Central Banks Continue Buying Gold At Record Numbers

Schiff Gold: Central Bank Gold Buying Sets First Quarter Record 

After a record-setting 2022, central banks continued to buy gold in the first quarter of 2023, setting a new Q1 record. 

Overall, global central bank gold reserves increased by 228 tons through the first three months of 2023. This was 38% higher than the previous first-quarter record set in 2013. 

Total central bank gold buying in 2022 came in at 1,136 tons. It was the highest level of net purchases on record dating back to 1950, including since the suspension of dollar convertibility into gold in 1971. It was the 13th straight year of net central bank gold purchases.  

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Update #1: Central banks are boosting stockpiles of gold in their reserves amid a backlash against the dollar (Insider)  

Update #2: Central Bank Gold Buying Off To A Record-Breaking Start In 2023, Led By Singapore (Zero Hedge)  

WNU Editor: You have to wonder what do the Central Bankers know that we do not.

Why Are Central Banks Buying Vast Quantities Of Gold?

Ingots of 99.99 percent pure gold are placed in a workroom at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, January 31, 2023. Alexander Manzyuk, Reuters 

CNBC: Gold demand surged to an 11-year high in 2022 on ‘colossal’ central bank buying 

* Annual gold demand jumped 18% to 4,741 tons (excluding over-the-counter or OTC trading) across the year. 

* That’s the largest annual figure since 2011, fueled by record fourth-quarter demand of 1,337 tons. 

* Key to the surge was a 55-year high of 1,136 tons bought by central banks across the year. 

Gold demand soared to an 11-year high in 2022 on the back of “colossal central bank purchases, aided by vigorous retail investor buying,” according to the World Gold Council. 

Annual gold demand jumped 18% to 4,741 tons (excluding over-the-counter or OTC trading) across the year, the largest annual figure since 2011, fueled by record fourth-quarter demand of 1,337 tons. 

Key to the surge was a 55-year high of 1,136 tons bought by central banks across the year, the industry-backed group revealed, noting that the majority of these purchases were “unreported.” 

This marked a 152% increase from 2021, when central banks bought just 450 tons of gold, and the World Gold Council attributed the spike to geopolitical uncertainty and high inflation. 

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Update #1: Central banks bought the most gold since 1967 last year, WGC says (Reuters)  

Update #2: Why is central bank gold buying at 55-year highs? (Kitco)  

WNU Editor: What do they know that they are not telling us.

Global Central Banks Are Buying Gold In Record Amounts

FILE PHOTO: German Bundesbank President Nagel in Frankfurt © Reuters/HEIKO BECKER 

Reuters: Record central bank buying lifts global gold demand, WGC says 

LONDON (Reuters) - Central banks bought a record 399 tonnes of gold worth around $20 billion in the third quarter of 2022, helping to lift global demand for the metal, the World Gold Council (WGC) said on Tuesday. 

Demand for gold was also strong from jewellers and buyers of gold bars and coins, the WGC said in its latest quarterly report, but exchange traded funds (ETFs) storing bullion for investors shrank. 

Gold is typically seen as a safe asset for times of uncertainty or turmoil, but many financial investors sold shares in gold-backed ETFs as interest rates rose and pushed up returns on other assets. 

Offloading of bullion by ETFs helped push gold prices down 8% in the third quarter, but this price fall helped stimulate demand for jewellery, the WGC said.  

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Update #1: Central banks haven't bought this much gold since 1967 (Quartz)  

Update #2: Central banks buy record amount of gold in Q3 and large chunks are from unknown buyers (Kitco News)  

WNU Editor: This massive buying makes one wonder on what do the Central Banks know that they are not telling us?

G7 To Ban Imports Of Russian Gold

The United States has imposed unprecedented costs on Putin to deny him the revenue he needs to fund his war against Ukraine.

Together, the G7 will announce that we will ban the import of Russian gold, a major export that rakes in tens of billions of dollars for Russia.

