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The Trend Away From the Dollar to Gold Continues, Turkey Significantly Increases Reserves - Nathan McDonald (17/05/2018)

From the archives of sprott money news

May 17, 2018

The trend of accumulation continues onward, with no signs of slowing down despite a sluggish precious metals paper market that at this point is nothing more than a complete and utter farce.


In the West, our central bankers appear blissfully ignorant as the world becomes more and more financially unstable. With nothing truly solved since the 2008 crisis—only papered over—we head into the great unknown, awaiting the next crisis.


Meanwhile, they continue to dis-hoard our vital gold reserves, moving our assets towards the East, which is ecstatic to purchase every ounce, every gram they can get their hands on.


As the Sprott Money blog has well documented, both Russia and China have added to their gold reserves in a massive way, with no signs of slowing down. In fact, they have been increasing their purchases, perhaps sensing the need for the protection only hard money can offer.


Adding to this demand in the physical markets has been the ongoing repatriation of gold reserves by various countries around the world, as they realize their hard money is held by foreign entities that have become increasingly hostile towards them over the last few years.


This double whammy has created a sucking sound in the physical precious metals markets, which was already thin to begin with. Yet, the cartel have done a fantastic job at keeping the canary in the coal mine silent during this time, suppressing the spot price in the process.


One other country that has joined the fray over the years has been Turkey. They have proven to have a bad case of the yellow metal fever, buying gold hand over fist and repatriating whatever they can get their hands on.


Adding to their reserves, Turkey has continued their accumulation trend, tripling their gold imports from 106 mt in 2016 to 361 mt in 2017. A massive increase.


Still, this has not been enough for them , as they are reporting huge investor and central bank demand. This has resulted in a continued accumulation of precious metals, adding another 30 mt in the first quarter of 2018.


Sadly, this gold has to come from somewhere, and it is widely speculated by precious metals experts that this gold comes directly from the vaults in the West, as they continue to rehypothecate their reserves.


Sooner or later, the jig will be up and the farce will be over. However, they have defied the markets for far longer than anyone would have ever guessed.


The question many of us have been asking for years now is: how long? How long can they last, and how much longer can this fiat dam hold?


The answer is the same as it has always been: who knows. But one thing is certain. Eventually the dam will break, and one of the greatest bull markets this world has ever seen will unfold, as precious metals are set loose and the free market asserts itself.


Until then, keep taking advantage of these artificially reduced prices. And as always, keep stacking.

Don’t miss a golden opportunity.

Now that you’ve gained a deeper understanding about gold, it’s time to browse our selection of gold bars, coins, or exclusive Sprott Gold wafers.

About Sprott Money

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Since 2008, our customers have trusted us to provide guidance, education, and superior customer service as we help build their holdings in precious metals—no matter the size of the portfolio. Chairman, Eric Sprott, and President, Larisa Sprott, are proud to head up one of the most well-known and reputable precious metal firms in North America. Learn more about Sprott Money.

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About the Author

Nathan McDonald is a libertarian, entrepreneur and precious metals enthusiast. He has always taken a keen interest in free markets and economics since an early age, which naturally led him to become a true believer in precious metals and all that they stand for.

Nathan served eight years in the Royal Canadian Navy as an electronics technician, seeing the true state of the world, before starting his first successful business. He has since gone on to create a number of businesses, all of which are still in operation and growing.

In addition to this, Nathan runs a network of successful precious metals blogs, and a growing newsletter that has attracted readers from all around the world. He is a regular and highlighted writer for the highly respected Sprott Money Blog, which covers world events, geopolitics and of course precious metals.

*The author is not affiliated with, endorsed or sponsored by Sprott Money Ltd. The views and opinions expressed in this material are those of the author or guest speaker, are subject to change and may not necessarily reflect the opinions of Sprott Money Ltd. Sprott Money does not guarantee the accuracy, completeness, timeliness and reliability of the information or any results from its use.