«China’s on a bullion-buying spree as Asia’s top economy expanded its gold reserves for a fourth straight month, adding to investors’ optimism that central banks from around the world will press on with a drive to build up holdings»
«The People’s Bank of China raised reserves to 60.62 million ounces in March from 60.26 million a month earlier, according to data on its website on Sunday»
«In tonnage terms, last month’s inflow was 11.2 tons, following the addition of 9.95 tons in February, 11.8 tons in January and 9.95 tons in December.»
«The latest data from the PBOC indicate that the country has resumed adding gold to its reserves at a steady pace, much like the period from mid-2015 to October 2016, when the country boosted holdings almost every month»
«Should China continue to accumulate bullion at the current rate over 2019, it may end the year as the top buyer after Russia, which added 274 tons in 2018»
«Governments worldwide added 651.5 tons of bullion in 2018, the second-highest total on record, according to the World Gold Council»
«Russia has quadrupled its reserves within the span of a decade amid President Vladimir Putin’s quest to break the country’s reliance on the dollar»
* * * * * * * *
Il problema delle riserve auree cinesi è alquanto complesso: da una parte la Banca Centrale rilascia i dati solo quando lo ritenga opportuno, dall’altra assieme alla riserva ufficiale dovrebbe essere conteggiato anche l’oro comprato dai privati. Nella maggior parte delle regioni cinesi, infatti, il possesso di oro monetato o come monile dovrebbe essere denunciato: la proprietà resta ed è garantita tale nel tempo, ma lo stato potrebbe avocarsi il diritto di confiscarlo in caso di particolarissimi eventi. In un certo qual senso, l’oro detenuto dai privati è una specie di estrema riserva di sicurezza.
– Inflows since December increase to 42.9 tons as holdings climb
– Central-bank demand will help to support prices, Goldman says
China’s on a bullion-buying spree as Asia’s top economy expanded its gold reserves for a fourth straight month, adding to investors’ optimism that central banks from around the world will press on with a drive to build up holdings. Prices advanced back toward $1,300 an ounce.
The People’s Bank of China raised reserves to 60.62 million ounces in March from 60.26 million a month earlier, according to data on its website on Sunday. In tonnage terms, last month’s inflow was 11.2 tons, following the addition of 9.95 tons in February, 11.8 tons in January and 9.95 tons in December.
China, the world’s top gold producer and consumer, is facing signs of a slowing economy, even as progress is being made in trade negotiations with the U.S. The latest data from the PBOC indicate that the country has resumed adding gold to its reserves at a steady pace, much like the period from mid-2015 to October 2016, when the country boosted holdings almost every month. Should China continue to accumulate bullion at the current rate over 2019, it may end the year as the top buyer after Russia, which added 274 tons in 2018.
Last year’s bullion buying by emerging-market central banks was the most robust in a long time as countries diversified reserves, Ed Morse, Citigroup Inc.’s global head of commodities research, said in a Bloomberg TV interview on Monday. The bank’s positive on gold, targeting $1,400 by year-end.
Spot gold fell for a second month in March even after the Federal Reserve signaled it would pause rate hikes, which led to a surge in equities instead. Still, the longer-term outlook is more bullish as central-bank demand should help support prices, with inflows running as high as last year, according to Goldman Sachs Group Inc., which expects a rally to $1,450 an ounce over 12 months. Bullion for immediate delivery was at $1,297 on Monday.
Governments worldwide added 651.5 tons of bullion in 2018, the second-highest total on record, according to the World Gold Council. Russia has quadrupled its reserves within the span of a decade amid President Vladimir Putin’s quest to break the country’s reliance on the dollar, and data from the central bank show holdings rose 1 million ounces in February, the most since November.
China has previously gone long periods without revealing increases in gold holdings. When the central bank announced a 57 percent jump in reserves to 53.3 million ounces in mid-2015, it was the first update in six years. The latest pause was from October 2016 until December last year.
Il 12 marzo 2015, quasi a termine della crisi economica allora in atto, le riserva valutarie erano scese a 356.7 miliardi Usd.
