Turkey, ‘Axis of Gold’ and the End of US Dollar Hegemony

 

Introduction

With a ‘Hard Brexit’ looking more likely and Trump’s inauguration this week, 2017 is well and truly under way.

What we expect the year to hold is probably not even half of what it really will. But from what we know, the upcoming French and German elections, referendums, geopolitical crises, steps towards reverse globalisation and a third of global government debt yielding negative interest rates, governments are already prompting central banks and investors to turn to the one asset that has survived millennia of financial and monetary crises.

One that is highly liquid and convertible into other currencies – gold. Continue reading

Venezuela sells gold reserves as economy worsens

State’s stock of the precious metal at record low

Venezuela’s gold reserves have plunged to their lowest level on record after it sold $1.7bn of the precious metal in the first quarter of the year to repay debts. The country is grappling with an economic crisis that has left it struggling to feed its population.

The Opec member’s gold reserves have dropped almost a third over the past year and it sold over 40 tonnes in February and March, according to IMF data. Gold now makes up almost 70 per cent of the country’s total reserves, which fell to a low of $12.1bn last week.

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China is on a massive gold buying spree

Not only who’s buying it, but who’s selling it? It’s likely the United States.

Video at the source.

 

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China’s government doesn’t share exact figures, but the vast majority of gold heading into mainland China passes through Hong Kong, which does make its records public.

Gold imports to China have surged over 700% since 2010, according to the latest data from Hong Kong. Continue reading

Germans are buying gold at a frantic pace.

It may be a sign they are worried about the future. People tend to buy gold when they fear economic disaster or a spike in prices.

The World Gold Council report released on Thursday said demand for total gold bar and coins spiked by 20% in Germany during the first quarter from the year before.

It’s unusual for gold to be a hot commodity in an economy as strong Germany’s is right now. And growth in Europe has regained momentum in recent months, outpacing even the sluggish pace experienced in the U.S. Continue reading

Where Is Germany’s Gold?

Almost half of Germany’s gold is stored in vaults under the streets of Manhattan. Or is it?

Peter Boehringer hates the word “conspiracy.” It implies something crazy, and if you spend even a little time with the 45-year-old German, it becomes clear he’s driven by a desire for order. On a recent morning in Munich, he’s dressed in a cobalt blue shirt that matches his blue tie and blue eyes. His black hair is cropped close above his receded hairline. In his gray Volkswagen minivan, the cup holder contains two identical water bottles, each filled to the same level. At the end of a daylong interview, for which Boehringer has arranged an hour-by-hour itinerary, he sends a follow-up e-mail with a numbered summation of points he’s made. No. 2 says that the crusade he’s been waging for the last three years is simply about transparency. “Questions,” he writes, “by definition cannot be ‘conspiracy theories.’ ”

Boehringer is a gold bug, a member of the impassioned tribe of investors and academics who distrust central banks and paper money, unless the governments that print it will exchange the cash for gold or silver from their vaults. He has an asset management firm that invests his own money and that of clients in gold, silver, and mining stocks, and he’s a founder of the nonprofit German Precious Metal Society, which educates the public about “the craziness of unbacked monetary systems,” he says. In short, Boehringer is worried that the global economy is built on a fiction of currencies that aren’t backed by precious metals. Which is why he set out to make sure the gold that Germany and other nations say they have actually exists. Continue reading

Germany repatriates more gold: Bundesbank

Frankfurt (AFP) – The German central bank or Bundesbank said Monday that it stepped up the repatriation of its gold reserves from overseas storage last year.

“The Bundesbank successfully continued and further stepped up its transfers of gold,” the central bank said in a statement.

“In 2014, 120 tonnes of gold were transferred to Frankfurt from storage locations abroad: 35 tonnes from Paris and 85 tonnes from New York.” Continue reading

Why is Putin buying gold?

Russian President Vladimir Putin is developing a taste for gold.

With all of its income from selling oil, Russia is diversifying its reserves by buying massive amounts of gold, said William Rhind, CEO of the World Gold Trust Services.

Of all the central banks that make their reserve actions public, Russia has been the “largest, most active” gold accumulator, he explained. Still, Rhind said, the “elephant in the room” is how much gold China is buying, as Beijing does not publish these figures.

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Vladimir Putin seeing gold: Is Russia readying itself for economic war?

Is Russia boosting its gold stockpiles in anticipation of a possible economic war with the West?

Russia accounted for 59 per cent of net gold purchases by central banks in the third quarter of 2014, according to data from the World Gold Council.

Russia, Kazakhstan and Azerbaijan have all taken advantage of a subdued gold market, for which demand eased by 2 per cent in the quarter. The WGC has attributed this to an increasing effort to diversify away from the US dollar. Continue reading

Banks could lose monopoly on gold fix

Other industry groups such as miners may join process of setting crucial benchmark following allegations that process is open to rigging

Banks could lose sole responsibility for setting the gold price benchmark under new rules proposed by the industry.

Other parties such as miners and refiners may enter the London gold fix, which has been controlled by banks for almost a century but has come under scrutiny following allegations that the system is open to manipulation.

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China allows gold imports via Beijing, sources say, amid reserves buying talk

(Reuters) – China has begun allowing gold imports through its capital Beijing, sources familiar with the matter said, in a move that would help keep purchases by the world’s top bullion buyer discreet at a time when it might be boosting official reserves.

The opening of a third import point after Shenzhen and Shanghai could also threaten Hong Kong’s pole position in China’s gold trade, as the mainland can get more of the metal it wants directly rather than through a route that discloses how much it is buying.

China does not release any trade data on gold. The only way bullion markets can get a sense of Chinese purchases is from the monthly release of export data by Hong Kong, which last year supplied $53 billion worth of gold to the mainland.

“We have already started shipping material in directly to Beijing,” said an industry source, who did not want to be named because he was not authorised to speak to the media. The quantities brought in so far are small, as imports via Beijing have only been allowed since the first quarter of this year, sources said. Continue reading

China May Now Have World’s 2nd Largest Gold Reserves

Today acclaimed money manager Stephen Leeb stunned King World News when he said the Chinese may already have the world’s second largest gold reserves, eclipsing Germany to grab the number two spot.  Leeb knows China is incredibly secretive about its insatiable accumulation of gold, and believes they are not fully disclosing their entire gold position to the world at this point.  Here is what Leeb had to say:  “I’m focused on precious metals and this fascinating battle between the East and the West, Eric, especially China and the United States.  There is an economic ‘Battle Royale’ going on right now, and I think the Chinese definitely have the upper hand.”

“They have a stronger economy and a clear plan as to what they want to accomplish.  They have a much longer-term perspective, and this spells very, very tough times for the United States.  I wish it weren’t true, and I wish this country would wake up. Continue reading