Central Bank Gold Buying Doubles, While Global Demand Slows

www.zerohedge.com

Q2 Report: World Gold Council pdf

Accumulation of gold bullion from central banks was the bright spot in demand last quarter, as total demand fell 7% globally, which was driven by a 38% fall in consumer demand from India. 
Price sensitive Indians have been shunning gold and many have been opting for far cheaper poor man’s gold – silver. LINK...

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Where do you think the "smart money" is going?   BK

Central Banks Boost Gold Holdings

www.mineweb.com

Author: Lawrence WilliamsPosted:  Friday , 25 May 2012
The latest official Central Bank gold holding figures from the IMF confirm that Central Banks around the world are continuing to buy gold - some in pretty large quantities which should be yet another stabilising factor for the gold price - and if the trend continues suggests that the CBs will buy even more this year than last - and that's only the ones which let the world know exactly what their gold reserves are!   LINK...

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Become your own "Central Bank" with our one-of-a-kind "U-Vault Account."  BK

Central Bank Gold Buying Fuels Global Demand

Here's the report from USAGOLD:  LINK...

Keiser Report: Central Banks Buying Gold in This Correction

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Max says Central Banks are buying gold big time and says it's the only way to protect your assets.  BK

Gold Demand in China, Just Getting Started

The Largest National Holders of Gold Have Retained Their Reserves, But Should They Sell?

Source: Commodity Online


"But we believe, even beyond the technicalities, selling gold reserves is not a “golden ticket”, as it would very much be a short-term fix and, perhaps more importantly, weaken balance sheets by switching out a hard asset," Barclays added.
For example, Italy does hold a substantial amount of gold, but even selling all of this would yield just over $130bn, which represents just 6% of Italy’s debt. Greece owns 111.6 tonnes, making up 83% of its reserves, but at a dollar value of $6bn it only represents 1% of total debt outstanding. 
Indeed, on the demand side, the latest IMF statistics reveal a continuation of central bank net buying, with net purchases of just under 40 tonnes in December alone; and including Turkey’s new policy of accepting gold in its reserve requirements from commercial banks increases net reported inflows to 387 tonnes for the year, Barclays concluded.   LINK...
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The BULLISH trend in gold continues. Nothing has changed and we believe there will be NO significant drop in gold like what happened in 1980, because that would require raising interest rates, and the consequences of that would be devastating to the financial markets.  BK

Central Bank Demand Driving Gold Higher: CEO

By: Shai Ahmed
CNBC Associate Editor
“The supply side of the supply-demand equation is very tight. There is a growing demand side from the increase in jewelry off-take in central Asia, but also the central banks starting to buy gold. These are the emerging markets central banks, not the G20 central banks,” Bristow said.   LINK...

Gold & Silver The Legacy RRSP Assets For All Generations

"Gold is money, everything else is credit."
James P. Morgan


For twelve years gold and silver have been in a bull market. Gold has shown an average annual return of approximately 20% per year, even when measured in various global currencies, it has outperformed every other asset class in the past decade. The 70's saw gold rise from $35/oz to a high of $850/oz in 1980, that's a multiple of 24 times. Applying that multiple in this decades bull run, it would take gold from a low of $250/oz in 1999 to a high of $6,000/oz! With gold trading in the $1,650 range today, we're not even close to "BUBBLE" territory or a peak in gold.  Just ask yourself how many people you know that own gold bullion, and I don't mean ETF's, paper certificates or trusts, but the actual physical bullion? Probably very few? Besides the global economy was much different in the 70's. Chinese and Russian citizens were not even allowed to own gold. Now, China is actively promoting gold investments to its citizens. The USA was a creditor nation, now it's the largest debtor nation in the history of the world, with debt exceeding, hold on to your hats...$15 TRILLION! The problem is many fail to realize this bull market in gold is not about gold, it's about the USD losing confidence as the world's reserve curreny. Throughout history many countries have lost this status, from the great Roman times to the British empire. Paper currencies always, and without fail, eventually return to their intrinsic value of ZERO. However, gold is actually insurance and a true measure of wealth, that cannot be challenged. It has outlasted every government, currency, bank or stock market that has ever existed. Gold is the only unit of measure or medium of exchange that has survived throughout history as money. WHY, because of its natural composition. Gold cannot be destroyed, cannot be counterfeit, has no counterparty risk, cannot rust or tarnish, it's evenly divisible, fungible, transportable, very rare, globally recognized as a store of value and it takes real labout to produce, unlike paper or digital currencies created by central banks. Yes, of course gold and silver do not produce interest or dividends, but they're not supposed to because they are a unit of account, a measure of real wealth or MONEY! Besides, take a look at your "balanced and diversified" portfolio and compare it to gold & silver and the "cost of living," and ask yourself if you're doing any better? Gold is the only true method of protecting your wealth from the continuous inflationary policies of all central banks printing money and expanding credit. Besides, central banks keep gold in reserve, why not YOU!
The secret to everlasting wealth...
become your own central bank!


Consider this:
In 1970 $35 buys 1oz of gold or 140 loafs of bread.
In 2012 $35 buys 0.02oz of gold or ONLY 10 loafs of bread.
However, 1oz of gold today ($1,650) buys 470 loafs of bread. So what is a true STORE OF VALUE for any generation?
BK