Russia’s Gokhran May Resume Gold, Silver Purchases Next Year

Today’s AM fix was USD 1,252.00, EUR 972.58 and GBP 840.95  per ounce.
Yesterday’s AM fix was USD 1,225.50, EUR 954.22 and GBP 822.70 per ounce.

Gold rose $14.80 or 1.21% yesterday and closed at $1,236.50/oz. Silver climbed 1.06% and closed at $19.06.
 
Support and Resistance Chart – (GoldCore)

Gold is over 1% higher in all currencies today. The gains are being attributed to data which showed that China’s inflation accelerated more than estimated in June, boosting demand for the precious metal as a hedge against inflation, in what will become the world’s largest buyer of gold this year.

The Russian State Precious Metals and Gems Repository Gokhran may resume gold purchases in 2014, Bloomberg and Reuters reported citing Russian state news services.

Gokhran, the State Precious Metals and Gems Repository, is a state institution under the Russian Ministry of Finance, responsible for the State Fund of Precious Metals and Precious Stones of the Russian Federation, is set to start buying gold again on the domestic market in 2014 after a two-year break.

Annual purchases by state repository Gokhran may also include palladium and silver.

State-run news service reported, citing an unidentified official with knowledge of the matter, that Gokhran may buy 7 to 10 tonnes (225,050-321,500 troy ounces) of gold in addition to purchases of the Bank of Russia, the Russian central bank.

RIA, The Russian State News Agency, reported that the resumption of purchases depends on approval of amendments by lawmakers during the Duma fall session.

Gokhran’s holdings are not part of Russia’s more than $500 billion in gold and foreign exchange reserves held by the central bank, which include 32.0 million troy ounces of gold, according central bank data as of May 1. 


Cross Currency Table – (Bloomberg)

In 2009, Gokhran sold 30 tonnes of gold to the central bank, in a deal valued at $1 billion that covered part of a budget deficit resulting from the 2008 global financial crash and subsequent recession. 

The repository used to buy 3-5 tonnes of gold by advance payment to domestic producers.

Gokhran could face challenges returning to the gold market as it would have to compete with commercial banks which are buying gold on the domestic market and to offer miners better terms, said Sergei Kashuba, the head of the Russian Gold Industrialists’ Union. 

Russia’s 2013 gold production is likely to rise by 3.5%, year-on-year, to 233.8 tonnes. 

While the source did not specify how much palladium Gokhran may buy from the market, its sales of the metal from stocks have helped keep the global palladium market in surplus for eight of the last 10 years. These stocks are almost depleted now, according to platinum refiner Johnson Matthey.

Has Gold’s ‘Bubble’ Burst Or Is This A Golden Opportunity?   
Our recent well attended webinar has been uploaded to YouTube. 

Topics covered in the webinar included:

* Outlook For Gold And Silver This Year and Coming Years

* Learning From 1970s Bull Market & 1975/76 Price Collapse

* Safest Way To Own Gold And Silver

* Paper and Digital Gold

* Knowing When To Reduce Allocations Or Sell

* Safest Way To Own Gold And Silver

* Extremely Negative Sentiment Towards Gold

NEWS
Gold Climbs on Haven Demand After China’s Inflation Accelerates – Bloomberg

Gold rises the most in seven sessions, China data helps – Reuters

Gold in Japan ETF Expands 10% as Price Drop Entices Buyers – Bloomberg

China’s gold imports still at unprecedented highs – Mineweb


COMMENTARY
Why I’m Not Selling My Physical Gold – MoneyWeek

Gold Is Insurance Against War, Financial Armageddon and Wholesale Currency Debasement – Project Syndicate

Jim Rogers: Gold Is Headed Toward $900 – NewsMax

European Crisis Creates Gold Bulls – Wealth Dail

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

 

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

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

The Inflation Tide is Turning!

In our post on January 28, 2021 “Gold, The Tried-and-True Inflation Hedge for What’s Coming!” we outlined four reasons that we expect higher inflation over the next several years. The brief bullet points are: Money Supplies have risen dramatically Commodity Prices are rising again Reduced Globalization as ‘Made at Home’ policies are proliferating Pent up […]

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

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

The Inflation Tide is Turning!

In our post on January 28, 2021 “Gold, The Tried-and-True Inflation Hedge for What’s Coming!” we outlined four reasons that we expect higher inflation over the next several years. The brief bullet points are: Money Supplies have risen dramatically Commodity Prices are rising again Reduced Globalization as ‘Made at Home’ policies are proliferating Pent up […]

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