PBOC Gold Holdings Rise 1.5% In July

Last month, after finally giving the world an update on their gold reserves, the People's Bank of China promised to begin giving monthly updates going forward. That did just that earlier today.

Thanks to our good friend and loyal Turdite, StevenBHorse, for bringing this to our immediate attention. The official PBOC announcement can be found here:

http://www.safe.gov.cn/wps/portal/!ut/p/c5/04_SB8K8xLLM9MSSzPy8xBz9CP0os3gPZxdnX293QwP30FAnA8_AEBc3C1NjIxMjA6B8JE55dzMDArrDQfbhVhFsjFcebD5I3gAHcDTQ9_PIz03VL8iNMMgMSFcEAP5jfwo!/dl3/d3/L2dJQSEvUUt3QS9ZQnZ3LzZfSENEQ01LRzEwT085RTBJNkE1U1NDRzNMTDQ!/?WCM_GLOBAL_CONTEXT=/wps/wcm/connect/safe_web_store/state+administration+of+foreign+exchange/data+and+statistics/forex+reserves/official+reserve+assets/7d4f4280492356b0a10ca5fce82f097e

If you dig into today's update and compare it to last month's numbers, you can determine the increase in the official PBOC gold holdings.

Back in July, The PBOC reported a total dollar value of gold holdings at about $62.397B. By using the other data supplied in the release, we were able to determine just how much gold they were claiming to have.

  • Value: $623.97 in $US100MM
  • Gold price: $1170.236

By doing some simple math, the world discovered that China's updated gold holdings were about 53,320,000 ounces or roughly 1658.43 metric tonnes.

In today's update, the total dollar value of the PBOC's gold holdings fell to $59.238B. Ahh...but as we all know, the dollar price of gold fell sharply over the past month from the $1170.236 that the PBOC used in June to the $1095.38 used in July. The same calculation used last month yields the updated results.

  • Value: $592.38 in $US100MM
  • Gold price: $1095.38

This yields an updated total of gold holdings at 54,079,863 or 1682.71 metric tonnes.

Therefore, with it's first monthly update...and the PBOC has promised to update their numbers every month going forward...the new total of PBOC gold holdings is 1682.71 metric tonnes. This is up 24.38 metric tonnes from June or about 1.5%.

We'll be sure to watch these numbers every month, keeping in mind the words of Sun Tzu that "all war is based on deception":

“Hence, when able to attack, we must seem unable; 

When using our forces, we must seem inactive; 

When we are near, we must make the enemy believe we are far away; 

When far away, we must make him believe we are near.”

TF

29 Comments

CPE's picture

Now that's

Horse Sense!

StevenBHorse's picture

Dammit CPE

Taken right out from under me.

Please substitute the name Rick James for StevenBHorse.

CPE's picture

@StevenB

lol, you da man, err horse!!  Great work!

StevenBHorse's picture

Thanks buddy

All while I was doing the laundry and tending to the ponies.

I look forward to re-entering the workforce soon.

canary's picture

@CPE....I love it !!!

A perfect way to start Monday.

Orange's picture

StevenB

I Think Fox would substitute Trump for Rick

http://www.zerohedge.com/news/2015-08-10/martin-armstrong-asks-did-fox-try-politically-assassinate-trump-maintain-status-quo

Nice to see silver pop this morning.

StevenBHorse's picture

I look forward to ZH posting this as well.

They got more eyeballs watching their site than we do, but if we can break it first and get the credit from ZH, then perhaps it will drive more traffic here, and benefit Turd.  He does an awful lot of work for just $10/month.

mike97's picture

Lok at the spikes

Looks like short covering is underway.

CPE's picture

$10 / month

spot on Horse, today's a great day for a little free gold, sign up for free and feed the Turd here: 

http://BitGold.com/r/TlY5pO

Turd Ferguson's picture

This week's JMB special

MODERATOR

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cashonly's picture

when your enemy is destroying himself, let him

sonzoo!

Silverhog's picture

LOL

Gee...they are having trouble crashing the Pet Rock below $1000 never mind $350. As Gold gets it's legs back, looking forward to the new spin on MarketCrotch. 

canary's picture

Fantasy

Chuck Butler (Daily Pfennig):

...Oh, and in case you were wondering...Once again last week I read that this year has been an awful year for startups, and that more businesses were closing than opening...Now that's the promise of the BLS's Birth Death Model...That fo the startups there's a delay in getting their employees on the records, so the BLS makes an "adjustment" each month and adds or subtracts (mostly adds, rarely subtracts) based on their "model"...So in a year, when it has been confirmed a couple of times now that there are "more deaths than births", this year, the BLS has seen to it to add 833,000 jobs...of July's 215,000 supposed total jobs created 83,000 were added by the BLS...So maybe now you get the idea why I've become so disillusioned with the BLS's numbers...

