Russians Buy Gold Again In June – Another 25 Tonnes
By: GoldCore
GoldSeek.com
Wednesday, 22 July 2015
– Russia adds another 800,000 ounces or 25 tonnes to gold reserves in June
– Russia’s has sixth largest gold reserves in the world
– Allocates 13% of FX reserves to gold
– Central bank buys all Russian gold production
– Other Russian gold demand imported
– If billionaire oligarchs diversify into gold, prices will rise sharply
– Russia views gold bullion as “100% guarantee from legal and political risks”
With all the focus on the Chinese lowballing their total institutional gold holdings, combined CIC, SAFE and PBOC, this week and the continuing attacks and manipulation of the gold market on Sunday night, the latest large increase in Russia’s gold reserves has gone largely unnoticed and barely covered by commentators – especially the more vocal bearish ones.
Russia continues to add to its gold reserves and added another 800,000 ounces in June or another 25 metric tonnes, and analysts believe this buying will continue in the coming months.
Its total gold reserves now amount to 41 million ounces or around 1,275 metric tonnes, with a current value of just $48 billion. Russia’s total FX reserves are $362 billion and their gold allocation is now 13% of their total reserves.
In contrast, the U.S. is believed to have over 8,400 metric tonnes of gold and no foreign exchange reserves. The share of gold in foreign exchange reserves is much lower than in many other countries such as the U.S., Italy and France.
This ranks Russia in sixth place globally in terms of gold reserves behind the U.S., Germany, Italy, France and China after their PBOC announcement last Friday.
In 2014, Russia bought more gold in than in any year since the break-up of the Soviet Union. The country acquired over 173 metric tonnes according to World Gold Council figures. Reserve diversification intensified after April — averaging almost 20 tonnes per month.
Much of the gold bought may have come from Russian gold production which is currently at about 25 metric tonnes per month. In 2014, Russia was the third largest gold miner in the world at 266.2 tonnes, just six tonnes short of Australia in second place and China in first place.
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