BID spot price for SILVER AUD$716.97
ASK spot price for SILVER AUD$722

---

RETAIL PRICE 

SILVER 1oz (International Coin) = AUD$31.66

SILVER 1oz (PAMP Bar) = AUD$36.66

SILVER 1oz (Lunar Years) = AUD$41.66

SILVER 0.5kg  = AUD$459

SILVER 1kg     = AUD$838

SILVER 5kg     = AUD$4,188
 

---

SILVER BUY BACK per kg = AUD$688

gold gold , who has the gold

Bloomberg reported recently that Russia is now the world's biggest gold buyer, its central bank having added 570 tonnes (18.3 million troy ounces) over the past decade. At $1,650/ounce, that's $30.1 billion worth of gold.

Russia isn't alone, of course. Central banks as a group have been net buyers for at least two years now. But the 2012 data trickling out shows that the amount of tonnage being added is breaking records.

Based on current data, the net increase in central bank gold buying for 2012 was 14.8 million troy ounces - and that's before the final 2012 figures are in for all countries.

This is a dramatic increase, one bigger than most investors probably realize. To put it in perspective, on a net basis, central banks added more to their reserves last year than since 1964. The net increase - so far - is 17% greater than what was added in 2011, which was itself a year of record buying.

Here's a picture of total central bank reserves since the financial crisis hit.

Whatever gold's price movements, positive or negative, central bank officials have continued adding a lot of ounces to their reserves.

But this understates the case, because most of the data exclude China, as well as a few other small countries. China last officially reported gold reserves in 2009, so the totals in the chart since then exclude whatever its purchases might have been.

Here's where it gets interesting: Bloomberg claimed that Russia has been a bigger buyer of gold over the past decade than China - by a full 25%. Based on data about gold imports through Hong Kong and the fact that, for the most part, Chinese production doesn't leave the country, it seemed to me that this could not be right.

The Chinese central bank holds an official 1,054 tonnes of gold in its reserves.Bloomberg states, based on IMF data, that China has added somewhere around 425 tonnes over the past decade.

I can't say exactly what the correct number is, but the Bloomberg number almost has to be wrong. Here's why:

• Gold imports through Hong Kong in December alone hit a record high of 109.8 tonnes.
• Imports for 2012 also hit a record high of 572.5 tonnes.
• If you add 2012 mine production - remember that China is now the world's largest gold producer - roughly 970 tonnes of gold was delivered to various entities within the country last year.
• Cumulative imports since 2001 have reached 1,352 tonnes.
• Since 2001, imports plus production total a whopping 4,793 tonnes.

So Bloomberg is essentially saying that roughly 10% of the total gold available inside the country during that period was added to China's reserves. While it's true that Chinese citizens are buying a lot of gold (though perhaps more silver), it's highly doubtful that private parties bought 90% of all the gold brought to the Chinese market during this period. 

I think - but can't prove - that China's central bank is buying more gold and at a faster pace than its Russian counterpart.

Jim Rickards, a highly respected author and hedge fund manager, said last month that China has probably already accumulated between 2,000 and 3,000 tonnes of additional gold reserves. If he's right, that would be roughly double or triple the 1,054 tonnes it reported in 2009 - not the 40% increaseBloomberg's numbers suggest.

At the very least, we can say that the Bloomberg report left consideration of China's imports and production out of its report naming Russia the top gold buyer of 2012. Okay...but so what?

Well, Jim thinks the next big catalyst for gold will be an announcement from China about its reserve position. Here's what he told me in late December: 

'The catalyst for a spike into the $2,500 to $3,000 price range for gold will be an announcement by China, probably in late 2013 or 2014, that they have acquired 4,000 tonnes or more in their official reserve position. This will put China on an equal footing with the US in terms of a gold-to-GDP ratio, and validate gold as the real foundation of the international monetary system. Once that position is validated, gold will move to the $7,000 range in 2015 and beyond.'

Even if Jim's estimate is high or China doesn't make an announcement until later, it's clear that central banks around the world are buying gold in record quantities.

It almost makes you wonder...do they know something we don't?

The Russians gave us some hints.

Evgeny Fedorov, a lawmaker for Putin's United Russia Party, said, 'The more gold a country has, the more sovereignty it will have if there's a cataclysm with the dollar, the euro, the pound, or any other reserve currency.'

