Tag - Central Bank Gold

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Thursday, January 11 2018

How is 1800 Tons of Gold Being Stored in Main Gold Storage of Russia

Photos from main gold storage of Central Bank of Russia. Almost 1800 tons of gold is stored here. This is the main storage of gold in Russia. This makes Russia to be number six in the world by gold storage.

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Thursday, January 4 2018

Gold reserves at Turkey’s Central Bank hit record high following dollar exchange policy

The Turkish Central Bank’s gold reserves have reached a record-high 564.8 tons, mainly due to the Bank’s policy of replacing a large amount of U.S. dollar reserves with billions.

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Saturday, December 30 2017

US gold of low purity & that's why audit of reserves will never be allowed

“The entire story around the US gold reserves is opaque and secretive. There has never been a full independent audit of the US gold reserves, and the custodians of the gold, the US Mint and the Federal Reserve of New York will not let anybody into the vaults to view the gold or to count it."

“Even the details that have been provided on the supposed US gold holdings show that a majority of the gold bars are low purity and in weights that don’t conform to the industry standard ‘Good Delivery” gold bar specifications,” says Manly.

“So even if the US has the amount of gold it claims to have, most of this gold would not be acceptable for trading on the international market, and could only be used in swap transactions with other central banks that wished to swap Good Delivery gold bars for low purity and unusual weight US held gold bars,” he added.

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Thursday, November 30 2017

Seizure of Russian forex reserves in US would mean ‘declaration of financial war’

Russia's federal budget is prepared for the possible toughening of US sanctions. However, if they include the seizure of Russia's foreign exchange reserves, it would be regarded as a "declaration of a financial war," the Russian finance ministry warns.

"If our gold and currency reserves can be arrested, even if such a thought exists, it would be financial terrorism," said Russian Finance Minister Anton Siluanov.

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Tuesday, November 14 2017

Turks Just Bought The Most Gold Ever As Lira Tumbles

Addditionally, as Bloomberg reports, Bar and coin purchases, a measure of investment demand, were 47 metric tons so far in 2017, compared with 14.8 tons in the same period a year ago, according to a report from the World Gold Council published Thursday.

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Sunday, November 12 2017

BIS gold swaps rose substantially in October

The information provided in the BIS monthly statement of account is not sufficient to calculate a precise amount of gold-related derivatives, including swaps, but it appears that the total exposure has risen above 570 tonnes of gold as of October 31.

This compares to an estimate of close to 500 tonnes as of August 31 and an audited figure of 438 tonnes as of March 31.

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Saturday, November 11 2017

How Germany got its gold back

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Today, Germany is one of the biggest holders of gold in the world: it owns 3,378 tonnes, worth €119bn, second only to the US. But until recently, most of that gold was stored in New York, London and Paris. When the country decided to bring half of its gold back home, Mr Thiele was put in charge.

Over the past five years, he has masterminded the transportation of almost 54,000 gold bars — each with a value of just under $510,000 — to Frankfurt, Germany’s financial capital, moving $27bn (in today’s prices) from the vaults of the US Federal Reserve and the Banque de France. The last bars arrived at the Bundesbank’s headquarters, a few kilometres north of Frankfurt’s city centre, in August. But how Germany’s gold came to be abroad is a story that goes back to the second world war and beyond.

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Tuesday, October 24 2017

Venezuela allows $1.7 billion gold swap with Deutsche to lapse

Venezuela this month allowed a $1.7 billion gold swap with Germany’s Deutsche Bank AG to lapse, according to an opposition legislator who said it weakens the balance sheet of the crisis-stricken OPEC nation’s central bank.

Through the operation, Venezuela had received $1.2 billion in cash in exchange for putting up $1.7 billion worth of gold in guarantee, part of efforts to improve the liquidity of foreign reserves amid heavy foreign debt payments and low oil prices.

