Another nation, within Mackinder’s Heartland, is beginning to add gold to their official reserves. I understand Poland has a small amount of gold, but they are taking steps to prepare for something.
Also, isn’t it interesting the GoldCore article discusses the draining of the GLD account while other nations are adding gold…hmmm Could it be this is the only store of actual physical gold to fill an order of size for a sovereign nation on a moments notice? If I were a betting man, and I am, I would bet yes. Where other source 32.8 tons of gold within a months time? Hungary picked up 28.4 and Poland an additional 4.4 tons. Do you believe the LBMA can drop ship 32.8 tons of physical gold in one month? I seriously doubt they have any gold, other than the personal holdings of the Rothschilds, Warburghs, Morgan or some other banking cabal member, much less 32.8 tons.
Poland raised its gold holdings to the highest in at least 35 years, data from the International Monetary Fund showed on Monday.
The country increased its holdings by 4.4 tonnes from August to about 117 tonnes in September, a record, according to data going back to January 1983.
“While the exchange-traded funds (ETFs) were losing tonnage, the central banks were buying since they had to maintain domestic currency values against a rising dollar,” said George Gero, managing director at RBC Wealth Management.
“I think you will see that continuing. Central banks are trying to maintain some hold on their currencies by storing gold.”
Holdings of SPDR Gold, the largest gold-backed ETF, have registered declines of more than 4 million ounces since hitting a peak in late April as investors have preferred the safety of the U.S. dollar against a backdrop of rising interest rates and as a U.S.-China trade tussle unfolds.
The trade dispute and rising dollar have in turn weighed on emerging markets, with the Polish zloty declining more than 6 percent this year. Source – GoldCore
The other nation that picked up a massive volume of physical gold that sits squarely in Mackinder’s Heartland, Hungary, announced they have increased their official gold reserves 10 fold! You read that correctly – a 1,000% increase – 10 fold in October 2018. The official press release from the Hungarian National Bank was published by Bullion Star.
In conjunction with today’s announcement in Budapest, the Hungarian National Bank put together a very interesting press release on its website (in Hungarian), which I have translated and edited, and which I think is worth reading in its entirety. Therefore, I have replicated it below, adding some bold and underlining in places. The press release is as follows:
“Budapest, October 16, 2018 – In view of the long-term national and economic strategy goals, the Monetary Council of the National Bank of Hungary has decided to increase the gold reserves of the country.
As a result, in October 2018 the Bank’s precious metal holdings were raised from the previous 3.10 tonnes to 31.5 tonnes, a tenfold increase. This is the first time that the Hungarian National Bank has bought gold since 1986.
Following the substantial increase in the Bank’s gold reserves in physical form, its repatriation has already taken place. The possession of precious metal within the country is in line with international trends, supports financial stability and strengthens market confidence in Hungary.
In keeping with the historical role of gold, gold remains one of the safest instruments in the world, and, even under normal market conditions, provides a stability and confidence-building function.
With current holdings of 31.5 tonnes gold reserves, valued at approximately $ 1.24 billion, this size of holdings approaches the historical level that was held by our country at the time of the “golden train”. Within the overall international reserves of the Bank, the share of gold reserves has now risen to 4.4%, which corresponds to the average of non-euro area Central and Eastern European countries.
The role of gold reserves in the nation and in the nation’s economy strategy is becoming more and more appreciatedwhile both the possession and the increase of nations’ precious metals holdings appears to be decisive international trends.
This gold purchase process, based on the strategic decision of the Hungarian National Bank, has increased the domestic gold reserves to 31.5 tonnes. The raising of the gold reserve and the returning of the gold in physical form to Hungary took place in the first half of October 2018.
Increasing and repatriating gold reserves can be considered a significant step in economic history. Since the founding of the Hungarian National Bank in 1924, gold reserves have been maintained, but the stock of that gold has fluctuated considerably over the decades, depending on the purpose of why it was held.
At the end of World War II, Hungary received some 30 tonnes of gold bars and gold coins on the MNB’s legendary “gold train” in the Spital am Pyhrn in Austria. This amount was fully returned to the country after the war while providing cover for the introduction of the new currency of the country, the Forint, thus supporting financial consolidation and the stabilization of the post-war Hungarian economy.
At the end of the eighties, Hungary’s gold reserves, driven by short-term investment objectives, fluctuated between 40 and 50 tons and then, at the time of the change of regime (between 1989 and 1992), the ruling central bank executives decided to reduce to a minimum level of about 3.1 tons, which was the level at the end of September 2018. With the decision of the MNB today in October 2018, the holdings of 31.5 tonnes of gold reserves is now the same as the level of the stabilization period of 1946.
Gold reserves are held for short-term investment and / or long-term stability purposes by national central banks. The current decision of the Hungarian National Bank was led by the goal of stability, and there are no investment concerns behind the holding of gold reserves.
Gold is not only for extreme market environments, structural changes in the international financial system, and deeper geopolitical crises. Gold also has a confidence-building effect in normal times, that is, gold can play a role in stabilizing and defending.
Gold is still considered to be one of the world’s safest assets, whose characteristics can be attributed to gold’s unique properties such as finite supply of physical gold, and lack of credit and counterparty risk given that gold is not a claim against a specific partner or country.
Over the past few years, more and more countries have decided to continue to play a decisive role in the use of gold as a traditional reserve asset, and have raised their gold reserves. This course of action was followed by Poland [a neighbor of Hungary], in spite of the fact that Poland had already one of the highest gold reserves in the region.
When raising domestic gold reserves to 31.5 tonnes, the MNB also paid attention to the international and regional role played by gold in central bank reserves. As a result, the Hungarian gold reserve have now increased to 4.4% which is in line with average international reserve ratio for gold for the Central Eastern European region central banks. This move from the end of the international rankings to the middle of the rankings has progressed, both in terms of size and proportion of gold reserves.
On the occasion of the announcement, the National Bank of Hungary has also published a “Golden Book”, which gives an insight into decisive historical periods of Hungary’s gold, such as centuries of golden coins, the rescue of our national treasures by gold trains, and the recent homecoming of the country’s gold reserves.” Source – Bullion Star
Maybe I’m looking at this all wrong but it sure seems like these nations are putting a plan together to move into gold as trade settlement and away from the “world reserve currency” global trade settlement system.
The Heartland nations, most of which are directly connected to China, Russia or both, seem to be looking more and more towards physical gold. Why? I don’t know, but I’m betting it’s not to make jewelry or tourist trinkets. This is not just physical gold but official gold held with their currency reserves. The heartland is changing and some of the changes are happening quickly. 32.8 tons of physical gold in one month is pretty quick change.
