Russia becomes world leader in purchase of gold

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April 26th, 2017 – Fort Russ News –

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KtovKurse – by Inessa Sinchougova

The Bank of Russia in 2016 took first place in terms of purchases of gold in reserves from other central banks. In fact, the Central Bank (CB) has provided 78% of global gold demand.

According to the National Rating Agency (NRA), the CB has spent around $10 billion on the purchase of the precious metal, around 201 tons of it.

The CB is not only buying the gold in the world market, but also actively supports Russian companies. It bought two-thirds of all gold produced in the country.

The CB, in contrast to most other banks, has decided to use this time to buy as the price of gold is low. In addition, the regulator is trying to diversify its reserves. 

Other major buyers were China, Kazakhstan and Qatar. Given the state of the world economy and rising geopolitical risks, the investment strategy of gold is thought to be a smart one.

In the recent past, gold rose in price by 7.8%, but it happened against the background of the then-upcoming elections in the United States, Brexit and banking crisis in Europe. Demand has been falling for three consecutive years, so the time to buy seems to be just right.

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