India Will Not Lease Gold Bought From IMF; Russian Gold Holdings Rise

Today’s AM fix was USD 1,360.00, EUR 1,015.38 and GBP 867.29 per ounce. 
Yesterday’s AM fix was USD 1,365.75, EUR 1,020.28 and GBP 871.29 per ounce.

Gold rose $4.70 or 0.34% yesterday, closing at $1,371.30/oz. Silver fell $0.16 or nearly 0.69%, closing at $23. Platinum rose $11.94 or .8% to $1,514.24/oz, while palladium was down $2.57 or .3% to $744.93/oz. 

Premiums on the Shanghai gold exchange are robust at $21 over COMEX spot suggesting robust physical demand. Volumes in China remain high and volumes on Shanghai’s benchmark spot contract climbed to the highest in more than two weeks.


Gold Prices/ Fixes/ Rates / Volumes – (Bloomberg)

Assets in the SPDR, the biggest exchange-traded product, expanded for the fourth time this month which may also be supporting gold.

There continues to be confusion regarding when the U.S. Federal Reserve will begin to curb its radical and highly unorthodox $85 billion debt monetisation programme. 

The Fed’s July minutes are released at 1800 GMT. Fed officials don’t have a consensus view and several Fed bank officials that have spoken in the press recently don’t even have voting rights.

As ever, it is best to watch what central banks do and not what they say. Monetary policies are set to remain ultra loose for the foreseeable future despite any Fed ‘tapering’ or tinkering at the edges and this is bullish for gold.

India has no proposal to lease gold bought from the IMF according to India’s Economic Affairs Secretary, Arvind Mayaram. His comments came in a text message.

The influential in India, Hindu Business Line newspaper, had reported earlier that the government will consider leasing out 200 tons of gold bought from IMF in 2009, citing finance ministry officials it didn’t identify.

With strains in the  LBMA gold market, further pressure may be being applied to India to now help with supply after their recent draconian attempted measures to restrict demand.

Russian gold holdings rose another 200,000 ounces in July and rose to 32.2 million ounces or 913  tonnes as of August 1st (according to Bloomberg figures).

The Russian gold reserves were worth some $42.6 billion at the end of last month, the Russian central bank, Bank Rossi, says on its website.


Russian Gold Reserves  Million Fine Troy Oz – 1994-Today (Bloomberg) 

The central bank said its gold and foreign exchange reserves were $507.8 billion as of last Thursday. Foreign exchange reserves include monetary gold, special drawing rights, reserve positions at the IMF and foreign exchange.

Thus, Russian gold reserves have nearly trebled in seven years since 2006 and gold now constitutes over 8% of Russia’s overall exchange reserves.

However, Russian gold reserves remain miniscule both in overall tonnage terms versus other countries and also as a percentage of their overall fx reserves.  


Wikipedia 

They are small versus those of the U.S. at over 8,133 tonnes (unaudited and unconfirmed) and Germany at 3,391 tonnes. Although Germany is having difficulty in repatriating its gold reserves from the U.S. and has been told it will take several years.

Central banks remain net buyers of gold and this remains a fundamental and an important pillar of support for the gold market.

Yet, total global gold reserves today at 1.023 billion ounces or 29,000 tonnes remain small even versus those seen in the 1960s and 1970s.


IMF World Gold Reserves in Million Fine Troy Oz (ex China)

29,000 tonnes is worth $1.4 trillion – not much more than recent U.S budget deficits in one year.

This is despite the massive increase in money supplies and foreign exchange reserves throughout the world in recent years. 

Central banks represent the smart and ‘insider’ money in the world and investors and savers would do well to pay heed at central banks continued diversification into safe haven gold.