Nel contempo, le riserve auree russe sono ancora crescite, raggiungendo le 2,119.2 tonnellate di oro. Nel luglio 2016 tali riserve ammontavano a 1,498.74 tonnellate.
Diamo con piacere atto a Mr Putin ed alla Mrs Nebulina, Governatrice della Banca Centrale, di ottima abilità e di una pazienza degna delle formiche.
Diamo anche atto con altrettanto piacere di aver saputo scegliere a suo tempo una persona del valore di Mrs Nebulina: di rara preparazione tecnica, sempre sorridente, silenziosissima. Le capacità di un capo si esprimono anche nella scelta dei propri collaboratori.
Il primo grande capo di accusa che l’Occidente muove a Mr Putin è quello di essere un russo che sta facendo gli interessi del suo paese.
Il secondo capo di accusa è di essere colto ed intelligente.
Se Mr Putin facesse gli interessi degli occidentali e fosse anche un fesso, un babbeo da poter menare per il naso, i liberal socialisti lo osannerebbero.
In dieci anni, lavorando come una formica, Mr Putin si è portato a casa più di 1,500 tonnellate di oro fisico.
«But nobody ever accused Putin of the lack of intelligence»
«Any accusations against this man only emphasize his ability for quick analytical thinking and making clear and balanced political and economic decisions»
«Therefore, Putin’s policy largely has always focused not so much on effect, but on efficiency»
«Very few people understand what Putin is doing at the moment. And almost no one understands what he will do in the future»
«Europe will not be able to survive without energy supply from Russia»
«Russia, having a regular flow of dollars from the sale of oil and gas, in any case, will be able to convert them to gold with current gold prices, depressed by all means by the West. That is, at the price of gold, which had been artificially and meticulously lowered by the Fed and ESF many times, against artificially inflated purchasing power of the dollar through market manipulation»
«China recently announced that it will cease to increase its gold and currency reserves denominated in US dollars»
«Analysis of the current monetary policy of China shows that most likely the dollars coming from trade, or a substantial chunk of them, China will quietly replace and de facto is already replacing with Gold.»
«Emphasis on the phrase “physical gold” is made because in exchange for its physical, not ‘paper’ energy resources, Russia is now withdrawing gold from the West, but only in its physical, not paper form»
«Putin has thereby started the countdown to the end of the world hegemony of petrodollar. Thus, Putin has put the West in a deadlock of the absence of any positive economic prospects»
«USSR rapidly sold gold during the fall of oil prices. Russia rapidly buys gold during the fall in oil prices»
«Leading Western economists are certainly aware of the severity of the predicament and hopelessness of the situation the Western world finds itself in, in Putin’s economic gold trap»
«How long will the West be able to buy oil and gas from Russia in exchange for physical gold?»
Accusations of the West towards Putin are traditionally based on the fact that he worked in the KGB. And therefore he is a cruel and immoral person. Putin is blamed for everything. But nobody ever accused Putin of the lack of intelligence.
Any accusations against this man only emphasize his ability for quick analytical thinking and making clear and balanced political and economic decisions.
Often Western media compares this ability with the ability of a grandmaster, conducting a public chess simul. Recent developments in US economy and the West in general allow us to conclude that in this part of the assessment of Putin’s personality Western media are absolutely right.
Despite numerous success reports in the style of Fox News and CNN, today, Western economy, led by the United States is in Putin’s trap, the way out of which no one in the West can see or find. And the more the West is trying to escape from this trap, the more stuck it becomes.
What is the truly tragic predicament of the West and the United States, in which they find themselves? And why all the Western media and leading Western economists are silent about this, as a well guarded military secret? Let’s try to understand the essence of current economic events, in the context of the economy, setting aside the factors of morality, ethics and geopolitics.
After realizing its failure in Ukraine, the West, led by the US set out to destroy Russian economy by lowering oil prices, and accordingly gas prices as the main budget sources of export revenue in Russia and the main sources of replenishment of Russian gold reserves. It should be noted that the main failure of the West in Ukraine is not military or political. But in the actual refusal of Putin to fund the Western project of Ukraine at the expense of the budget of Russian Federation. What makes this Western project not viable in the near and inevitable future.
