Russian Gold Reserves Hit Putin-Era High, Buying Frenzy Accelerates

Tyler Durden's picture

Amid a creeping global de-dollarization, Vladimir Putin appears to be the one leading the charge from the precious metal perspective.

As Bloomberg's Yuliya Fedorinova and Olga Tanas report, the Bank of Russia has more than doubled the pace of gold purchases, bringing the share of bullion in its international reserves to the highest of Putin’s 17 years in power, according to World Gold Council data.

Rising at a pace of around 15% per year, Russia's absolute gold horde is at a record high...

In the second quarter alone, it accounted for 38 percent of all gold purchased by central banks.

The gold rush is allowing the Bank of Russia to continue growing its reserves while abstaining from purchases of foreign currency for more than two years.

It’s one of a handful of central banks to keep the faith as global demand for the precious metal fell to a two-year low in the second quarter.

“Gold is an asset that is independent of any government and, in effect, given what is usually held in reserves, any western government,” said Matthew Turner, metals analyst at Macquarie Group Ltd. in London.


“This might appeal given Russia has faced financial sanctions.”

If Russia’s buying continues at a similar pace, the World Gold Council said the full-year increase in 2017 “could closely match” the 200 tons purchased annually in 2015 and 2016.

At its current pace, Moscow will unseat China for the number five spot of gold-holding nations by the first quarter of 2018.

But China is no slouch, as Reuters reports, China’s proven gold reserves reached 12,100 tonnes at the end of 2016, the state news agency Xinhua reported on Monday quoting an official with the national gold association.

China has been the world’s biggest gold producer for 10 years and the largest consumer of the metal for four years, it said.

China aims to increase its annual gold output to 500 tonnes by 2020 from around 450 tonnes currently, it said.

All of which signals the continued push away from the dollar hegemon and towards a non-dollar-dominant multi-polar order.

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Sir SpeaksALot's picture

Russia is getting rid of the dollars, what could they buy if not the gold...?

Dame Ednas Possum's picture

Nothing else worth buying... other than arable land, and Russia has plenty of that. 

Just keep stacking Vlad.


Fiat is for transactions, and savings for schmucks. 



philipat's picture

Worth remembering also that Russia has, approximately, 17% Debt to GDP Ratio. Quite good compared to some other countries.

War, anyone?

jeff montanye's picture

fiat is for transactions and precious metals are for savings.

that's the gold standard of the future.

Dame Ednas Possum's picture

Hey look... the future is already here! 


slvrizgold's picture

Unless you're saving real money that is...

VD's picture

gold on sale like 80% off. so it's a smart move. you think Putin so dumb to instead buy NSAcoins?

zoo's picture

If Russia doesn't exchange that gold for bitcoin quickly all that wealth might just go to zero!!

Mementoil's picture

Putin knows better than to invest in "virtual assets", which are here today and gone tomorrow.
Gold has been money for thousands of years, and it's not about to change anytime soon.

tuetenueggel's picture

US corn ?

OK, no. they have plenty of it.

Beef from US pumped up with hormons to disqualify their sportsmen and girls from next games ?

No,no need to manipulate games by chemistry.

Weapons ? Airplanes ?

No, theirs are far better then US old iron.

So what should they do with their money ?

Buy Gold from russian producers to prevent criminal USA from stealing it by some green paper.

Got it stupid ? It´s Russia in 21 st century.

Kiddy09's picture

No one buys gold Russia is producing so they just buy own gold. Simple

Dame Ednas Possum's picture

Yeah... coz' Russian gold is different huh? 

And it's not like we're in a currency war or anything. 

And it's not like bubbles have been blown in every asset class. 

And it's not like there are mountains of currency tied up in fraudulent 'paper' gold at all. 

No wonder the Chinese, the Inidians, the Turks, and the whole of Asia and the middle east... have for several years now bought much more  Au than is mined annually across the globe. 


Pray tell about how sinister 'Russian gold' is... and how it hacks everything... and how it out to get us all... arrrggghhhh!!!  (Runs off down street waving arms above head screaming "the Russians are coming"). 


philipat's picture

And I would also wager that in Russia, "The Gold is safe". Really safe unlike propoganda from Munchkin?

07564111's picture

I think that "taken from cold dead hands" applies here. ;)

Dame Ednas Possum's picture

Sorry to correct... but I think the precise words of his tweet were in fact "Glad gold is safe"

The omission of a single, innocuous word I.e. 'the', sheds an even more interesting light on the matter. 


Minutiae?  Irrelevant?  Accidental?  I think not!  


philipat's picture

I do believe he actually said that THE Gold is safe. But you are of course correct that he didn't say WHICH Gold, who owns it or where it is safe. But you make a good point and his lack of linguistic precison was indeed telling.

Just like Sir Les Patterson...?

Dame Ednas Possum's picture

Hey Phil... look it up.  "Glad gold is safe" 


More importantly, I'm glad you're well versed in the ways of Sir Les... Australia's cultural attaché and a self-appointed wine taster!!!



philipat's picture

"I have the Honour to be the Australian Cultural Attcahe to the Court of ST James. But, let's be honest, we've all had a few..."