— President Biden (@POTUS) June 26, 2022

CNBC: G-7 nations to announce import ban on Russian gold as Moscow sanctions widen 

* As the leaders met in Munich, Germany, for the latest G-7 summit, U.S. President Joe Biden took to Twitter to confirm earlier reports of an imminent ban. 

* “Together, the G7 will announce that we will ban the import of Russian gold, a major export that rakes in tens of billions of dollars for Russia,” he said. 

The leaders of the G-7 nations will announce a ban on Russian gold imports for Moscow’s unprovoked invasion of Ukraine, U.S. President Joe Biden confirmed on Sunday morning. 

As the leaders met in Munich, Germany, for the latest G-7 summit, Biden took to Twitter to confirm earlier reports of an imminent ban. 

“The United States has imposed unprecedented costs on Putin to deny him the revenue he needs to fund his war against Ukraine,” he said early Sunday. “Together, the G7 will announce that we will ban the import of Russian gold, a major export that rakes in tens of billions of dollars for Russia.”  

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WNU Editor: Russia will still be able to sell their gold, and at current global prices.

G7 To Ban Imports Of Russian Gold  

All that glitters won’t be sold: G7 bans Russian gold -- Politico  

Four G7 Powers Impose Gold Export Ban on Russia -- Msocow Times/AFP  

Biden: G-7 to ban Russian gold in response to Ukraine war -- AP 

Biden says G7 will ban Russian gold imports -- The Hill  

G7 leaders to ban imports of Russian gold -- Axios Biden, G-7 Will Ban Russian Gold Imports -- Zero Hedge

Mali And The Emirates Are Helping Venezuela Sell Its Gold Reserves

FILE PHOTO: Venezuela's President Nicolas Maduro touches a gold bar as he speaks during a meeting with the ministers responsible for the economic sector at Miraflores Palace in Caracas, Venezuela March 22, 2018. REUTERS/Marco Bello 

Reuters: Mali, Emirates facilitated Venezuelan gold trade in 2020, opposition says 

CARACAS (Reuters) - Venezuela sent gold to Mali in 2020 via Russian-owned planes to exchange for euros and U.S. dollars that President Nicolas Maduro’s government used to remain afloat despite U.S. sanctions, an opposition representative said on Wednesday. 

Julio Borges, designated by opposition leader Juan Guaido as his chief overseas envoy, told reporters that the gold was refined in Mali and then resold primarily in the United Arab Emirates (UAE) to allow for Maduro’s administration to obtain the equivalent of at least $1 billion in euros in particular. 

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WNU Editor: The gold reserves are dropping fast .... Venezuela gold reserves drop to new five-decade low as withdrawals accelerate (Reuters).

Massive Global Demand For Silver And Gold Coins

FILE PHOTO: A quality control agent examines a 2013 enhanced silver eagle silver coin at the United States West Point Mint facility in West Point, New York June 5, 2013. REUTERS/Shannon Stapleton 

Reuters: Gold, silver coin demand surging, straining U.S. Mint's capacity 

NEW YORK (Reuters) - The United States Mint said on Tuesday it was unable to meet surging demand for its gold and silver bullion coins in 2020 and through January, due partly to pandemic-driven demand and plant capacity issues. 

Sales of U.S. gold bullion coins rose 258% in 2020 while silver coin demand was up 28%, the U.S. Mint said Tuesday. Heavy buying has continued in 2021, it said, squeezing supplies, which had already been tight as the coronavirus affected production. 

A social media-driven buying spree lifted silver futures to an eight-year high on Monday, but dealers in the market for coins were already grappling with a supply shortage and shipping delays before that rally. 

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WNU Editor: I am very bullish on silver. Silver is the best conductor for electricity among the noble elements, and with the Biden administration now ready to spend trillions on expanding the green economy, silver will be playing a critical part in this growth. 

As for gold. The best hedge against economic chaos and financial collapse.