President Vladimir Putin told his central bank not to 'shy away' from the metal, adding 'After all, they're called gold and currency reserves for a reason.'

The Chinese have been quiet on this topic recently, after being very vocal a few years ago. Here's a recent quote.

'The current international currency system is the product of the past,' said Hu Jintao, General Secretary of the Communist Party of China.

Others have provided clues as well.

'We're in the midst of an international currency war,' said Guido Mantega, finance minister of Brazil.

'Quantitative easing also works through exchange rates... The Fed could engage in much more aggressive quantitative easing, to further lower the dollar,' said Christina Romer, former chair of the Council of Economic Advisors.

Economist Kyle Bass recently spoke to a senior member of the Obama administration about its planned solutions for fixing the US economy and trade deficit. When he asked, 'How are we going to grow exports if we won't allow nominal wage deflation?' the answer he got was, 'We're just going to kill the dollar.'

Yes, we're talking about the US dollar. Perhaps some investors have gotten complacent about the risks to the world's reserve currency - but not central bankers. 

It's not hard to see why: whether they admit it or not, central bankers must know what it means to run the printing presses the way the US has since 2008, even if price inflation is not immediately obvious. 

It's no surprise they want to hedge their bets, moving more reserves into something with actual value...something that can't be debased by a few computer keystrokes by an increasingly unfriendly government.

The US dollar has been the world's reserve currency since WWII. That's beginning to change, and the movement into gold is just one facet of that change. The buying by central banks is exactly what one would expect to see as we approach the end of the dollar hegemony.

The message from central banks is clear: they expect the dollar to move inexorably lower. It doesn't matter that it's been holding up against other currencies or that the economy might be getting better. They're buying gold in record amounts because they see a significant shift coming with the status of the dollar, and they need to protect themselves against that risk.

This leads to a second message: gold is not overpriced, in spite of the 500%+ increase since 2001. Indeed, with the recent correction, central banks are likely buying more, even as you read this.

Central bank gold buying will continue, of that we're certain. Even after Putin's binge, gold accounts for only 9.5% of Russia's total reserves. China's 1,054 tonnes is roughly 2% of its reserves. 

It's clear that both countries, along with others, have decided to accumulate as much gold as they can, as quickly as they can, before the dollar's decline becomes more pronounced...and permanent. 

This could explain why some central banks don't publicize their purchases. It also means that Bloomberg and other mainstream media outlets could be caught off guard when China announces higher gold reserves than expected - perhaps much higher.

Clearly we should take notice. If central banks are preparing for a major change in the value of the dollar, shouldn't we? The fact remains that the US dollar cannot and will not survive the ongoing abuse heaped upon it by government planners and federal officials. 

That not only means the gold price will rise, but that many, if not most currencies, will lose a significant amount of purchasing power. This has direct implications for all of us.

Embrace the messages central bankers are telling us - the ones they tell with their actions, not their words. Buy gold. Your financial future may very well depend upon it.

BID spot price for SILVER AUD894.76
ASK spot price for SILVER AUD$900

---

RETAIL PRICE 

SILVER 1oz (International Coin) = AUD$37.79

SILVER 1oz (PAMP Bar) = AUD$42.79

SILVER 1oz (Lunar Years) = AUD$47.79

SILVER 0.5kg  = AUD$535

SILVER 1kg     = AUD$990

SILVER 5kg     = AUD$4,950
 

---

SILVER BUY BACK per kg = AUD$859

BID spot price for SILVER AUD$895.41
ASK spot price for SILVER AUD$901

---

RETAIL PRICE 

SILVER 1oz (International Coin) = AUD$37.83

SILVER 1oz (PAMP Bar) = AUD$42.83

SILVER 1oz (Lunar Year Bar) = AUD$47.83

SILVER 0.5kg  = AUD$536

SILVER 1kg     = AUD$991

SILVER 5kg     = AUD$4,956
 

---

SILVER BUY BACK per kg = AUD$860

1/2/13

BID spot price for SILVER AUD$968.71
ASK spot price for SILVER AUD$973

---

RETAIL PRICE 

SILVER 1oz (International Coin) = AUD$40.86

SILVER 1oz (PAMP Bar) = AUD$45.86

SILVER 0.5kg  = AUD$575

SILVER 1kg     = AUD$1,070

SILVER 5kg     = AUD$5,352
 

---

SILVER BUY BACK per kg = AUD$930

BID spot price for SILVER AUD$951.67
ASK spot price for SILVER AUD$956

---

RETAIL PRICE 

SILVER 1oz (International Coin) = AUD$40.14

SILVER 1oz (PAMP Bar) = AUD$45.14

SILVER 0.5kg  = AUD$566

SILVER 1kg     = AUD$1,052

SILVER 5kg     = AUD$5,258
 

---

SILVER BUY BACK per kg = AUD$914

2013

Its been a while since I last posted on this Silver Blog so here goes, first post for 2013