Last time under president Reagan, such actions of the West’s lowering of oil prices led to ‘success’ and the collapse of USSR. But history does not repeat itself all the time. This time things are different for the West. Putin’s response to the West resembles both chess and judo, when the strength used by the enemy is used against him, but with minimal costs to the strength and resources of the defender. Putin’s real policies are not public. Therefore, Putin’s policy largely has always focused not so much on effect, but on efficiency.
Very few people understand what Putin is doing at the moment. And almost no one understands what he will do in the future.
No matter how strange it may seem, but right now, Putin is selling Russian oil and gas only for physical gold.
Putin is not shouting about it all over the world. And of course, he still accepts US dollars as an intermediate means of payment. But he immediately exchanges all these dollars obtained from the sale of oil and gas for physical gold!
To understand this, it is enough to look at the dynamics of growth of gold reserves of Russia and to compare this data with foreign exchange earnings of the Russia coming from the sale of oil and gas over the same period.
Moreover, in the third quarter the purchases by Russia of physical gold are at all-time high record levels. In the third quarter of this year, Russia had purchased an incredible amount of gold in the amount of 55 tons. It’s more than all the central banks of all countries of the world combined (according to official data)!
In total, the central banks of all countries of the world have purchased 93 tons of the precious metal in the third quarter of 2014. It was the 15th consecutive quarter of net purchases of gold by Central banks. Of the 93 tonnes of gold purchases by central banks around the world during this period, the staggering volume of purchases – of 55 tons – belongs to Russia.
Not so long ago, British scientists have successfully come to the same conclusion, as was published in the Conclusion of the U.S. Geological survey a few years ago. Namely: Europe will not be able to survive without energy supply from Russia. Translated from English to any other language in the world it means: “The world will not be able to survive if oil and gas from Russia is subtracted from the global balance of energy supply”.
Thus, the Western world, built on the hegemony of the petrodollar, is in a catastrophic situation. In which it cannot survive without oil and gas supplies from Russia. And Russia is now ready to sell its oil and gas to the West only in exchange for physical gold! The twist of Putin’s game is that the mechanism for the sale of Russian energy to the West only for gold now works regardless of whether the West agrees to pay for Russian oil and gas with its artificially cheap gold, or not.
Because Russia, having a regular flow of dollars from the sale of oil and gas, in any case, will be able to convert them to gold with current gold prices, depressed by all means by the West. That is, at the price of gold, which had been artificially and meticulously lowered by the Fed and ESF many times, against artificially inflated purchasing power of the dollar through market manipulation.
Interesting fact: the suppression of gold prices by the special department of US Government – ESF (Exchange Stabilization Fund) – with the aim of stabilizing the dollar has been made into a law in the United States.
In the financial world it is accepted as a given that gold is an antidollar.
– In 1971, US President Richard Nixon closed the ‘gold window’, ending the free exchange of dollars for gold, guaranteed by the US in 1944 at Bretton Woods.
– In 2014, Russian President Vladimir Putin has reopened the ‘gold window’, without asking Washington’s permission.
Right now the West spends much of its efforts and resources to suppress the prices of gold and oil. Thereby, on the one hand to distort the existing economic reality in favor of the US dollar and on the other hand, to destroy the Russian economy, refusing to play the role of obedient vassal of the West.
Today assets such as gold and oil look proportionally weakened and excessively undervalued against the US dollar. It is a consequence of the enormous economic effort on the part of the West.
And now Putin sells Russian energy resources in exchange for these US dollars, artificially propped by the efforts of the West. With which he immediately buys gold, artificially devalued against the U.S. dollar by the efforts of the West itself!
There is another interesting element in Putin’s game. It’s Russian uranium. Every sixth light bulb in the USA depends on its supply. Which Russia sells to the US too, for dollars.
Thus, in exchange for Russian oil, gas and uranium, the West pays Russia with dollars, purchasing power of which is artificially inflated against oil and gold by the efforts of the West. But Putin uses these dollars only to withdraw physical gold from the West in exchange, for the price denominated in US dollars, artificially lowered by the same West.
