Central Bank of Russia adds another 18.66 Tons of Gold to Reserves in April.
The Russian Central Bank announced this week that its gold reserves had reached 61.4 million troy ounces (approximately 1909 metric tons). The total included an additional 600,000 ounces (approximately 19 metric tons) of gold added in April.
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.
In addition to increasing its gold hoard, Russia’s overall foreign reserves have grown from $371 billion in January 2016 to $459.8 billion as at April, 2017, a 24% increase.
As of April 2018, Russia 1909 tons of gold constituted about 18% of the Central Bank of Russia’s $459.8 billion reserves with her gold hoard valued at approximately $80.58 billion, up from $52 billion or 12% of overall reserves as at August 31, 2016. The Central Bank of Russia held $96.1 billion in United States Treasury securities as of the end of March 2018.
U.S. Treasuries as Part of Russia’s Foreign Reserves
In January 2016, Russia’s U.S. Treasury position was $96.9 billion. In January 2014 Russia held $131 billion in U.S. Treasuries. In reaction to U.S. inspired sanctions being placed on her, Russia has sold a substantial portion of her U.S. Treasury holdings. Russian U.S. Treasury holdings reached a low of $66.5 billion in April 2015. As of March 2018, Russia held $96.1 billion in U.S. Treasury Securities about the same amount as held in January 2016.
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.