Gold Prices Surge To Record High

Gold prices are also being pushed higher by aggressive monetary stimulus measures adopted by many central banks around the world since the pandemic plunged the global economy into a recession [File: Andreas Gebert/Bloomberg]

NBC: Gold prices surge to record high amid coronavirus worries, U.S.-China tensions

The new spot gold price eclipses the previous record high price, set in September 2011.

The price of gold has hit a record high, reaching $1,943 an ounce, as worries over issues such as the coronavirus pandemic as well as U.S.-China tensions weighed on investor sentiment.

The spot gold price eclipses the previous record high price set in September 2011.

“While we think gold will continue to be supported by rising geopolitical tensions, in our view the primary drivers of the gold price are its negative correlation to real interest rates and the dollar,” UBS chief investment officer Mark Haefele told clients Monday.

The moves in prices of the precious metal came as tensions have been heating up between Washington and Beijing. China announced on Friday that it ordered the United States to shut its consulate in Chengdu, following the U.S. demanding the closure of the Chinese consulate in Houston.

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Update #1: Gold hits record, equities edge higher on stimulus hopes (Reuters)
Update #2: Gold price hits record high amid fears over coronavirus crisis (The Guardian)

WNU Editor: When you look at the money that is being printed and/or borrowed. Cities going bankrupt. Mass unemployment. Looming record-breaking bankruptcies. A massive pension crisis just around the corner. It is not a surprise that people are rushing to safe havens. In my case I have been buying silver since the start of the pandemic.

Gold Market Rocked By Massive China Counterfeiting Scandal Involving 83 Tons Of Fake Gold Bars

Zero Hedge: 83 Tons Of Fake Gold Bars: Gold Market Rocked By Massive China Counterfeiting Scandal

Over the years, we have periodically reported of the occasional gold bar discovered as counterfeit in Manhattan's Diamond District which instead of containing the yellow precious metal would be filled with gold-plated tungsten or in some cases copper. The news would spark a brief wave of outrage, prompting physical gold holders to run ultrasound spot checks of their inventory, at which point interest would wane and why not: buyer, after all, beware in gold as in every other market, and if someone is spending thousands to buy fake gold, well that's Darwinism in action.

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WNU Editor: That is a lot of fake gold. But China is not the only country facing this problem. Even in Canada there has been cases like this one .... Fake gold not ours, mint says (CBC).

Billions In Gold Are Being Smuggled Out Of Africa Each Year

Gold from West Africa — gold-marketplace.com

Reuters: Exclusive: Gold worth billions smuggled out of Africa

NAIROBI, (Reuters) - Billions of dollars’ worth of gold is being smuggled out of Africa every year through the United Arab Emirates in the Middle East – a gateway to markets in Europe, the United States and beyond – a Reuters analysis has found.

Customs data shows that the UAE imported $15.1 billion worth of gold from Africa in 2016, more than any other country and up from $1.3 billion in 2006. The total weight was 446 tonnes, in varying degrees of purity – up from 67 tonnes in 2006.

Much of the gold was not recorded in the exports of African states. Five trade economists interviewed by Reuters said this indicates large amounts of gold are leaving Africa with no taxes being paid to the states that produce them.

Previous reports and studies have highlighted the black-market trade in gold mined by people, including children, who have no ties to big business, and dig or pan for it with little official oversight. No-one can put an exact figure on the total value that is leaving Africa. But the Reuters analysis gives an estimate of the scale.

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WNU Editor: The environmental impact from these illegal mining operations must be devastating.

Russia Is Hoarding Gold

Byron King, The Daily Reckoning: Russia is hoarding gold at an alarming pace

Last weekend, CBS News broadcast a segment on 60 Minutes, titled “Risk of Nuclear Attack Rises.” The story described how new geopolitical tensions between Russia and the U.S. are rekindling the old Cold War. Both sides are increasing their respective nuclear readiness postures.

The 60 Minutes piece was sobering. It showed eye-catching imagery of B-52 bombers and ballistic missile submarines, along with informed narration by veteran defense reporter David Martin. It also included rare interviews with senior U.S. military officers who run the nuclear complex. All in all, the segment was well produced.