NEWS
Gold Borrowing Costs Remain Near 4 1/2-Year High on Tight Supply – Bloomberg

Gold Swings Before Fed Minutes Amid Signs of Increased Demand – Bloomberg

China Gold-Mine Deals at Record After Price Plunge – Bloomberg

Gold Scores Eighth Gain In 10 Sessions – Market Watch

COMMENTARY
"Now Have Governments Willing To Seize Their Citizen’s Assets" – Forbes

India Mulls Leasing Of IMF-Bought Gold – Mineweb

World’s Largest Silver Producing Company Reports Big Decline in Production – SilverSeek

Prediction Fatigue – Dollar Collapse

For breaking news and commentary on financial markets and gold, follow us on Twitter.

Mark O'Byrne

Also on news-goldcore-com

Videos

Jim Rogers 2022- The Worst Bear Market is Coming

Silver Price Prediction 2022: David Morgan

Gold In 2022- Very Bullish Chart Patterns Developing

Blog posts

The ‘Fed Put’ – Gone Until There’s Blood in the Streets

The ‘Fed put’ – gone until there’s blood in the streets Well, it’s happening.  Bitcoin (and other cryptocurrencies are sharply down, along with equity markets in many advanced economies. And the Federal Reserve (the U.S. Central Bank) statement and press conference on Wednesday didn’t indicate any backing down from raising interest rates, maybe as soon […]

READ MORE

Jim Rogers 2022- The Worst Bear Market is Coming

Legendary investor and adventure capitalist Jim Rogers joins Dave Russell of GoldCore TV to discuss the next bear market, China’s decline, and his top investments. Watch the full episode to learn more. Click the Video Below to Watch Make sure you don’t miss a single episode… Subscribe to our YouTube channel Silver Price Prediction 2022Watch ‘Silver Guru’ […]

READ MORE

European Energy Crisis: 4 Things You MUST Know!

European Energy Crisis: 4 Reasons You MUST Know! European households are facing rising prices on many goods and services, but one particular standout is electricity and gas bills. According to Bank of America, European household gas bills are expected to rise to €1,850 in 2022 from €1,200 in 2020 (an ~55% increase). Natural gas prices […]

READ MORE

Featured

Gold, the Tried-and-True Inflation Hedge for What’s Coming!

READ MORE

How High is Too High for Rising Government Bond Yields?

READ MORE

Silver – 7 Reasons it is Still Set to Soar

READ MORE
Newsletter
Category
Archives
Popular

No posts available

Videos

Jim Rogers 2022- The Worst Bear Market is Coming

Silver Price Prediction 2022: David Morgan

Gold In 2022- Very Bullish Chart Patterns Developing

Blog posts

The ‘Fed Put’ – Gone Until There’s Blood in the Streets

The ‘Fed put’ – gone until there’s blood in the streets Well, it’s happening.  Bitcoin (and other cryptocurrencies are sharply down, along with equity markets in many advanced economies. And the Federal Reserve (the U.S. Central Bank) statement and press conference on Wednesday didn’t indicate any backing down from raising interest rates, maybe as soon […]

READ MORE

Jim Rogers 2022- The Worst Bear Market is Coming

Legendary investor and adventure capitalist Jim Rogers joins Dave Russell of GoldCore TV to discuss the next bear market, China’s decline, and his top investments. Watch the full episode to learn more. Click the Video Below to Watch Make sure you don’t miss a single episode… Subscribe to our YouTube channel Silver Price Prediction 2022Watch ‘Silver Guru’ […]

READ MORE

European Energy Crisis: 4 Things You MUST Know!

European Energy Crisis: 4 Reasons You MUST Know! European households are facing rising prices on many goods and services, but one particular standout is electricity and gas bills. According to Bank of America, European household gas bills are expected to rise to €1,850 in 2022 from €1,200 in 2020 (an ~55% increase). Natural gas prices […]

READ MORE

Featured

Gold, the Tried-and-True Inflation Hedge for What’s Coming!

READ MORE

How High is Too High for Rising Government Bond Yields?

READ MORE

Silver – 7 Reasons it is Still Set to Soar

READ MORE