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Russia Gold Rush Sees Record Reserves For Putin Era

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.

Click to enlarge. Russia added another 500,000 ounces of gold to it’s reserves in August. Source: Goldchartsrus.com

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.

Source:Irish Independent

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News andCommentary

Gold drops to lowest in nearly 7 weeks; stronger dollar, equities weigh (Reuters.com)

Deutsche Bank in $190M currency-rigging settlement (Reuters.com)

U.S. Stocks Hit Records, Fed Talk Weighs on Bonds (Bloomberg.com)

Kevin Warsh is far from a lock to replace Janet Yellen as Fed chair (CNBC.com)

London house prices have fallen for the first time in eight years (CityAM.com)

Demand for gold in September surged with ETF holdings rising most since Feb 2017. Source: ZeroHedge

Gold Demand Surges As Price Suffers Worst Month Since November (ZeroHedge.com)

Trump’s 1500-Word Airball Tax Plan (DailyReckoning.com)

Stock Market Is Seriously Overvalued Based On This Benchmark (GoldSeek.com)

Macquarie Lashes Out At Dimon: Modern Finance, Not Bitcoin, Is The Real Fraud (ZeroHedge.com)

Specter of Hyperinflation in Zimbabwe Triggers Panic Buying (ENCA.com)

Get your insurance while you can, not when you have to (TheMacroTourist.com)

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

China Catalyst To Send Gold Over $10,000 Per Ounce?

Gold Matches S&P 500 Performance In First 3 Quarters; Up 12% 2017 YTD

Gold Standard Resulted In Fewer Catastrophes FT

Financial Advice From Man Who Made $1+ Billion in 1929 Importance Of Being Patient and Sitting

Gold prices to reach $1,400 before the end of the year GoldCore

Commodities King Gartman Says Gold Soon Reach $1,400 As Drums of War Grow Louder

Bitcoin Is A Bubble but Gold Is Money Says World’s Biggest Hedge Fund Manager

Pensions and Debt Time Bomb In UK: 1 Trillion Crisis Looms

Gold Investment Compelling As Fed May Kill The Business Cycle

This Is Where The Next Financial Crisis Will Come From Deutsche Bank

Global Debt Bubble Understated By $13 Trillion Warn BIS

Bitcoin Price Falls 40% In 3 Days Underlining Gold’s Safe Haven Credentials

Gold Up, Markets Fatigued As War Talk Boils Over

ImportantGuides

For your perusal, below are ourmostpopularguidesin 2017:

EssentialGuideTo Storing Gold In Switzerland

EssentialGuideTo Storing Gold In Singapore

EssentialGuideto Tax Free Gold Sovereigns (UK)

Please share our research with family, friends and colleagues who you think would benefit from being informed by it.

The post Russia Gold Rush Sees Record Reserves For Putin Era appeared first on GoldCore Gold Bullion Dealer.

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