Russia to Supply China with up to 100 Tonnes of Gold Annually

by David Kranzler
Investment Research Dynamics

Russia’s second largest bank, VTB Bank, announced a deal to supply Russia with 12-15 tonnes of gold in the next 12 months. The amount supplied will increase over time and eventually reach 80-100 tonnes annually: Reuters Link.

Perhaps the most interesting aspect of this will be to see if the World Gold Council acknowledges this gold as “Chinese imports.” The WGC and other entities which purport to track global gold “consumption” have been reporting declining demand for gold in China, based on declining imports from Hong Kong. Of course, these “official” sources completely ignore the fact that China imports an unknown amount of gold through the ports of Beijing and Shanghai…move along, nothing to see there…

The unarguable scheme by western Central Banks to suppress the price of gold with paper gold is contingent on the ability to deliver actual physical gold into China and India. In this blog’s educated opinion, the supply of gold available to make this happen is running low: Central Bank gold stock plus investor custodial gold that has been hypothecated.

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