Jangan lawan The Russian Central bank !!
Russia''s Central Bank set to buy 965,000 oz of gold by yearend
Russia''s Central Bank said on Thursday it is ready to buy 30 metric tons (965,000 troy ounces) of gold at market prices from the country''s precious metals depositary Gokhran by the end of the year.
Central Bank First Deputy Chairman Alexei Ulyukayev said the means of payment for the gold will depend on the requirements of the Finance Ministry, and will probably be denominated in rubles.
Ulyukayev played down fears that the timing of the purchase could prove unfavorable given the current high price of gold, currently over $1,000 per troy ounce on global markets.
"They are at the peak levels relative to the previous period, but predictions of price dynamics vary," he said.
The Central Bank''s announcement to buy up gold comes amid increasing international assets held by the bank, which grew by $7.8 billion in the week of November 6-13 to $441.7 billion. The cash paid for the gold will be used by the Finance Ministry to cover next year''s state budget deficit, predicted at 6.8% of GDP.
This year Russia is running a deficit of 7.7% of GDP.
MOSCOW, November 19 (RIA Novosti
Central Bank Buying Spurs a Gold Rush
India''s and Russia''s central banks helped push gold to nearly $1,200 an ounce, although their buys amount to minor diversification. Is this a gold bubble?
It''s typical in India for gold demand to escalate during the country''s festive holiday season, which extends from September into January. But it''s not only gift-givers that are scooping up the precious metal this year. India''s central bank is also buying gold, a factor in the yellow metal''s recent surge to nearly $1,200 an ounce.
That development worries some people: Since central banks typically buy U.S. dollars to store their foreign exchange reserves, the growing taste for gold can be seen as the latest sign that the greenback''s status as the world''s sole reserve currency is in jeopardy.
The yellow metal has been on a tear since the end of August, but the rally gained added momentum starting on Nov. 4, the day after the Reserve Bank of India announced that it had bought 200 metric tons of gold from the International Monetary Fund in October. The deal boosted the central bank''s gold reserves by nearly 56%. This may sound substantial, but gold accounted for just 4% of the RBI''s total foreign exchange reserves in September.
Marc Chandler, chief currency strategist at Brown Brothers Harriman, calculates that the value of India''s total foreign exchange reserves has grown by twice that of its gold reserves this year, so the central bank''s holdings haven''t diversified at all.
Russia added gold from its own mines
Before buying from the IMF, India held 357.7 metric tons of gold, which was only 4% of its total bank reserves, while China''s 1,054 tons of gold represented 1.9% of its total reserves, according to the World Gold Council''s September count. Meanwhile, the 8,133 tons held by the Federal Reserve equaled 77.4% of its total reserves in September.
The price of gold futures on the Chicago Mercantile Exchange reached $1,186 an ounce on Nov. 25 before settling at $1,192.
On Nov. 23, Russia''s central bank announced that it had bought 15.6 metric tons of gold in October to add to its monetary assets. But unlike its Indian counterpart, Russia''s central bank bought gold produced by the country''s own gold mines. The additional gold was only 2.7% of the 568.4 metric tons it owned in September, which represented 4.3% of its total reserves.
Leo Larkin, equity metals analyst at Standard & Poor''s, says he wouldn''t be surprised to see other central banks start to show more interest in accumulating gold, and "instead of selling gold, actually start to buy it and keep it as a monetary asset, as part of their reserves."
Jim Rogers on Why Gold Is Glittering So Brightly\r\nMaria Bartiromo talks to Jim Rogers, creator of the Rogers International Commodities Index \r\n\r\nI was on assignment in Singapore on Nov. 24 when gold hit an all-time high of $1,174 an ounce. That was fortuitous because Singapore is the home base of commodities guru Jim Rogers, creator of the Rogers International Commodities Index. Meantime, back in the U.S., reports were surfacing about growing discontent in the halls of Congress over the performance of Treasury Secretary Tim Geithner and the possibility he might be replaced by JPMorgan Chase (JPM) CEO Jamie Dimon. When I rang up Rogers, he was his usual low-key self, with quiet opinions about the future of gold prices, commodities to watch, and why Obama should dump Geithner.\r\nMARIA BARTIROMO\r\n\r\nGold, as you know, hit an all-time high today, with the Russian central bank buying bullion. How high can gold go?\r\nJIM ROGERS\r\n\r\nWell, I own gold and I have for a while. How high can it go? I fully expect it to be over a couple thousand dollars an ounce sometime in the next decade—I didn''t say the next month, I didn''t say the next year, I said the next decade—because paper money around the world is very suspect. But right now everybody''s bullish on it, so I don''t like to buy things when that''s happening. But I''m not selling under any circumstances.\r\n\r\nWhat''s behind the runup? Has buying by the central banks changed the equation here? Or is this still a demand story?\r\nCertainly a demand story because, as I said, everybody''s printing so much money and people around the world are worried about that. But you also have central banks, which five years ago were selling gold, now buying. So that''s a huge shift in the marketplace. Central banks are like lots of other people—they just follow the crowd. There are probably better commodities to buy than gold, but you can''t tell that to central banks because they''ve got gold on the brain.\r\n\r\nHow much of the runup is being driven by U.S. deficits and the weakening dollar?\r\nA huge amount is about not just U.S. deficits, but all deficits. Deficits are going berserk nearly everywhere. Throughout history, printing money has led to weaker currencies and higher prices for real assets. And there are many, many pessimists about the dollar, including me. So many pessimists that I suspect there''s a rally coming. I have no idea why there should be, but things do usually rally when you have this many bears at the same time. I''ve actually accumulated a few more dollars. I mean, it''s not a significant position, but I do own more dollars than I did a month ago. And we''ll probably also have a gold correction because there''s so many bulls on gold.\r\n\r\nSo you''re looking at other commodities you think are better opportunities?\r\nIf you want to buy precious metal, I''d rather buy silver or palladium. Both are very depressed. I continue to be more optimistic about agriculture than some other commodities.\r\n\r\nAs BusinessWeek reports this week, global investors are snapping up thousands of acres of farmland in Africa. Money from everywhere—from Saudi Arabia to Wall Street-backed funds—is pouring in. Why the sudden focus on Africa?\r\nThe gigantic acreage in Africa has been underfarmed because there is not much infrastructure, not much machinery, not much expertise, not much fertilizer. I think the world is going to have huge food problems in the next few years. Other people seem to see that, too, so they''re buying up farmland. You can either buy it or lease it. It''s very, very cheap, it''s incredibly fertile, and it hasn''t been overexploited. And if you take in some expertise and some machinery and some fertilizer, you should make a lot of money. The labor''s cheap, everything''s cheap.\r\n\r\nSo you think Africa is a good investment opportunity?\r\nI think it''s a fantastic investor opportunity. Now there are over 50 countries in Africa, so we can''t make too gross a generalization. But I mean, in the Congo, you don''t even have to plant anything. You just sit by the road long enough, something will grow. Yes, I am very, very optimistic.\r\n\r\nWhat''s your outlook for commodities in 2010?\r\nI''m not smart enough to know. But I will say that if the world economy gets better, then commodities will be one of the best places to be because of the shortages that are developing. If the world economy does not get better, commodities will still be the place to be because governments are printing all this money.