This truly brilliant economic combination by Putin puts the West led by the United States in a position of a snake, aggressively and diligently devouring its own tail.
The idea of this economic golden trap for the West, probably originated not from Putin himself. Most likely it was the idea of Putin’s Advisor for Economic Affairs – doctor Sergey Glazyev. Otherwise why seemingly not involved in business bureaucrat Glazyev, along with many Russian businessmen, was personally included by Washington on the sanction list? The idea of an economist, doctor Glazyev was brilliantly executed by Putin, with full endorsement from his Chinese colleague – Xi Jinping.
Especially interesting in this context looks the November statement of the first Deputy Chairman of Central Bank of Russia Ksenia Yudaeva, which stressed that the Central Bank of Russia can use the gold from its reserves to pay for imports, if needed. It is obvious that in terms of sanctions by the Western world, this statement is addressed to the BRICS countries, and first of all China. For China, Russia’s willingness to pay for goods with Western gold is very convenient. And here’s why:
China recently announced that it will cease to increase its gold and currency reserves denominated in US dollars. Considering the growing trade deficit between the US and China (the current difference is five times in favor of China), then this statement translated from the financial language reads: “China stops selling their goods for dollars”. The world’s media chose not to notice this grandest in the recent monetary history event . The issue is not that China literally refuses to sell its goods for US dollars. China, of course, will continue to accept US dollars as an intermediate means of payment for its goods. But, having taken dollars, China will immediately get rid of them and replace with something else in the structure of its gold and currency reserves. Otherwise the statement made by the monetary authorities of China loses its meaning: “We are stopping the increase of our gold and currency reserves, denominated in US dollars.” That is, China will no longer buy United States Treasury bonds for dollars earned from trade with any countries, as they did this before.
Thus, China will replace all the dollars that it will receive for its goods not only from the US but from all over the world with something else not to increase their gold currency reserves, denominated in US dollars. And here is an interesting question: what will China replace all the trade dollars with? What currency or an asset? Analysis of the current monetary policy of China shows that most likely the dollars coming from trade, or a substantial chunk of them, China will quietly replace and de facto is already replacing with Gold.
In this aspect, the solitaire of Russian-Chinese relations is extremely successful for Moscow and Beijing. Russia buys goods from China directly for gold at its current price. While China buys Russian energy resources for gold at its current price. At this Russian-Chinese festival of life there is a place for everything: Chinese goods, Russian energy resources, and gold – as a means of mutual payment. Only US dollar has no place at this festival of life. And this is not surprising. Because the US dollar is not a Chinese product, nor a Russian energy resource. It is only an intermediate financial instrument of settlement – and an unnecessary intermediary. And it is customary to exclude unnecessary intermediaries from the interaction of two independent business partners.
It should be noted separately that the global market for physical gold is extremely small relative to the world market for physical oil supplies. And especially the world market for physical gold is microscopic compared to the entirety of world markets for physical delivery of oil, gas, uranium and goods.
Emphasis on the phrase “physical gold” is made because in exchange for its physical, not ‘paper’ energy resources, Russia is now withdrawing gold from the West, but only in its physical, not paper form. So does China, by acquiring from the West the artificially devalued physical gold as a payment for physical delivery of real products to the West.
The West’s hopes that Russia and China will accept as payment for their energy resources and goods “shitcoin” or so-called “paper gold” of various kinds also did not materialize. Russia and China are only interested in gold and only physical metal as a final means of payment.
For reference: the turnover of the market of paper gold, only of gold futures, is estimated at $360 billion per month. But physical delivery of gold is only for $280 million a month. Which makes the ratio of trade of paper gold versus physical gold: 1000 to 1.