BID spot price for SILVER AUD$981.57
ASK spot price for SILVER AUD$986

---

RETAIL PRICE 

SILVER 1oz (International Coin) = AUD$41.40

SILVER 1oz (PAMP Bar) = AUD$46.40

SILVER 0.5kg  = AUD$582

SILVER 1kg     = AUD$1,085

SILVER 5kg     = AUD$5,423

---

SILVER BUY BACK per kg = AUD$942

Countries who have the largest stash of GOLD

#10 India

Official gold holdings: 557.7 tonnes

Percent of foreign reserves in gold: 10.0%

The Reserve Bank of India is known to buy IMF gold and considers gold to be a safe investment, but rarely comments on its plans to buy gold

#9 Netherlands

Official gold holdings: 612.5 tonnes

Percent of foreign reserves in gold: 59.8%

Back in 1999, the Netherlands announced under the Central Bank Gold Agreement (CBGA1) that it would sell 300 tonnes of gold during the five years, but only managed to sell 235 tonnes.

Under CBGA2 (2004/2005 –'08/'09) it said it would sell a total of 165 tones (which included the 65 tonnes left over from CBGA1), and it announced no sales under CBGA3 (from 2008/2009 – '13/'14).

#8 Japan

Official gold holdings: 765.2 tonnes

Percent of foreign reserves in gold: 3.2%

Japan's gold reserves were at just 6 tonnes in 1950, and its central bank registered its first serious jump in gold holdings in 1959, with purchases increasing by 169 tonnes from the previous year.

In 2011, the Bank of Japan sold gold to pump ¥20 trillion into the economy to calm investors after the tsunami and nuclear disaster.

#7 Russia

Official gold holdings: 936.7 tonnes

Percent of foreign reserves in gold: 9.6%

Russia has been building its gold reserves since 2006 to diversify its Forex reserves, and to help build the ruble as an international reserve currency. The central bank typically buys gold from the domestic market and increased purchases in September.

#6 Switzerland

Official gold holdings: 1,040.1 tonnes

Percent of foreign reserves in gold: 11.5%

In 1997 proposals were announced to sell a portion of the country's gold reserves because they were no longer considered to be "necessary for monetary policy purposes", according to the World Gold Council.

1,300 tonnes were considered to be surplus gold and the country began selling this in May 2000. 1,170 tonnes were sold under CBGA1, and 130 tones were sold under CBGA2. Switzerland has announced no plans to sell gold under CBGA 3.

#5 China

Official gold holdings: 1,054.1 tonnes

Percent of foreign reserves in gold: 1.7%

Gold still accounts for a very small percent of China's $3.2 trillion in foreign exchange reserves, compared with the international average of 10 percent.

Building up gold reserves will be crucial to China as it moves to internationalise its currency, and hopes to make it a reserve currency, according to the Financial Times.

#4 France

Official gold holdings: 2,435.4 tonnes

Percent of foreign reserves in gold: 71.6%

France sold 572 tonnes of gold under CBGA 2. And outside of the agreement France transferred about 17 tonnes to the Bank for International Settlements in late 2004 as part purchase of BIS shares. France announced no plans for sales of gold reserves under CBGA 3.

#3 Italy

Official gold holdings: 2,451.8 tonnes

Percent of foreign reserves in gold: 72.0%

Italy sold no gold under CBGA 1 or 2 and has announced no sales under CBGA3. But in 2011, Italian banks were looking to the Bank of Italy to buy gold and ahead of stress tests

#2 GERMANY

Official gold holdings: 3,395.5 tonnes

Percent of foreign reserves in gold: 72.4%

Germany sold gold under CBGA 1 and 2 for the purposes of minting commemorative gold coins. In the first year of CBGA3 (2008 - 2009), the Bundesbank sold approximately 6 tonnes, and it has sold 4.7 tonnes of gold since September 7, 2011. Germany has refused to have its gold holdings boost the EFSF.

