The Central Bank of Russia added 600,000 ounces (18.6 tons) of Gold to Reserves in June.
The Central Bank of Russia continues to lead the world central banks in gold acquisition. In 2018 the CBOR added a record 271 tons to her reserves and continues to add prodigious amounts of gold to reserves through June 2019.
The Russian Central Bank announced last week that its gold reserves had reached 71.0 million troy ounces (approximately 2,208 metric tons). The total included an additional 600,000 ounces (approximately 18.6 metric tons) of gold added in June.
With the world’s third largest gold production and facing sanctions from the United States and Europe over the past few years, the Central Bank of Russia has increased its foreign reserves to nearly $500 billion, largely by increasing their gold reserves.
The Central Bank of Russia added 208 tons of gold to reserves in 2015. In 2016, Russia added 199 tons of gold to her reserves.
In 2017, the Russian Central Bank added a record 7.2 million ounces or approximately 224 tons of gold to reserves. Over the past two years, Russia has led the world in adding gold to her central bank reserves, ahead of the People’s Bank of China, the central bank that has added the second largest of amount of gold. Indeed, in 2017 the Russian Central Bank’s gold holdings surpassed the People’s Bank of China’s gold reserves to take sole possession of fifth place among the gold holding nations of the world. The Central Bank of Russia continues to add gold to reserves at a faster pace than the People’s Bank of China.
In 2018, the Russian central bank added about 271 tons of gold, the largest amount ever added. Through June, the Central Bank of Russia has added over 96 tons of gold to reserves.
The Central Bank of Russia has been adding an average of over 200 tons of gold to reserves the past few years.
As a result of Russia’s gold buying binge, Russia has vaulted into fifth place among holding nations.
The Central Bank of Russia holds over 2,200 tons of gold.
In addition to increasing its gold hoard, Russia’s overall foreign reserves have grown from $371 billion in January 2016 to $518.36 billion as at 2019, a 40% increase.
As of June, 2019, Russia’s 2,208 tons of gold constituted about 19.3% of the Central Bank of Russia’s $518 billion reserves with her gold hoard valued at approximately $100.277.6 billion, up from $52 billion or 12% of overall reserves as at August 31, 2016.
The Central Bank of Russia has added 37 million ounces (approximately 1,100 tons) of gold to her reserves from June 2014 – June 2019.
Alan Greenspan said recently that “Gold is currency… the premier currency, no fiat currency, including the dollar, can match it”. Russian gold mining produces the second largest annual output in the world behind China. Russia adds a substantial percentage of its domestic mining production to her reserves. By retaining a large percentage of its gold mining output the Central Bank of Russia has been in effect converting its currency, the rouble, into gold.
Russian Gold Reserves data: Central Bank of the Federation of Russia
This article by BGASC is not, and should not be regarded as, investment advice or as a recommendation regarding any particular course of action.