gold reserves

China Gold Demand Soars

China Gold Demand Soars

The Chinese saw the writing on the wall over a decade ago. They realized the ultimate fate of the U.S. dollar and the fiat currency system. So in 2003, the government of China began an aggressive campaign to secure resources of gold. They began by increasing the country’s gold reserves. Since that time, the People’s Bank of China has added 21.2 million ounces to the country’s gold holdings. China now has the fifth largest national gold reserve, with over 1,054 tonnes in reserves. While boosting reserves, the Chinese government also began to deregulate the gold mining industry and invite foreign investment for the development of domestic resources. The measures were a runaway success; China is now the world’s largest gold producer with output increasing 70% in the past decade. Chinese government even began encouraging its 1.3 billion citizens to own gold. And today, the country has become the second-largest consumer of gold in the world. The government’s efforts to stimulate and expand the domestic gold market has been highly successful. Chinese citizens have embraced gold as true wealth in all economic seasons. And now new concerns over the future of the U.S. dollar and domestic inflation has prompted the Chinese to recently begin acquiring gold on a epic scale. China’s gold imports to jump 457% this year The Shanghai Gold Exchange recently revealed China’s gold imports jumped almost fivefold in the first 10 months of this year. And even though China is the world’s #1 producer, the country is expected to import 9.2 million ounces of gold this year as inflation concerns lifts investment demand. Consumer prices in China rose 4.4% in October— the fastest pace in two years — and above the government’s full-year target of 3.0%. The People’s Bank…

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What’s the US Gold Stash Game Plan Anyway?

Filed in commodities, economy, Gold, Gold Prices, gold reserves, US Gold by on October 27, 2010 0 Comments

In November’s new issue of The Atlantic, James Picerno poses the question of why, given such lean times, “is $300 billion worth of government treasure simply sitting in vaults?” He’s referring to the US stash of gold reserves. Although there are a number of good reasons for the status, it’s interesting to consider what reasons What’s the US Gold Stash Game Plan Anyway? originally appeared in the Daily Reckoning . The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today’s markets. Its been called “the most entertaining read of the day.”

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More Reasons Gold Is Going to $2,000

More Reasons Gold Is Going to $2,000

The biggest holder of U.S. Treasuries isn’t happy. And why should they be? They’re sitting on the sidelines holding US treasuries worth $797 billion. That’s quite a chunk of change. Of course I’m talking about China. The Chinese have been the biggest foreign creditor to the United States and in recent statements they’ve made it clear that Washington needs to maintain the value of the dollar. “We have made a huge amount of loans to the United States. Of course we are concerned about the safety of our assets. To be honest, I’m a little bit worried,” said Chinese Premier Wen Jiabao. It’s estimated that around 50% of China’s total reserves are held in US treasuries. And they know that the reserve currency they hold is depreciated with each passing day. With so much riding on the price of the dollar you can bet that Beijing has been keep a close tally on America’s spending — and the results can’t be pleasing. To say the least, Chinese faith in the dollar is feigning. And I’ll give you one guess as to where they are going to spend their $797 billion nest egg… Gold! Right now China is 6th on the list of world gold holdings with around 1,000 tonnes of gold reserves. Not bad right? Wrong. When you look closer at the statistics you can see that China has a mere 1.9% of its total reserve holdings in gold. Compare that to the U.S. with 77% and you’ll start to see China’s future motivation. China is in the market for a reserve currency that’s stable. And when it comes to stability nothing glitters like gold. Need proof? Look no further than another developing world powerhouse… India. Recently India made a bold move to start protecting itself from the U.S. dollar and fiat currencies in general… News broke that India made a huge gold purchase from the IMF — somewhere in the neighborhood of 200 tonnes. Previously, the government of India held 350 tonnes of gold reserves. This 200 tonne purchase is a 57% increase …

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Gold Sales Stopped at EU Central Banks

Filed in Bank Gold, euro, Gold, Gold Prices, gold reserves, gold-sales, silver by on September 27, 2010 0 Comments

In adherence to the guidelines of the Central Bank Gold Agreement of Europe, in addition to Switzerland and Sweden, central banks in the region will stop selling gold reserves. That will put an end to over ten years of selling the gold by the banks. The CBGA puts a cap on collective sales by the banks. This could provide even more support to gold, which already enjoys strong support, and is

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Top Five Russian Gold Stocks

