Gold is one of the most scarce and fascinating metals. Historically, it has received great value during the global financial crises of the 1930s. Gold is the favorite metal of people and banks that hold it as a store of value when paper money loses it.
The Central Bank of Russia has been systematically buying up large amounts of gold over the past few years including the year that is about to come to an end.
According to public data, the Central Bank of Russia bought in 2016, 22 tonnes of gold. While in the year 2015, Russia added 208 tonnes of gold to its reserves, a figure higher than that acquired in 2014, which was of 172 tonnes. It is also curious that the Russian Central Bank has sold its holdings of US Treasury debt to buy the gold.
On the other hand, the central bank of Russia is buying all the production of the country. It is very interesting that the Central Bank’s gold reserves were stolen during the Yeltsin era in the early 1990s and has now grown to become the second extractive power after China.
In February 2017, the Central Bank of the Russian Federation again increased its gold reserves by 9.3 tons, bringing its total gold reserves to 1,650 tons, a record figure since the fall of the Soviet Union. According to experts in the field, confidence towards the dollar is expected to decline or be used as a weapon against Russia.
For the period from January to September, for the second time in 2017, the Bank of Russia purchased 4.2 million troy ounces of gold for a total of more than 5 billion dollars. Increasing the purchase price by 15% compared to the same period last year. At the same time, it is noted that the price of gold has increased by 10% since the beginning of the year.
Russia’s gold reserves currently stand at 1,778.9 tonnes, a figure obtained after acquiring another 63 tonnes in the fourth quarter of 2017 and the sixth largest in the world, according to the World Gold Council in London. According to experts in the area, the purchase of precious metals is a strategy in the event that the United States introduce harsh sanctions against that country.
This Russian gold rush began between 2007 and 2008, and continued without major changes for some years, increasing from 2014 in a vertiginous way. It is claimed that this metal protects any country from variations in foreign exchange markets. Russia is positioned as the first country to increase its gold reserves, although it is the one that owns more of this coveted metal.
International sources say buying gold is a way to ensure economic stability amid growing tensions between Russia and the United States.
ALFA