Russian Gold Reserves Still on the Rise

Reuters reported that Russia is upping its gold reserves on the back of concerns that sanctions on it could tighten. Gold is appealing to the country because it’s “a reserve asset that is free from legal and political risks.” It would thus be useful to Russia if its overseas assets are frozen as a result of higher sanctions.

As quoted in the market news:

‘As you know we are increasing our gold holdings, although this comes with market risks,’ [Dmitry Tulin, who manages monetary policy at Russia’s central bank,] told lawmakers in the lower house of parliament.

‘The price of it (gold) swings, but on the other hand it is a 100 percent guarantee from legal and political risks.’

According to central bank data, Russia’s gold reserves rose to 40.1 million troy ounces as of May 1 compared with 39.8 million ounces a month earlier.

Russia increased its gold holdings for many months in a row last year, as shown by central bank and International Monetary Fund figures.

Click here to read the full Reuters report.