MINEX Forum

Tag: gold reserves

  • Turkey Eyes $135 Billion Gold Reserves as Lira Comes Under Pressure From Iran War Fallout

    Turkey Eyes $135 Billion Gold Reserves as Lira Comes Under Pressure From Iran War Fallout

    Turkey’s central bank is weighing emergency measures to defend the lira against mounting volatility triggered by the war with Iran, including tapping into its vast gold reserves through swap transactions in the London market, according to people familiar with the deliberations.

    The bank has held internal discussions about conducting gold-for-foreign currency swaps, a move that would allow it to mobilise hard currency without directly selling its gold holdings. Turkey is estimated to hold around $30 billion of its reserves at the Bank of England — assets that a JPMorgan economist said the central bank “may decide to use for FX intervention purposes without logistical constraints.” The central bank declined to comment. Gold prices slipped 0.7% following reports of the potential step.

    Turkey’s total gold reserves stood at approximately $135 billion as of early March, the product of an aggressive decade-long accumulation strategy driven by a policy of reducing exposure to US dollar-denominated assets. The scale of those holdings now makes gold a natural first line of defence as pressure on the lira intensifies.

    The country is acutely exposed to the Iran conflict’s economic aftershocks. As a near-total importer of oil and gas, Turkey faces severe inflation and balance-of-payments risks the longer the war continues — factors already straining a disinflation strategy built around preventing the lira from depreciating faster than monthly inflation. Oil prices have surged from around $70 to above $100 a barrel since hostilities began, compounding the challenge for policymakers who are already contending with an inflation rate of 31.5% — one of the highest in the world.

    The central bank’s crisis response so far has included tightening liquidity conditions, raising the cost of lira funding, and directing state-run lenders to intervene directly in currency markets. It has also been offloading foreign-currency bond holdings, including an estimated $16 billion in US Treasury sales in recent weeks, reducing Turkey’s Treasury holdings to below $17 billion — down sharply from a peak of $82 billion in 2015. Foreign investors, meanwhile, have been exiting Turkish government bonds at the fastest pace on record, according to central bank data covering the week through 13 March.

    Street-level signs of stress are also emerging. Traders at Istanbul’s Grand Bazaar were this week selling dollars at a premium to the interbank rate, a visible indicator of rising local demand for hard currency.

    Interest-rate expectations have shifted significantly. Traders are now pricing in a 100 basis point rate increase at next month’s meeting. Turkey’s benchmark rate currently stands at 37%, though the central bank suspended lending from that rate at the start of March in favour of a costlier 40% funding window. The lira was trading at 44.35 per dollar on Tuesday afternoon in Istanbul, continuing a steady decline that has averaged approximately 0.05% per day this year.

  • Germany Faces Renewed Calls to Repatriate Gold Stored in the United States

    Germany Faces Renewed Calls to Repatriate Gold Stored in the United States

    Germany is once again under political and public pressure to reconsider the location of its gold reserves, as shifting transatlantic relations and geopolitical uncertainty revive concerns over assets held in the United States.

    The country holds the world’s second-largest official gold reserves and keeps roughly one-third of them, about 1,200 tonnes, in the vaults of the New York Federal Reserve. This storage strategy dates back to the Cold War, when placing bullion abroad was intended to guarantee rapid access in the event of a major global conflict. In addition to New York, Germany also stores gold in London and Paris.

    However, the return of US President Donald Trump to office and the escalation of trade and geopolitical tensions have prompted fresh debate in Berlin. Since April last year, German politicians and fiscal commentators have increasingly questioned whether the United States remains a reliable custodian for such a large share of the country’s reserves.

    Emanuel Mönch, a former senior research official at the Bundesbank, said recently that Germany should reassess its long-standing approach. Speaking to the financial newspaper Handelsblatt, he argued that greater strategic autonomy would justify bringing more gold back to domestic vaults.

    Similar views have been voiced by Michael Jäger, head of the European Taxpayers Association, who has repeatedly urged German authorities to accelerate repatriation plans. This month, he renewed his call after the United States increased pressure over Greenland, warning that political unpredictability could put foreign-held reserves at risk.

