Russia was able to beat out China when it comes to being the world’s fifth largest official sector holder of gold. Due to Western sanctions. President Vladimir Putin supports the central bank betting heavy on bullion.
Russia’s buying went up in 2018 as holdings of U.S. Treasury securities went down after sanctions imposed on Russia from Washington.
Last year, the central bank was able to by 8.8 million troy ounces of gold. On Friday, they say they were able to beat 2017’s record of 7.2 million ounces. China is now in sixth place since the increase in gold reserves in the last two years.
The central bank in Russia was able to go up after U.S. sanction wasn’t on a blacklist or froze.
According to a source at a Russian gold producer, it seems like there is an aim to diversify American assets.
However, last May, Putin was saying that the U.S. dollar and the monopoly on it were not reliable. Also, it was dangerous for many investors.
Sanctions In The U.S. Has Russia In The Lead
Currently, the central bank in Russia is buying gold that comes from domestic central banks. As of now, they are keeping the size of their future prices under wraps. With that in mind, it is not indicated if they will keep raising gold holdings att he same pace. The current pace is around 14 percent a year.
However, Russia’s central bank is in the process of buying more and more portions of domestic gold in the country.
As of not, there has not been any comment from the central bank.
With Russia being the world’s third-largest gold producer, there isn’t much anyone can do. The Gold Industrialist Union was expecting gold production in Russia to rise 3 percent.
Last year, Russia was able to produce 8.5 million ounces (265 tonnes) of gold between the months of January and October.