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Gold reserves: Russia has overtaken China

RUSSIA (OBSERVATORY) –¬†In February 2018, Russia’s gold reserves, which are very aggressive on the yellow metal procurement market, have outpaced those of China, another major investor in this asset, according to the Smaulgld¬†portal.

The Russia is conducting an aggressive policy of buying gold on world markets. In February, its reserves have become more important than those of China, announces the portal Smaulgld.

Last year, Moscow bought 224 tons of gold. In January 2018, 600,000 ounces, or 18.6 tons, of this metal were acquired by the Central Bank of Russia. Since 2015, Russian gold reserves have increased by nearly 700 tons.

As a result of this purchasing policy, Russia’s gold reserves amount to 1,857 tons, whose value is currently estimated at 80.4 billion dollars (65.4 billion euros). Russia ranks fifth in the world behind the United States, Germany, Italy and France. China, which is also looking to grow its gold reserves, is sixth in the ranking with 1,843 tons, according to the portal.

By buying massive gold, Moscow and Beijing seem to want to reduce the weight of the dollar in the global economy.

China’s ambitions to turn the yuan into a main reserve currency also explain why Beijing is active in the gold market. It should not be forgotten that the biggest exchange of this metal in the world is in Shanghai.

In addition, if China realized its plan to launch oil futures in yuan, they would be convertible into gold. That’s why she might need a lot of gold.