Russian Gold Reserves Climb to Nearly 2,000 Tons in August
Central Bank of Russia adds another 31 Tons of Gold to Reserves in August.
The Russian Central Bank announced today that its gold reserves had reached 64.3 million troy ounces (approximately 2000 metric tons). The total included an additional 1,000,000 ounces (approximately 31.10 metric tons) of gold added in August.
Facing sanctions from the United States and Europe over the past few years, the Central Bank of Russia has increased its foreign reserves, largely by increasing their gold 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.
As a result of Russia’s gold buying binge, Russia has vaulted into fifth place among holding nations.
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 August of 2018, the Russian central bank has added about 160 tons of gold. At the current pace of gold acquisition, the Central Bank of Russia will add about 240 tons of gold, about the largest amount ever added.
In addition to increasing its gold hoard, Russia’s overall foreign reserves have grown from $371 billion in January 2016 to $460.614 billion as at August, 2017, a 24% increase.
As of August 31, 2018, Russia’s 1999.95 tons of gold constituted about 16.7% of the Central Bank of Russia’s $460.614 billion reserves with her gold hoard valued at approximately $77.264 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 July 2018, Russia held just $14.9 billion in U.S. Treasuries or a decrease of $81.2 billion in their U.S. Treasury holdings
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.