Last month Russia added 22 tons of Gold to their stockpile, and specialists suspect this buying spree will not only persist but could even grow.
Bullion.Directory precious metals guest post 26 December, 2015
By Nick Adamo
President at Bullion Shark LLC
Russia has increased its yearly gold purchases over 20 million tons or approximately 11.7% from just last year. This purchase has brought Russia to have the 6th largest gold stockpile out of any other country.
Kazakhstan, one of Russia’s biggest supporters, has also raised their gold supply by around 70,000 ounces last month, raising their total reserve to 7,030,000 oz.
Any gold bullion that is produced in the country is bought up by its Central Bank and the rest is imported from other countries – and this consistent cycle of buying has been overlooked by many market specialists.
Russia’s gold now totals just around $48.3 billion, which is 13% of its total FX reserves. The decline of NATO and Unites State’s relationship could be a result of this diversification into the precious metals.
Although Russia has a lot of gold bullion, its stockpile still does not even reach a mere 20% of what the U.S. has in its own reserves.
The top six players of gold bullion reserves are the United States, Germany, Italy, France, China and Russia. Russia increases the amount of gold bought every year, much of which is bought right from the country’s own producers. This is not surprising considering they were the 3rd largest producer of gold in the world in 2014.
Russia has many wealthy citizens, which could cause a fluctuation in the price of gold if these people decided to start buying it. With supply to the masses being so low, the price of gold could rise greatly if many people decide to invest in this yellow precious metal.
If these people coordinate their efforts with Vladmir Putin, the current President of Russia, this could cause an increase in the price that could benefit them all.
Many wise investors have decided to use these decisions as a model for their own investment portfolios. Diversification into the precious metals, such as gold, is a route that many prudent investors take. When these investors buy gold coins and bars, they may be setting up a very effective portfolio.
Bullion Shark carries a wide range of gold bullion such as Credit Suisse Gold Bars and Gold Buffaloes.
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