Top Five Russian Gold Stocks

Russia is very rich in natural resources. Some estimates suggest that the total value of Russia’s natural resources exceed $200 trillion. So it’s no surprise that Russia is one of the world’s leading suppliers of gold. Russia is currently the world’s sixth-largest gold producing country with 11% of the world’s unmined gold reserves. But considering the country’s massive land expanse that covers 11 timezones, many geologists consider Russia to be the single largest unexplored gold region in the world, with large deposits only recently being discovered. Russia is the world’s top energy supplier. The country is the global leader in both crude oil and natural gas production. Russia is also the third-largest exporter of black coal, recently inking a deal to supply 475 tonnes of coal to China over the next 25 years . Estimates widely vary, but geologists estimate Russia to hold between 25% and 40% of the world’s unmined gold resources. Russia’s gold industry is highly fractured, with over 600 companies (half private) working in the sector. The country has increased total gold production 38% since the collapse of the Soviet Union in 1991. This year, Russia expects to increase gold production slightly to 6.6 million ounces. After that, experts predict the country will increase output to 7.9 million ounces by 2015. The development of large gold projects held by companies such as Kinross Gold (NYSE: KGC ) and Polyus Gold (OTCBB: OPYGY ) are projected to the main contributor to the increase in Russia gold production. Below you’ll find the top five public-traded Russian gold companies by production volume: Rank Company Exchange: Symbol Share Price Market Cap Annual Russia Gold Production Percent of Company Production Percent of Russian Production 1 Polyus Gold OTCBB: OPYGY US$26.00 US$9.9 Billion 1.26 million ounces 100% 19% 2 Kinross Gold NYSE: KGC US$16.50 US$11.6 Billion 694,000 ounces 31% 11% 3 Petropavlovsk LSE: POG 11.50 2.2 Billion 487,000 ounces 100% 7% 4 Polymetal LSE: PMTL 14.00 5.6 Billion 311,000 ounces 100% 5% 5 High River Gold Mines TSX: HRG C$1.00 C$800 Million 236,000 ounces 70% 4% Most accessible to North American investors Figures from 2009 In my most recent report for Wealth Daily , I go into much more detail about Russia’s metals and mining industry and tell you how I think the best approach to investing in the country’s gold sector. You can read my report called The Definitive Guide to Russian Gold Stocks by simply clicking here . Good Investing, Luke Burgess Editor, Wealth Daily Investment Director, Hard Money Millionaire and Underground Profits Top Five Russian Gold Stocks originally appeared in Wealth Daily . Wealth Daily is a free daily newsletter featuring contrarian investment insights and commentary.

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The Definitive Guide to Russian Gold Stocks

Built on a foundation of an estimated $200 trillion in hard assets… It’s one of the largest and most profitable industry markets in the world. And— if you’re willing to invest a bit outside of North America — there may be some very interesting investment opportunities in Russia’s massive metals and mining industry. In just a minute, I’ll tell you about several of these opportunities; I want to first give you the details of Russia’s gigantic mining sector and resource base. Advertisement The FREE $45,000 report that could make you rich… In 1991, a history-changing report surfaced in the oil industry. The details are too numerous to list right here, but this report— dubbed a best seller by The New York Times — helped uncover an incredible source of oil no one had considered for years. Click here for free access to all the information you need to start banking 180 times your investment. Russia’s $200 trillion natural resource base Russia is exceedingly wealthy in natural energy resources. The country is home to the world’s largest natural gas reserves and eighth-largest crude oil reserves. These resources have enabled Russia to become the world’s largest producer of both oil and natural gas, accounting for about 20% of total global production. Russia also hosts the world’s second-largest reserves of black coal; the country is the third-largest coal exporter contributing around 11% to the global coal trade. The country recently inked a $6 billion deal with China to supply 475 million tonnes of black coal over the next 25 years. Additionally found in Russia are vast reserves of raw industrial materials and non-fuel minerals. This extensive mineral resource base is the foundation for the Russia’s massive metals and mining industry, which is a vital supplier to other…

