The Golden Truth: Updated Chart of the Russian Central Bank Gold Holdings

Thursday, March 4, 2010

Updated Chart of the Russian Central Bank Gold Holdings

Richard Nachbar, (Richard Nachbar Rare Coins) at http://www.coinexpert.com/, was kind enough to send me his updated chart for January of the Russian CB gold holdings:

(click on chart to enlarge)

You can see the rapid growth in Russia's gold accumulation. As per the numbers in my post from yesterday, Russia will have to double its current holdings in order to raise its gold holdings up to the 10% of foreign reserves that is currently typical at Central Banks. Moreover, I expect that globally CB's are looking to take their gold holding substantially higher.

Thanks again to Richard for sending me this updated chart.

10 comments:

AnonymousThursday, 04 March, 2010
I don't know about you but I am getting the feeling from the price action in silver that JPM may be backing down it's short position. We will know on Friday when the COT's come out but if they show another fall or remain stable it could be the start of a trend. I get the feeling that the capping of the silver of the price is now coming from the hedge fund ratio spreaders not JPM.

Just a feeling but after all we only need to consult the Bible (aka GS 10k) to get a flavour of concerns that now confront JPM.

“Press coverage and other public statements that assert some form of wrongdoing, regardless of the factual basis for the assertions being made, often results in some type of investigation by regulators, legislators and law enforcement officials, or in lawsuits."

If this doesn't cover silver I don't know what does.
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EconomicDisconnectThursday, 04 March, 2010
Don't the Russians, the Chinese, and the Indians know this gold metal stuff is worse than worthless?? What gives? They need to buy MBS, and soon.
-Ben Bernanke
PS.
By late March guys, please!
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EconomicDisconnectThursday, 04 March, 2010
Dave,
would love your take on my post tonight.
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Dave in DenverThursday, 04 March, 2010
GYC: funny sarcasm up above. Just left a comment on your latest post. Great blog post tonight!
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EconomicDisconnectThursday, 04 March, 2010
Anon,
from your words to my silver holdings ear!!!!!
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Dave in DenverThursday, 04 March, 2010
Guys, I don't know that the authorities are going to crack down on GS/JPM. If they do, it will be nothing but a dog and pony show.

I spoke with someone who is deeply ingrained in the world of precious metals, with contacts all over the world, and he said more than ever people need to buy what they are planning to buy and take delivery. Don't fuck around with private label crap and 100 oz silver or 10 oz. englehardt or JM bars. buy only sovereign-minted bullion coins or Comex-eligible bars that have paperwork and serial numbers.

He was dead serious about this and I can say for sure that this guy has knowledge and insight that is humbling and I've been doing this stuff exclusively for almost 9 years.

The main reason the metals are starting to dislocate from the dollar is because globally people have a profound understanding of what is going on and global buying for delivery is starting to overwhelm the paper manipulators.

My contact thinks there is a good chance this country starts rapidly disintegrating (i.e. the shit hits the fan) within a year.
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highcastleThursday, 04 March, 2010
Dave,

What's the reasoning behind avoiding Sunshine, Englehardt or JM silver bars? Are they that much of a counterfeit risk?

While I don't have very much wealth, I've been trying to stick with smaller denominations of silver (10oz bars, and 1oz silver maples). In a crunch, I feel these will be the most liquid. If the US ever puts a clamper on heavily taxing or regulating sales, it will be easier to liquidate in my opinion.

-highcastle
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Dave in DenverFriday, 05 March, 2010
Yes. Easier to counterfeit. This source was involved with the FBI as a consultant on a case that involved 100/10 oz. silver bars that had been altered. He said some of the bars are still out there.

The sovereign minted coins are extremely difficult to modify. Silver Maple Leafs are fine.

My source pointed out that as the shit really starts to hit the fan, counterfeiting and fraud will beoome a lot more pervasive.

Why take chances just to save a little premium now? I guarantee you that premiums on offical coins will soar as the price moves higher and scarcity sets in. People will especially pay up for the verifiability of sovereign coins and Comex/LMBA bars that come with paperwork and serial numbers.
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highcastleFriday, 05 March, 2010
Thanks for the info.

I'm surprised they even bother with 10oz silver bars! ...considering its low relative value and profit margin to gold and other larger silver bars.

I wonder if there is an easy way to check if the bars are good. We're pretty late into the game, so there may not be enough time for me to swap them out.
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Dave in DenverFriday, 05 March, 2010
I would say the odds are that your bars are fine. But it's about acceptability and verifiability down the road after the real shit hits. My source's point is, and this guy has been doing this stuff since the mid-70's, that bars like that are easier to countefeit than sovereign minted coins and people will more readily accept the latter.

I bet you can call Tulving and workout some kind of swap of your bars for more silver maple leafs or fractional gold coins.
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Add comment

Why Gold?

Gold is the world's oldest currency. You exchange your fiat currency (dollars, euros, yen, yuan) into gold as an insurance policy against catastrophic Central Bank and Government policies which serve to destroy the value of fiat currencies and destroy democracy.

Gold can ONLY be considered an investment to the extent that it remains significantly and historically undervalued in relation to the fiat currencies against which its value is measured. Otherwise it remains the world's oldest currency and is completely free from the counterparty risk associated with currency by Government fiat (i.e. fiat currencies rely on a Government's "full faith and credit.")

Quote Of The Month Courtesy of "Jesse"

Unfortunately for Larry Summers, Ben Bernanke, and their friends at the BIS, they have not yet figured out how to print physical gold, silver, and other essential commodities, and the world is reaching the point where it might simply start ignoring the New York based markets with respect to essential commodities such as basic materials, oil, foodstuffs, and the like, as they become increasingly irrelevant, fraudulent, and Orwellian. And then where will the financial engineers be, except with no more excuses and no place to hide?

Here is the link to his entire commentary, well worth a read:

http://jessescrossroadscafe.blogspot.com/2010/07/gold-daily-chart-shock-and-awe-for.html

Great Quote From Jim Rogers On Govt CPI Reporting

JR: I mean, we have inflation now. If you go to the shop, whether it’s groceries, or education or insurance or health care, prices are going up for everything. The government lies about it in the US. Some countries lie, many countries don’t: Australia, China, India and Norway. Many countries don’t lie about it and acknowledge that we have inflation. Others lie about it, the UK and the US, but if you go shopping you know prices are up.

Q: Are you saying that the American Consumer Price Index (CPI) published by the US Bureau of Labor Statistics is a lie?

JR: In my opinion, yes, of course it is. Have you looked at it? They’ve changed their accounting several times in the past few decades. When housing was 20% to 25% of the CPI and housing was going up, they didn’t count it, saying rents weren’t going up, and then when home prices started going down, they counted it. It’s the same with many things. It’s staggering some of the tortuous reasoning that the BLS has used over the past 25 or 30 years. When the price of gasoline goes up, they say it’s not really going up because it’s better gasoline, better quality, therefore you’re getting more for your money. I mean, it’s endless, the stuff that they say and for some reason people sit there, although more and more people are catching on, and accept what the government says.

source: www.clusterstock.com

Quote of the Week

"The primary function of a Central Bank is to engage in the massive transfer of wealth from the middle class to the wealthy elite. The Federal Reserve was set up to do this with the blessing and support of Congress." - Dave in Denver

If you refuse to believe the above, please read "The Creature From Jekyll Island: A Second Look at the Federal Reserve" by G. Edward Griffin and then explain to me why the Senate voted down the Vitter Amendment and Congress refuses to pass a law requiring a full audit of the Fed, even though the Fed is using taxpayer-backed money to bailout Wall Street and Europe.