Russia Continues Dumping Dollars, Buys MORE Gold

by Dave Kranzler, Investment Research Dynamics:

The enormous effort by eastern hemisphere countries to diversify their reserves out of the dollar and into physical gold is quite remarkable.  The latest reports out of Russia show that is has cut its dollar exposure in half since January 2014 and appears to be accelerating its accumulation of gold:

OUT OF DOLLARS (source: Smaulgld.com, U.S. Treasury):

AND IN TO MORE GOLD:

Meanwhile, physical gold held in western custodial accounts at Central Banks and trading exchanges continues its exodus.

Koos Jansen has reported that custodial gold at the Bank of England dropped another 351 tonnes in the latest reporting period: Bank of England Custodial Gold Drops 351 tonnes

Craig Hemke of TF Metals Report did some sleuth-work on the Comex vault data and discovered that over 37 tonnes of gold was removed from Scotia Bank’s customer custodial account at the Comex:   Investor Gold Flees Scotia’s Comex Vault

Finally, since February 11 this year, over 72 tonnes of gold has been removed from the GLD trust.  The only way gold is removed from the GLD trust is if any of the Approved Participant banks – the usual suspected criminals – redeems 100,000 share baskets of GLD stock in exchange for physical gold bars held in Trust.   In fact, I have heard reports from several credible sources in London that big investment accounts which have tried to exchange shares for gold have been denied.  If you read through the fine-print of the GLD prospectus, you’ll find that the Trustee indeed has the option of denying exchange for physical requests.

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