Dateline 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.
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.
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