China is buying 6,000 tonnes of gold?..China eyes African Barrick Gold stake

Hedge fund gurus George Soros and John Paulson and central banks around the world are jumping back into the bullion market.

At MarketWatch, Myra P. Saefong, speaks to Kevin Kerr, president of Kerr Trading International, Brien Lundin, editor of Gold Newsletter and Mark O’Byrne, executive director at GoldCore about “unconfirmed speculation” that China – the world’s number one producer and second-placed consumer (at the moment) – is gearing up to buy up to at least 5,000 to 6,000 tonnes starting before the end of the year.

Global gold mine production has averaged roughly 2,600 tonnes per year over the past five years, according to the World Gold Council.

Central banks went from net sellers to net buyers during 2009 while recycled gold supply has declined over the same period to constitute around a 1,000 tonnes or less than a third of annual supply.

China produced 380 tonnes of gold during 2011 – over a 100 tonnes more than its nearest rival. The country is preparing to launch direct interbank gold trading – a banned activity at present – at the end of August as part of a broader set of banking reforms.

China’s state-owned miner, China National Gold, has held preliminary talks to buy a stake in African Barrick Gold (ABG), one of Africa’s largest gold miners.

Demand for gold in China has surged and it is expected to become the world’s biggest market for the metal this year.

African Barrack has large reserves but has struggled to meet production targets.

Barrick Gold, the parent of ABG, said the talks were at an “early stage”.

“There can be no certainty that these discussions will result in the acquisition of all or part of Barrick’s holding in ABG,” Barrick Gold said in a statement.

ABG’s production levels have been falling in recent years.

Last year, the company produced almost 688,000 ounces of gold. That was down from 701,000 ounces in 2010 and 716,000 ounces the year before.

At the same time, its cost of production has gone up. According to the firm, it cost it $692 (£440) to produce an ounce of gold last year, a jump of more than 20% from 2010.

The firm has also been hurt by issues such as power cuts as well as theft of fuel.

As a result, its shares have taken a hit, falling almost 30% in the past one year.

Analysts said that given these issues, the miner was a risky bet for potential suitors.

“African Barrick has always looked like it offered good value albeit at a high risk, and if the potential acquirer can get the asset and is comfortable with the risk, you will be able to get a reasonable set of assets for a good price,” said Hunter Hillcoat an analyst with Investec.


thanks to rev17 for the links..

gold gold gold..physical stuff..not paper..any left for us slaves?


~ by seeker401 on August 24, 2012.

26 Responses to “China is buying 6,000 tonnes of gold?..China eyes African Barrick Gold stake”


    The fix is in.

  2. Republicans Eye Return to Gold Standard

    The gold standard has returned to mainstream U.S. politics for the first time in 30 years, with a “gold commission” set to become part of official Republican party policy.

    • it’s just a token for the ron paul faction.

      when i would bring up RP to local USliberals, what was the very first thing they condescendingly/mockingly mention about RP? It certainly isn’t his anti-war stance. it’s always the gold thing.

      keep in mind, the US owns no gold. it holds a lot, but it owns none.

  3. PIMCO Buying Gold

    Dow Jones is reporting this morning that PIMCO’s Commodity Real Return Strategy Fund, with about $20 billion in assets, has raised its gold holdings to 11.5% of it total assets from 10.5% two months ago. The position was apparently taken when gold dipped towards $1500 according to comments from Nic Johnson, its co-portfolio manager.

    Their concern is a triple one – loose monetary policy, high levels of sovereign debt and rising commodity prices are going to fuel an inflation outbreak as we move ahead.

    Sounds familiar doesn’t it?

    Here is the point – the chart in gold showed tremendously strong support in gold on any retreats in price down below the $1600 level a short while back. Gold would dip down into these levels but would immediatey attract strong buying and would rebound back higher. WE remarked that this sort of chart action showed ACCUMULATION by deep-pocketed players, whether those were of Asian origin or large investment funds elsewhere. REgardless, these well capitalized players are positioning themselves for what they see coming down the road.

    Note, that this is not MOMENTUM BASED buying. That crowd only enters the markets AFTER it starts moving higher and takes out technical resistance levels. They are now coming into gold and into silver. ACCUMULATION puts a floor in a market; momentum based buying drives it higher into a trend.

  4. yup X is so true liberals don’t care about RP anti-War anti- Imperialism
    approach make me wonder
    still hope for the nomination of RP it happen bfore with P resident29

  5. Keep in mind – Possession is nine-tenths of the law

    NY Fed overstated gold depositors and their holdings, FT discovers

    The world’s largest storer of gold, the Federal Reserve Bank of New York, has said it holds bullion from far fewer countries than it had previously reported, shedding a rare chink of light on the opaque activities of central banks in the gold market. Central banks have helped drive prices to all-time nominal highs by becoming net buyers of bullion this year for the first time in 22 years. But trades by central banks are often secret — as is where they store their vast gold reserves. The New York Fed revised down the number of countries whose gold it stores by 40 per cent to 36, from a 2004 statement in which it said it held about 60 nations’ gold.

