Russians Keep Stacking Gold by Rory, The Daily Coin
Year-to-date Russia's official gold holdings are 54.9 million ounces after an additional 700,000 ounces (21.8) were added in May 2017. Russia has one of the largest hordes of physical gold and continues adding to their reserves, like anyone else, to protect their wealth. The total value of gold is $69.3 billion U.S. dollar equivalent.
Russia, like China, acquires their own Russian mined gold. This helps the Russian economy and keeps their acquisition cost low.
Russia currently has the 6th largest horde of gold just behind China. While Russia continues to add to their stack, China has slowed down their acquisitions. If the current trend continues through years end Russia could move into the 5th position overtaking China. The current projections for Russia would place them within 10 tons of China. 10 tons is not much of a difference and with another six months remaining in the year Russia could easily offset this difference. What is China doing? Why have their acquisitions slowed and in some months have added nothing to their vaults?
Official gold holdings, in my opinion, are not the actual gold holdings of any nation. Gold, and silver, markets are manipulated so why would any nation report their actual gold reserves? The numbers floated as official make it known to the gold market, governments and traders what is happening with some of the physical gold being dug out of the ground. We know, through Alasdair Macleod's research that China is likely to be well north of 20,000 tons of gold. We also know that China has been acquiring gold through their S.A.F.E. program which is not required to report to the IMF.
Russia could easily have much more gold than their officially reported gold. Does the Western world, or anyone, truly know how much gold Russia mines each year? Is every ounce pulled out of the ground accounted for on the official ledger and reported to the world? Probably not.
It is no secret China and Russia are close allies and it seems China is allowing Russia to, officially, "catch-up". If these two countries have a combined total of approximately 3,600 tons, as reported to and by the IMF, not to mention the gold mines under the umbrella of the AIIB gold fund, this may be enough gold to make changes to their monetary policies. I am not saying this will happen, I am saying neither of these countries are adding to their official gold stacks to make more gold trinkets or gold jewelry.
Their are two other large pieces of the Eastern gold puzzle to consider as well. The two new gold markets scheduled to open late 2017/early 2018 in Beijing and Moscow to assist other BRICS nations in their acquisitions of physical gold. Another consideration is strategic partner of both Russia and China - India. What impact will the remaining BRICS nations, Brazil and South Africa, have on the gold market and from where will the gold originate?
These are serious questions that impact each nations "official" gold holdings. Everyone on the planet is vying for the same number of ounces of gold mined each year. With the current precious metals market "price" as low as it is, retail investors - that's you and me - are not brining gold to market, we are keeping our gold safely tucked away wherever it is tucked away. Until something changes in the "market place" the only gold available for nations to acquire is coming from either a mine or a central bank. My guess is there are no large hordes of gold coins or small gold bars inventoried in warehouses leaving only the larger hordes to fill the needs sovereign vaults. I have heard it said the retail market doesn't matter, which may be true, but when it comes to a monster box (500 ounces) of gold coins I would be willing to bet the retail level gold matters a lot. Act as-if and keep stacking!