Russia, Korea And Central Banks Accumulate Gold On Dip Below $1,600/oz

Today’s AM fix was USD 1,580.50, EUR 1,213.25 and GBP 1,054.02 per ounce.
Yesterday’s AM fix was USD 1,574.00, EUR 1,207.98 and GBP 1,043.42 per ounce.

Silver is trading at $28.94/oz, €22.33/oz and £19.37/oz. Platinum is trading at $1,602.50/oz, palladium at $746.00/oz and rhodium at $1,200/oz.

Gold climbed $8.40 or 0.53% yesterday in New York and closed at $1,583.40/oz. Silver finished with a gain of 1.33%.

Gold edged lower today and sentiment remains poor due to the recent price falls.

Later today the markets will digest the outcomes of policy meetings of the ECB, Bank of England and Bank of Japan. Ultra loose monetary policies are set to stay which will support gold. Indeed, the British government may be set to hand Carney in the BOE even more powers which will usher in even looser monetary policy.

Central banks are among the shrewd investors who buy gold bullion on dips. It was reported that South Korea bought 20 tonnes of gold last month rumoured to be below the $1,600/oz mark. This is the first purchase this year for South Korea, after they purchased 30 tonnes in 2012.  Previously they purchased in July 2012 at the same price levels.


IMF World Gold Holdings – (Bloomberg)

When gold was weak during May to July of 2012, central banks actively bought nearly 71 tonnes.

Russia and Kazakhstan’s bought 12.2 and 1.5 tonnes in January, but until the IMF reports official activity, may help the very poor sentiment towards gold today. Central banks utilize gold bullion to diversify their holdings and limit their foreign exchange exposure.


Gold Reserves of Russia – (Bloomberg)

South Korea’s FX reserves ranked 7th in the world at the end of January.   However, their gold reserves remain a tiny fraction of their overall foreign exchange reserves which were valued at $327.4 billion in February.


Gold Reserves of South Korea – (Bloomberg)

“The Bank of Korea’s gold buying is part of the long-term diversification of currencies and assets in foreign-exchange reserves,” it said in the statement. “It is of no great importance to try to gauge if it’s

profitable or not based on short-term price swings.”

The World Gold Council noted that central banks increased gold buying 17% to 534.6 tons last year.

Smart, prudent money continues to accumulate, particularly on the dips, while the unfortunate ‘dumb’ money continues to sell on weakness as seen in the significant liquidation in ETF positions in recent days.

Webinar: Everything you need to know about Silver in 60 minutes.
Date: 13th March, 2013, 1900 – 2000 GMT
Speakers: David Morgan publisher of the Morgan Report and GoldCore Director Mark O’Byrne

Do you want answers on why silver should be part of your investment portfolio and why silver is a form of saving and financial insurance? Do you want to know the safest way to own silver? Do you want the opportunity to put your own questions to two leading world authorities on silver? We’ll help you in this complimentary webinar, "Everything you need to know about Silver in 60 minutes."

To register click here!

NEWS  
Gold struggles to pierce range, US growth hopes weigh – Reuters

Gold Declines for First Time in Three Days on U.S. Data, Dollar – Bloomberg

China’s SGE to launch after-hours trading in Gold & Silver – Bullion Street

U.K. Gold Hallmarking at Lowest Since at Least ’07 on Price Gain – Bloomberg

COMMENTARY
Video: Good To Own Gold and Silver For Long Term – CNBC

Dow Record Nice, $3,000 Gold Nicer: Rosenberg – Market Watch

Paper Markets To Disappear As Gold War Rages – JS Mineset

Gundlach Likes Silver As "The Great Debasement" Will Continue For Years (Not Months) – Zero Hedge


Mark O'Byrne

Also on news-goldcore-com

Videos

Tavi Costa- The Fed is Trapped

Silver Market Predictions – Ed Steer Talks about the Silver & Gold Price

Are We In A Financial Bubble? Peter Grandich Interview

Blog posts

Lawrence Lepard – Living in a World with Inflation

Lawrence Lepard Portfolio Manager and advocate of sound money, is our guest on this episode of GoldCore TV. With 40% of money in the US being created in the last 2 years, we ask Lawrence if the Fed is trapped. If so will this mean that it is going to be very difficult for them […]

READ MORE

Supply Chain Crisis Effects on Gold & Silver

The broken chain – could the supply crunch be worse than the oil crunch of the 1970s Anyone that has bought a new or used car in the last year has faced higher prices and long wait times for delivery. This is all because of the very small but essential semiconductor, which is in short […]

READ MORE

This is a Long Term Bullish Pattern for Gold – Gareth Soloway on GoldCore TV

“This is a long term bullish pattern for gold!” – Gareth Soloway Gold In this latest episode of GoldCore TV, Gareth Soloway joins Dave Russell to discuss what what the charts are suggesting for the stock markets, bond markets and #bitcoin. In addition to this he also takes a look at his gold price forecast 2021 and beyond.Gareth identifies the key levels that […]

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

Tavi Costa- The Fed is Trapped

Silver Market Predictions – Ed Steer Talks about the Silver & Gold Price

Are We In A Financial Bubble? Peter Grandich Interview

Blog posts

Lawrence Lepard – Living in a World with Inflation

Lawrence Lepard Portfolio Manager and advocate of sound money, is our guest on this episode of GoldCore TV. With 40% of money in the US being created in the last 2 years, we ask Lawrence if the Fed is trapped. If so will this mean that it is going to be very difficult for them […]

READ MORE

Supply Chain Crisis Effects on Gold & Silver

The broken chain – could the supply crunch be worse than the oil crunch of the 1970s Anyone that has bought a new or used car in the last year has faced higher prices and long wait times for delivery. This is all because of the very small but essential semiconductor, which is in short […]

READ MORE

This is a Long Term Bullish Pattern for Gold – Gareth Soloway on GoldCore TV

“This is a long term bullish pattern for gold!” – Gareth Soloway Gold In this latest episode of GoldCore TV, Gareth Soloway joins Dave Russell to discuss what what the charts are suggesting for the stock markets, bond markets and #bitcoin. In addition to this he also takes a look at his gold price forecast 2021 and beyond.Gareth identifies the key levels that […]

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