– Russia buys one million ounces and increases gold reserves by another 2.6% in March
– Russia sees gold as important monetary and strategic asset in stealth currency wars
– Large purchase by Russia who normally buy some 300,000 ounces a month
– Russian gold reserves, at nearly 40 million ounces, are now fifth largest in the world
– Russia likely coordinating gold reserve accumulation with ex-Soviet States
– Concerns regarding euro and crisis in erstwhile reserve currency, the dollar
– Gold remains central to international monetary system
– Central banks continue to accumulate large volumes
Russia increased its gold holdings by one million ounces in March, bringing its total reserves to nearly 40 million ounces or 1,238 metric tonnes. The Russian one million ounce gold purchase is a large one even by Russian standards as in recent years they have consistently been buying roughly 300,000 ounces per month.
Since 2005, Russia’s gold reserves have increased three-fold. As a comparison, in the second quarter of 2009, Russia only had 550 tonnes of gold in its official reserves meaning that their reserves have doubled in recent years.
Russia’s gold reserves are now at least the fifth largest national gold reserves in the world or sixth largest if one includes the IMF.
This will be worth watching in the coming months and years. Like China, it is possible that Russia and its allies may not be fully reporting their gold reserves accumulation to the IMF.
It is not obligatory that they do so and given the very frayed relationship with Washington it seems likely that at some point the Russians may adopt the Chinese stance and not provide data on their gold buying to the IMF.
The People’s Bank of China (PBOC) does not telegraph its intentions or gold purchases to the market as doing so would lead to a surging gold price and to a further devaluation of its foreign exchange reserves.
Full article: Currency Wars Back As Russia Buys One Million Ounces of Gold in March (Gold Core)