Dr Jerome's picture

All clear

You bulls waiting on the shore can go back in now.

I was thinking about opening my own trading service where I pay you to subscribe. That way you cannot get mad at me when my advice causes you to lose money. In fact, this advice I am suggesting right now is probably pretty bad and you should ignore it. I just like the image of the swimmers all waiting for the shark to leave so they can get back in the water.

But I am encouraged by the action the past three days.

SS121's picture

Things were feeling shaky last week

all the Silver scarcity situations, dealer outages, maybe even a little panicked "better get it while we still can" here and there.

So now they run the silver chart UP, and they hope AWAY from the mid-14s that saw so much tension.  Is that the deal?  idk

SS121's picture

Turd, any word from Provident re: their failure to deliver??

You emailed them, any response?

(sorry if you already posted and i missed it)

Turd Ferguson's picture

No nothing yet

MODERATOR

The guy I send invoices to just thanked me for the heads up. I asked him to email me any formal responses they put out but haven't rec'd anything yet.

gold slut's picture

Chinese gold

Top man Horse!

So, after many years of no announcements on their gold reserves, they are now going to make an announcement every single month?  There is a reason for that.

The first thing that jumped into my mind was that their currency was slapped down (again) for another year from joining the SDR.  They had been so polite to only announce a surprisingly small increase in their gold reserves as well, so as not to upset the markets etc (when so many, myself included, thought the figure was going to be much, much higher).

Well, playing the nice guy got them nowhere, and maybe China does not want to scare the markets either, but they can gently increase the pressure.  If they announce a monthly increase over and over and over....  you get the idea.

A simple message, "If the IMF and Fed et al want to get their wedding tackle out of this constantly tightening gold vice, how about letting us join the SDR."  Very subtle.  Gold price chinese water torture (pun fully intended).

Mr. Fix's picture

Nice spike

KWN Arnott II 7:26:2015

If the recent history is of any relevance here, the beat down will commence in Three...... Two........ One....... devil

canary's picture

Chinese water torture....

....Yes....Playing a nice guy got them nowhere. That's what happen when you face a bully.

Turd Ferguson's picture

Two birds with one stone (bullet)

MODERATOR

Looks like plenty of silver bullets available at GoldenEagle!

http://www.goldeneaglecoin.com

murphy's picture

Mining is the root

of all evil.

http://www.nbcnews.com/news/us-news/state-emergency-colorado-wastewater-leak-far-exceeds-first-estimates-n407091

First, 1 million gallons. What is your guess when they say more than 3 million?

Maybe they will declare it illegal.

http://www.zerohedge.com/news/2015-08-10/epa-admits-spilling-millions-gallons-toxic-waste-colorado-river-stunning-aerial-foot

Dave Ostrander, the EPA’s regional director told reporters in a later statement that “It’s hard being on the other side of this.”

“We are very sorry for what happened. This is a huge tragedy. It’s hard being on the other side of this. Typically we respond to emergencies; we don’t cause them. … It’s something we sincerely regret,” he said.

G-Rod's picture

At murphy - re Mining

... is the root of all evil.
 

Well I suppose that we could revert back to stone age technologies, a population of 10 million and an average lifespan of less than 40, and constantly wondering where the next meal was coming from.

Havenstein's picture

PBOC holdings

Shanghai Gold Exchange (SGE) withdrawals were 73.29 tons of gold during the week ended July 24, 2015

https://smaulgld.com/shanghai-gold-exchange-withdrawals-week-ended-july-24-2015/

So, monthly withdrawals roughly = 300 tons (75 x 4)

July's official holding (via Turd) increase is roughly 8% of one month's SGE withdrawal. (25/300)

Before last month's update to 1658 tons, the Chinese official holdings were 1,054 tons (edited) April 2009, a little under six years ago.

A little more (edited) than 5,555 tons of gold were withdrawn from the SGE from 2009 to 2015 according to the chart on this page: http://lawrieongold.com/tag/sge-gold-withdrawals/

8% x 5555 = 444 (possible total tons deposited in PBC from April 2009)

444 / 25 (rounding up today's increase of 24.38) = about 18
1658 + 444 = 2102 (possible actual PBC holdings)

My conclusion for what it's worth.  By around January 2017 the official PBOC gold holdings with finally equal about 2,100 tons not including new purchases.

murphy's picture

@G-Rod

Didn't think I needed to include <sarc>.

