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Putin's love for gold bullion
Material posted: Publication date: 18-03-2017
Fears of currency wars and the devaluation of the dollar pushed to buy gold, primarily, the country East of Europe. These States do not want to have in their reserves only bonds and foreign currency, therefore increasing the share of gold. In this regard, in recent years, the market is more active Russia.

It is well known that mainly the Eastern hemisphere is expanding their gold reserves. West from them, on the contrary freed. For example, Canada sold all their gold to fully concentrate on more liquid assets. We, the Czech Republic, is also reducing its stock of the precious metal and now have a little less than 10 tons. The East goes in the opposite direction and has a good reason for it. In the history of mankind gold has always been a tool of power and influence. Therefore, such powers as China and Russia is constantly increasing its reserves.

Russia annually buys a few dozen tons of gold. We can say that the maximum amount purchased in the last three years. And is particularly active in Russia expanded their gold reserves in recent months, the presidency of Barack Obama (October and November).

In October 2016, Russia has purchased 1.3 million ounces, which is a maximum since 1998. Next month Russia bought one million ounces. Despite the fact that in December the Central Bank took a break and bought an ounce, only for 2016, its gold reserves increased by approximately 199 tons.

Speculation that Russia will get rid of gold in the period, when it will hurt the sanctions and the economy will fall along with the ruble, is not justified. Everything happened exactly the opposite. In the period from 2013 to 2015 Russia continually increased their gold reserves and continues to do so.

Russia occupies the sixth place in the gold reserves. The USA, followed by Germany, Italy, France and the IMF. The share of gold in Russian reserves increased during the global financial crisis and has grown in recent years.

Apparently, this trend will continue. However, it should be noted that, for example, countries such as Lebanon, Egypt, Laos, Pakistan, Kazakhstan and Turkey, a much larger share of gold in their reserves than Russia.

Russia adds to its gold reserves of strategic significance. President Putin and Prime Minister Medvedev many times photographed surrounded by gold ingots and coins. The popularity of gold among these top leaders is huge. They realize the power of this yellow metal and the fact that it is constantly growing. The Russian Central Bank was also considering gold as an absolute guarantee in an unstable political and economic situation. It seems that Russia is not so easy to refuse a sustainable trend, will continue to increase their reserves and create a strategic advantage.

Jakub Parsley


Source: http://inosmi.ru/social/20170318/238903293.html

Tags: assessment , Russia , gold


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