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India’s Gold Bull Market

India’s Gold Bull Market

Due to a sharp decrease in foreign exchange reserves following the Indo-China War in 1962, the government of India enacted the Gold Control Act. This legislation made the private ownership of gold bullion illegal and created a huge black market for the yellow metal. The Gold Control Act was repealed in 1992 after Indian government needed to sell 40 tonnes of the country’s gold reserves to deal with more forex problems that had the country on the verge of default. What happened next would change the gold market forever… Advertisement The next big play of North America’s Oil Comeback Breakthrough drilling technology has turned an abandoned Alberta oil field into the hottest energy territory in the Western Hemisphere … And one $4-a-share company is positioned for the lion’s share of the spoils. Click here for the on-site proof that 1,239% gains await early investors . How India became the world’s #1 gold consumer Following the repeal of the Gold Control Act, the demand for gold in India began to sharply rise. Indian gold demand immediately shot up 75% in the year after the Gold Control Act was terminated. Overall, gold demand in India increased 174% from 260 tonnes in 1991 to 713 tonnes in 2008. Top 5 Gold Consumers in 2009 India – 480 tonnes China – 428 tonnes USA – 263 tonnes Germany – 134 tonnes Turkey – 107 tonnes Total gold demand in India fell 33% last year as global consumer spending dried up in the face of the worldwide financial recession. Nevertheless, India is still the world’s largest consumer of gold in terms of both tonnage and value. Last year, India alone accounted for 20% of the global consumer demand for gold. This includes 24% of global demand for gold jewelry, which is has traditionally been one of India’s strongest markets. The Indian jewelry market is one of the largest in the world, with a market size of $13 billion. It is second only to the U.S. market of $40 billion. Two Key Facts about India’s Gold Markets Half of India’s annual gold consumption is contributed by demand in just four states: Karnataka, Kerala, Tamil Nadu, and Andhra Pradesh. India’s gold market is estimated to have more than 300,000 jewelers – mostly small, family-run businesses. Gold jewelry forms around 80% of the Indian jewelry market. And during the first half of this year, the volume of growth increased 67% to 273 tonnes. In terms of value, gold jewelry demand increased 94% to $10 billion. Indians traditionally invest in gold by buying gold jewelry. But other gold investments— including gold exchange-traded funds (ETFs) — are rapidly gaining in popularity as investors seek a safe haven and become more aware of the benefits of investing in gold in a non-material form as opposed to holding it as jewelry. The eight gold ETFs that trade on the Bombay Stock Exchange have nearly doubled their bullion holdings in the past year to 11 tonnes. The volume of gold for investment in India grew by 264% to 93 tonnes during the first half of 2010. In value terms, Indian gold investments accounted for over $3 billion — an increase of 300%. Overall, total Indian gold demand in terms of tonnage nearly doubled, increasing 94% to 365 tonnes. Worth over $13 billion, the value of India’s gold demand increased 122% during 1H 2010. Indian gold demand in the second half of 2010 is likely to be at least 25% higher. Analysts at China’s National Spot Exchange recently published a report predicting gold imports to …

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Why You Should Buy Gold Before China Does

Filed in euro, gld, Gold, Gold Market, gold reserves, hsbc, New Gold by on August 4, 2010 0 Comments
Why You Should Buy Gold Before China Does

A couple of weeks ago, I told you how to front-run Chinese traders in the energy market. This week, I will show you how to front-run the Chinese in gold. This morning gold spiked in price more than $17 per ounce to again break above $1,200/oz. What was the catalyst? News out of Beijing that the Chinese government was relaxing its rules on who can own the yellow metal… According to the Financial Times: China has moved to liberalize its gold market further, increasing the number of banks allowed to trade bullion internationally and announcing measures that will encourage development of gold-linked investment products. The move by Beijing’s central bank comes as the country’s investors pour record amounts of money into gold, in a trend that is becoming a significant factor on global prices. “This is a positive sign for the gold market,” said James Steel, precious metals strategist at HSBC in New York. “The Chinese statement reaffirms the vigor of the emerging markets’ demand for retail physical bullion.” New gold-linked investment products? Currently gold makes up less than 2% of China’s foreign reserves right now. In fact the exchange-traded fund GLD holds more gold than China does. Take a look at the top 10 owners of gold: As you can see by the above chart, China would have to increase its gold reserves seven-fold to reach the gross tonnage levels of the United States. But on a percentage basis, forget about it. So …

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The World’s Hottest Region for Gold Exploration

