More European countries buying Gold

Discussion in 'Markets & Economies' started by TreasureHunter, Dec 4, 2019.

  1. TreasureHunter

    TreasureHunter Well-Known Member

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    Here's an RT video on the subject:



    This is going to propagate like a domino effect. I'm saying this, because we've only seen a few "drops" of gold-buying frenzy at around 2012-2013-2014... now, more and more countries are buying.

    First, a few started repatriating: Germany, the Netherlands, Venezuela, Switzerland (I read this, but correct me if I'm wrong: even they held gold abroad?).

    Many started buying (but mainly eastern countries): Azerbaijan, Kazakhstan, China (were prolly buying for a long time), Russia.

    Then, more countries moved in: Hungary, Slovakia, Serbia...

    In fact, what I've heard is Hungary's 60+ tonnes gold reserves were sold roughly entirely around the 1990's (their ex-communist, not surprisingly officially liberals considered gold is "old fashioned", but in fact they were most likely compensating "holes in the country's budget"... so, they sold the 60+ tonnes in 1996).

    Hungary was left with 3-3.5 tonnes (different sources), which they sold entirely 1-2 years ago (prolly the gold was held outside the country) - my guess: the USA? :D So, they sold it all.

    1-2 years ago Hungary bought 31+ tonnes recently (and keep all of the gold in Hungary):
    https://tradingeconomics.com/hungary/gold-reserves?poll=2019-09-30

    Poland bought a staggering (regionally certainly huge) amount of 100 tonnes from England:
    https://www.bullionstar.com/blogs/r...ary-with-huge-gold-purchase-and-repatriation/

    Poland and Hungary are both using their own currencies and until the euro is "shaky", it doesn't look like they're even intending to swap for the more centralized "eurocrat" currency.

    Serbia, Slovakia followed with smaller amounts.

    Although 50 % smaller, Slovakia too owns around 31 tonnes (they use the euro as they've abandoned their own currency many years ago):
    https://tradingeconomics.com/slovakia/gold-reserves?poll=2019-09-30

    Serbia's (non-EU country) stats are interesting, they've been gradually increasing their gold reserves and are now at 21+ tonnes:
    https://tradingeconomics.com/serbia/gold-reserves?poll=2019-09-30

    If the smaller, former communist-block countries started buying, then the situation is serious.
    According to a source, these countries own an average of 4-5-6 % of their "foreign" reserves in gold.

    Which makes me think: it's a tiny amount. But for some reason they're not buying huge loads. It also costs a lot.

    If they hold around 5 % of their reserves in gold, most of the rest must be US dollar-denominated assets (but in reality, they're LIABILITIES! :D )

    My guess: they bought the gold with US dollars? :D

    Another set of smaller countries + Kazakhstan (which is rather large, but not an economic power) with surprising amounts of gold holdings:
    Netherlands: 612+ tonnes, Kazakhstan: 377+ tonnes, Portugal: 382+ tonnes, Lebanon: 286+ tonnes.

    I'm stunned to see Portugal's nearly 400 tonnes. Lebanon is a heck-of-a-lot more imposing, taking account of its size and population.
     
    Last edited: Dec 4, 2019
  2. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    Bear in mind that RT is a Russian propaganda machine and many stories it runs are designed to undermine domestic confidence in Western political leaders, not that we need Russian propaganda to reinforce that concept.

    For example this story reinforces the belief out there that the USD is floating dead in the water. Which is not true but it’s something that works to the advantage of the Russian government.
     
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  3. TreasureHunter

    TreasureHunter Well-Known Member

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    ^
    RT is Russian propaganda, CNN is US propaganda, BBC/euronews/etc. are EU propaganda.

    It's like the Soviet Union :)
     
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  4. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    So if RT says the USD will fall you buy.
     
  5. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    Propaganda is dangerous for investors as it is usually not based on logic but political agenda. Gold is good for individual as a form of forced savings but it does nothing for the economy, otherwise India, the country which has the most gold, will be the richest country in the world. Indian temples alone hold tens of thousands of tons of gold.

    Gold cannot replace an educated and productive workforce, an efficient government, a good social welfare system and robust private sector.
     
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  6. TreasureHunter

    TreasureHunter Well-Known Member

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    ^
    Yes, I agree 100% that propaganda is dangerous for investors. But they all do it. The US, the EU, the Russians, China, Iran, Israel, Australia...

    Do you believe Bloomberg or CNN more than RT?

    Both RT and CNN smell like propaganda 120%! In fact, it sounds like a thick block of propaganda-advertising.

    Anyway: gold is not a "functional", circulating asset. It's a store of value, a safe-haven asset. Like real estate, just that it's even more stable.
    Gold is more stable than real estate because home and land prices tend to fall together with a weaker currency (perhaps not always), so when crisis kicks in, real estate goes down, down, down. Gold usually goes up! :D

    Indian temples and the Vatican's churches, as well as many orthodox churches contain many tonnes of gold. And that gold is "not functional", it's not being used, it's only "on display", so it's not fair to affirm that "it's not helping the economy". That gold is in statues, ornaments. If they sold that, it would help.

