Russia Will Soon Be 2nd In Global Gold Holdings
Russia Will Soon Be 2nd In Global Gold Holdings by Rory for The Daily Coin
The difference between Russia’s gold reserves and Frances’ gold reserve is now approximately 18-19 months of acquisitions by the Russia government. Said another way by mid 2020 Russia could easily jump from 5th place in global gold holdings to 3rd place by leaping over both France, with 2,518 tons and Italy with 2,534 tons. My guess is by the end of 2020 Russia will have their sights set squarely on Germany’s second place position with 3,483 tons. While it will take upwards of another 4+ years it will be within the realm of reality for Russia to be in the 2nd position of global gold holdings by 2025 a very short 6 years from today. Expect the whole “russia did it” to ramp up during this time and become even worse, if that’s even possible, than it is today. Never mind that China is the real threat to our sovereignty and way of life, “russia did it” and that’s that!
For 5,000 years, gold has proven its status as the ultimate store of value. Today’s investors rush to buy the precious metal at the faintest market uncertainty. Over the past decade, global central banks have joined the gold rush.
The volumes of gold gobbled by regulators across the world in 2018 reached the second highest annual total on record, the World Gold Council (WGC) reported earlier this year. The industry research firm highlighted that last year central banks bought 651.5 metric tons of the precious metal, marking a 74 percent year-on-year increase.
Gold ownership by monetary regulators is at a 50-year high with the following states currently making up the list of the world’s biggest holders of gold.
Over the past six years, the Russian central bank has been remarkably bullish on gold purchases. In 2017, the country squeezed China out of the list of the top five biggest gold holders. Last year, Russia became the world’s leading buyer of gold with net purchases reaching 651.5 metric tons. In February, the Russian central bank boosted foreign exchange reserves by 31.1 tons of gold, raising holdings of the precious metal to 2,149 tons.
Dumping US treasuries in favor of gold purchases is part of the government-approved policy oriented towards the de-dollarization of the country’s economy.
With 2,534 tons of gold in its coffers, Italy landed in the third spot in the ratings. The amount represents nearly 70 percent of the nation’s foreign reserves. According to the policy followed by the Bank of Italy, gold is the safest investment in times of economic turmoil and a safeguard against the volatility of the US dollar.
The Deutsche Bundesbank currently owns 3,483 tons of gold, which makes up far more than 70 percent of German foreign reserves. The regulator has been trying to repatriate some 674 tons of gold kept by the Banque de France and the US Federal Reserve Bank. The repatriation of the nation’s gold is expected to be completed by 2020. Source