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

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.


tuetenueggel Sir SpeaksALot Tue, 10/03/2017 - 05:51 Permalink

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.

In reply to by Sir SpeaksALot

Dame Ednas Possum Kiddy09 Tue, 10/03/2017 - 04:49 Permalink

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").  

In reply to by Kiddy09

holgerdanske Kiddy09 Tue, 10/03/2017 - 04:55 Permalink

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.

In reply to by Kiddy09

Atlas Crapped Tue, 10/03/2017 - 05:16 Permalink

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

tuetenueggel Tue, 10/03/2017 - 05:35 Permalink

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. 

slvrizgold Tue, 10/03/2017 - 06:43 Permalink

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

messystateofaffairs Tue, 10/03/2017 - 07:15 Permalink

"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.