The World’s Hottest Region for Gold Exploration

When junior mining companies make a big gold discovery, shareholders often see double- and triple-digit investment gains. Of course, gold is very rare and making a significant discovery isn’t easy. But ask any geologist… The best place to find large deposits of gold is close to where other major deposits have already been discovered. That’s why I’ve recently been looking to invest in a region that many consider one of the best places in the world for gold exploration. Advertisement Breakthroughs Nowhere Near This Big Have Paid Investors Over 10x Gains Our resident biotech expert just came across a tiny company that can make the human immune system 1 000 times more effective against dozens of deadly diseases — including the major cancers: Prostate, lung, breast, cervical, and more… Here’s how their revolutionary “cell-shock” technology could hand you as much as 1000 times your money as it saves tens of millions worldwide. Just 300 miles north of Las Vegas Nevada is one of the largest sources of gold in the world. By itself, the state contributes over 7% of total world gold production, making it the fourth largest producer in the world behind, China, South Africa, and Australia. The majority of Nevada’s vast gold resources is contained in the second largest economic gold anomaly in the world— second only to South Africa — called the Carlin Trend . Ancient geologic forces induced high temperatures and pressure that produced numerous hot springs along an area about 5 miles wide and 40 miles long, known today as the Carlin Trend. These hot springs brought an abundance of dissolved minerals toward the surface; among these minerals was a fortune of gold. In the past two decades alone, over 200 million ounces of gold have been discovered… And over 70 million ounces (worth $84 billion today) were produced from the Carlin Trend. Some of today’s major gold production companies like Barrick Gold (NYSE: ABX ) and Newmont Mining (NYSE: NEM ) directly owe their success to this exceptionally rich belt of gold deposits. Similar gold trends surround the Carlin Trend, where other major multi-billion-dollar gold discoveries have been made: the Battle Mountain-Eureka Trend the Getchell Trend the Independence Group the Alligator Ridge Group In these surrounding trends, world-class multi-million ounce gold deposits…

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The Volatility Continues

So far this week we have witnessed another all-time high( August Globex) of $1254.50 on Tuesday( June 8th )and low of $1212.10 as the global economic and geo-political uncertainties continue to fuel the market volatility. There is certainly huge physical demand world-wide As savvy investors have lost confidence in the fiat currencies and have apparently chosen Gold as a “safer haven” investment. The incredible demand has been the key fundamental that has been driving and maintaining these record levels. After recording record prices earlier this week the gold market struggled between the $1250.00- $1255.00 levels as technical selling and hints that some FOMC members would consider raising interest rates by the end of summer had “bulls” taking profits. Any time the words “higher rates” and ‘FOMC” are used in the same sentence it usually sends Gold south. Bernanke testified in front of the House Budget Committee on Wednesday and the following are some highlights from that committee testimony… – “The Fed will take all necessary steps to aid in the economic recovery” – “The tight credit is restraining commercial real estate” – “Long run inflation expectations have been stable” – “Inflationism is likely to remain subdued” These comments may have been interpreted by investors as indication the Fed may be raising rates sooner than later. We still have 8 Million Americans unemployed and in my opinion that should be priority one! The situation in the European Union continues to be brittle however, there appears to be more stability and less chaos coming out of the region. European Central Bank President Jean-Claude Trichet stated “Inflation pressures are contained over the medium term” and added “The ECB will do what is needed to maintain price stability” … This probably restored some investor confidence and halted some bullion buying… China’s State Administration of Foreign Exchange (China’s Foreign Exchange Regulator)stated that the current” volatility in the Gold market was not suitable for asset allocation”…. This certainly was bearish for Gold considering China is the largest producer and number two consumer of Gold in the world… However, not too long ago China declared they would increase there Gold reserves by 10,000 Mt in the next decade…The regulators may not be willing to speculate in the Gold market but the Citizens of China have developed an insatiable appetite for owning Gold. Jobless Claims dropped by 3,000 to 456,000…this was worse than anticipated as many economists predicted 450,000… Treasury Secretary Timothy Geithner told the Senate Finance Committee “The broad strength of U.S exports to China and the world is one reason why we are seeing strong growth in manufacturing”…. Much of this news mentioned above has been “bearish” for Gold. But as I write August Gold has settled at $1222.20…. The resiliency has been phenomenal….The demand is there… Investors worldwide are watching the Geo-political tensions Between North Korea and South Korea, Israel and the Palestinians, As well as the border clashes on the Iraq/Iran border…. Warring environments are normally ‘ bullish” for Gold as investors choose ” safer havens “especially in oil producing regions… Trade Smart…. Mike Daly / Gold Specialist PFG BEST mdaly@pfgbest.com 877-294-4669 312-563-8029 312-775-3014 *THERE IS EXTREME RISK TRADING FUTURES, OPTIONS, and FOREX*