: Sir Les Patterson

Very funny man Barry. Sorry, I mean Dame Edna..I also enjoyed Clive James a lot..ouch!!

tuetenueggel's picture

so what ?

can you heat your chimny with gold ? no. But with tons of paper money or papergold etf you can warm your ass.

Don´t worry, be happy.

messystateofaffairs's picture

Pooty is using gold and cryptos, i.e. specie, to break the evil Rottenchilds death grip on world economies via his fiat scheme, Russia's economy actually. The Russian central bank is London Satan controlled and Putin doesn't have the power to burn it at the stake. So he competes with it and goes around, thats why we love Putin.

07564111's picture

We mine it > hold it > and own it >> and no one, not even the Russian Government knows for sure how much is as yet undiscovered.

shutterbug's picture

Go back to kindergarten where you belong. Brainless moron.

holgerdanske's picture

Ignorance is bliss. How nice to have such a simplified world view, I would be able to sleep like a baby.;-)

If you are right, I'll eat my gold.

If you are sarcastic, then I am with you.


"China has been the world’s biggest gold producer for 10 years and the largest consumer of the metal for four years"

Gold is hardly consumed. It is changed into jewellery, or stacked or a tiny fraction used in electronics, medication and industry. By and large not consumed.

tuetenueggel's picture

Or deposited in my uncle Dagobert gold vault.

WP45's picture

Does your mother know you're still up?

WTFUD's picture

Yeah 'cause he had a bad dream, shit his diaper and woke her up to change it.

tuetenueggel's picture

It´s her posting.

Another left moronic chick.

tuetenueggel's picture

Downcoters to the front.

Intelligence nobody can eat. Stupidity is granted by nature.

Singelguy's picture

Russia sells oil and gas for US dollars but immediately spends those dollars buying gold, in addition to producing their own. Putin is smart enough to limit dollar reserves.

lakdaddy's picture

Aaand gold remains steady at $1,300 - now on to the Weather.


Ya but the US has mountains of dollar bills and they can be burnt to keep warm, gold can't keep you warm or be used for cooking. Silly Russians.

WTFUD's picture

Keeps you warm inside though, just looking at it.

messystateofaffairs's picture

You are wrong on that, they only have enough to use as toilet paper when they get like Venezuela (with Bernies help). The rest is in computer digits that are not flammable.

Atlas Crapped's picture

But ... Russia used Facebook to get Trump elected. Hundreds of dollars worth of ads I hear. Russia BAD. Gold BAD. Dollars GOOD, USA GOOD.

USA doesn't interfere in elections. Ukraine BAD. Crimea BAD. Iraq BAD, Syria BAD, Iran BAD.


Now drink your chemicals and go night-night like a GOOD little TROLL.

Son of Captain Nemo's picture

You forgot Kurdistan GOOD, Serbia BAD...

tuetenueggel's picture

Stupid talks.

No one knows what China and Russia own on gold.

Even india is an unknown player in global gold game.

One thing is quite sure:

USA never have the narrated 8000 + in vaults.

Not since 1974 when de Gaulle´s Gold demands against US paperdollars couldn´t be realized.


Latitude25's picture

WGC = bullion bank propaganda mouth piece.

slvrizgold's picture

China buys FAR more gold but just doesn't tell you.  Russia buys gold and brags about it. They're so desperate to show you how they didn't let a bunch of Talmudic Commie scumbags destroy their country and turn it into a 3rd world chithole.   Look at that old loose skin on old man Putins hand...   And why does he need a hanky to hold a 400 oz delivery bar?   Is he worried it maybe wasn't washed before it was smuggled in "internally?"   LOL

Goldennutz's picture

Vlad sez:




Just like Kraft's Super Bowl ring..IS MINE!!!


What Vlad wants..Vlad takes!!!

GodHelpAmerica's picture

Russia's 2015 currency crisis ended the second their central bank stepped up gold purchases...nothing to see here...

brushhog's picture

....which for some reason has resulted in falling gold prices.

dark fiber's picture

COMEX gold prices?  Well it is a bit like bonds.  The price reflects the probability of default.

brushhog's picture

Gold prices are gold prices dude. The physical market and the paper market have not yet varied. Prices go down on the comex, you can buy  physical for a lower price, and vice versa.

Crisismode's picture



I'm amazed how few people on ZH seem to get this simple concept.



Comex is a trivial bit player . . . the London Bullion market is the dog that wags the Comex tail.



Son of Captain Nemo's picture

And they will one day transform "Buttcoins" into "Bitcoins"...

And why this "shit" ( ( is happening to the Russian Federation now!...

messystateofaffairs's picture

"All of which signals the continued push away from the dollar hegemon and towards a non-dollar-dominant multi-polar order."

Thats not the core issue. Is the multipolar world order going to trade in specie or fiat? We don't need another superior authority replacing the self deluded con artists we now have that handle the global funny munny architecture.