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Central banks, globally, remain buyers of Gold, particularly on price pullbacks, as South Korea, Russia, and Kazakhstan have substantially increased their Gold hoards in 2013. This comes as a confirmation to market chatter of potential official sector activity over the last few weeks, especially during the move below $1,600.00′ said UBS on Wednesday. The buying marks South Korea’s first purchase this year, and follows a total of 30 tons of buying in 2012.

As Bloomberg states in its accompanying article:

South Korea joined Russia and Kazakhstan in boosting gold holdings, even as the metal had its worst start to a year since 1991 and billionaire investor George Soros cut his stake in the biggest bullion exchange-traded fund.

The Bank of Korea added 20 metric tons in February, raising its gold reserves by 24 percent to 104.4 tons, it said in a statement today. Holdings rose about $1.03 billion by value to $4.79 billion at the end of last month, equivalent to 1.5 percent of total foreign exchange holdings, according to the statement. Prices advanced.

Even as the U.S. stock market posts new highs in an ongoing bull market, foreign central banks stocking up on gold reserves points to an ongoing  fragile worldwide economic climate. To be sure, the world business climate continues to be swayed by unsettling news including  popular reactions against austerity measures in the Eurozone member states in addition to war fears in the Far East due to North Korean missle threats.

In such a climate, the ongoing push for investment safe havens by central banks and small investors continues the pace established in 2012.

A front page article in the Los Angeles Times states that since 2007, 471 U.S. Banks have failed thereby nearly depleting the FDIC deposit insurance fund with $92.5 billion in losses.

This front page LA Times article also describes how Deutsche Bank, now the world’s largest, settled to resolve claims that subsidiary Mortgage T sold shaky loans to Pasadena based Indy Mac Bank, which imploded under the weight of risky mortgage loans and construction loans.  The settlement was “secret” but a law passed after the S&L crisis prevents the FDIC from making secret settlements.

The LA Times obtained the secret settlement documentation under the Freedom of Information Act.

Deutsche Bank cut a deal requiring the FDIC never to mention it “except in response to a specific inquiry.”

FDIC losses could be the back story behind why the Fed is keeping interest rates low.

In other words rather than have the FDIC go broke due to bank failures due to banks having made risky real estate loans that failed, the FDIC is creating a real estate bubble to bail out those banks — which coincidentally has the same or more impact on depositors then would be the case if the bank (i.e. Bank of America or any other bank) was allowed to “fail” by being forced to recognize losses on real estate loans.

From Investing.com:

The amount of domestic currency in circulation and deposited in banks in the U.K. rose unexpectedly in the last quarter, official data showed on Friday.

In a report, Bank of England said that U.K. M4 Money Supply rose to a seasonally adjusted 0.9%, from 0.7% in the preceding quarter.

Analysts had expected U.K. M4 Money Supply to fall to 0.3% in the last quarter.

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