Russia adds 18.7 tonnes of gold to reserves

Russia has 18.7 tonnes of gold in its reserves in April added, according to the latest figures from the Russian central bank. With this purchase, the total size of the gold stock grew to 1,910 tons. This strengthens the country's fifth position in the ranking of countries with the largest gold reserves, behind the United States, Germany, Italy and France.

Since the beginning of this year, the central bank of Russia has already bought almost 70 tonnes of gold, more than all other central banks combined. Over the past decade, the country's total stock of precious metals has increased by a factor of four, as in the spring of 2008 there were only 460 tons left in the vault. The central bank adds bullion to its reserves as a form of diversification, as the precious metal offers protection against currency risk and against potential financial sanctions.

Development of gold stocks Russia

Russia further expands gold supply

The expansion of the gold stock has not done Russia any harm so far, because the rise in the gold price has made this reserve considerably more valuable. Not only in absolute terms, but also in relation to foreign exchange reserves. Whereas in 2008 Russia had only $14 billion in reserves of precious metals, now it is more than $80 billion.

The fact that Russia can collect so much precious metal is largely due to the domestic gold mining sector, which is one of the top three in the world with a total production of around 270 tonnes in 2017. In addition, as one of the largest oil producers in the world, the country is benefiting from the rising oil price, which means that more money is flowing in to expand the gold supply.

Central banks have been net buyers of gold since the outbreak of the financial crisis in 2008, as the precious metal is seen as a kind of safe haven in uncertain times. Unlike foreign exchange reserves, gold stocks have no counterparty risk. In an era of rising geopolitical tensions and concerns about the stability of the monetary system, several countries have decided to buy more bullion or bring their supplies back to their own countries.

Total reserves to $460 billion, of which $80 billion in gold

Russia is buying more and more gold