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WNU Editor: Everyone that I know in Russia .... family, friends, business associates, contacts, etc. has a stash of gold somewhere. Even when the Communists were power .... the Kremlin's love affair with gold never ended. My prediction .... Moscow will continue to buy gold as long as the price stays where it is.

This Is Where China Will Be Putting Its Gold

Zero Hedge: China's Largest Bank Is Mystery Buyer Of Massive 1,500 Ton Gold Vault In London

Back in June 2013, when Deutsche Bank opened a gold vault in Singapore which could hold up to 200 metric tons, the German bank was euphoric about the prospects for storing physical gold: "Gold has traditionally been stored in London, Zurich and New York, but there is a serious shift in dynamics going on as the global financial crisis continues to evolve," Mark Smallwood, Deutsche Asset & Wealth Management's head of wealth planning in the Asia-Pacific region, told The Wall Street Journal.

This is what the outside, and inside, of the state of the art Singapore vault looked like:

WNU Editor: London and Singapore .... but not Beijing or Shanghai. It makes you wonder on why they want to keep it outside of China.

Is Gold Facing A 6,000 Year Bubble?

Swiss Set For Gold Vote Amid '6,000-Year Bubble' Warning -- CNBC

With Switzerland edging toward an important referendum on its gold holdings, high-profile critics and advocates have added their voices to the argument. Meanwhile, the country's citizens have been quietly increasing their own personal reserves.

On Sunday, voters in the European country will head to the polls to decide whether the Swiss National Bank (SNB) should refrain from selling any more of its gold and instead boost its gold holdings from 7 to 20 percent.

The initiative is being proposed by the ultra-conservative Swiss People's party with the intention of boosting the security and independence of Switzerland. However, the idea has one very notable critic in Willem Buiter, the chief economist at the U.S. investment bank Citi, who has deemed the commodity to be in a 6,000-year bubble.

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My Comment: A 6,000 year bubble .... I doubt it .... and no surprise .... the trend continues to grow of countries demanding their gold holdings be transferred from the U.S. back to their own country's vaults .... Swiss, French call to bring home gold reserves as Dutch move 122 tons out of US (RT).

Update: This is priceless .... Kyle Bass Un-Edited: "Buying Gold Is Just Buying A Put Against The Idiocy Of The Political Cycle. It's That Simple!" (Zero Hedge).

Ukraine Now Admits That Its Gold Is Gone

21st Century Wire

Ukraine Admits Its Gold Is Gone: "There Is Almost No Gold Left In The Central Bank Vault" -- Zero Hedge

Back in March, at a time when the IMF reported that Ukraine's official gold holdings as of the end of February, so just as the State Department-facilitated coup against former president Victor Yanukovich was concluding, amounted to 42.3 tonnes or 8% of reserves...

... we reported of a strange incident that took place just after the Ukraine presidential coup, namely that according to at least one source, "in a mysterious operation under the cover of night, Ukraine's gold reserves were promptly loaded onboard an unmarked plane, which subsequently took the gold to the US." To wit:

Tonight, around at 2:00 am, an unregistered transport plane took off took off from Boryspil airport. According to Boryspil staff, prior to the plane's appearance, four trucks and two cargo minibuses arrived at the airport all with their license plates missing. Fifteen people in black uniforms, masks and body armor stepped out, some armed with machine guns. These people loaded the plane with more than forty heavy boxes.

After this, several mysterious men arrived and also entered the plane. The loading was carried out in a hurry. After unloading, the plateless cars immediately left the runway, and the plane took off on an emergency basis.

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My Comment: I have two friends who are in the Ukraine parliament .... and I asked both of them during the summer if the following report was true .... The Latest Heist: US Quietly Snatches the Ukraine’s Gold Reserves (21st Century Wire).

I am still waiting for an answer .... but Zero Hedge has probably answered it.