    The debate is unfolding against the backdrop of a historic rally in gold prices. The metal has surged to record levels above $5,100 per ounce, up around 80% over the past year. At current prices, Germany’s gold stored in New York alone would be valued at roughly $128 billion.

    Not all economists support the idea. Clemens Fuest, president of the Ifo Institute for Economic Research, cautioned that repatriation could strain diplomatic relations with Washington and potentially trigger unintended economic or political consequences.

    Germany is not alone in facing such pressure. Italy, which ranks as the world’s third-largest holder of gold reserves, has also seen renewed calls to bring home bullion stored in New York.

  • Poland’s central bank plans to boost gold reserves by 150 tonnes amid geopolitical risks

    Poland’s central bank plans to boost gold reserves by 150 tonnes amid geopolitical risks

    National Bank of Poland (NBP), the world’s largest reported buyer of gold, plans to increase its bullion holdings by a further 150 tonnes, lifting total reserves to 700 tonnes as it prepares for prolonged geopolitical instability.

    Management board member Artur Sobon told Bloomberg that the central bank recently approved the higher target, stressing that record-high gold prices would not deter purchases. Gold has surged to historic highs as investors seek safe havens amid rising tensions between the United States and Europe, including disputes over Greenland.

    “Our primary goal is to build an appropriate portfolio for these unstable geopolitical times, one that will guarantee Poland stability, security, and credibility,” Sobon said, adding that price considerations are secondary.

    At current market prices, acquiring 150 tonnes of gold would cost more than $23 billion. Central bank demand has been a major driver of gold’s rally, with prices doubling over the past 18 months. Buying accelerated globally after Russia’s reserves were frozen following its invasion of Ukraine, highlighting gold’s appeal as an asset that cannot be easily sanctioned.

    NBP purchased 100 tonnes of gold last year, the largest amount officially reported by any central bank. Analysts note that some countries, particularly China, may also be buying gold without fully disclosing their activity.

    Poland’s push to expand gold holdings has been led by central bank governor Adam Glapinski, with reserves standing at about 550 tonnes at the end of 2025. Until now, gold allocations were capped at 30% of total reserves, a threshold that soaring prices have brought close to being reached.

    Sobon said the timing and pace of future purchases would be determined by NBP traders and could vary month to month. Poland’s growing foreign-exchange reserves, bolstered by inflows of EU funds, give the country room to finance the expanded gold strategy. Total official reserves now stand at roughly $271 billion, compared with $36 billion when Poland joined the EU in 2004.

  • Online Auction for Gold-Bearing Pirali Site in Navoi Region Closes with Record Bid

    Online Auction for Gold-Bearing Pirali Site in Navoi Region Closes with Record Bid

    Tashkent, Uzbekistan — An online auction for the right to conduct geological exploration at the gold-bearing Pirali site in Navoi region has concluded with a record-breaking bid, according to the official website of the E-auksion platform.

    The bidding process, which began on the morning of August 21, lasted 23 hours and 29 minutes, with a total of 461 bids placed. The winning bid was submitted by NBK 111, offering 99.09 billion soums—24 times higher than the starting price.

    Winner and Company Background

    According to the Unified State Register of Enterprises and Organizations (EGRPO), NBK 111 was registered in Tashkent in May 2024 and specializes in the mining of non-ferrous metal ores. The company’s charter capital stands at 1.005 billion soums. A 40% stake in NBK 111 is owned by Chinese citizen Zhang Qian, while the remaining 60% is controlled by Nurmahmad Pulatov. Pulatov also holds significant stakes in other enterprises, including a 90.7% share in Quwwatt Group (glass production in Jizzakh) and a 100% stake in BEEK Electro (electrical appliance manufacturing). All three companies share the same contact phone number, indicating potential business ties.

