.bloomberg.com/news/articles/ ... six-months

http://www.telegraph.co.uk/finance/comm ... c-war.html

Russia has more than tripled its gold reserves since 2005, with holdings of more than 40 million ounces. The last few years has seen largest purchases. Russia is attempting to play "catch up" to the biggest holders, diversifying its foreign assets into the yellow metal. As a result, the nation has become the 5th largest holder.

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Last edited by Dorm on Sun Apr 26, 2015 2:36 pm, edited 1 time in total.
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PostPosted: Sun Apr 26, 2015 2:06 pm
China also continues to accumulate large volumes

http://www.bloomberg.com/news/articles/ ... mf-beckons

The People’s Bank of China may have tripled holdings of bullion since it last updated them in April 2009, to 3,510 metric tons, says Bloomberg Intelligence, based on trade data, domestic output and China Gold Association figures. A stockpile that big would be second only to the 8,133.5 tons in the U.S..


The Chinese leadership and media has curiously done the opposite of their Western counterparts when it comes to advising their citizens on precious metals. Instead of viewing PMs as relics of the past with no investment interest return, they have encouraged their people to diversify some of their assets out of paper and into silver and gold as long-term, conservative stores of wealth. The Chinese precious metals exchanges continue to be very hot, with average people saving for small amounts of coins and jewelry, and the wealthy purchasing kilogram bars.

In China, there still remains faith in fiat paper-based foreign currencies, such as the dollar, euro, pound, yen, and so forth. But as the debts of those currency issuers continue to rise dramatically, the ever pragmatic Chinese naturally expect that the purchasing power of those currencies will weaken, and thus alternatives with no counter-party risk, such as PMs, will retain their value.

The Chinese have been on a PM buying spree for years, taking advantage of what they see as suppressed, bargain prices. They know that efforts have been made to defend the US dollar, so its long-term rival -- gold -- has been held down.

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Last edited by Dorm on Sun Apr 26, 2015 2:38 pm, edited 1 time in total.
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PostPosted: Sun Apr 26, 2015 2:15 pm
The export of gold from the UK and Switzerland to China and India
http://www.bloomberg.com/news/articles/ ... -sell-bars

The move from West to East continues. Commercial and banker demand is bigger than ever before.

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Last edited by Dorm on Sun Apr 26, 2015 4:42 pm, edited 1 time in total.
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PostPosted: Sun Apr 26, 2015 2:34 pm
India may be the most ravenous consumer of gold

http://www.kitco.com/news/2015-04-22/In ... itiya.html

The situation in India is different than most other gold-importing countries. Gold is the second largest import item for India after petroleum. It's a fundamental aspects of India's culture. Indians generally don't buy it as a non-counter-party store of wealth, even though that economic aspect is surely catching on. Most buy it because they love the stuff; its involved in so many of their traditions and social experiences.

The Indian government, while a net importer of gold itself, was so worried about the gold demand amongst its citizens that it instituted a tariff to cool down the import of gold. As more and more gold was imported, the country's trade deficit would climb. Every time the national rupee currency was sold to get the gold, it would weaken.

The tariff was relaxed a few months ago, much to everyone's relief:
http://timesofindia.indiatimes.com/busi ... 009336.cms

During the tariff period, gold smuggling into the country went nuts:
http://in.reuters.com/article/2015/02/2 ... U220150224

http://blogs.wsj.com/indiarealtime/2014 ... e-customs/

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PostPosted: Sun Apr 26, 2015 3:14 pm
Why Is JP Morgan Accumulating The Biggest Stockpile Of Physical Silver In History?

http://theeconomiccollapseblog.com/arch ... in-history

http://thewealthwatchman.com/why-is-thi ... -tomorrow/

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The total amount of assets that JP Morgan Chase controls is roughly equal to the GDP of the entire British economy. JP Morgan, the most successful (and outside of HSBC possibly shadiest) bank in the Western world, has been thought to have controlled the market price of silver ever since it absorbed Bear Sterns in 2008. This has been determined by looking at the public stats of their contract trading and their avalanche of "shorts" (betting downward) on the metal. While shorting silver down after its last peak, the bank has been taking massive deliveries -- especially in the last 16 months. They can't get enough of silver.

What do they know? What's their plan? Analysts know that in the end, the unstoppable market motive is to buy low and sell high. In the meantime, we see a low silver price and a 'storage' phase.

Coincidentally (or not), many financial heavy-hitters have hinted that the next financial crisis may be upon us sooner than later. There's been a lot of talk about diversifying, capital controls, cash restriction, stock market over-valuations, bond market melt-downs, updates to safe deposit agreements, etc. Who knows?

All I know is that stockpiling 55 million (cheap) ounces of silver in an impregnable underground vault would put a little spring in my step as an investment for later.
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PostPosted: Sun Apr 26, 2015 3:42 pm
There's gold in them there temples, and the Indian government wants to git it out!

http://www.vancouversun.com/news/world/ ... story.html

Cool article from my neck of the woods.

There's a gigantic amount of gold in India: about $1 trillion dollars worth held in private hands. They've loved the stuff for centuries, importing every year for life times. In modern times, India imports almost 1,000 tons per year on average.