#1 United States

Official gold holdings: 8,133.5 tonnes

Percent of foreign reserves in gold: 75.4%

The U.S. had its largest gold reserves in volume terms in 1952, when reserves totaled 20,663 tonnes. Holdings first fell below the 10K mark in 1968.

Current BID spot price for SILVERAUD$1015
Current ASK spot price for SILVERAUD$1021

---

RETAIL 

SILVER 1oz (International Coin) = AUD$42.87

SILVER 1oz (PAMP Bar) = AUD$52.87

SILVER 0.5kg  = AUD$602.00

SILVER 1kg     = AUD$1,123.00

SILVER 5kg     = AUD$5,616.00
 

---

SILVER BUY BACK per kg = AUD$975

The currency of silver

Money, although most people don't view it as such, is technology.

Think about it. Money is not a "natural" thing.

Money is a human abstraction. Money is an idea that's harnessed to certain standards. For example, archaeologists tell us that primitive societies used colored stones, seashells or pieces of bone as money.

Then for much of human history (including now, depending where you are) mankind used gold, silver and copper as money. In the 13th century, Kublai Khan introduced what some consider the first paper currency (the "chao") throughout China - an idea that Marco Polo brought back to Europe.

The point is that across the ages, money is a construct - an invented tool - whether it's seashells, gold, paper currency or even digital ones and zeros on a mobile device app.

Another way of viewing it is that money is an agreed-upon standard. Money is like time zones, where it's the same time to the east, west, north and south. Money is like a standard unit of measurement, where a pound of steel weighs the same as a pound of feathers. Or money is like the width of railway gauge, so that rail cars from one railroad can run on the tracks of another railroad.

Thus, money is, at root, technology as much as any other basic machine like the wedge, lever or wheel. And along with other basic machines, the idea of money has evolved over many thousands of years of human history.

Today, Kublai Khan's Chinese "chao" have evolved into modern U.S. Federal Reserve notes, as well as the multitude of other world currencies, from pounds to euros to yuan and much more.

When Money Breaks Down...

Now, I'd like you to consider what happens when a system of money - a system of technology - doesn't work, or just breaks down. It brings to mind an old expression from the Soviet Union, that "They pretend to pay us, and we pretend to work."

In other words, the Soviet Union was a society with a centrally planned command economy. The system of account, exchange and value was geared for the good of the state, but not much geared for the overall good of the people.

Over time, the currency - the Soviet ruble - ceased being much good for anything. Indeed, the ruble was a dodgy unit of account, a poor medium of exchange and a problematic store of value. Basically, there was little to buy in the Soviet command economy, and the Soviet people behaved accordingly. Their "money" (such as it was) shaped their attitudes.

The Soviets may have had good technology when it came to things like building tanks, rockets and nuclear bombs. But the Soviet economy failed to deliver for the good of the people. Eventually, the Soviet ruble was an economic technology that failed - along with the national construct known as the Soviet Union.

The Best Time-Tested Technology: Precious Metals...Silver

Looking ahead, I'm concerned with the trajectory of U.S. governance and the future of the economy. But I don't anticipate that the U.S. federal system will somehow collapse, like what happened with the Soviet Union - although I'm willing to have that talk at another time and place.

Still, for the life of me, I cannot envision how the U.S. will avoid more inflation. Federal spending is out of control, and the economy is struggling to gain traction.

I don't see how U.S. "monetary technology" - the dollar - can hold its value over the long haul. Next to moving out of the country to Singapore (like Jim Rogers, for instance), my fallback position is to keep building a precious metal portfolio based on physical metal and investing in well-run miners.

Along with gold, every portfolio should have exposure to silver.

Indeed, if you don't own physical silver - coins, small ingots, bars, etc. - then get some! Buy metal and take delivery. I've been saying that for a number of years, since silver was selling at $10 per ounce. Don't dwell over the near-term ups and downs. Silver is your safety fund for if (or when) the wheels come off the economic bus.

The recent silver selloff is due to turn around - silver is currently selling in the range of $27 per ounce. That's far above the historical lows of $5-10 per ounce from the early 1980s, 1990s and early 2000s. But it's also far down from the high over $45 last year.