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Monday, October 16 2017

Neck and Neck: Russian and Chinese Official Gold Reserves

Official gold reserve updates from the Russian and Chinese central banks are probably one of the more closely watched metrics in the gold world. After the US, Germany, Italy and France, the sovereign gold holdings of China and Russia are the world’s 5th and 6th largest. And with the gold reserves ‘official figures’ of the US, Germany, Italy and France being essentially static, the only numbers worth watching are those of China and Russia.

For the Bank of Russia, its latest report, published on 19 September 2017 addressing August month-end, shows the Bank holding 56.1 million fine troy ounces of gold (1745 tonnes). For the Chinese State, the latest SAFE release is reporting Chinese official gold reserves of 59.24 million ounces (1842 tonnes).

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Sunday, October 15 2017

Russia Stockpiling Bullion Like There's no Tomorrow

The Central Bank of Russia has recently been buying bullion at an unprecedented pace. According to Argentine financial expert Gabriel Rubinstein, this policy is aimed at protecting the Russian economy in the event of crisis situations, including against dollar-related "manipulations" by the US.

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Wednesday, October 4 2017

Russia's rush for gold sees record reserves for Putin era

Meanwhile, the Bank of Russia has more than doubled the pace of gold purchases, bringing the share of bullion in its international reserves to the highest of Mr Putin's 17 years in power, according to World Gold Council data.

In the second quarter alone, it accounted for 38pc of all gold purchased by central banks. The gold rush is allowing the Bank of Russia to continue growing its reserves while abstaining from purchases of foreign currency for more than two years. It's one of a handful of central banks to keep the faith as global demand for the precious metal fell to a two-year low in the second quarter. But what may matter most is that gold is as geopolitics-proof an investment as any in the age of sanctions and a deepening rift with the US.

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Saturday, September 16 2017

BIS gold swaps soar from zero to record high

Disclosures in the August statement of account published by the Bank for International Settlements indicate that during August the bank increased substantially its use of gold swaps.

An estimated 130 tonnes of new gold swaps were made last month, worth about $5.9 billion at the month-end gold price, and the total level of gold swaps at the end of August was close to 500 tonnes.

As this table shows, the use of gold swaps by the BIS fell considerably from 2013 to zero in March 2016. In the financial year ending in March 2017 a new year-end peak of 438 tonnes was reported.

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Thursday, August 24 2017

The Truth About the Fort Knox Gold

The Truth About the Fort Knox Gold

One of the little-known items on the Fed’s balance sheet is a vital asset it received from the U.S. Treasury a long time ago…

During the Great Depression, in 1933, President Roosevelt issued an executive order requiring anyone with gold to surrender it to a Federal Reserve bank or any member bank of the Federal Reserve system.

The Federal Reserve banks also required the commercial banks to hand over their gold to the Fed. Now, suddenly, the gold went out of the commercial banks into the Federal Reserve Bank.

But under the Gold Reserve Act of 1934, the Fed was ordered to surrender all its gold to the Treasury Department. All the nation’s gold in effect came under direct government ownership.

Now, this is key: The Federal Reserve is actually a private system, while the Treasury is an arm of the U.S. government. And the Fifth Amendment of the Constitution prevents the government from taking private property without just compensation.

To get around that legality, the “just compensation” was a gold certificate the Treasury issued to the Fed in exchange for its physical gold.

To this day, the Fed carries that gold certificate on its balance sheet.

The Treasury officially values its gold at $42 an ounce. That was the official gold price from 1973, two years after the U.S. abandoned the Bretton Woods system. Of course, the market price of gold today is almost $1,300 an ounce.

But if you take the face value of the gold on the Fed balance sheet, divide it by $42 an ounce and then come up with a number of ounces and convert that into tons, it comes out to over 8,000 tons.

That’s highly interesting, because that’s how much gold the Treasury currently owns.

The Treasury needs at least 8,000 tons of gold to back up that paper certificate it handed the Fed back in the 1930s to satisfy the Fifth Amendment.

