Russia Gold Rush Sees Record Reserves For Putin Era
by Yuliya Fedorinova of Bloomberg via Irish Independent
Vladimir Putin is doing his part to keep the upswing in gold alive.
Since the Russian president went on a geopolitical offensive in Ukraine in 2014, the haven asset had its first annual gain in four years in 2016 and is on track for another in 2017.
A beneficiary of economic and political perils from North Korea to Brexit, it’s among the top-performing commodities this year.
Meanwhile, 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 Mr Putin’s 17 years in power, according to World Gold Council data.
In the second quarter alone, it accounted 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 that gold 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 tonnes at 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 near 17 percent.
If buying continues at a similar pace, the World Gold Council said the full-year increase in 2017 “could closely match” 2015 and 2016.
Source: Irish Independent
Russia Sees Gold Reserves As “Additional Financial Cushion” In Face Of “External Uncertainties”
Russia Gold Buying Returns – Buys One Million Ounces In January
Putin Says Russia and China Must Secure Gold and FX Reserves
Russia Coordinating Gold Reserve Accumulation With Ex Soviet States?
News and Commentary
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
For your perusal, below are our most popular guides in 2017:
Essential Guide To Storing Gold In Switzerland
Essential Guide To Storing Gold In Singapore
Essential Guide to Tax Free Gold Sovereigns (UK)
Please share our research with family, friends and colleagues who you think would benefit from being informed by it.