azogar Posted January 31, 2011 Share Posted January 31, 2011 (excuse me whilst i conduct an experiment) http://www.zerohedge.com/article/china-central-bank-advisor-urges-increase-official-gold-reserves And so the long anticipated incursion by the PBOC, whose holdings of gold are behind even those of GLD, begins. Bloomberg has just reported, that "China central bank adviser Xia Bin said the country should increase its gold and silver reserves, the Economic Information Daily reported today, citing an interview with Xia." Quote Link to comment Share on other sites More sharing options...
Take Me Back To London! Posted January 31, 2011 Share Posted January 31, 2011 http://online.wsj.com/article/SB10001424052748703555804576101812228853534.html MARKETS JANUARY 24, 2011, 9:26 A.M. ETRussia Plans to Buy 100 Tons of Gold a Year By GRIGORI GERENSTEIN MOSCOW—The Central Bank of Russia plans to buy from domestic banks 100 metric tons of gold a year in order to replenish the country's gold reserves, Deputy Head of the bank Georgy Luntovsky said Monday, according to the bank's press service. In 2010 Russia's gold reserve increased 23.9% to 790 tons, or 25.4 million Troy ounces. Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted January 31, 2011 Share Posted January 31, 2011 Has Gordon Brown taken over? "We are going to buy loads so please push the price up first" A cynical person might think they want to offload some. Quote Link to comment Share on other sites More sharing options...
bearwithasorehead Posted January 31, 2011 Share Posted January 31, 2011 http://online.wsj.com/article/SB10001424052748703555804576101812228853534.html I think the Russian purchase is just to reduce their inflation rate because their public expenditure is out of control. Quote Link to comment Share on other sites More sharing options...
Realistbear Posted January 31, 2011 Share Posted January 31, 2011 Pump and dump. 100 tons of freshly mined gold no doubt--sold in the form of an ETF, of course. Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted January 31, 2011 Share Posted January 31, 2011 A cynical person might think they want to offload some. +1 Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted January 31, 2011 Share Posted January 31, 2011 Has Gordon Brown taken over? "We are going to buy loads so please push the price up first" A cynical person might think they want to offload some. That was my thought as soon as I read the title, or they want to create a buying frenzy first and then dump. Why tell the market you want to buy a limited commodity? It makes no sense. Unless of course they want to increase capital ratios at banks by pushing up the price of said commodity. Quote Link to comment Share on other sites More sharing options...
Constable Posted January 31, 2011 Share Posted January 31, 2011 +1 Give me one sound reason why China would want to sell [physical] gold? I'm not having a go - it just doesn't make any sense to me. Quote Link to comment Share on other sites More sharing options...
Traktion Posted January 31, 2011 Share Posted January 31, 2011 Pump and dump. 100 tons of freshly mined gold no doubt--sold in the form of an ETF, of course. Why would central banks want ETFs? Physical gold would be used as an insurance policy by sovereigns, not as an attempt to profit from trading it. Quote Link to comment Share on other sites More sharing options...
Number79 Posted January 31, 2011 Share Posted January 31, 2011 Given their deals with china I think that this may well have more to do with offloading dollars than trying to affect the price so that they can offload gold and be stuck with more dollars. Quote Link to comment Share on other sites More sharing options...
50sQuiff Posted January 31, 2011 Share Posted January 31, 2011 Has Gordon Brown taken over? "We are going to buy loads so please push the price up first" A cynical person might think they want to offload some. When Gordon Brown pre-announced the sale of our gold, I don't see price manipulate as his main goal. Governments and Central Banks aren't giant hedge funds. Instead, he was articulating a political and monetary policy on behalf of the IMF. A policy of never-ending credit creation under a US dollar standard and a depressed gold price. Although China clearly like to talk their book on the gold market, again I don't see price manipulation as the primary goal. Asian physical demand is an ever-present influence on the gold price anyway, so you could say it's 'priced in'. When Russia or China announce a desire to buy gold, they're firing another warning shot across the bows of the US-dominated monetary system. I don't see them selling gold any time soon. Quote Link to comment Share on other sites More sharing options...
Number79 Posted January 31, 2011 Share Posted January 31, 2011 When Gordon Brown pre-announced the sale of our gold, I don't see price manipulate as his main goal. Governments and Central Banks aren't giant hedge funds. Instead, he was articulating a political and monetary policy on behalf of the IMF. A policy of never-ending credit creation under a US dollar standard and a depressed gold price. Although China clearly like to talk their book on the gold market, again I don't see price manipulation as the primary goal. Asian physical demand is an ever-present influence on the gold price anyway, so you could say it's 'priced in'. When Russia or China announce a desire to buy gold, they're firing another warning shot across the bows of the US-dominated monetary system. I don't see them selling gold any time soon. so why did brown use the proceeds to buy euro's and prop up a fledgling currency that was hoped by the euro nuts to one day rival the dollar? Quote Link to comment Share on other sites More sharing options...
50sQuiff Posted January 31, 2011 Share Posted January 31, 2011 so why did brown use the proceeds to buy euro's and prop up a fledgling currency that was hoped by the euro nuts to one day rival the dollar? Yes, you're quite right. That was definitely the secondary goal. The IMF are quite pluralistic when it comes to fiat currency credit expansion so I was wrong to label it completely US centric. This doesn't change the point I was making though. Governments primarily make bombastic announcements for political purposes, not to create an opportunity to sell gold at high prices. Quote Link to comment Share on other sites More sharing options...
Take Me Back To London! Posted January 31, 2011 Share Posted January 31, 2011 (edited) Has Gordon Brown taken over? "We are going to buy loads so please push the price up first" A cynical person might think they want to offload some. This is not first announcement by Russia or China that they are buying gold. In fact, they are more open about their gold holdings than the USA. Also the Russians are building 5,000 nuclear shelters in Moscow to bring their present availability of bunkers up to strength. Moscow arms against nuclear attackPublished: 12 July, 2010, 21:42 Nearly 5,000 new emergency bomb shelters will be built in Moscow by 2012 to save people in case of potential attacks. Moscow authorities say the measure is urgent as the shelters currently available in the city can house no more that half of its population. In the last 20 years, the area of air-raid defense has been developed little, and the existing shelters have become outdated. Moreover, they are located mostly in the city center, which makes densely populated Moscow outskirts especially vulnerable in the event of a nuclear attack. In order to resolve the issue, the city has given architects a task to construct a typical model of an easy-to-build shelter that will be located all over the city 10 to 15 meters underneath apartment blocks, shopping centers, sport complexes and parks, as in case of attack people will need to reach the shelters within a minute. The full story and video at http://rt.com/news/prime-time/moscow-bomb-shelters-outskirts/ Edited January 31, 2011 by Take Me Back To London! Quote Link to comment Share on other sites More sharing options...
'Bart' Posted January 31, 2011 Share Posted January 31, 2011 Moscow authorities say the measure is urgent as the shelters currently available in the city can house no more that half of its population. If you saved half of the population (or more) what are they going to eat when they emerge? (I'm assuming a war rather than an attack on a single city.) To quote Threads: "In the grim economics of the aftermath, those who work get more food than those who don't, and the more people who die, the more food is left for the rest". Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.