    Site Details and Gold Reserves

    The Pirali site covers an area of 484 hectares and is located in the Navbahor district, approximately 20.5 kilometers northwest of Zafarabad settlement and 38.5 kilometers north of the city of Navoi. Preliminary estimates suggest that the site contains gold reserves of around 2.4 tons.

    Recent Auction Activity

    This week has seen significant activity in the auctioning of major gold deposits in Uzbekistan. The Temirchi site in Navoi region was sold for 67.78 billion soums, while the Terekli site near Almalyk saw its price surge nearly 20-fold to 81.8 billion soums.

    The successful auction of the Pirali site underscores the growing interest in Uzbekistan’s mineral resources and the competitive nature of the country’s mining sector.

  • Serbia to Retain Entire Gold Reserve on Home Soil, Snubbing Traditional Hubs

    Serbia to Retain Entire Gold Reserve on Home Soil, Snubbing Traditional Hubs

    Serbia’s central bank has revealed plans to relocate all of its gold reserves—valued at roughly £4.7 billion—back to its own territory, in a move aimed at safeguarding the stockpile during times of crisis.

    This would make Serbia the first country in Eastern Europe to entirely eschew established storage locations such as Switzerland, the United Kingdom, and the United States.

    “In bringing the gold back to Serbia, the National Bank sought to enhance both its accessibility and security during periods of instability,” the institution stated, noting that the repatriation effort had commenced in 2021 amid growing global uncertainty.

    Following the freezing of Russia’s foreign currency reserves in 2022, the rate of gold accumulation by central banks worldwide doubled, underscoring the political risk involved in holding reserves in US dollar and euro-denominated assets. Housing gold bars domestically reduces the threat of external interference.

    Between 2019 and the end of last year, Serbia acquired 17 tonnes of gold abroad and a further 19 tonnes from the local arm of Zijin Mining Group. This brought the total reserve to 50.5 tonnes, nearly all stored in Belgrade—except for five tonnes bought in 2024, which remain in Switzerland for now.

    Those final five tonnes will be brought back “as soon as possible,” according to Governor Jorgovanka Tabaković. Serbia’s neighbours hold differing proportions of their reserves domestically, ranging from 86% in Hungary to around 25% in Poland, as per data compiled by Bloomberg.

    The central bank said it had weighed the pros and cons before committing to full repatriation, admitting that while holding gold in global market hubs facilitates easier selling and lending, the risks outweighed those advantages.

    The Bank of England’s vault in London currently houses a significant portion of the world’s gold reserves—around £430 billion in value—cementing the UK’s position as the primary hub for precious metals trading. Similarly, the Federal Reserve in New York holds gold on behalf of nations including Germany and the Netherlands.

    Germany’s decision to bring gold back home over a decade ago sparked national debate and was driven by Cold War fears. Though the Soviet threat has since faded, the metal remained overseas until the repatriation effort was completed.

    Other countries, such as Poland and the Netherlands, have followed suit, while similar calls for domestic storage have echoed through Slovakia and Romania.

    The notion of storing gold within national borders has gained traction among rising populist movements, such as Germany’s Alternative für Deutschland, which regards it as a crucial safeguard against international political pressure.

  • Gold Ore Mining in Kazakhstan Increased by 14% in January 2025

    Gold Ore Mining in Kazakhstan Increased by 14% in January 2025

    The beginning of 2025 proved to be successful for Kazakhstan’s mining enterprises: in January, 3.42 million tonnes of gold-bearing ore were extracted, marking a 14.1% increase compared to the same period last year, according to a report by the Bureau of National Statistics.

    Gold concentrate production surged by 46.4% to 36,000 tonnes. However, due to the declining gold content in ores at major deposits, gold extraction showed a negative trend. As a result, companies produced 8.38 tonnes of unrefined and semi-refined gold, 16% less than in January 2024. Refineries produced 3.4 tonnes of gold, reflecting a 32.8% decline year-on-year.

    The situation is even more challenging for silver producers. The output of unrefined and semi-refined silver amounted to 32.55 tonnes, while refined silver production totaled 31.63 tonnes, both figures showing a 50% drop compared to the previous year.

