Russia has increased its gold holdings by 7.247 tonnes to 1,042 tonnes in February. Turkey and Kazakhstan also raised their bullion reserves, data from the International Monetary Fund showed today. Turkey’s gold holdings rose 9.292 tonnes to 497.869 tonnes, the data showed.
China launched two gold-backed Exchange-Traded Funds in Shanghai on Monday, a vital role in the opening-up of the country’s gold market, said analysts.
Continued innovation in the range of gold investment products available across a range of countries including gold accumulation plans in China confirms the healthy appetite for gold among investors, said Yang Yijun, chief analyst with Wellxin.com, a precious metals consultancy.
Russia continues its gold buying spree, adding 0.3 tonnes to its 996.4 tonne stockpile, marking a nine month increase, according to the IMF’s June statistics report.
Russia’s Central Asian neighbors followed suit in June- Kazakhstan boosted reserves by 1.4 tonnes to a total of 130.9, Azerbaijan added 2 tonnes for a total of 8 tonnes, and Kyrgzstan, which bought less than 0.1 tonnes to total 3.3 tonnes. Ukraine, Greece, Belarus and Bulgaria also added small amounts to their gold reserves.
While Eurobonds have survived everything from the Cold War to the worst financial crisis since the Great Depression the 82-year-old retired trader said he is “very, very bearish about what is going to happen in the very near future,” to the world economy. In part because of the printing of money by world central banks to stimulate their economies, he said.
“Within a year you will see gold at twice the price it is now,” Ross said.
Another Western financial institution opens gold vault in Singapore.
Switzerland’s biggest bank, started storing gold for wealth-management clients at a facility in Singapore, citing interest from investors in the region even after the metal slumped into a bear market.
UBS joins Deutsche Bank AG and JPMorgan Chase & Co. in offering storage services in Asia, where China may surpass India as the largest user this year. Bullion fell to a 34-month low on June 28 in a rout that’s erased $66 billion from the value of investor holdings. Goldman Sachs Group Inc. forecasts further declines as the U.S. Federal Reserve may withdraw stimulus.
Day by day physical gold is being emancipated from paper gold.
Precious Metals Exchange (SGPMX) has launched the world’s first physical precious metals exchange with peer-to-peer bullion trading capabilities integrated into the trading platform in Singapore on Wednesday, amid Singapore’s drive to encourage gold trading in the country.
The exchange allows traders to buy and sell precious metals securely and conveniently, supporting real-time transactions with internationally recognised mints. This addresses private investors’ issues with liquidity, and also eliminates the costs of assaying precious metals when traders purchase or sell the holdings.
“SINGAPORE — Deutsche Bank is opening a vault in Singapore that can hold $9 billion of gold, as it hopes to tap rising demand for the precious metal in Asia amid a push by the city-state to burnish its image as a bullion-trading hub.
Singapore last year scrapped a goods-and-services tax on gold in a bid to help boost its share of global gold demand to 10%-15% within a decade from around 2% in 2012 as it seeks to compete with more established bullion-trading centers.”
The spirit of Charles De Gaulle is alive and well in Germany.
Much of the German gold, the second largest national reserves in the world, is held in New York, London and Paris. Now there is a campaign under way in Germany to bring the metal back home — and it is gathering strength all the time.
In one of the most bullish gold calls since the Federal Reserve announced a new round of easing last week, one strategist sees a 36 percent jump in the metal’s price to $2,400 an ounce, by the end of 2014.
“The combination of open-ended MBS purchases and the possibility of additional Treasury bond purchases starting in December could further lift gold prices by adding over $2 trillion to the Fed’s balance sheet over the next two years,” explained Blanch in his report entitled “Gold Under QE-Infiniti.”
* Turkey’s gold exports to Iran at nine tonnes in March
* Exports of $480 million highest since records from 2010
* Iranians turn to gold for trade and savings
By Behiye Taner
ISTANBUL, May 17 (Reuters) – Turkish gold sales to Iran in March soared over 30 times and gold companies said Iranians were turning to gold for savings and possibly trade as Western sanctions tighten.
Sanctions to force Iran to curb its nuclear programme have targeted its energy and banking sectors and new measures from both the United States and European Union take effect in July, aimed at strangling Tehran’s foreign earnings.
The sanctions have made neighbouring Turkey an ever more important channel for the Islamic republic.
Data from Turkey’s Statistics Institute on Thursday showed gold exports to Iran rose to nine tonnes, worth $480 million, in March, from 286 kg a year earlier and compared to just 30 kg in February this year.
They were the highest monthly exports to Iran since records started in 2010. Total gold exports were 11.1 tonnes in March.
“It wouldn’t be wrong to say Iran chooses Turkey for gold imports because of embargoes,” said Gokhan Aksu, vice chairman of Istanbul Gold Refinery, one of Turkey’s biggest gold firms.
“Iranians prefer jewels and precious stones to protect the value of their money and escape instability,” he told Reuters.
Turkey’s trade with Iran is politically sensitive and one gold company official, speaking on condition of anonymity, said gold could also be in use for trade as sanctions made regular currency transactions harder.
“Some payments may be made in gold because of problems in transferring money to Iran,” he said. “For the most part, I think gold may be replacing money transfers in trade with Iran.”
Turkey has become an increasingly important gold producer over the last 12 years, producing 25 tonnes last year. It imported about 80 tonnes last year, but most was for re-export to unstable neighbours which also include Syria and Iraq, one gold company executive said.
Iran’s annual gold consumption was put at 300 tonnes by the head of its gold and jewellery association, according to a report from state news agency IRNA in February, but the lack of official data makes it hard to gauge.
Dubai is also an important centre for Iranian gold buyers.
Uncertainty in Iran has taken its toll on the rial currency, which fell as low as 19,000 to the dollar in late March from 12,000 in mid-2011 before recovering to 16,000 after Iran re-entered talks with world powers.
“It’s natural that savings are made in gold in Iran,” said Ozgur Altug, chief economist at BGC Partners in Istanbul.
Talks between Iran and world powers resume in Baghdad on May 23. Western countries suspect Iran is trying to enrich uranium to build atomic bombs. Iran says its nuclear programme has only peaceful ends.
The U.S. Senate was due to consider a new package of sanctions on Thursday. In another indication of the impact of sanctions, petrochemical exports have plunged 90 percent in the last two weeks.