Why Russia increased its gold reserves?
With gold prices soaring, the central banks will not stop buying, while managing reserves and, in particular, diversification of the dollar, remains essential.
In December 2015, gold reserves of Russia grew from 45.5 million ounces to 46.2 million, according to International Monetary Fund figures published by Bloomberg. The following month, the Bank of Russia became the leader among all central banks in gold purchases by acquiring 688,000 ounces of the precious metal other cites 'Rossiiskaya Gazeta' the IMF
. In the view of the German newspaper 'Die Welt', it is "a silent attack on the supremacy of the dollar." Is a "declaration of independence made in secret," says the middle.
Turning to the monetary value of reserves, according to the Bank of Russia, the first month of 2016 the gold and currency reserves of Russia grew by 3,200 million dollars to reach 368,300 million, of which 51.400 million corresponded to gold.
This trend corresponds with the announcement of the first deputy chairman of Bank of Russia, Dmitri Tulin, who in mid-2015 stated that the regulator planned to increase the volume of gold reserves and currencies of Russia to 500,000 million dollars over a period of three to five years, reports Ria Novosti.
Meanwhile, the price of gold reached last February 11 1263.46 dollars per ounce, which is the highest level since February 2015, and according to Bloomberg, is directed toward the largest monthly increase in four years.
"For gold this year all necessary conditions exist, not only to grow but to that fire," said the director of analytical department of the company Golden Hills-Kapital AM Mikhail Krylov, adding that now is the time not to buy gold and dollars.
For gold this year all necessary conditions exist, not only to grow but to be triggered in this context, central banks continue to buy, while the management of reservations and, in particular, diversification of the dollar continues is essential, Bloomberg cites the Gold Council.
Holdings in exchange-traded funds backed by gold have increased by 14% this year, heading for the biggest quarterly increase since 2010.
Annual purchases by central banks increased 1% to reach 588.4 metric tons in 2015, according to the council. " We expect that official purchases remain one of the factors supporting the gold price in the coming years , " said Simona Gambarini a commodities economist at the economic research consultancy Capital