    Meanwhile, Kazakhstan’s international reserves showed positive dynamics for the first time since September 2024. According to Zakon.kz, the growth was driven by an increase in net foreign exchange reserves, reaching $45 billion.

  • Potential Gold and Silver Reserves Found in Hungary’s Börzsöny Mountains

    Potential Gold and Silver Reserves Found in Hungary’s Börzsöny Mountains

    Recent calculations by Hun-Mining Research, Development, and Innovation Ltd. reveal a promising discovery in northern Hungary’s Börzsöny mountains, estimating approximately 1,000 tons of gold and silver deposits at a depth of about 150 meters, as reported by Origo. This discovery surpasses the gold reserves held by the Hungarian National Bank, standing at 100 tons, with potential gold values reaching around EUR 59 billion. The envisioned concession mining rights could potentially unlock 9,000 tons of gold and an equivalent amount of silver over an estimated operational span of 42.5 years, providing employment for 1,200 individuals and establishing Hungary’s most lucrative gold and silver mines. After five years of meticulous research and technical preparation, including documentation for mining authorities, plans for the new gold mine are underway. Utilizing washing technology based on deep drilling results aims to eliminate the use of cyanide, adhering to EU regulations following past environmental incidents. The process of awarding concession mining rights will involve an international tender, with operations projected to commence within five years. With significant resources identified in the Nagyírtáspuszta-Rózsabánya region, this project holds the potential to transform into one of the world’s largest gold deposits, promising substantial social and economic benefits for the area.

  • National Bank of Kazakhstan made headlines by selling nearly 57.43 tons of gold in 2023

    National Bank of Kazakhstan made headlines by selling nearly 57.43 tons of gold in 2023

    In late 2023, the National Bank of Kazakhstan (NBK) made headlines by selling nearly 57.43 tons of gold, surpassing other national banks in terms of gold sales. This move caused the share of precious metals in the Republic of Kazakhstan’s international reserves to decrease to 54.2%, as reported by the analytical agency Halyk Finance.The year 2023 saw the highest global demand for gold in the past two decades, with developing countries particularly active in purchasing the precious metal, driving prices to relatively high levels. Since 2012, the NBK had been prioritizing the acquisition of gold, steadily increasing its reserves. By 2022, the share of gold in its reserves had risen to 70%. However, due to gold’s low liquidity as a financial instrument, the NBK opted to gradually decrease its share and reinvest the proceeds in more profitable assets. By the end of 2023, the share of precious metals in the reserves had reached 54.2%, aligning with the NBK’s plan, which allows for a range of 50–55%. This placed the NBK ahead of all other national banks globally. The National Bank of Uzbekistan followed in second place with 24.57 tons, and the National Bank of Cambodia ranked third with 10.08 tons. Despite the significant gold sales, Kazakhstan remains among the top 20 countries with the largest gold reserves, currently holding the 18th position with 294 tons.

     

  • The volume of gold and foreign currency reserves in Uzbekistan has been announced

    The volume of gold and foreign currency reserves in Uzbekistan has been announced

    The gold and foreign currency reserves of Uzbekistan experienced a decline of approximately $1.65 billion in September and a cumulative decrease of $4.7 billion since the beginning of the year. As of October 1, the reserve level reached its lowest point since April 2020, standing at $31.04 billion, as reported by Trend.

    The Central Bank has disclosed updated information concerning Uzbekistan’s international currency reserves, revealing that the official reserves amounted to $31.04 billion as of October 1. This represents the lowest value observed since April 2020.

    In comparison to the preceding month, reserves witnessed a decrease of approximately $1.65 billion, with a total decline of $4.7 billion recorded since the start of the year.

    During the reporting period, the physical volume of gold increased from 12.1 million troy ounces to 12.3 million troy ounces. However, the value of gold decreased from $23.43 billion to $23.05 billion. This decline can largely be attributed to the decrease in gold prices observed in the global financial markets. For instance, the price of 1 troy ounce of gold fell from $1939 on September 1 to $1848 on September 29.

