Russia’s second largest bank, VTB Bank, announced a deal to supply Russia with 12-15 tonnes of gold in the next 12 months. The amount supplied will increase over time and eventually reach 80-100 tonnes annually: Reuters Link.
Perhaps the most interesting aspect of this will be to see if the World Gold Council acknowledges this gold as “Chinese imports.” The WGC and other entities which purport to track global gold “consumption” have been reporting declining demand for gold in China, based on declining imports from Hong Kong. Of course, these “official” sources completely ignore the fact that China imports an unknown amount of gold through the ports of Beijing and Shanghai…move along, nothing to see there…
The unarguable scheme by western Central Banks to suppress the price of gold with paper gold is contingent on the ability to deliver actual physical gold into China and India. In this blog’s educated opinion, the supply of gold available to make this happen is running low: Central Bank gold stock plus investor custodial gold that has been hypothecated.
This report out of Russia supports the thesis that China’s Central Bank is accumulating, and has accumulated, significantly more gold than it is willing to disclose. As reported in the South China Morning Post when China announced opening Beijing, after also opening Shanghai, for gold imports:
Opening the capital as the third shipment point will help the PBOC keep purchases discreet as it is believed to be adding to its bullion reserves…The mainland has begun allowing gold imports through the capital, 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. South China Morning News
This is likely why the Fed/ECB/BOE are collectively having a difficult time pushing the price of gold lower after its big move starting in mid-December. At some point, gold is going launch out its current lateral consolidation and move much higher by the end of the year. Especially once the market fully understands that the ONLY policy choice left for the Fed is to keep printing money at an accelerating rate or risk complete financial collapse.
Good information Dave. Being aware and prepared sure beats being blind sided by what’s ahead.
Two things happened to me regarding Bitcoin this week. My daily purchase limits from my credit union were reduced from $10 to $25. So I setup my Coinbase account to automatically purchase $25 a day via my credit union. Today I received a message from Coinbase that my daily purchases were suspended until I provided some personal information to Coinbase. No doubt the government is requiring Coinbase to collect this information as I doubt Coinbase would come up with this requirement on their own.
I think these two events are signalling that our government is preparing for something. Coinbase messaged me a while back the the state of Florida may be taxing my profits on Bitcoin. I had to digitally sign an agreement to continue to have access to my account.
That “something” that the government is preparing for is likely to be a credit seize up and or a currency crisis. That is my view at least. A failure at DB could be the trigger.
Hey Dave thanks for all you do to share your wisdom. I think the tightness in the PM market is growing. While I purchase most of my silver from Doc I do buy gold from Apmex just down the road about 100 miles in OKC from my home in south suburban Wichita. I have made +20 modest purchases from them since late 2013 usually between $750-$2500. They are prompt, thorough and quality as represented. I have made (4) 1/2 -1 oz. purchases from them since early August. What is different now is the timing. I made a purchase on Sunday and mailed Monday morning from the post office along with a note to my Aunt in suburban OKC also the home of Apmex. Am going thru OKC next weekend on the way to take my Dad to his Army reunion and stopping to take her out to lunch. Daughter emailed Tuesday confirming they are good to go. Now late Thursday afternoon and APMEX still showing “awaiting payment” Since shipment is triggered off of when payment is made makes me wonder. Especially since this has happened on all my recent orders. In fact 2 of the last 3 were actually shipped after their inferred window even if only by a day or so. Makes me wonder if they are sitting on my checks to buy a couple of days or more. This is telling me either they are extremely busy or the tightness you suggested is growing. This is in no way meant to disparage Apmex they have always shipped what was ordered with the quality as stated or better. Just that their thorough execution over time yields a bit of a question now… or at least a Hmmmm
“The unarguable scheme by western Central Banks to suppress the price of gold with paper gold is contingent on the ability to deliver actual physical gold into China and India.”
I guess this is both directly and indirectly.
I wonder what Western entities stand for gold delivery on the COMEX? I guess most are just players in the shell game.