Moscow Stockpiles Gold As Russia Prepares For Economic War

An employee holds an ingot of gold at the precious metals safe vault of the Central Bank in Moscow January 24, 2011. Credit: Reuters/Sergei Karpukhin

Putin Stockpiles Gold As Russia Prepares For Economic War -- The Telegraph

Russia's central bank added to its reserves of bullion in the third quarter, according to the latest report from the World Gold Council

Russia has taken advantage of lower gold prices to pack the vaults of its central bank with bullion as it prepares for the possibility of a long, drawn-out economic war with the West.

The latest research from the World Gold Council reveals that the Kremlin snapped up 55 tonnes of the precious metal - far more than any other nation - in the three months to the end of September as prices began to weaken.

Vladimir Putin's government is understood to be hoarding vast quantities of gold, having tripled stocks to around 1,150 tonnes in the last decade. These reserves could provide the Kremlin with vital firepower to try and offset the sharp declines in the rouble.

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More News On Russia Stockpiling Of Gold

Putin "Prepares For Economic War", Buys Whopping 55 Tonnes Of Gold In Q3 -- Zero Hedge
Russia stockpiles gold to prop up Central Bank -- UPI
Exclusive: Russian central bank buys up domestic gold output as sanctions bite -- Reuters
Russia Invests In Gold, Buys 55 Metric Tons To Brace Central Bank -- IBTimes
Russia's Gold Rush: Putin Orders Gold Reserve Buying Spree To Beat Western Sanctions -- IBTimes
Russia Buys Most Gold for Reserves Since Financial Crisis of ’98 -- Bloomberg
What’s Driving Russia’s Gold Buying Spree (Video) -- Epoch Times
Putin Is the Biggest Gold Bug -- Bloomberg

Why Are The Gold Bugs Fleeing The U.S.?

U.S. Exports A Record Amount Of Gold To Hong Kong In January -- Zero Hedge

The figures are out and it looks like the United States exported a record amount of gold to Hong Kong in January. Not only was this a one month record… it was a WHOPPER indeed.

Last year, the U.S. exported a total of 215 metric tons of gold bullion to Hong Kong. This was not the total amount of gold exported to Hong Kong as some smaller quantities of Dore’ and precipitates made their way into the country as well.

However, Hong Kong received more gold than any other country… Switzerland came in second at 150 metric tons. The table below shows the breakdown in U.S. Gold Bullion exports in 2013:

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My Comment: I always follow the gold markets not because I am an investor (I am not), but because the flow of where gold is going to (and leaving) has always been a good indicator to me on future political/economic/national security trends. In this case .... everyone is bailing out of the U.S. .... especially now. What do the people with enormous amounts of money know that everyone else does not know (yet) .... that is an answer that I am always looking for.

Hoarding Gold Has Always Been A Predictor For Troubling Times. So Who Is Hoarding It Now?

Top 10 Nations Stockpiling Gold -- USA Today

Discussions involving gold hoarders tend to generate images of the stereotypical nervous Nellie hiding out somewhere in the wilderness. Uncivilized and irrational, they count their so-called barbaric stacks of gold, which are located next to a lifetime supply of canned goods. While this portrayal may be amusing, the biggest hoarders of gold are some of the most advanced nations in the world.

Last year, global gold demand reached 3,756.1 tonnes or metric "tons" -- nearly 3.8 million kilograms, or 8.3 million pounds. That amount is valued at $170 billion, according to the World Gold Council. Demand was down from the prior year due to heavy outflows in exchange-traded funds and similar products, but bar and coin demand surged 28% year-over-year as investors still had an appetite for hard assets.

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My Comment: The above video provides an incredible look at the Bank of England's gold vault.

The Booming Business Of 'Conflict Gold'

Confidential Papers Raise Fears Over Conflict Gold -- The Guardian

Papers show firm accepted gold from customers walking in off the street with no paperwork

Hundreds of millions of dollars worth of suspect gold has poured into the global markets as major breaches occurred in new international rules designed to tackle an underground trade linked to African warlords and human rights abuses.

Confidential papers shown to the Guardian by a whistleblower detail how, in 2012, one of the world's biggest gold refineries ignored guidelines designed to stop the trade in so-called conflict gold.

