Russia’s Voracious Appetite for Gold

By | April 21, 2015


120px-Russia_in_its_region.svgDateline June 5, 2015: Russia has a voracious appetite for gold, according to a recent piece by Matt Clinch on CNBC. The Russian central bank plans on continuing is aggressive purchases of gold, in an attempt to shore up its sagging currency. The central bank plans to increase its reserve levels from just over $300 billion to $500 billion. Wow! Russia’s reserves have been depleted of late as its central bank has chosen to sell dollars and other currencies to try to stem the free fall of the value of the Russian ruble. Earlier this year, additional documentation of Russian gold fever was presented by  Eddie Van der Walt in the Bloomberg Business website. That story went on to say that after a hiatus of several months, the Putin-led country has increased foreign reserves of bullion to 39.8 million ounces, or about 1,238 metric tons, as of April 1, 2015.

Russian Gold Ruble

Russian Gold Ruble

Russia is already the world’s fifth-largest holder of gold. According to the Van der Walt: “It’s interesting that Russia is still buying because its economy has taken a knock from Western sanctions and from lower oil prices.” Russia has more than tripled its gold holdings since 2005 and holds the most of the yellow metal since at least 1993.  Interestingly, it has increased gold reserves even as international sanctions over the Ukrainian conflict and a plunge in oil prices led to a major collapse in the ruble.

What’s in it for Russia…and for the rest of us?

What in the world is going on? What do the Russians think about gold and current geopolitical situation? Whatever they’re thinking, it a sure bet that they believe that holding gold is in their best financial interest and that the price of gold will rise. Perhaps we should also consider adding gold to our own personal treasury.  Russia is buying now, in part, because gold is undervalued. Perhaps you should as well. Consider using our preferred broker, Golden Eagle Coins, for your own purchases of gold bullion. Also, have a look at current prices for gold bullion at eBay. They often have great deals brought to you by trustworthy sellers.

Update October 26, 2015:

Russia is continuing to make massive purchases of gold.

  • In September, there central bank purchased an additional 34.2 tonnes in September, bringing its total to around 1,353 tonnes – or around 13% of its total foreign exchange reserve figure, according to a recent piece in LawrieOnGold.  Accordin to Larwie, this is Russia’s second highest monthly total purchase in six years. and the seventh successive month that Russia has increased its gold reserves. Currently, the country remains the world’s sixth largest national holder of gold.

Time to buy gold.

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4 thoughts on “Russia’s Voracious Appetite for Gold

  1. Leo Emery

    Hey Michael,

    There’s no doubt that Russia is hurting, they have been for some time now, and Putin is not making things any better.

    A long, long time ago when I was a teenager, my uncle told me to buy gold and buy stock in banks – and I have been doing both for over 30 years.

    Great post

    Cheers
    Leo

    Reply
    1. Mike Post author

      Leo,
      Appreciate your stopping by and your interest in this site. Keep up with gold and silver. Your uncle, and you, are shrewd!

      Reply
  2. Jolie

    I stopped looking at gold and silver as investments after I got stung by buying silver bullion a few years back – at the all-time high price if I remember correctly! Have made a near 50% loss on my investment to date, and you know the saying: once bitten, twice shy… That being said, I know it’s probably now a good time to invest in gold and silver again, but I just can’t bring myself to do it – brings back too many bad memories!

    Reply
    1. Mike Post author

      Jolie, Thanks for your comments and sharing your experience. From my perspective, there are several rules to follow regarding any investment, including gold and silver. First, Don’t put all your eggs in on basket. Instead be prudent and diversify. Two, keep an eye on what the big boys are doing. At this point in time most the major governments of the world are accumulating gold. Something must be going on. Third, take a look at the long-term price trend of the potential investment. Today, June 2015, gold and silver are near 10-year lows. All other things being equal, this is a better time to edge into the gold market than at a major high in price.Thanks for sharing and visiting.

      Reply

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