Russia Buys Gold Equal to 1.5% of Annual World Output

CommissarJones
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Joined: November 10th, 2016, 9:15 pm

Russia Buys Gold Equal to 1.5% of Annual World Output

Postby CommissarJones » November 24th, 2016, 1:11 pm

An interesting statistic here from broker GoldCore, which is commenting on the Russian central bank's purchase of 48 million metric tons of gold in October:

"Total gold mining production globally is around 3,200 metric tonnes per year. Thus, Russia’s purchase of 48 metric tonnes is around 1.5% of total annual global gold production. This is a very large amount for one country to buy in just one month."

http://www.goldcore.com/us/gold-blog/ru ... ince-1998/

1nv35t
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Re: Russia Buys Gold Equal to 1.5% of Annual World Output

Postby 1nv35t » November 24th, 2016, 1:57 pm

Could be down to plans for Russia and China to introduce a gold backed standard in view of losing faith in US$ being the primary reserve currency and the issues with the Euro being a secondary reserve currency. For example see this Forbes article (I had to disable NoScript to get the page to show)

On April 19, the Shanghai Gold Fix officially began. The pricing mechanism is intended to be a replacement for the London Gold Fix, the primary price-discovery mechanism for gold bullion today. The London “bullion” market is not a market in bullion. Rather, it is a market in “unallocated” gold, defined as an unsecured liability of banks.

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The London Bullion Market Association claimed 21.95 million ounces of “net” clearing per day on average in 2013, worth about $27 billion. Estimates of “gross” trading are considerably higher than this. Supposedly, one might be able to call in these unsecured liabilities of banks, and receive real bullion. However, when people actually try this, banks have a pattern of shunting clients into cash settlement.

The Shanghai Exchange appears to be a real market in bullion, with immediate physical delivery on every contract.

CommissarJones
Posts: 23
Joined: November 10th, 2016, 9:15 pm

Re: Russia Buys Gold Equal to 1.5% of Annual World Output

Postby CommissarJones » November 24th, 2016, 5:45 pm

CommissarJones wrote:48 million metric tons


Whoops, obviously that should be 48 metric tons.

1nv35t
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Posts: 249
Joined: November 4th, 2016, 8:18 pm

Re: Russia Buys Gold Equal to 1.5% of Annual World Output

Postby 1nv35t » November 24th, 2016, 8:20 pm

Physical and proof of ownership goes a long way.

Gold video (42 minutes)

Interesting points about how during WW2 the UK spent gold, the USA prospered from such spending, and France refused to assist with the cost, saying they would need their gold after the war. After the war however the Swiss refused to return gold to rightful owners, putting up impossible criteria before they'd release gold.

Further points about how Germany asking for their gold stored in the US have been refused to even audit. Some believing that Fort Knox, like Canada may have empty vaults having 'loaned out' gold.

Gold flows to where the money/prosperity is, and the West could be severely depleted in gold reserves. Far less than perhaps believed. 'Where is the gold?' ... China/Russia/Asia (East), which does not bear well for the West.


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