Using the mechanism of active withdrawal from the market of one artificially lowered by the West financial asset (gold) in exchange for another artificially inflated by the West financial asset (USD), Putin has thereby started the countdown to the end of the world hegemony of petrodollar. Thus, Putin has put the West in a deadlock of the absence of any positive economic prospects. The West can spend as much of its efforts and resources to artificially increase the purchasing power of the dollar, lower oil prices and artificially lower the purchasing power of gold. The problem of the West is that the stocks of physical gold in possession of the West are not unlimited. Therefore, the more the West devalues oil and gold against the US dollar, the faster it loses devaluing Gold from its not infinite reserves. In this brilliantly played by Putin economic combination the physical gold is rapidly flowing to Russia, China, Brazil, Kazakhstan and India, the BRICS countries, from the reserves of the West. At the current rate of reduction of reserves of physical gold, the West simply does not have the time to do anything against Putin’s Russia until the collapse of the entire Western petrodollar world. In chess the situation in which Putin has put the West, led by the US, is called “time trouble”.
The Western world has never faced such economic events and phenomena that are happening right now. USSR rapidly sold gold during the fall of oil prices. Russia rapidly buys gold during the fall in oil prices. Thus, Russia poses a real threat to the American model of petrodollar world domination.
The main principle of world petrodollar model is allowing Western countries led by the United States to live at the expense of the labor and resources of other countries and peoples based on the role of the US currency, dominant in the global monetary system (GMS) . The role of the US dollar in the GMS is that it is the ultimate means of payment. This means that the national currency of the United States in the structure of the GMS is the ultimate asset accumulator, to exchange which to any other asset does not make sense.What the BRICS countries, led by Russia and China, are doing now is actually changing the role and status of the US dollar in the global monetary system. From the ultimate means of payment and asset accumulation, the national currency of the USA, by the joint actions of Moscow and Beijing is turned into only an intermediate means of payment. Intended only to exchange this interim payment for another and the ulimate financial asset – gold. Thus, the US dollar actually loses its role as the ultimate means of payment and asset accumulation, yielding both of those roles to another recognized, denationalized and depoliticized monetary asset – gold.
Traditionally, the West has used two methods to eliminate the threat to the hegemony of petrodollar model in the world and the consequent excessive privileges for the West.
One of these methods – colored revolutions. The second method, which is usually applied by the West, if the first fails – military aggression and bombing.
But in Russia’s case both of these methods are either impossible or unacceptable for the West.
Because, firstly, the population of Russia, unlike people in many other countries, does not wish to exchange their freedom and the future of their children for Western sausage. This is evident from the record ratings of Putin, regularly published by the leading Western rating agencies. Personal friendship of Washington protégé Navalny with Senator McCain played for him and Washington a very negative role. Having learned this fact from the media, 98% of the Russian population now perceive Navalny only as a vassal of Washington and a traitor of Russia’s national interests. Therefore Western professionals, who have not yet lost their mind, cannot dream about any colour revolution in Russia.
As for the second traditional Western way of direct military aggression, Russia is certainly not Yugoslavia, not Iraq or Libya. In any non-nuclear military operation against Russia, on the territory of Russia, the West led by the US is doomed to defeat. And the generals in the Pentagon exercising real leadership of NATO forces are aware of this. Similarly hopeless is a nuclear war against Russia, including the concept of so-called “preventive disarming nuclear strike”. NATO is simply not technically able to strike a blow that would completely disarm the nuclear potential of Russia in all its many manifestations. A massive nuclear retaliatory strike on the enemy or a pool of enemies would be inevitable. And its total capacity will be enough for survivors to envy the dead. That is, an exchange of nuclear strikes with a country like Russia is not a solution to the looming problem of the collapse of a petrodollar world. It is in the best case, a final chord and the last point in the history of its existence. In the worst case – a nuclear winter and the demise of all life on the planet, except for the bacteria mutated from radiation.
The Western economic establishment can see and understand the essence of the situation. Leading Western economists are certainly aware of the severity of the predicament and hopelessness of the situation the Western world finds itself in, in Putin’s economic gold trap. After all, since the Bretton Woods agreements, we all know the Golden rule: “Who has more gold sets the rules.” But everyone in the West is silent about it. Silent because no one knows now how to get out of this situation.
If you explain to the Western public all the details of the looming economic disaster, the public will ask the supporters of a petrodollar world the most terrible questions, which will sound like this:
How long will the West be able to buy oil and gas from Russia in exchange for physical gold? And what will happen to the US petrodollar after the West runs out of physical gold to pay for Russian oil, gas and uranium, as well as to pay for Chinese goods?
