"De-Dollarization" Deepens: Russia Buys Most Gold In Six Months, Continues Selling US Treasuries | Zero Hedge

The rumors of Russia selling its gold reserves, it is now clear, were greatly exaggerated as not only did Putin not sell, Russian gold reserves rose by their largest amount in six months in December to just over $46 billion (near the highest since April 2013). It appears all the "Russia is selling" chatter did was lower prices enabling them to gather non-fiat physical assets at a lower cost. On the other hand, there is another trend that continues for the Russians - that of reducing their exposure to US Treasury debt. For the 20th month in a row, Russia's holdings of US Treasury debt fell year-over-year - selling into the strength.

Buying low...

Russia gold reserves jump the most in six months in December, near the highest since April 2013...



and selling high...

Russian holdings of US Treasuries are now at the 2nd lowest since 2008...



It would appear the greatest rotations that no one is talking about are the fiat to non-fiat and the paper to physical shifts occurring in China and Russia.

Charts: Bloomberg

Some have commented on the "unprecedented" capital flight from Russia, but as Dr. Constantin Gurdgiev explains - Western 'analysts' appear to have forgotten a few things...

Central Bank of Russia released full-year 2014 capital outflows figures, prompting cheerful chatter from the US officials and academics gleefully loading the demise of the Russian economy.

The figures are ugly: official net outflows of capital stood at USD151.5 billion - roughly 2.5 times the rate of outflows in 2013 - USD61 billion. Q1 outflows were USD48.2 billion, Q2 outflows declined to USD22.4 billion, Q3 2014 outflows netted USD 7.7 billion and Q4 2014 outflows rose to USD72.9 billion. Thus, Q4 2014 outflows - on the face of it - were larger than full-year 2013 outflows.

Complete story at - "De-Dollarization" Deepens: Russia Buys Most Gold In Six Months, Continues Selling US Treasuries | Zero Hedge

$300,000 in gold missing from Ukraine Central Bank after swapped for lead bricks — RT Business

NoBC4U Note: You wonder how many things one country can screw up? Ukraine's going for a record.

$300,000 in gold missing from Ukraine Central Bank after swapped for lead bricks — RT Business

Cunning fraudsters have conned the Ukraine Central Bank branch in Odessa into buying $300,000 worth of gold which turned out to be lead daubed with gold paint.

“A criminal case has been opened and we are now carrying out an investigation to identify those involved in the crime,” a spokesman for the Odessa police force is quoted by Vesti.

The news was first reported by Odessa’s State Ministry of Internal Affairs.

READ MORE: Where has all Ukraine's gold gone?

A preliminary investigation suggests the gang had someone working for them inside the bank that forged the necessary paperwork to allow the sale of the fake gold bullion. It’s also been discovered that bank staff were not regularly checked when entering or exiting the premises.

Since the discovery, the National Bank no longer buys precious metal over the counter, as it cannot be sure of its authenticity, says the First Deputy Head of the National Bank of Ukraine, Aleksandr Pisaruk.

The National Bank of Ukraine (NBU) has confirmed the theft of several kilograms of gold in the Odessa region. The cashier involved has apparently fled to Crimea, Vesti Ukraine reports. Criminal proceedings began on November 18, even though the scam apparently took place between August and October.

In November, the Central Bank reportedly lost $12.6 billion in gold reserves, putting the total stockpile at just over $120 million.

However, the Central Bank reports that foreign currency and gold reserves stood at $9.97 billion at the end of November.

Complete story at - $300,000 in gold missing from Ukraine Central Bank after swapped for lead bricks — RT Business

Ukraine's Reserves Plunge 20% In One Month, Drop Below $10 Billion To Lowest In A Decade | Zero Hedge

Things for Ukraine are going from bad to worse.

Following the revelation that Ukraine's sovereign gold has mysteriously been Corzined, following a stunning admission by central bank governor Valeriya Gontareva on primetime TV that "in the vaults of the central bank there is almost no gold left. There is a small amount of gold bullion left, but it's just 1% of reserves" which however left many questions unanswered and which led to prompt legal action against the central bank governor who is being charged with criminal abuse of power and misuse of office under Article 364 of the Criminal Code of Ukraine, one would think that at least Ukraine's dollar reserves would have increased by a modestly proportional, if not market equivalent, amount.

Alas that is not the case.

As the central bank reported overnight, the country's foreign-currency (and gold reserves) dropped by over 21% in one month, to under $10 billion in November for the first time in nearly a decade due to large payments for debt and gas, from $12.6 billion to $9.966 billion.

The reason for the drop per the CB:

• A reduction of $1.45 billion due to the need to remit a portion of funds that Naftogaz of Ukraine has set aside in a restricted account with the National Bank of Ukraine in order to settle gas bills and arrears with Gazprom OJSC for natural gas imported in November-December 2013 (it remains to be seen if Gazprom confirm receipt or if the funds were merely wired... somewhere).
• A reduction of $897 million due to repayment and service Ukraine's foreign currency debt obligations, including the installment due to the IMF.
• Lastly, a reduction of $573 million as a resyult of intervention in the foreign exchange market.

Complete story at - Ukraine's Reserves Plunge 20% In One Month, Drop Below $10 Billion To Lowest In A Decade | Zero Hedge

Gold Rises After Unusual Russian Central Bank Gold Buying Announcement

NoBC4U Note: Embedding Twitter tweets seems to work most of the time, but not always.  If it doesn't show right away, wait a little while, or reload the page. 

#Gold Rises After Unusual Russian Central Bank Gold Buying Announcement http://t.co/hwcdJJYvjX#Russia#Putinpic.twitter.com/I0brsikn8o
— Mark O'Byrne (@MarkTOByrne) November 19, 2014

This Is Why China Russia & China Are Now "The Enemy" | Zero Hedge

The suppression of gold prices is essential at all costs to the Anglo-American banking interests. The saber rattling and attempts to lure Russia and China into military conflict are about who controls the financial world.

Russia and China keep accumulating the eternal currency – gold.






Complete story at - This Is Why China Russia & China Are Now "The Enemy" | Zero Hedge