Central Bank of Russia adds another 15.66 Tons of Gold to Reserves in June
The Russian Central Bank announced today that its gold reserves had reached 62.5 million troy ounces (approximately 1944 metric tons). The total included an additional 500,000 ounces (approximately 15.5 metric tons) of gold added in May.
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 added 208 tons of gold to reserves in 2015. In 2016, Russia added 199 tons of gold to her reserves.
Through June of 2018, the Russian central bank has added 105 tons of gold.
In addition to increasing its gold hoard, Russia’s overall foreign reserves have grown from $371 billion in January 2016 to $456.7 billion as at June, 2017, a 23% increase.
As of June, 30 2018, Russia’s 1944 tons of gold constituted about 17.1% of the Central Bank of Russia’s $456.7 billion reserves with her gold hoard valued at approximately $78.17 billion, up from $52 billion or 12% of overall reserves as at August 31, 2016.
Russia Sells $81 billion in U.S. Treasuries
Russia held $96.1 billion in United States Treasury securities as of the end of March 2018. As of the end of May 2018, Russia held just $14.9 billion in U.S. Treasuries or a decrease of $81.2 billion in their U.S. Treasury holdings
As a result of Russia’s gold buying binge, Russia has vaulted into fifth place among holding nations.
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.
This article by BGASC is not, and should not be regarded as, investment advice or as a recommendation regarding any particular course of action.