Friday, June 5, 2015

News Note: Russia to Buy $140 Billion in Additional Gold Reserves

We know China is building up a lot of additional gold reserves. Russia has been as well. Today they announce they will add another $140 Billion to get up to $500 Billion in gold reserves. If this gold were purchased at the current price it would amount to over 120 million ounces or over 3700 tons of gold. This would be nearly two years of annual gold production. (approx. 4,000 tons). This is bound to fuel more speculation as to why China and Russia are adding so much to their gold reserves.

Below are some quotes from the article.

"The Russian central bank has been a major purchaser of gold bullion, and that trend does not appear to end any time soon.
According to media reports, Elvira Nabiullina, chairwoman of the central bank, said the plan is to increase its foreign reserves to around $500 billion in the next few years, from the current level of $357 billion.
“In optimal conditions, reserves should be enough to cover considerable capital outflows for two to three years,” she said. “The increase in reserves should be gradual and solely in a way that doesn’t contradict monetary policy goals, particularly reducing inflation to 4 percent in the medium term.”

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