Wealthy Hindu temples... are repositories for much of the $1 trillion US worth of privately held gold in India — about 22,000 tons, according to an estimate from the World Gold Council. In 2011, one temple in south India was found to have more than $22 billion in gold hidden away in locked rooms rumoured to be filled with snakes. Another has enough gold to rival the riches stashed at the Vatican, experts said.


The government only has 550 tons. It is trying to defend its paper currency, the rupee, while also trying to lower its trade deficit, which continues to get hit by gold importation. The government of India has gold envy. They want to get a big chunk of private gold back into bank vaults. They also want to grow their central bank stash like the other wealthy countries are doing.

In coming weeks, the government plans to begin a program that will allow temples to deposit their gold into banks to earn interest and circulate in the economy, rather than sit idle in musty vaults. The gold, officials said, would be melted down and sold to jewellers.


The Indian 'monetization' plan will see Temple of Doom lost gold wind up as the anchor points for banks and their gold mutual funds.

There is clearly resistance. The vast majority (who are religious Hindus) believe the gold is sacred, dedicated to God, or gods, or goddesses, or what have you. No melting, thank you very much. It would be like European bankers picking apart the Vatican and digging up its secret hoards.

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PostPosted: Sun Apr 26, 2015 3:54 pm
Central Banks Are Boosting Their Gold Reserves

http://www.bloomberg.com/news/articles/ ... reamliners

Governments added 477.2 metric tons to their reserves, the second-biggest increase in 50 years and 17 percent more than a year earlier, the World Gold Council said in a report Thursday.


Central banks have added to gold reserves for the past five years, a reversal from two decades of selling since the late 1980s. Purchases will be at least 400 tons this year, according to estimates from the London-based council, which represents 17 gold producers. Total demand for gold fell last year as Chinese consumers bought less jewelry, bars and coins.


Countries have bought 1,964 tons of gold over the past five years, equal to more than seven months of mine output, as they sought an alternative to currencies, according to the gold council report.
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PostPosted: Sun Apr 26, 2015 4:40 pm
Central Banks Are Boosting Their Gold Reserves part 2

Who's Buying?

http://www.zerohedge.com/news/2015-02-1 ... hos-buying

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The chart below is not entirely correct because countries sometimes buy lots, but don't report it. For instance, China's reserves are considered 3x that amount, and smaller buyers like Mexico and India are accumulating more.

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PostPosted: Sun Apr 26, 2015 4:59 pm
Turkey has gold fever

http://www.gold.org/supply-and-demand/t ... -in-action

Commercial demand is around 181 tonnes per annum over the past 10 years. Turkey is the world’s fourth largest consumer of gold accounting for around 6% of global consumer demand. The World Gold Council estimates that Turkish households have accumulated at least 3,500t of gold “under-the-pillow”.

In addition, the Turkish central bank went on a buying spree in the last 3 years, increasing its reserves by 250%.


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PostPosted: Fri May 01, 2015 1:14 pm
Washington Times praises Russia for hoarding gold to protect its economy

http://www.washingtontimes.com/news/201 ... uld-worry/

The commentator states what every student of economics and national power should know. Like the country or not, Russia is securing its national independence and sovereign power by diversifying its assets wisely -- diversifying some right out of paper and into the yellow stuff born from supernovas. Russian sovereign debt is low. While its currency and economy have been under siege by foreign interests, the Kremlin continues to sell hydrocarbons and convert a portion of the proceeds into gold.

In the short term, the ruble will keep afloat. With its gold, low debt, defense-orientated high tech military, and non imperial foreign policy, Russia is implementing a Long Game strategy of survival not unlike what China is doing.

Whereas much weaker countries have abandoned sovereign control of their economies by kissing their gold and their national currencies good bye.

-El Salvador has sold all its gold and dollarized its economy. It effectively is no longer an independent country, but rather a peripheral protectorate of the USA.
-Ukraine has done the same, abandoning any pretense of sovereignty and handing the reins to NATO countries. It continues to fake having a independent currency, but that will collapse in time.
-All the smaller European countries have packed it in and handed their fates to the EU monstrosity. Their currencies are gone; their debts have exploded. Only the strongest have wisely held on to their large gold reserves, refusing to cart them off to Brussels. Its insurance just in case the whole thing explodes.
-Canada foolishly sold nearly all of its gold, increased its debt, and deepened its integration with the USA to the point where the country is arguably no longer independent.
-Once flush with gold in its prosperous post-war past, Japan's reserves have gone down some; its debt has exploded; and it has welded itself to the US Federal Reserve via treasuries.
-The UK's gold was sold in large amounts; its debt has exploded; its economy has been globalized via int'l corporations; and it has welded itself to the US Federal Reserve via treasuries.
-Greece and little Cyprus are getting set up to cough up their gold reserves, eat even more debt, and get chewed up by the EU.

One will discover that the countries not interested in being globalized are the ones skeptical of dollars and euros, scared of foreign indebtedness, and the ones with an eye on gold. They have independent central banks. The Western bankers naturally don't like that. They want the Earth fully opened to their designs.
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