Gold and Central Banks, Q3 2012

 The new issue of Gold Demand Trend is released.

Here is a short summary about the gold demand by Official Sector :

• Central banks continued to purchase gold in Q3 2012, albeit at a slower pace. Demand of 98 tonnes, worth US $ 5.2 bn, accounted for 9% of overall demand during the period.
• Brazilian central bank purchased 1.7 tonnes, for the first time since june 2005.
• Paraguay central bank purchased 7.5 tonnes, representing a more than 10-fold increase from its previous reserves of 0.7 tonnes
• South Korea central bank increased its holdings of gold by 29% in July (adding 16 tonnes).
• Sales between central banks (under CBGA agreement) in the last 12 months was the lowest since the beginning of this Agreement in 1999, with an amount of 5.9 tonnes.

Below are shown the biggest official gold reserves, where I've chosen to calculate aggregates relevant to the current multipolar world :

Country or economic pole	Gold Reserves (tonnes), Nov. 2012 WGC report
Euro Area (incl. ECB)	10 787
EU 27 sum	11 538
USA	8 135
Switzerland	1 040
China + Taiwan + Hong-Kong	1 480
Japan	765
Russia	935
Brazil	35
India	558
South Africa	125
BRICS sum	3 133
Iran	500 (source, Feb. 2012)
Gulf Countries sum (Saudi Arabia, Kuwait, Bahrain, Qatar)	419
Venezuela	362
U.K.	310
Turkey	302
Lebanon	287
Algeria	174
Libya	117
Syria	26

Courage et Honneur

 Le 30 Octobre 2012, Franck Biancheri est décédé. Son oeuvre est plus que jamais vivante.

Vous ne pouvez comprendre l'Europe d'aujourd'hui et le monde de demain si vous ignorez ce qu'il a apporté.

Nous tous lui devons beaucoup.

Plus que sa mémoire et sa lucidité, cet homme politique d'action et de courage, pétri de démocratie, nous a légué des idées et concepts qui ont marqué et marqueront notre Histoire. Il est un repère de notre conscience sociale.

Monetary war : from sovereign debt to sovereign gold

 As I wrote in "Le nerf de la guerre monétaire", behind sovereign debt, there's gold. Because the supposed-to-be-deadly Euro sovereign debt crisis is over, and the Euroland is successfully running towards much stronger integration, a new battlefield is being investigated : "Audit the gold Reserves". 

This is a very tactical game, and here are some recent developments:

• Bundesbank joins Fed in demanding secrecy for gold swaps, gata.org, Dec. 01, 2010
• Give Treasury Its Proper Role on the National Security Council, NY Times, July 23, 2012
• Where’s the gold? NY Fed undergoes first-ever audit, RT.com, August 04, 2012
• The U.S. government has been quietly carrying out an audit of all the American-owned gold at the New York Fed. The process involves drilling small holes in about ten per cent, or roughly 350, of the bars to make sure they're pure. The results will be announced towards the end of the year.
• Why America is going to win the global currency battle, FT.com, Oct. 12, 2012
• Unease about Germany's unchecked gold reserves, AP, October 22 2012
• Rechnungshof fordert Inventur der Goldreserven, Der Spiegel, October 22 2012 [english translation : German Court Demands Bundesbank Audit Sovereign Gold Holdings, ZeroHedge.com]
• The Bundesbank has supposedly decided to transfer 50 tonnes of gold held with the New York Fed to Germany over the next three years for thorough examination.
• Statement by the Deutsche Bundesbank on the accounting treatment of the gold reserves, Bundesbank, Oct 22, 2012
• Bundesbank Disagrees With Audit Court’s View on Gold Reserves, Bloomberg, Oct 23, 2012
• Gold reserves stored securely, Bundesbank, Oct 25, 2012
• The Deutsche Bundesbank’s gold holdings (as per 31 December 2011), Bundesbank, Oct 25, 2012
• Remarks on current developments in Europe, Bundesbank, Nov 1, 2012

 We, Europeans, must not be worried. We believe NY Fed when they say the german gold is there. And even if it weren't NY Fed is good for its replacement.

[This article was first updated 10/28 : add links about statements published 10/25 ; it will be further updated depending on future new important publications or press releases]