Russia Gold Rush Sees Record Reserves For Putin Era
by Yuliya Fedorinova of Bloomberg via Irish Independent
Vladimir Putinis doing his part to keep the upswing in gold alive.
Since the Russian president went on a geopolitical offensive in Ukraine in 2014, thehaven assethad itsfirst annual gain in four years in 2016 and is on track for another in 2017.
A beneficiary ofeconomic and political perils from North Korea to Brexit, it’s among the top-performing commodities this year.
Meanwhile, theBank of Russia has more than doubled the pace of gold purchases, bringing the share of bullion in its international reserves to the highest of Mr Putin’s 17 years in power, according to World Gold Council data.
In the second quarter alone, itaccounted for 38pc 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.
But what may matter most is thatgold is as geopolitics-proof an investment as any in the age of sanctions and a deepening rift with the US.
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 in London.This might appeal given Russia has faced financial sanctions.
Besides being the largest official buyer of gold,Russia is also among the world’s three biggest producers, with the central bank purchasing from domestic miners through commercial banks and not in the open market.
Since starting to accelerate bullion purchases in 2007,Russia’s holdings have more than quadrupled to 1,556 tonnesat the end of June, just behind China and more than Turkey, India and Mexico combined,bringing its share in Russia’s $427bn (361bn) reserves to near17percent.
If buying continues at a similar pace, the World Gold Council said thefull-year increase in 2017 could closely match 2015 and 2016.
Demand for gold in September surged with ETF holdings rising most since Feb 2017. Source: ZeroHedge
Gold Prices (LBMA AM)
02 Oct: USD 1,273.10, GBP 956.48 & EUR 1,084.55 per ounce
29 Sep: USD 1,286.95, GBP 963.15 & EUR 1,090.82 per ounce
28 Sep: USD 1,284.30, GBP 961.04 & EUR 1,091.40 per ounce
27 Sep: USD 1,291.30, GBP 963.83 & EUR 1,099.54 per ounce
26 Sep: USD 1,306.90, GBP 969.59 & EUR 1,105.38 per ounce
25 Sep: USD 1,295.50, GBP 957.89 & EUR 1,089.26 per ounce
22 Sep: USD 1,297.00, GBP 956.15 & EUR 1,082.09 per ounce
Silver Prices (LBMA)
02 Oct: USD 16.58, GBP 12.46 & EUR 14.12 per ounce
29 Sep: USD 16.86, GBP 12.60 & EUR 14.27 per ounce
28 Sep: USD 16.82, GBP 12.53 & EUR 14.28 per ounce
27 Sep: USD 16.89, GBP 12.58 & EUR 14.38 per ounce
26 Sep: USD 17.01, GBP 12.67 & EUR 14.43 per ounce
25 Sep: USD 16.95, GBP 12.57 & EUR 14.27 per ounce
22 Sep: USD 16.97, GBP 12.52 & EUR 14.18 per ounce
Recent Market Updates