No one in the West today can answer these seemingly simple questions.
And this is called “Checkmate”, ladies and gentlemen. The game is over.
«Al recente risveglio delle quotazioni dell’oro potrebbe aver contribuito anche l’Ungheria, che nella prima metà di ottobre ha addirittura decuplicato le riserve aurifere»
«A rivelare gli acquisti è stata la banca centrale magiara, che ora possiede 31,5 tonnellate di metallo, contro le 3,1 tonnellate che aveva a fine settembre»
«L’oro – che le autorità monetarie hanno specificato essere «in forma fisica» e custodito in patria – ha un valore di circa 1,24 miliardi di dollari e la stessa Magyar Nemzeti Bank (Mnb) afferma che a questo punto rappresenta il 4,4% del totale delle riserve del Paese»
«riferimento all’esigenza di aumentare la «sicurezza» delle riserve.»
Gran bel problema quello di allocare le riserve in modo sicuro e nel momento opportuno.
Si direbbe che Mr Orban non si fidi mica poi tanto dell’euro e dei tempi prossimi venturi.
Al recente risveglio delle quotazioni dell’oro potrebbe aver contribuito anche l’Ungheria, che nella prima metà di ottobre ha addirittura decuplicato le riserve aurifere.
A rivelare gli acquisti è stata la banca centrale magiara, che ora possiede 31,5 tonnellate di metallo, contro le 3,1 tonnellate che aveva a fine settembre. L’oro – che le autorità monetarie hanno specificato essere «in forma fisica» e custodito in patria – ha un valore di circa 1,24 miliardi di dollari e la stessa Magyar Nemzeti Bank (Mnb) afferma che a questo punto rappresenta il 4,4% del totale delle riserve del Paese.
In assoluto il metallo custodito dall’Ungheria non è moltissimo. Gli Stati Uniti, primi al mondo per riserve aurifere, ne possiedono ben 8.133,50 tonnellate, pari il 73,5% delle riserve. L’Italia, al quarto posto nella classifica curata dal World Gold Council, ne ha 2.451,8 (65,3%). La Francia ci segue a ruota con quantità di poco inferiori, mentre la Germania – seconda dopo gli Usa – ha quasi 3.400 tonnellate di lingotti.
A stupire è piuttosto la rapidità con cui Budapest ha moltiplicato le riserve aurifere, che ha lasciato perplessi alcuni analisti. Non è chiaro tra l’altro se per far posto all’oro siano state vendute valute, come il dollaro o l’euro, o se le riserve siano complessivamente aumentate.
Il governatore della Mnb, Gyorgy Matolcsy, ha dichiarato che si è trattato di una decisione «di importanza strategica» sotto il profilo economico e nazionale e ha fatto un vago riferimento all’esigenza di aumentare la «sicurezza» delle riserve.
Benché parco di dettagli tecnici, Matolcsy non ha risparmiato la retorica, ricordando la storia dell’Ungheria – che nel Medio Evo era nota per le sue miniere d’oro – e rievocando la vicenda di uno dei treni d’oro dei nazisti, intercettato in Austria dalle forze americane nel 1946: a Budapest venne restituita la stessa quantità di metallo che adesso è tornata nei forzieri nazionali, sottolinea il governatore della banca centrale.
La scelta dell’Ungheria in fin dei conti sembra avere soprattutto un contenuto politico, probabilmente orientato a rafforzare il consenso dell’opinione pubblica interna, dopo le reprimende della Ue. Ma di certo non è isolata.
Sempre nell’Europa orientale, anche la Polonia – un altro Paese membro della Ue ma non dell’Eurozona – si sta muovendo nella stessa direzione dell’Ungheria. Varsavia, che fino a quest’estate non aveva toccato le riserve dal 1998, ha comprato altre 4,4 tonnellate di oro a settembre, in aggiunta alle 9 già comprate tra luglio e agosto. Gli ultimi acquisti, segnalato dal Fondo monetario internazionale (Fmi), portano le riserve polacche a 117 tonnellate, un record da almeno 35 anni.