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The value of Russia's gold holdings reached a record of more than $57 billion, meaning that for the first time, the central bank has more than 15% of its total reserves in gold.
Russia's gold gained $5.89 billion in value, which can largely be attributed to the Rise in the price of gold. At the end of January, the precious metal was still valued at a rate of $1,112 per troy ounce, but by the end of February the fixing had already risen to $1,235 per troy ounce. If we convert the total gold value to this rate, we arrive at a total of just over 1,442 metric tons. This is an increase of approximately 5 tonnes compared to the previous month.
Gold holdings Russia worth $57.27 billion (Source: Central Bank of Russla)
We can't say for sure that this is the exact size of Russia's gold reserves, but the same calculation method did yield the correct figures in January. Russia appreciates its precious metal every month at the current gold rate, just like the central bank of China. The ECB also values its gold stock by market value, but only once a quarter.
The central bank of Russia wants to minimize its dependence on the dollar and foreign currency reserves, given the political uncertainty and Western sanctions. Therefore, the central bank continues to buy gold and dispose of foreign exchange reserves. Gold is the only reserve that is 100% free of political risk and counterparty risk. The central bank has been buying precious metals almost continuously since 2006, as the following chart shows.
Last year, Russia added a record 206 tonnes to its reserves. "The fact that central banks of large countries such as China and Russia are continuously buying gold says something about the increasing distrust of the dollar system," so Stated Vincent Kersten of Hollandgold the gold purchase of a month ago. Then Russia added more than 21 tons to the vault.
Gold reserves Russia to 15% of total reserves (Source: Central Bank of Russia)
Total reserves Russia (Source: Central Bank of Russia)