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How China Will Corner the World’s Gold Supply

This post initially appeared on EnergyandCapital.com June 1st, 2010. With the Eurozone looking about as stable as a burning deepwater oil drilling platform — and the partisan American media propping up President Obama’s jobless domestic “recovery” — the U.S. dollar has seemed to get a temporary stay of execution in the court of global economics… But let’s not allow the buck’s spring bloom to erase the memory that for years now, as the dollar declined against the euro and other currencies, many have been gunning for its replacement as the de facto world reserve currency — and the monetary unit in which oil, gold, and other commodities are priced. In the heat of the dollar’s descent in 2007, our own beloved (not) Alan Greenspan said that it was “absolutely conceivable that the euro will replace the dollar as reserve currency, or will be traded as an equally important reserve currency.” His voice presaged or echoed the sentiments of many important nations, among them well-known dollar-bashers China and Russia — but also to varying degrees India, Iran, Brazil, Venezuela, and others… Advertisement An Airplane Mechanic’s 843% Profit Secret By sheer luck, one working class man from Minnesota discovered a “kickback” strategy that turned his $35K retirement fund into a hefty $295,050 nest egg in a little under 2 years… But now his secret is ours — and our readers have already started to make 100% legal “kickbacks” of as much as 793%, 846%, even 3,475% or more from this reliable strategy. Click here now to learn why we’re no longer keeping this profit trick hush-hush… And let’s not forget that the U.N., IMF, OPEC, and G20 have all recently pondered or publicly called for some form of decoupling of the U.S. dollar from commodities — or its replacement as the gold standard (no pun intended) of world reserve currencies. None of these bode well for the buck. One doesn’t have to be economist, monetary historian, or even an investing ace (I’m none of these, to be sure) to see that nothing about America’s current monetary policy could arrest the dollar’s ultimate decline against other currencies of the world. Even after the Eurozone gets its act together, we’ll still be printing dollars by the truckload, artificially fending off inflation with a bunch of book-cooking hocus pocus — and pressuring (or begging) other nations to underwrite our overspending by purchasing dollar-based debt. That’s not how a strong, stable global reserve currency is maintained. …

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Gold Soars off European Debt Crisis

Thus far this week has provided plenty of fuel for higher Gold prices as the economic climate in the European Union continues to drive savvy investors out of the traditional “fiat currencies” and in to “safer havens “especially gold as it has a history of performing better than most commodities in times of crisis. It has been reported that the European states have increased their already vast amounts of gold reserves and the IMF (International Monetary Fund) reported it had sold 18.5 tons of Gold bullion in March. As of this writing the price of Gold has breached the $1200.00 per ounce level as the U.S Dollar continues to ride twelve month high’s ….yes indeed the inverse relationship appears to de-coupled… This European Union continues to put out contradictory information that is as clear as “mud”. European Central Bank Officials voted Thursday to keep the bank’s key lending rate at 1%. The Euro regions fiscal crisis is threatening the bank’s of Portugal, Spain, Italy, and the United Kingdom. Moody’s Investors Services was quoted as saying “Overall, moody’s notes that each of these countries banking systems faces different challenges of different magnitudes, but warns that contagion risk could dilute these differences and impose very real, common threats on all of them”… European Stocks sold-off for the third straight session sending the STAXX Europe 600 to a two month LOW on the continued concern of the Euro regions fiscal crisis will spread…. European Central Bank President Jean-Claude Trichet Is certainly not calming fears as he has resisted to take a solid stance to combat the Greek crisis. Trichet stated “The ECB didn’t discuss buying government debt today and that Spain and Portugal didn’t have the same challenges faced by Greece”…. Then stated “Greece will not default”….. Trichet also stated that loans to Greece were “appropriate” … The Greek’s took to the streets in protest for the second straight day in reaction to the stringent measures imposed on them in return for the joint financial bail-out package from the IMF and the European Union. This may actually work against the nation of Greece as tourism is a huge part of their economy and the violence will most certainly deter travelers. The number of Americans filing claims for Jobless benefits fell 7,000 to 444,000 in the week ending May 1st. This is the lowest level in a month….Since the recession began in December 2007 Americans have lost 8.4 million jobs. So we certainly have a long way to go! However, it is a step in the right direction and it does show the economy is heading

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