If you’ve been following the blog you have not only noticed the financials of the system imploding you have also been made aware of the precious metals market. More moves in that department below.
We are witnessing not only a currency war, but a move by nations to acquire physical gold. We have seen Germany and a few other nations request their gold back from the United States and France. We are entering a phase of protectionism. Eyes open folks…
Putin Turns Black Gold to Bullion as Russia Outbuys World
When Vladimir Putin says the U.S. is endangering the global economy by abusing its dollar monopoly, he’s not just talking. He’s betting on it.
Not only has Putin made Russia the world’s largest oil producer, he’s also made it the biggest gold buyer. His central bank has added 570 metric tons of the metal in the past decade, a quarter more than runner-up China, according to IMF data compiled by Bloomberg. The added gold is also almost triple the weight of the Statue of Liberty.
“The more gold a country has, the more sovereignty it will have if there’s a cataclysm with the dollar, the euro, the pound or any other reserve currency,” Evgeny Fedorov, a lawmaker for Putin’s United Russia party in the lower house of parliament, said in a telephone interview in Moscow. – Full Read: Bloomberg
Sprott – Default Coming As 850 Tons Of Gold Supply Vanished
Today billionaire Eric Sprott told King World News that the massive plunge in gold scrap recycling may be removing as much as a staggering 850 tons of gold from world supplies each year. Sprott, who is Chairman of Sprott Asset Management, also warned of a coming default on the COMEX, “And when it (the default) happens, there will be a substantial move in the price of gold (and silver). We’ll make up for these last two years in no time.”
Eric King: “KWN has been receiving information from refiners for quite some time, and this was from one of the largest metals refiners in the world, “The secondary market, which is scrap, business is down almost 50% year over year, and the previous year was already a down year. The only supply now is coming from the miners. This applies to both gold and silver. Gold and silver bar and coin demand is very strong and the supply has essentially dried up.”
Sprott: “It’s interesting, Eric, that the data on recycled gold is woefully lacking. That’s what I hear from my discussion with people, and Johnson Matthey in their six month report suggested that their recycling was down. Your evidence is meaningful. That’s what I hear.
Because the price has been static or down, essentially, for 2 years, the willingness to trade in gold rings and otherwise recycle some jewelry has diminished here. If it (recycling) is down 50%, I think recycling adds something like 1,700 tons to the gold supply above mine supply, well, that would imply a reduction of (a staggering) 850 tons (of gold supply)….
“That’s a very interesting number because as you know I wrote a report about two months ago asking whether the central banks have any gold left? All you see is incredible increased demand on a sustainable basis here.
The most recent example being the Chinese imports in December, the number was 114 tons. We only produce 200 tons a month of gold ex-China, and they are consuming well over 50% of that (total monthly global production).
So between that and the coins sales that have been strong, and the suggestions by various advisors, whether it be Kyle Bass, Ray Dalio, or Bill Gross at Pimco, that they should be buying gold, I just don’t know where this gold, where I do know where the gold is coming from, the gold has to be coming from the Western central banks.
As you know they are totally non-transparent about it. We’ve seen the Germans ask for some gold back. I think it’s a joke that they are receiving it over 8 years, and only a small part of it at that. So I have to believe there is a real tightness in all of the metals markets.
If you were amongst the central planers, and we have this huge financial chaos going on all of the time, a bank in the Netherlands and Italy went down, (you would know) the financial system hasn’t settled itself. Anybody with half a brain would realize, including the central planners, when you are printing money there are going to be consequences of that and they have to happen. The consequence of course is inflation.
In my mind the tell on inflation would be gold and silver going up. That would be the most logical place to see it manifested. So if you are the central planners and you are trying to get away with printing money, it would be in your playbook to keep the price of silver and gold controlled, and that’s what I think we are seeing.
That’s why when we have this huge increase in physical demand, that everybody can quantify, nothing happens to the price of gold. I’m sure the Western central banks are supplying those physical quantities.” – Full Read: KingWorldNews
U.S. gold bars and coins find new home overseas on Asian demand
Booming demand for gold as a store of wealth among Asian investors is driving physical gold bars and coins out of the United States and into Asia. A growing number of gold vaults for affluent Asians and new precious metals investment products, particularly exchange-traded funds, have led to an exodus of gold owned privately from the United States into emerging economic powers such as China.
On Friday, Commerce Department data showed U.S. exports of nonmonetary gold, which excludes central bank transactions, soared by 43 percent to $4 billion in December from the previous month.
That’s the highest total and the biggest month-on-month jump in U.S. private gold exports since September 2011, when gold rallied to a record high over $1,920 an ounce. Prices are currently about 14 percent below the peak at $1,643 per ounce. Hong Kong accounted for around $2 billion, or half of the nonmonetary gold exports for the month. – Full Read: Reuters