G-Rod's picture

Sorry Murphy

Sarc noted.

Cheers G-Rod

G-Rod's picture

PBOC Holdings

Are explicitly not from the SGE.

They use other channels.

The key point today is that they announced it. Shows integrity

Golden Turtle's picture

Genius

There has to be a time China wants gold to go back up. This could be it. If so, Very smart by China to buy the gold before they start saying they are adding it because once the money devalues and gold rises it will be IMPOSSIBLE to buy bulk gold nation to nation. It will be too valuable. China is the biggest gold miner too. Very smart moves by them. Essentially they buy the gold before the price rises, and then as it rises they say they bought more but essentially they are just reporting more that was already bought. Pure genius really.

Joseph Warren's picture

Gold Won't Fall When Stocks Liquidate

I got the following email from analyst Rick Ackerman. I don't subscribe to his service now (Turd's is one of the few that I have kept).  But Ackerman is a sharp guy. He's not really a 'gold guy' per se.  He's a chart technician.  - Since he must have sent the email to lot's of non-subscribers, its in the public domain. Very interesting thoughts on gold - - - J Warren

" Why Gold Will Rise If Stocks Collapse"

Posted Monday, September 7 0 comments

[After a long hiatus, we heard recently from an old friend, a prominent Seattle business lawyer whose thoughts have been featured here many times before. In his latest dispatch, he explains why a major stock-market selloff is imminent. Although many gold investors fear that this would trigger a liquidation of bullion-based assets, our friend believes otherwise. For an explanation, read his note, below. RA]

I go back many years with Rick. He used to quote me regularly on his site–and I had some prescient timing calls that were perfect. We bot GG and NEM at the lows and rode them all the way to an interim peak; and sold the day before they tanked. Only did that once, but it was fun. I bot most of the physical I own in the 1990’s and have never really touched it since. And my views are based primarily on fundamental monetary considerations rather than technical.

That said, the fundamental proposition of the moment is that owners of significant amounts of capital liquidity have some difficulty seeing where to store it. Bank deposits and negotiated bank instruments (purchased from JPM in New York) were not only a fairly safe deposit, they also paid above market interest. But JPM has ceased making those available and has notified everyone who has them open to liquidate them and convert to T-Bills (without much explanation for why). However in the context of new regulations treating bank credits as bank capital under certain circumstances, it is pretty easy to contemplate that in any kind of real estate or general corporate liquidation, many if not most of the major institutions will become insolvent and many bank accounts are going to be subject to bail-in charges.

Stock Market ‘Monetized’

The stock market? Whether you buy the argument above or not, a number of factors point to a significant liquidation period over the next 90 days. Fed and Treasury policy has effectively monetized the stock market. In talking to owners of capital in Hong Kong and other Asian location, it becomes clear that US stocks are the only vehicle for any kind of safe storage of liquidity with any hope of a real return, and those investors are all in. Many of them already recognize their exposure to losses in a liquidation — general recognition is developing.

Treasury instruments? That is really where I am at present–in money market funds that invest only in T-bills and notes with maturities in less than 13 weeks. But those credits are initially exposed to a significant political hazard in the immediate future — whether the Planned Parenthood appropriation or the outright Continuing Resolution itself, there is a very good prospect that Democrats will shut down the government.

Looking for Liquidity?

So where does liquid capital go for storage? Seeing this set of conditions develop, I posted here during the spring that the bottom in gold would be seen before Labor Day. I have since had second thoughts, in part because of the technical analysis we have seen in Rick’s Picks; and in part because I know that negotiations in D.C. offer the prospect of settlement of the shutdown issues. However, at present I am a little more negative than I was several weeks ago, and I see the current spending situation as a small part of the long-term federal fiscal crisis. The federal government is insolvent. Cash flow at adequate levels continues only so long as federal taxes get paid at something like current levels with interest rates at something like current levels. I don’t see much that is likely to prevent a significant liquidation in the stock market, and once that gets established as a firm trend (and I don’t see it stopping at a mere 400 S&P points), capital conditions that support continued activity that generates tax revenue are also likely to disappear.

So with all due respect to those of you who see gold as just another imminent general commodity liquidation away from $850 or lower, I think that is not exactly the way it is going to play out. We may see more sell-off coming as current conditions develop; yes, I may still be a little early; but gold still represents the ultimate store of value for liquid capital. "

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