Russia, Kazakhstan expand gold purchases as prices tumble

Mineweb — Russia and Kazakhstan expanded their gold reserves for a seventh straight month in April, buying the metal to diversify assets even as prices slumped the most in three decades.

Russian holdings, the seventh-largest by country, climbed 8.4 metric tons to 990 tons, taking gains this year to 3.4 percent after expanding by 8.5 percent in 2012, International Monetary Fund data show. Kazakhstan’s hoard grew 2.6 tons to 125.5 tons, taking the increase to 8.9 percent this year after a 41 percent expansion in 2012, data on the website showed.

READ MORE: HERE

Now, these figures are according to the so-called official data.  However, actual reserves may be much larger… especially in Russia and China.  The top 5 gold producing countries in the world are (in metric tonnes):

1) China = 370 mt

2) Australia = 250 mt

3) USA = 230 mt

4) Russia = 205 mt

5) South Africa = 170 mt

I would assume that Russia is buying most of its domestic production which was a little more than 200 mt in 2012.  It will be interesting to find out the real data on how much gold these central banks own.  You can rest assured the true figures will be known once the world backs its trade settlement with gold.

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5 Comments on "Russia, Kazakhstan expand gold purchases as prices tumble"

  1. So we really don’t know when the dollar will collapse. We have good estimates, like hyperinflation by 2014 (john williams, shadowstats) or maybe 2015 (e.g, Peter Schiff , Kyle Bass). Certainly not April 2013 (Max Keiser) or the “crash of 2010” (Celente).

    So let’s say the status quo keeps limping along until April 15th, 2015, 3am, and at that time the bond market collapses, bread shoots up to $1000/loaf and general chaos.

    Does that mean that illegal manipulation/control of PM prices can persist until 4-15-15 as well, even in the face of apparently real shortages ALREADY taking place?

    I’m thinking about the poor stacker who has to pay bills and the best he/she can get is $23/oz for the next year or two. I’m also thinking that driving silver extinct due to mispricing is a crime against humanity given its usefulness in so many critical applications.

    • There’s a lot of talk about gold/silver shortages but IMO it’s mostly just talk and has very little relevance to most of us. The manipulation of metals ends when the last ounce of gold and silver has been moved to strong hands and not a second before. It really doesn’t matter how “tight” this or that market is. All that matters is when the physical market trumps the paper market and that won’t happen until physical metal cannot be bought and I don’t think anyone knows when that will be.

      • farmer… you are correct, we really don’t know when the physical supply will run out. I believe when the precious metal prices skyrocket, bullion availablty will be nonexistant — virtually overnight. However, it is true that gold demand has outpaced supply in many of the Eastern countries such as India and China.

        steve

  2. SRS, I was really hoping you could make a comment on the “Three Forks” oil underneath the shallow Bakken Oil. Some bloke at KWN was making a deal about it, and I’d never heard of the deeper source of oil.

    What are your thoughts on that resource? Keep up the great work!

    • Cleburne61… I would imagine we are talking about the updated USGS Bakken & Three Forks assessment dated April 30, 2013. The USGS increased the reserves two-fold due mostly to the Three Forks. The Three Forks lies below the Bakken field.

      However, it has been stated that the oil contained in the Three Forks may not as productive as the Bakken. So, we are going to have to wait and see what the future drilling results show.

      I will discuss more about this in the future.

      Steve

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