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Russia makes its first gold sale in 5 years, according to IMF data showing the country unloaded...

Russia makes its first gold sale in 5 years, according to IMF data showing the country unloaded 3.8 tons in February. It's a big shift for the central bank which had been one of the more aggressive official buyers of the metal, more than doubling reserves since 2006.
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Comments (22)
  • Tao Jaxx
    , contributor
    Comments (1364) | Send Message
     
    Interesting. Smart move in my view: good idea to unload the stuff while the craze goes on.
    On reflection, too smart for the central bank. Probably some oligarch there took it to remodel their bathroom.
    29 Mar 2012, 03:14 PM Reply Like
  • Luke Skywooker
    , contributor
    Comments (408) | Send Message
     
    or could be a head fake. do things publically to keep the price down and privately buy more.
    29 Mar 2012, 03:23 PM Reply Like
  • GoguPintenogu
    , contributor
    Comments (71) | Send Message
     
    Wishful thinking!
    29 Mar 2012, 06:10 PM Reply Like
  • Yorick
    , contributor
    Comments (525) | Send Message
     
    Why does one get the idea that with the recent US bond offloading, sales of their own bonds and offloading high priced PM that Russia is preparing for the worst...
    29 Mar 2012, 03:34 PM Reply Like
  • pete123
    , contributor
    Comments (884) | Send Message
     
    3.8 tons. That's $189 MM ... A modest sale.
    29 Mar 2012, 04:26 PM Reply Like
  • ltsgt1
    , contributor
    Comments (1485) | Send Message
     
    I started seriously accumulating gold when India bought 200 tons of gold at top price back in 2009. I will start unloading my gold when I see CBs selling 200 tons of gold again.

     

    3.8 tons is modest indeed.
    21 Apr 2012, 03:12 PM Reply Like
  • minecanary
    , contributor
    Comments (481) | Send Message
     
    If they were preparing for the worst, they would be buying more gold, not selling.
    29 Mar 2012, 04:50 PM Reply Like
  • The Geoffster
    , contributor
    Comments (4013) | Send Message
     
    There is only one reason to sell gold. You need fiat.
    29 Mar 2012, 06:54 PM Reply Like
  • 867046
    , contributor
    Comments (398) | Send Message
     
    This makes no sense.

     

    Could the Russians be buying Iranian oil with gold at a discount and then relabeling the point of origin?
    29 Mar 2012, 07:22 PM Reply Like
  • schatzl
    , contributor
    Comments (391) | Send Message
     
    you might be on to something
    29 Mar 2012, 08:18 PM Reply Like
  • Tao Jaxx
    , contributor
    Comments (1364) | Send Message
     
    Looks like a great explanation.
    Can easily be audited, though: both on the gold sales side (when? through which bank(s)? through the BIS? loco London? delivery of the bars?) and on the oil delivery side.
    If true, last thing a reasonably smart central bank would do would be to have it appear in the IMF statistics.
    So as I said, either they sold it or some apparatchik used it as birthday present for the missus (or the GF?).
    29 Mar 2012, 11:03 PM Reply Like
  • Mbrillo1
    , contributor
    Comments (414) | Send Message
     
    Wrongo. The Russians have plenty of oil. Aren't they one of the
    worlds largest exporters?
    Then again, they need the price of oil to stay up, don't they?
    Latest number: at the rate of Russian spending, they need oil
    to be at $180. Who's to know?
    29 Mar 2012, 11:20 PM Reply Like
  • RAVEN
    , contributor
    Comments (53) | Send Message
     
    867046 - you are a wizard. keep up the sharp thoughts.
    29 Mar 2012, 09:41 PM Reply Like
  • 867046
    , contributor
    Comments (398) | Send Message
     
    Why this move is mysterious is that in a world that is printing money, why would a reserve bank sell off 5 tons unless the Russians are trading off of inside information of some sort?
    30 Mar 2012, 09:13 PM Reply Like
  • pete123
    , contributor
    Comments (884) | Send Message
     
    Probably just selling some state assets to fill a budget gap.
    30 Mar 2012, 12:13 AM Reply Like
  • Luis Enrique
    , contributor
    Comments (2) | Send Message
     
    What a move. I don't understand.
    30 Mar 2012, 01:02 AM Reply Like
  • David Urban
    , contributor
    Comments (1036) | Send Message
     
    Just a fluff story by the press. The amount is very small and Russia is one of those countries who require companies to sell their gold to the government. This could have been a request by a miner to offload the gold into the market using the government as a go-between.
    30 Mar 2012, 10:48 AM Reply Like
  • Tao Jaxx
    , contributor
    Comments (1364) | Send Message
     
    Then the reserves would be unchanged: buy from miner, sell to market, change is zero.
    No, they did sell. I know gold bugs can't fathom somebody actually selling gold, plus if it's a central bank it flies in the face of their beloved theory, but apparently they did sell.
    Or the Russian accountant got confused in his multiple bookkeepings: one for the taxes, one for the IMF, one for the boss, one for him...
    30 Mar 2012, 11:03 AM Reply Like
  • David Urban
    , contributor
    Comments (1036) | Send Message
     
    Not really. Kazakhstan sold some last year and they have a similar setup to Russia. There were months where they bought and some where they sold.

     

    Not a big deal.
    30 Mar 2012, 11:26 AM Reply Like
  • dieuwer
    , contributor
    Comments (2409) | Send Message
     
    Unless I witness the same hysteria as at Apple stores, with people engulfing coinshops wanting to buy the latest gold eagle, the bull market in gold has a LONG way to go.

     

    I have to admit that a few days ago I saw the first ever TV commercial suggesting to people to invest in gold bullion as opposed to dollars.
    So we are getting a little closer to a gold-buying mania, but we are not yet there.
    31 Mar 2012, 04:13 PM Reply Like
  • Tao Jaxx
    , contributor
    Comments (1364) | Send Message
     
    I was in rural Upper Wisconsin 10 days ago. Car radio was running commercials to convert your IRA in gold. Not part of it, all of it. How's that?
    31 Mar 2012, 05:40 PM Reply Like
  • dieuwer
    , contributor
    Comments (2409) | Send Message
     
    And, are people piling into it?
    Watch what people do, not what they say.
    31 Mar 2012, 05:43 PM Reply Like
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