    One of the primary factors contributing to the decrease in gold prices during September is the stringent monetary policy implemented by the Federal Reserve in the United States. In such circumstances, U.S. government bonds become more alluring to potential investors, consequently diminishing interest in purchasing gold.

    According to data provided by the World Gold Council, the Central Bank of Uzbekistan sold 46 tons of gold in the first eight months of this year, while acquiring 25 tons of gold. Considering that a significant portion of the country’s reserves is stored in gold, fluctuations in the price of this precious metal exert a noteworthy impact on the overall reserve assets.

  • How much gold is left at the largest Vasilkovsky deposit in Kazakhstan

    How much gold is left at the largest Vasilkovsky deposit in Kazakhstan

    According to information presented by the “Mining Industry. Central Asia” magazine through inbusiness.kz, the Vasilkovsky deposit in Kazakhstan is a significant source of gold. After the completion of open-pit mining operations in 2026, the company, specifically the “Kazzinc” division of Altyntau Kokshetau, plans to process off-balance ores from its stockpiles. This new project for gold extraction from the Vasilkovsky deposit has been posted for discussion on Kazakhstan’s Unified Environmental Portal.

    The company’s mining operations are expected to reach a depth of 540 meters by 2026, with a horizon of -305 meters. It is worth noting that a considerable portion of the Vasilkovsky deposit’s reserves has already been mined. In 2022, experts conducted a reevaluation of the resources and included them in the state balance. The documented reserves indicate that the subsoil contains 37.38 million tons of gold-bearing ores with 73.77 tons of gold at an average content of 1.97 g/ton. Additionally, there are 6.58 million tons of ore and 12.08 tons of gold categorized as presumed.

    The enterprise has a designed capacity of processing 8 million tons of ore annually. The existing gold processing plant, which has been operational since 2009, will handle the raw material. The processing method will remain the same, utilizing a gravity-flotation beneficiation scheme followed by sorption cyanidation of the finely ground flotation concentrate.

    Furthermore, the report highlights that the Vasilkovsky and Bakyrchik deposits are the largest gold assets in Kazakhstan. The Vasilkovsky deposit alone boasts approximately 370 tons of proven reserves, with a gold content of 2.8 g per ton. On the other hand, the Bakyrchik deposit holds around 326 tons of precious metal, with a higher gold content in the ore, at 7.7 g per ton.

    Gold-bearing ore from the Vasilkovsky deposit undergoes multi-stage processing at the company’s ore-processing plant to produce doré. The resulting doré alloys are then sent to the Ust-Kamenogorsk Metallurgical Complex’s refining plant. Additionally, the company is involved in gold refining into bars.

    Altyntau Kokshetau contributes significantly to Kazakhstan’s gold production, bringing in up to 400,000 troy ounces of gold to the country each year.

    Overall, Kazakhstan is home to approximately 300 gold deposits, spread across all regions of the republic, with a concentration in the East Kazakhstan and Akmola regions. As of June 2022, Kazakhstan’s gold reserves stood at 373.4 tons, ranking the country 14th among the world’s largest “gold” countries. Notably, in the first quarter of 2022, Kazakhstan held the highest gold reserves among Central Asian countries.

    In 2021, the country produced approximately 33 million tons of ore and 66 tons of refined gold, as reported by Marat Karabaev, Deputy Minister of Industry and Infrastructure Development, at the Third Forum of Gold Miners of the Republic of Kazakhstan.

    Kazakhstan’s gold mining enterprises also export a portion of the extracted metal to other countries, with primary destinations being Kyrgyzstan, Russia, Uzbekistan, and Italy. According to the National Statistics Bureau of Kazakhstan, gold exports in bars and other unprocessed forms witnessed an 18% increase in the first nine months of 2020 compared to the same period in 2019. Notably, Kyrgyzstan received the largest amount of precious metal, totaling $4.6 million, followed by Russia with $235.6 thousand, Uzbekistan with $34 thousand, and Italy with $12.5 thousand.