The Central Bank of Russia keeps adding gold to their reserves, despite the challenges posed by the economic crisis. According to the latest numbers published by the central bank, they added 21,7 tonnes to their reserves in the month of December. Ranked by total gold holdings, Russia holds the sixth place with a total hoard of 1.415 tonnes of yellow metal.
Data from the World Gold Council shows that Russia added a total of 206 tonnes to their reserves last year, after purchasing 173 tonnes in 2014. When Russia started buying gold in 2006, the central bank held less than 4% of their total reserves in physical gold bars. But with a total hoard of more than 1.400 tonnes, the percentage of gold has increased to more than 13% by December 2015. The increase is not only due to adding weight, but also due to the monthly revaluation of gold reserves to the market price.
The Central Bank of Russia wants to increase their reserves, because the precious metal is regarded as a safe haven without political counterparty risk. The precious metal is seen as a backup asset in the international financial and monetary system and is held by central banks all over the world. Since the start of the financial crisis in 2008, central banks have been net buyers of the precious metal.
Russia keeps buying the precious metal
Russian goldreserves increasing in both volume and value
Total reserves of the Russian central bank are moving towards the yellow metal
Gold as a percentage of total reserves