Koos Jansen
BullionStar Blogs
Koos Jansen
Posted on 19 Dec 2014 by

Russia Is Not Selling Gold, Bought 18t In November

There are rumors doing the rounds that Russia is selling gold. My first reaction to this news was that is contradictory to what Putin stands for. Russia has been the most openly aggressive buyer of gold in the past years and Putin never made it a secret he wants to move away from the US dollar as the world reserve currency – gold potentially playing a role in a new monetary order. The last thing Russia wants to do is sell the asset they have demonstrated to value the most. Besides, the Russian central bank (CBR) also has other FX reserves that it could sell to support the Ruble, if it wants to intervene.

The rumors about Russia selling gold were spread by Yahoo, Business Insider, and Zero Hedge/SocGen. Two other bloggers already did the debunking for us; Market Update wrote about Yahoo’s article and Bron Suchecki just published a must read on Zero Hedge/SocGen/Business Insider.

The final confirmation came from Vladimir himself. Yesterday the President of Russia gave his yearly press conference. When journalist Vyacheslav Terekhov (Interfax) asked about the crisis Russia currently is in, Putin made a clear statement:

VYACHESLAV TEREKHOV: There is something I would like to clarify, Mr President. Judging by the situation in the country, we are in the midst of a deep currency crisis, one that even Central Bank employees say they could not have foreseen in their worst nightmares.

Do you believe that things will get better in two years, as you mentioned, and we will recover from this financial and economic crisis? Criticism was piled on the Government and the Central Bank for the ruble’s Black Monday and Tuesday. Do you agree with this criticism?

VLADIMIR PUTIN: I said that given the most unfavourable foreign economic situation this could last (approximately, because no one can say for certain) for about two years. However, it may not last that long and the situation could take a turn for the better sooner. It could improve in the first or second quarter of next year, by the middle of next year, or by its end

…Overall, I think it is up to the Central Bank to decide whether to reduce the interest rate or not, they should see and react accordingly. They should not hand out our gold and foreign currency reserves or burn them on the market, but provide lending resources. 

UPDATE 1:59 PM CET. The CBR just disclosed it has purchased 18 tonnes of gold in November. The total Russian official gold reserves accounted for 1,188 tonnes on December 1, 2014.

Russian Official Gold Reserves

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  • jwr_47

    Thank you for digging deeper than ZH!

    • doma

      Thanks Koos………it took me 2 mins to find the source when it came out
      a few days back…..i guess SocGen & ZH don’t know how to do a google
      search…??

    • Sven

      ZH is becoming a joke. I can’t even browse the site very long before flashplayer overwhelms my PC’s resources due to the adWhore Tyler pimping for clicks.

  • digi

    Good clarification. To be fair with ZH, at the end of the article they did say SocGen has vested interest for the ruble to stabilize. They kind of hinted as much.

    • Sven

      That’s true. You have to dig sometimes for the sarcasm steeped within.

    • http://goldchat.blogspot.com/ Bron Suchecki

      Yes ZH said it was rumour but my issue is that any basic fact checking would have revealed it was a bogus rumour, but then that would mean you would just kill the story and have nothing to run but instead ZH just publishes it, couldn’t be bothered to check, and may (I don’t think I’ve ever seen them admit they are wrong) write another follow up story.

      Its a fail because it shows they don’t care about facts, what they care about is clicks.

      • DameEdnasPossum

        ZH did publish follow-up stories on German gold repatriation after first reporting that Bloomberg stated that BuBa had halted the flow in 2014.

        I can think of numerous other stories where ZH have published follow-up articles to bother expand upon and clarify earlier articles.

        We all know the Machiavellian games being played in the bullion game. Keep in mind that ZH generally report and comment on what is published by a wide range of sources, some truthful sources and some not, and at a much faster pace than any other source. This does not mean ZH necessarily agrees or otherwise with the legitimacy of the information they report on but it certainly assists by raising questions that have a range of possible answers.

        Any suggestion that this constitutes a ‘fail’ is naive. ZH seems to suffer from a high degree of envy from a range of commentors who all enjoy the benefit of of hindsight. ZH is not the enemy in the bullion game, in fact they are most certainly an ally.

        Note: I view ZH on my 3 year old iPad 2 and I’ve done nothing special to stop pop-ups yet I get NIL pop-ups. Not one.

    • digi

      They do tend to pump out articles and I guess the pace at which they do prevents any such actions.

      • wulfenstraat

        The only thing that could make US die is the stench of your mum’s bum, you uneducated twit!

        She stinks, and everyone around HER has to hold his or her nose to avoid smelling your mum’s bum. She stinks so bad, digi, that even the dogs in the neighborhood refuse to smell her pussy. I am so sorry for your baboon mother, because the rest of the people can no longer stand the smell of her a s s. There’s even a big ol’ SCHITT stain on the back of her baggy granny panties…

        Maybe it’s best that she die too, before she makes you stick your face up her bum one more time. Yes, digi, we are trying to protect you from your mum who wants you to stick your face up her bum again. She ruined you, digi. She made you the eunuch you are today, because the knife-edged stench of her ass castrated you…into a little digi.

    • wulfenstraat

      The only thing that could make US die is the stench of your mum’s bum, you uneducated twit!

      She stinks, and everyone around HER has to hold his or her nose to avoid smelling your mum’s bum. She stinks so bad, digi, that even the dogs in the neighborhood refuse to smell her pussy. I am so sorry for your baboon mother, because the rest of the people can no longer stand the smell of her a s s. There’s even a big ol’ SCHITT stain on the back of her baggy granny panties.

      Maybe it’s best that she die too, before she makes you stick your face up her bum one more time. Yes, digi, we are trying to protect you from your mum who wants you to stick your face up her bum again. She ruined you, digi. She made you the eunuch you are today, because the knife-edged stench of her ass castrated you…into a little digi.

  • bob

    All kind of silly – 1,200t is only about $45B USD – Russian hard currency reserves run $400B and I think that is after spending $80B defending the rubble! Maybe if gold ran up to $12,000 an ounce but looks like obvious SocGen talking a move. Heck if Draghi can do it why can’t SocGen try ;)

  • Casey Phyle

    It’s the same old dirty, psychological warfare the money printers use on their intended victims. It was the same with that Pussy Riot farce, where you could really see the money printers’ “beauty” shine. Good that Putin is made of a little sterner stuff and can withstand the filth the mudslingers throw at him. All their agents in Russia must be on alert for an opportunity to create an airplane or some other “accident” for Putin. Good that he knows their dirty games, he was part of it long enough. Putin can afford to sit this out much longer than the money printers can. If they let the fracking industry tank just to destroy Putin, America is toast. Putin’s 2 years was a message to them, because he knows exactly they don’t have 2 years. Let’s see who blinks first.

    • DameEdnasPossum

      I couldn’t imagine myself writing this a few years ago…and I might regret it, but: the world needs more leaders with Putin’s strength of character and wisdom. The suits and skirts from marketing and sales that currently pass themselves off as leaders are putty in the hands of their masters. Stage performers, nothing more.

      Note: supposedly Putin’s presidential plane was in the same airspace as MH17 within 40 minutes of that fateful flight. Putin’s plane had very similar markings to MH17.

      Truth? Who knows.

      Credible explanation to this mystery? Certainly, and one of several that all revolve around the Kiev junta shooting down MH17.

      Imagine the consequence for world peace if Putin had been assasinated.

  • Markus M. Müller

    What do you guys say about this information here:
    http://www.gold-eagle.com/article/grandmaster-putins-golden-trap

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