    Germans Fret about Their Foreign Gold Reserves

    A large portion of Germany’s massive gold reserves are stored abroad, mainly in the Federal Reserve in New York. But are the bars really where they are supposed to be? A dispute has broken out over whether the central bank needs to check on its gold, or if Germany can trust its international partners.

    Switzerland Wants Its Gold Back From The New York Fed

    9-11 WTC Biggest Gold Heist in History: $300 Billion in Bars

    Gold Vault Federal Reserve Bank New York Eyeball

    The gold you see in the vault of the Federal Reserve Bank of New York attracts more than 25,000 visitors a year. It is the world’s largest accumulation of gold and belongs to 36 foreign governments, central banks and official international organizations. Only a very small portion of this gold belongs to the U.S. government. The Federal Reserve Bank does not own the precious metal but serves as guardian for the nations and international organizations that choose to leave their monetary gold reserves in the Bank’s custody. It is estimated that the gold in the vault represents a significant portion of all the monetary gold that has ever been mined.

    • Far less countries..

      • Always remember The Golden Rule …

        He Who Has The Gold Makes The Rules

      • Emergency Banking Act

        President RooseveltThe Emergency Banking Act (the official title of which was the Emergency Banking Relief Act) was an act of the United States Congress spearheaded by President Franklin D. Roosevelt during the Great Depression. It was passed on March 9, 1933. This act allows only Federal Reserve-approved banks to operate in the United States of America.

        The provisions of the act were as follows:

        Title I
        Section 1. To affirm any orders or regulations the President or Secretary of the Treasury had given since March 4, 1933.
        Section 2. To give the President the ability to declare a national emergency and have absolute control over the national finances and foreign exchange of the United States in the event of such an emergency.

        Section 3. To authorize the Secretary of the Treasury to order any individual or organization in the United States to deliver any gold that they possess or have custody of to the Treasury in return for “any other form of coin or currency coined or issued under the laws of the United States”.

        Section 4. To make it illegal for a bank to do business during a national emergency (per section 2) without the approval of the President.

        • “This act allows only Federal Reserve-approved banks to operate in the United States of America.”

      • It seems in a National Emergency or an International Emergency no nation will have their gold returned but will recieve worthless currency.

        Emergency Banking Act
        Section 3. To authorize the Secretary of the Treasury to order any individual or organization in the United States TO DELIVER ANY GOLD THAT THEY POSSESS or have custody of to the Treasury in return for “any other form of coin or currency coined or issued under the laws of the United States”.

        International Emergency Economic Powers Act

        HistoryCongress enacted the law in 1977 as part of a reform to clarify the powers of presidents with regard to national emergencies. Starting with Franklin D. Roosevelt in 1933, presidents had claimed the power to declare emergencies without limiting their scope or duration, without citing the relevant statutes, and without reporting to Congress. The Supreme Court in Youngstown Sheet & Tube Co. v. Sawyer limited what a president could do in such an emergency, but did not limit the emergency declaration power itself. A 1973 Senate investigation found (in Senate Report 93-549) that four declared emergencies REMAINED IN EFFECT: THE 1933 EMERGENCY WITH RESPECT TO GOLD , a 1950 emergency with respect to the Korean War, a 1970 emergency regarding a postal workers strike, and a 1971 emergency in response to inflation. Congress terminated these emergencies with the National Emergencies Act, and then passed the IEEPA to restore the emergency power in a limited, overseeable form.

        Once passed, the act became a convenient means for presidents to order embargos of specific countries. Later presidents used the act to shut down organizations and cut off support to individuals.


      • Romney & Ron Paul are just a dog and pony show, there will be no audit of the Fed and there will be no return to a gold standard.
        Returning to a gold standard would mean that foreign nations could redeem US Dollars / Treasury Bonds for gold, this is why Nixon closed the gold window and that window will never be opened again.
        A new currency will be issued in the form of Digital Gold (any other FORM of coin or currency coined or issued under the laws of the United States”. Emergency Banking Act) All transactions will be made electronically, no one will hold one gram of gold in their hand.
        There will be no debate or gold commission required, this will be done by Executive Order when the current system collapses by design. The Emergency Banking Act and The International Emergency Economic Powers Act, remain in effect and will be enforced when we enter a National and International Emergency beyond comprehension.

  6. thx Rev for the remainder of LooseChange vid 🙂
    also always i like His voice lol
    “AreYOUAngryYet ? YOUshouldBe” was brillant!


    and at some RP from 2days ago

  7. and some RP from tday =)

  8. around min 8 His kissAss SoldOUTson is over

  9. […] China is buying 6,000 tonnes of gold?..China eyes African Barrick Gold stake ( […]

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