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Anyone who wants to get to the truth behind the
inflationary threats to their wealth should ignore everything the Central
Banks say about inflation and look instead at their actions.
Worldwide gold
demand in 2012 was another record high of $236.4 billion in the World Gold
Council’s latest report. This was up 6% in value terms in the fourth quarter to $66.2
billion, the highest fourth quarter on record. Global gold demand in the
fourth quarter of 2012 was up 4% to 1,195.9 tonnes.
Central bank
buying for 2012 rose by 17% over 2011 to some 534.6 tonnes.
As far as central bank gold buying, this was the highest level since 1964. Central bank purchases stood at 145 tonnes in the fourth quarter. That is up 9% from the
fourth quarter of 2011, and the eighth consecutive quarter in which central
banks were net purchasers of gol
http://247wallst.com/2013/02/14/central-banks-buy-the-most-gold-since-1964/#ixzz2LMLOfBPK
Note… Central Banks, while talking down money
printing and denying the presence of inflation, bought more Gold in 2012 that
any year dating back to 1964. Indeed, However, since becoming net buyers of
Gold in 2010, the Central Banks have been increasing their Gold purchases
rapidly.
In 2010, Governments worldwide bought 77 tonnes of Gold. In 2011 it was 457 tonnes.
And last year it was a whopping 535 tonnes. All
told, they’ve accumulated 1,000 tonnes of
Gold since 2Q09. At today’s price of $1600 per ounce, this stash is
valued at over $56 billion.
The key issue here is not the amount ($56 billion in
Gold purchases is nothing compared to the over $10 trillion in new money
Central banks have printed since 2007), but the trend: Central Banks were net
sellers of Gold for decades until 2010.
Other major investors are looking to get their hands
on Gold… not the promise of Gold, but the actual metal.
Germany has the second largest Gold reserves in the
world behind the US. Since the early ‘80s, it has stored the majority
of these reserves with the NY Fed (45% vs. 13% in London, 11% in Paris and
the remaining 31% in Frankfurt).
With that in mind, everyone needs to be aware that last Monday Germany’s Bundesbank announced it will be moving a major portion of
its reserves from the US and all of
its reserves from France back to Frankfurt.
Nearly half of Germany’s gold reserves are held in a vault at
the Federal Reserve Bank of New York — billions of dollars
worth of postwar geopolitical history squirreled away for safe keeping
below the streets of Lower Manhattan.
Now the German
central bank wants to make a big withdrawal — 300 tons in all.
On Wednesday,
the Bundesbank said that it would begin moving some
of the reserves, the second-largest stock in the world after that of the
United States. The goal is to house more than 50 percent of German gold in Bundesbank vaults in Frankfurt by 2020, up from a little
less than a third today, the bank said…
The new policy
will include the complete withdrawal of 374 tons of German gold stored at the
Banque de France in Paris, about 11 percent of the
total. Bundesbank officials were quick to note that the decision
was not a reflection of French trustworthiness. Rather, because France and
Germany now share the euro, there is no need for reserves as insurance
against currency crises.
http://www.nytimes.com/2013/01/17/business/global/german-central-bank-to-repatriate-gold-reserves.html
This announcement came with the usual political
statements that the decision had nothing to do with a lack of trust between
the Bundesbank and the US Fed or Bank of France,
but the message is obvious: Germany sees the writing on the wall and is
moving to secure its Gold reserves.
The same goes for Texas:
Texas Republican State Representative Giovanni Capriglione authored the bill demanding state owned gold
bars be returned to the Lone Star State. The
legislation to pull $1 billion in gold reserves from a Federal Reserve vault
in New York is supported by Governor Rick Perry.
The financial crisis in Cyprus which prompted a run
on the bank and ultimately a closure of the financial institutions reportedly
bolstered support for the Texas gold bar return bill. State Representative Capriglione had this to say about why he penned the bill:
“For
us to have our own gold, a lot of the runs on the bank and those types of
things, they happen because people are worried that there’s nothing
there to back it up.”
Governor Perry stated that if Texas owns the gold,
then no one else should be able to determine if the state can reclaim
possession of the bars of precious metal. Representative Capriglione
also noted that Texas is not interested in implementing its own gold
standard. According to the Republican’s statements about the gold bars
bill, he simply wants to bolster the state’s fiscally secure
reputation. The Texas public servant
also feels that such a solid financial persona would be beneficial in case an
international of national fiscal crisis occurred.
The
legislation notes the state does not merely want gold certificates from the
Federal Reserve, they want the actual gold bars to
store inside a planned Texas Bullion Depository. Moving $1 billion in gold bars from
New York to Texas would be a huge task, one some are calling impractical.
State Representative Capriglione suggested selling
the gold currently housed inside the New York vault and then repurchasing the
same amount in Texas.
http://www.inquisitr.com/600185/texas-wants-gold-stored-at-federal-reserve-returned-to-lone-star-state/#XHeg60ztpexhAROW.99
Investors forget that the single most important role
played by Central Banks is to maintain confidence in the system. For that
reason they will NEVER admit inflation is a problem. But if inflation
isn’t a problem, WHY ARE CENTRAL BANKS LOADING UP ON GOLD?
With that in mind, now is the time to be preparing
for inflationary disaster.
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Best Regards,
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