Central Bank of Russia adds 37.3 Tons of Gold to Reserves in November.
The Russian Central Bank announced today that its gold reserves had reached 67.6 million troy ounces (approximately 2102 metric tons). The total included an additional 1,200,000 ounces (approximately 37.23 metric tons) of gold added in November.
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, 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 November of 2018, the Russian central bank has added about 264 tons of gold. At the current pace of gold acquisition, the Central Bank of Russia will add about 300 tons of gold, 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 $462.104 billion as at November 2018, a 24% increase.
As of November, 2018, Russia’s 2102 tons of gold constituted about 17.9% of the Central Bank of Russia’s $462.104 billion reserves with her gold hoard valued at approximately $87.925 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 August 2018, Russia held just $14.3 billion in U.S. Treasuries or a decrease of $80.8 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.
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.