It paid more than $5bn (£3bn) in cash for the metal and accepted gold from more than 1,000 customers who walked in off the street with no paperwork.

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More News On The Rise Of 'Conflict Gold'

Dubai Refiner Kaloti Group Bought $5bn of Conflict Gold, States E&Y Whistleblower -- IBTimes
Gold market breaches 'covered up' -- BBC
Kaloti Case Lifts Curtain on Dubai Gold Trade -- Wall Street Journal
Dubai gold refinery paid '$5bn in cash and dealt with Congo' -- The Week
Dubai refiner responds to conflict gold charges -- Mining.com
Dubai refiner Kaloti denies report over gold-sourcing compliance -- The National
Kaloti Jewellery Fixed Shortfalls in Conflict Gold Audit -- Bloomberg
Gold: Africa's Top Conflict Mineral -- 3blmedia

India And Iran Ditch The Dollar

Gold For Oil: India And Iran Ditch Dollar – Report -- Forex Crunch

According to a new and yet unconfirmed report, India bought oil from Iran using gold. India certainly has the gold resources to fund the oil, while Iran is under pressure by the West, due the continuation of its nuclear program.

There were reports that officials have been floating this idea for some time, and now, as the EU finally decided upon an oil embargo on Iran, more details became available, yet still pend confirmation.

Oil is priced in US dollars, and bypassing the greenback posed challenges for both parties. Two banks are reportedly involved in this deal: India’s state owned UCO Bank and Turkey’s state owned Halkbank.

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My Comment: If this report is true .... expect gold to continue it's appreciation in value. This development also tells me that sanctions are working .... that Iran must now go through drastic (and expensive) alternatives to market and sell it's oil.

So Gold Is Not Money

Bernanke Fights Ron Paul In Congress: ‘Gold Isn’t Money’ -- Forbes

Chairman Ben Bernanke faced-off with Fed-hating Representative Ron Paul during his monetary policy report to Congress on Wednesday. The head of the Fed was forced to respond to accusations of enriching already rich corporations while failing to help Main Street, while he was pushed on his views on gold. “Gold isn’t money,” Bernanke said.

While most of Bernanke’s reports to Congress serve politicians to pursue their own agendas by gearing the Chairman towards their issues, with Republican Rep. Bacchus talking of the unsustainability of Medicaid and Rep. Frank (D, Mass.) asking about the need to raise the debt limit without cutting spending, it was a stand-off between Bernanke and Ron Paul that took all the attention.

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My Comment: Gold is what saved my grandparents during the Russian revolution, so I do have an appreciation on what is the value of gold. So while I know this post has nothing to do with defense related issues, wars or conflicts ..... I do get perturbed that when you an have important U.S. government official such as Bernanke is completely ignorant on the value and importance of gold .... I cannot help but wonder what else he is ignorant about.

And yes .... gold is money.

Update: Look who is calling Bernanke a hooligan and U.S. monetary policy a disaster.

Forget About Blood Diamonds. It Is Blood Gold That Is Financing Rebel Groups In The Congo

The Gold Trade in East Congo
Click Image To Enlarge
Image from P. Scott Cummins

Congo Gold 'Still Funding' Rebels -- The BBC News

Sanction busters are smuggling 40 tonnes of gold annually out of the Democratic Republic of Congo, a United Nations official has told the BBC.

Dino Mahtani said most of the gold was controlled by rebel groups who use the proceeds to buy arms.

Mr Mahtani, who is due to report to a meeting of the UN Security Council this week, said: "This money helps sustain them [the armed groups] in the field."

Most gold is shipped to Dubai via a neighbouring state, he added.

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Previous Post from the BBC: FDLR Inc: Congo’s multinational rebels

Previous Post (2005) from P. Scott Cummins: How Instability Benefits Museveni -- P. Scott Cummings

My Comment: This trade cannot be controlled. Gold is gold, and with the financial and economic crisis continuing, the value and importance of gold will only increase with time.