The big march East

The Bank of England’s 2014 annual report shows that 755 tonne of custodian gold left its vault between Feb 13 and Feb 14.  We’ve reported previously about the remarkable gold export figures from the UK (ETF custodian outflows) to Switzerland (refiners) to China (end buyers).  China has just announced too the opening of an international gold trading hub in Shanghai’s free trade zone by Q4 this year including likely trade in Yuan.  

Last week too saw an update to Russia’s gold holdings, showing 300,000 oz of gold added to their ever growing holdings in May (see graph below).  This the country who’s top economic aid last week outlined his thesis that Washington wants a Russian invasion of Ukraine to justify sanctions that would see them writing off Russian held Treasuries, Russian’s defaulting on Euro debt, and the US become the sole safe haven.  His proposed Eurasian alliance would not trade in USD and reduce US treasuries holdings.  

Wonder why they are stocking up on gold?