Currency Wars – Russia and Netherlands Central Banks Buy 30.34 Tonnes Gold In December

by Research Team, Gold Core Russia and surprisingly the Netherlands were the largest central bank buyers in December – accumulating a significant 30.34 tonnes between them as currency wars intensify. Demand for gold as a diversification and monetary asset continues to be very robust and central banks remain net buyers of gold which should be supportive of prices. goldcore_bloomberg_chart1_28-01-15 The Netherlands, which has the ninth-biggest gold reserves, raised its bullion holdings for the first time in 16 years. It added 9.61 tonnes to bring total gold reserves to 622.08 tonnes. Russia raised its gold reserves for a ninth straight month in December as the country continued its multi month gold buying spree, adding to the fifth-biggest gold holdings in the world, data from the IMF showed yesterday. Russia continues to dollar cost average into gold and increased its bullion holdings by another hefty 20.73 tonnes to 1,208.23 tonnes in December. The December figure for Russia, who have the fifth largest reserves in the world, brings their officially stated reserves to 1208.23 tonnes. If this trend were to continue their officially stated reserves would increase 20.6% this year. goldcore_bloomberg_chart2_27-01-15 Given that Russia perceives itself to be under financial and economic attack from the West, there is the possibility that they are accumulating more gold than they are declaring officially to the IMF. This is what the People’s Bank of China (PBOC) has been doing in recent years and there is little reason why Russia may not adopt the Chinese practice of not being transparent in this regard. The Chinese government have been surreptitiously accumulating vast quantities of the metal in recent years and there is no reason to believe this buying will end in the coming months as geopolitical and monetary risks intensify. Western central banks seem to be balking at what will be seen as the disastrous policy of dumping the gold owned by their populations onto the market. The Gold Anti Trust Action Committee (GATA) have documented how this was done in order to suppress gold prices, in a bid to support and maintain faith in the dollar as reserve currency. Already there are strong movements across Europe to have sovereign gold stored domestically. The German and Dutch central banks have recently reported the repatriation of large volumes of their gold being held by central banks of foreign nations. It is worth bearing in mind that both these countries are on the record as having drawn up contingency plans in the event of the failure of the Euro. The Netherlands added 9.61 tonnes to it’s official holdings in December, on top of the 122 tonnes of gold they shipped home from New York in November. This represents the first increase in their official reserves since 1998. The Dutch central bank’s holdings have been unchanged since late 2008. This further undermines the notion that the gold repatriation was simply a “routine measure to instill public confidence in the ability of the central bank to manage crises.” It would appear the Dutch central bank has greater concerns than public confidence and may be actively preparing for the fall out from the ECB’s QE programme – a programme to which they were opposed – and or a default by Greece, Spain, Portugal or Italy. Continue Reading>>>

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