If you take the 8,000 tons on the Fed balance sheet in the form of this gold certificate, market to market at $1,300, that mounts to well over $300 billion.

So the secret to the Fed’s balance sheet is its “hidden gold asset,” that gold certificate it received from the Treasury in the 1930s.

Nobody talks about this or admits it. But our whole system is based on gold.

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Germany repatriates gold reserves ahead of schedule

Germany's central bank has completed an initiative to bring half of the country's gold reserves home three years ahead of schedule, as it repatriated all of its gold kept in Paris and a third of its reserves in the US.

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Mnuchin's PR Visit to Fort Knox proves nothing about the US Gold Reserves

As a freebie trip for 4 select political insiders, last Monday’s trip to Fort Knox was undoubtedly a memorable one for them. In the same radio interview Bevin said that:

“This is like the mother of all field trips. This is pretty cool”

But as a validation and verification of over 56% of the supposed US Official Gold Reserves, the visit was a complete farce. Announced the morning it took place. No evidence that any media were allowed to participate. Only peaked into one of the 13 storage compartments. And then to round it off, Mnuchin (an ex Goldmanite) tweets that ‘Glad gold is safe“. You couldn’t make this up. And finally, no mention of the fact that most of the gold bars even supposedly stored in Fort Knox are low purity ‘coin bars’ made from melted down gold coins. In fact, of all the gold bars reported to be held within the US Gold Reserves, only 16% of these bars are of LBMA Good Delivery size and purity range.

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Wednesday, August 23 2017

Mnuchin’s Fort Knox Quip: ‘I Assume the Gold Is Still There’

U.S. Treasury Secretary Steven Mnuchin paid a rare official visit to Fort Knox to check out the nation’s gold stash on Monday

“I assume the gold is still there,”

“We have approximately $200 billion of gold at Fort Knox,” said Mnuchin. “The last time anybody went in to see the gold, other than the Fort Knox people, was in 1974 when there was a congressional visit. And the last time it was counted was actually in 1953.”

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After 40 years, Fort Knox opens famed vault to civilians

The depository holds more than 147 million ounces of gold, which puts its market value at more than $186 billion. While primarily known as a vault for gold, the depository also held the Declaration of Independence and the U.S. Constitution during World War II.

Mnuchin said it was the first time Fort Knox opened its vaults to outsiders since a Congressional delegation and some journalists were let in to view the gold for the first time in 1974.

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Saturday, August 19 2017

BullionStar quoted in Wall Street Journal article on New York Fed Gold

had expected the WSJ article to be a lot longer and more in-depth than it actually was, and to obtain some publishable response from the NY Fed. The WSJ however says in the article that:

“The Fed declined to comment”

The lack of any quotation by the Fed within the WSJ article is a glaring omission, and actually proves the complete lack of cooperation by the Fed on the entire topic of gold bar storage. The WSJ article does say that it filed Freedom of Information (FOIA) Requests with the NY Fed, which again underscores that without FOIAs, the Fed wouldn’t voluntarily reveal anything.

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Friday, August 11 2017

The Fed Has 6,200 Tons of Gold in a Manhattan Basement—Or Does It?

Eighty feet below the streets of lower Manhattan, a Federal Reserve vault protected by armed guards contains about 6,200 tons of gold.

Or doesn't.

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Thursday, July 27 2017

PBoC Gold Purchases: Secretive Accumulation on the International Market

If the PBoC is buying gold in excess of the amount that it offically reports, then logically it will not want these purchases to appear in import/export trade statistics. Like all central banks, the PBoC classifies and holds its gold reserves as “monetary gold” (i.e. “monetary gold is gold held as a reserve asset that is available to and controlled by monetary authorities”). Monetary gold is also exempt from reporting in international trade statistics / customs data. Therefore, like all central banks, the PBoC would not have to report any monetary gold that it purchased abroad and then imported into China.

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