Russia expands gold reserve to 1,527 tonnes

Russia added 21.77 tonnes of gold to its reserves in August, according to the latest Figures released by the central bank today. This brings the total size of its gold reserves to more than 1,527 tonnes and the precious metal represents 16.37% of the central bank's total reserves. August's purchase is more than three times as large as July's, when the central bank bought only 6.44 tonnes of the yellow metal.

Despite the addition of 21.77 tonnes of gold (700,000 troy ounces), the total value of the precious metal fell compared to the month of July. That's because the precious metal was valued at a lower price of $1,314 per troy ounce in August. In July, the precious metal was still listed on the balance sheet at a price of $1,336 per troy ounce.

Russia adds 21.77 tonnes of gold to reserves

Russia continues to hoard gold 

The central bank of Russia has been adding precious metal to its reserves almost non-stop in recent years. Since the outbreak of the financial crisis in the autumn of 2008, the country has stockpiled more than 1,000 tonnes of gold, almost a third of all the gold that central banks have bought since 2008. The precious metal is preferred because it is free from political risk. Foreign exchange reserves can be frozen by sanctions, while a gold stock is fully owned with no counterparty risk.

According to the think tank OMFIF, central banks worldwide are working to put gold back at the center of their monetary reserves. This is clearly reflected in the gold purchases of China and Russia. These two emerging economic superpowers still have relatively small gold reserves and are determined to take them to the next level.

Russia has more than 16% of its reserves in gold

Gold vs. Foreign Exchange Reserves Russia