Turkey Leads Central Bank Gold Buying, As China’s Gold Consumption To Double

Central bankers continue to add to their stashes of historical size.  Central banks continue buying gold, as we see, via the World Gold Council that ETFs and India kept Gold demand higher in Q3 of 2012.  The detailed report demonstrates that central banks bought 97.6 tons of Gold purchased, when the average in 6 of the last 7 quarters has been 100 tons. YTD 2012, central bank purchasing is up 9% so far.

It is important to remember that it is not the countries themselves – that is the, government and the people – who are accumulating the metals. Instead, the nations act as a front for a power international organization of bankers who wish to mask the fact that they are in a position to, and are, purchasing stunning amounts of gold. Buy placing the purchasing behind the disguise of nations, bankers are able to lessen the impact of a reality in which the world’s elite are jumping ship onto lifeboats.

Gold buying did not only take place in the historically gold-rooted India, but also in Brazil, which added 1.7 tons of Gold to its holdings in September, despite that, according to The Economist, Brazil’s GDP is on-pace to grow 1.5% in Y 2012 and again by 4.2% in 2013.

Russia purchased 18.7 tons in July and August, and will likely continue to purchase gold so long as more global focus is placed on the Ruble as a potential global currency amid a basket thereof.  Although Russia did sell 2.2 tons in September, the nation has been a net buyer. In Q3, Russia purchased 16.5 tons, and is 8th on the Economist’s nation of nations with the most amount of gold.  The Russian central bank is nearing the 1,000 tons mark, with a current 934.5 tons of gold, making up then 10.1% of its total reserves.

Also a reported net buyer, Kazakhstan added 1.4 tons in July and again in August, as well as 2.4 tons of Gold during Q-3. Kazakhstan was ranked at 33 on the list of nations, with its 104 tons composing 19.7% of its total reserves.  Ukraine has purchased gold every month of the third quarter.  The nation has purchased 4.9 tons in 2012, and some 2.4 tons in Q3.

Paraguay also, added 7.5 tons in July and has overtly stated its policy for hard assets.  9.7% of its reserves, or 8.2 tons, makeup its overall reserves. South Korea added 16 tons in July, but sat August and September on the sidelines. Its 70.4 tons comprises 1.3% of its total reserves.

Turkey added the most amount of gold among nations in Q3 due to a new policy accepting Gold in its reserve requirements from commercial banks. Turkey purchased 44.7 tons in July, 6.6 tons in August and 6.9 tons in September, and has been an overall buyer of size in 2012. Turkey currently has 302.4 tons which is 15.4% of its total reserve.

But, the data of the different front nations holding onto the gold of central bankers can be misleading. While the IMF Standard Data Dissemination Standards call for out on swap to be included in reserves, thus not resulting in reported changes, not all central banks follow these guidelines, and so for some swaps can and do result in a change in reported reserves.  By manipulating the amount of gold each nation has, the world’s central banks are able to orchestrate, to a certain degree, geo-political posturings.

It is interesting to note that small nations are also buying Gold, including, the Kyrgyz Republic added 0.1 ton in July and another 0.1 tons in August. Mongolia, added 0.1 tons in August, and it was listed as trading activity. The Philippines is said to buy locally produced Gold, which it may sell or retain in reserves, but it was also listed as a 0.1-ton gainer, with its purchases coming in August. Serbia added 0.1 ton in July and again in August, for a total of 0.2 ton in Q-3. Taiwan too has been purchasing well under a ton per month on average.

Silver Vigilante

China’s Gold Consumption to be more than double the production of bullion by 2015

Considering China’s is the world’s largest gold producer…and their consumption will be twice their production level what do you think that means for the price of Gold? Gold 10,000…here we come.

From Shanghai Daily…

CHINA’S gold consumption will more than double the production of bullion by 2015, the Ministry of Industry and Information Technology said. But China, the second- biggest consumer in the world after India, will continue to see a wider deficit in gold supply in the country as consumption is set to surpass 1,000 tons in 2015, the ministry said in a statement published on its website yesterday.

Although consumption in India remained above China’s in the first three quarters of the year, the World Gold Council predicts China to become the biggest market this year, according to its quarterly report unveiled this month. Since 2007, China has been the world’s biggest gold producer. It aims to produce between 420 tons and 450 tons of gold in 2015. The country is also the biggest old jewelry producer, taking up about 60 percent of the global production, according to the ministry.

China Money Report