Russia adds more than 18 tonnes of gold to reserves

The Russian central bank added 18.66 tonnes of gold to its reserves in October added, according to the latest Figures of the Bank of Russia. The total value of Russia's gold holdings rose from $48.89 billion at the end of September to $50.58 billion at the end of October. Adjusted for the development of the Gold price that's an increase of about 600,000 troy ounces.

Russia has added gold to its reserves almost continuously in recent years and now has a stock of 1,378 tonnes. This leaves the country in sixth place in the list of countries with the largest gold reserves.

Since the beginning of this year, the Russian central bank has already added 164.8 tonnes of gold to its reserves. Compared to a year ago, the percentage of gold on the central bank's balance sheet rose from less than 10% to more than 13.5%, while the Gold price decreased by about ten percent during this period.

The central bank of Russia has valued its gold reserves every month since 2006 according to the current gold price, which means that the precious metal is now at a lower price per troy ounce on its balance sheet than in October last year.

Russia further expands gold reserve

Russia reduces foreign exchange reserves

The following chart shows that the central bank of Russia used a significant portion of its foreign exchange reserves last year to control the depreciation of the ruble. In recent months, foreign exchange reserves have increased slightly, but gold reserves are growing just as fast.

Russia continues to buy gold to diversify its reserves, because gold is free from political risk, according to the governor of the central bank. Like Russia, China is also reducing its foreign exchange reserves in favor of gold. Note that central banks also Buy gold Now that the gold price in dollars has fallen to the lowest level since 2010. Apparently, this does not play any role in the consideration of adding precious metal to the reserves. In fact, we have the impression that countries buy even more gold when the price falls. 

Russia has more than 13.5% of its reserves in gold

Update (25-11-2015): In the original article, the gold stock was expressed in millions. This had to be billions.