Silver has a long, steadfast history as money, going back to ancient times. Yet it's also a substance with a promising future, thanks to its critical role as an industrial-technological metal. Aside from the traditional uses as money, silver has innumerable uses in electronics, medicine and other metallurgical applications.

In the past several years, silver prices have moved due to demand driven by investors. Silver appeals, along with gold, as a safe (at least, safer) haven as an investment in times of economic uncertainty. Like now.

Money is technology. Many modern currencies are a failing technology. It's time to get back to basics, and that means silver.

Current spot price for SILVER AUD$937

---

RETAIL 


SILVER 1oz (International Coin) = AUD$39.34

SILVER 1oz (PAMP Bar) = AUD$49.34

SILVER 0.5kg  = AUD$555.00

SILVER 1kg     = AUD$1,031.00

SILVER 5kg     = AUD$5,154.00

SILVER BUY BACK per kg = AUD$900

Current spot price for SILVER AUD$936

SILVER 1oz (International Coin)     = AUD$39.30

SILVER 1oz (PAMP Bar)     = AUD$49.30

SILVER 0.5kg  = AUD$555.00

SILVER 1kg     = AUD$1,030.00

SILVER 5kg     = AUD$5,148.00 SILVER BUY BACK per kg = AUD$899

Current spot price for SILVER AUD$959

SILVER 1oz (International Coin)     = AUD$40.27

SILVER 1oz (PAMP Bar)     = AUD$50.27

SILVER 0.5kg  = AUD$567.00

SILVER 1kg     = AUD$1,055.00

SILVER 5kg     = AUD$5,275.00 SILVER BUY BACK per kg = AUD$921

Current spot price for SILVER AUD$951

SILVER 1oz (International Coin)     = AUD$39.93

SILVER 1oz (PAMP Bar)     = AUD$49.93

SILVER 0.5kg  = AUD$563.00

SILVER 1kg     = AUD$1,046.00

SILVER 5kg     = AUD$5,231.00 SILVER BUY BACK per kg = AUD$913

Current spot price for SILVER AUD$922

SILVER 1oz (International Coin)     = AUD$38.71

SILVER 1oz (PAMP Dragon Bar)     = AUD$38.71

SILVER 0.5kg  = AUD$547.00

SILVER 1kg     = AUD$1,014.00

SILVER 5kg     = AUD$5,071.00 SILVER BUY BACK per kg = AUD$885

Current spot price for SILVER AUD$944

SILVER 1oz (International Coin)     = AUD$39.64

SILVER 1oz (PAMP Dragon Bar)     = AUD$49.64

SILVER 0.5kg  = AUD$559.00

SILVER 1kg     = AUD$1,038.00

SILVER 5kg     = AUD$5,192.00 SILVER BUY BACK per kg = AUD$906

Current spot price for SILVER AUD$945

SILVER 1oz (International Coin)     = AUD$39.68

SILVER 1oz (PAMP Dragon Bar)     = AUD$49.68

SILVER 0.5kg  = AUD$560.00

SILVER 1kg     = AUD$1,040.00

SILVER 5kg     = AUD$5,198.00 SILVER BUY BACK per kg = AUD$907

Current spot price for SILVER AUD$888

SILVER 1oz (International Coin)     = AUD$37.29

SILVER 1oz (PAMP Dragon Bar)     = AUD$47.29

SILVER 0.5kg  = AUD$528.00

SILVER 1kg     = AUD$977.00

SILVER 5kg     = AUD$4,884.00 SILVER BUY BACK per kg = AUD$852

Current spot price for SILVER AUD$940

SILVER 1oz (International Coin)     = AUD$39.47

SILVER 1oz (PAMP Dragon Bar)     = AUD$49.47

SILVER 0.5kg  = AUD$557.00

SILVER 1kg     = AUD$1,034.00

SILVER 5kg     = AUD$5,170.00 SILVER BUY BACK per kg = AUD$902

Current spot price for SILVER AUD$968

SILVER 1oz (International Coin)     = AUD$40.65

SILVER 1oz (PAMP Dragon Bar)     = AUD$50.65

SILVER 0.5kg  = AUD$572.00

SILVER 1kg     = AUD$1,065.00

SILVER 5kg     = AUD$5,324.00 SILVER BUY BACK per kg = AUD$929