    But old-backed currencies and/or bonds would be interesting :D

    Gold has other functions, we know well why countries are hoarding it: Russia, China, Poland, Hungary, Serbia, Slovakia, Kazakhstan, Azerbaijan, Iran, India, Venezuela...

    Central banks do know something.
     
  7. alor

    alor Well-Known Member Silver Stacker

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    [​IMG]
     
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  8. ozcopper

    ozcopper Administrator Staff Member

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    Actually buying gold / silver circulates money in the economy just as much as buying a laptop or any other trinket. The purchaser is still spending money in the economy and the seller has the money to re spend. The only difference is that the purchaser has bought something that retains value over time.
     
    Last edited: Dec 5, 2019
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  9. alor

    alor Well-Known Member Silver Stacker

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    its just obvious, you can never trust others when storing your gold, Venezuela learned it by hard knock
     
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  10. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    For business news, CNBC is better, otherwise, I'll usually read BBC.com.

    Notice, I don't read Singapore news - https://en.wikipedia.org/wiki/Press_Freedom_Index
     
  11. madaw1

    madaw1 Well-Known Member

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    The Jerusalem Post delivers quite some interesting news you can't find somewhere else...
     
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  12. TreasureHunter

    TreasureHunter Well-Known Member

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  13. TreasureHunter

    TreasureHunter Well-Known Member

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    Why Central Banks Buy So Much Gold:


    Rather "cheap arguments" to the greater audience (average people). But due to the first comments in this thread, I thought this kind of message would be a good argument for those who (even on this forum) don't understand gold's high significance.

    Here's how others commented on YouTube - hilarious, yet so true:

    [​IMG]


    If that guy's some major CEO, then ANYONE from SilverStackers could take his place. At least for the sake of PR. Any forum member could find a lot better arguments :D
     
    Last edited: Dec 5, 2019
  14. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    The European (Russian) elites are the ones eating the European people but they need a scapegoat which is the dollar. This a very common tactic, which even the leftist American politicians (Democrats) use. One of the biggest human weakness is pride (face). It's too easy to push the blame to an external actor because everyone won't admit that their own system is corrupted.

    The problem with this tactic is it only works at the beginning because eventually the pensions will be cut gradually, and then finally when you can only start to claim pension when you’re 80 years old, by then even the peasants will see through the trick.

    Gold might buy you a couple years of food/imports or the service of little green men but it can’t last forever and the inevitable will still happen.
     
    Last edited: Dec 6, 2019 at 12:05 PM
  15. alor

    alor Well-Known Member Silver Stacker

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    so much gold for sale
     
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  16. JulieW

    JulieW Well-Known Member Silver Stacker

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    From the Sydney Morning Herald:

    British investors are buying a record amount of Australian gold amid fears Brexit and other global geopolitical tensions will destabilise the pound and the English economy.

    Figures from the Australian Bureau of Statistics show Britons bought $5.3 billion of Australian gold in the September quarter – the most ever in a single quarter and a 1400 per cent increase on the same three months last year.

    In September alone, $2.2 billion of Australian bullion was snapped up by British buyers – the single largest purchase of gold by British-based buyers in a month on record.

    The purchases, already high through the first half of 2019, accelerated after the departure of Theresa May and the elevation of Boris Johnson to Prime Minister as concerns of a "no-deal Brexit" grew.

    Britain has sailed past China as the biggest single purchaser of Australian gold. Through the first nine months of the year, the UK has purchased $9 billion of gold compared to China's $5.8 billion.

    London is the world's gold trading capital, with the Bank of England (BoE) holding 400,000 bars of the precious metal worth more than $200 billion. The Reserve Bank of Australia's (RBA) 80-tonne gold holding is stored with the BoE. The RBA confirmed it had not sold any of its holdings.
     
  17. alor

    alor Well-Known Member Silver Stacker

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  18. JohnnyBravo300

    JohnnyBravo300 Well-Known Member

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    Kinda makes you wonder how much gold has been up peoples butts.

    They should dedicate a new chinese coin to the modern ass miners. Such dedication.
     
  19. TreasureHunter

    TreasureHunter Well-Known Member

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  20. TreasureHunter

    TreasureHunter Well-Known Member

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    Hilarious. It must have been terribly uncomfortable for him to walk around like that.

    In Europe, gypsies are being caught similarly. And I don't understand, why don't they just put it out openly, since it's theirs, right?

    By the way, how do people travel with gold? Is there a limit of value or weight that you can get across? Just show it, declare it, I don't understand the "smuggling"... why not just show it, especially if it's yours/bought and not stolen?
     

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