The extract from tonight's Midas on the 600,000 ounces of Gold buying by the Russians over the last month struck me.

If the Russians are clever, they take on the Cartel during coming Monday/Tuesday's gold option expiration. Might be the last chance to buy a lot of Gold at this price level.

Large Russian Gold purchase for July 2009

Bill,
I have been tracking the Russian central bank gold holdings since October of 2006 when they stood at 12.5 million ounces. Russia just reported their gold holdings as part of their Official reserve assets. See link below.

http://www.cbr.ru/eng/statistics/credit_stat
istics/print.asp?file=liquidity_e.htm

On the 20th of each month, Russia reports its gold holdings for the prior month. As of Aug 20, the Russian gold reserves now stand at 18.3 million ounces for July of 2009. This is an increase of 600,000 ounces of gold during the month of July 2009. Russia is now also showing their gold holdings for June 2009 on the link above.

The July 2009 increase of 600,000 ounces is the biggest one month increase in their gold holdings since I have kept records. The largest one month increase in gold holdings prior to today's report was a 400,000 ounce increase in Oct. 2008, August 2008, and Sept. 2007.

Russia tends to increase their gold holdings every month. The only question is, how much they will increase their gold holdings this month? Russian purchases tend to be heavy in the August, September, October time period based on past history. If an average gold price is used of $930/oz for July, the 600,000 ounce purchase represents $558,000,000. Not exactly chump change.

It is going to get real expensive for the banks to keep the gold price under $1,000/oz.

Paul

Source: Lemetropolecafe