by Yuliya Fedorinova of Bloomberg via Irish Indepedent
Vladimir Putin is doing his part to keep the upswing
in gold alive.
Since the Russian president went on a geopolitical offensive in Ukraine in
2014, the haven asset had its first
annual gain in four years in 2016 and is on track for another in 2017.
Click to enlarge. Russia added another 500,000 ounces of gold to
it’s reserves in August. Source: Goldchartsrus.com
A beneficiary of economic and political perils from North
Korea to Brexit, it’s among the top-performing commodities this
year.
Meanwhile, the Bank of Russia has more than doubled the pace
of gold purchases, bringing the share of bullion in its
international reserves to the highest of Mr Putin’s 17 years in power,
according to World Gold Council data.
In the second quarter alone, it accounted for 38pc of all
gold purchased by central banks.
The gold rush is allowing the Bank of Russia to continue growing its
reserves while abstaining from purchases of foreign currency for more than
two years.
But what may matter most is that gold is as geopolitics-proof
an investment as any in the age of sanctions and a deepening rift with the
US.
“Gold is an asset that is independent of any government and, in
effect, given what is usually held in reserves, any Western government,” said
Matthew Turner, metals analyst at Macquarie Group in London. “This
might appeal given Russia has faced financial sanctions.”
Besides being the largest official buyer of gold, Russia is
also among the world’s three biggest producers, with the central
bank purchasing from domestic miners through commercial banks and not in the
open market.
Since starting to accelerate bullion purchases in 2007, Russia’s
holdings have more than quadrupled to 1,556 tonnes at the end
of June, just behind China and more than Turkey, India and Mexico
combined, bringing its share in Russia’s $427bn (€361bn)
reserves to near 17 percent.
If buying continues at a similar pace, the World Gold Council said
the full-year increase in 2017 “could closely match” 2015 and
2016.
Source:
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News and Commentary
Demand for gold in September surged with ETF holdings rising most since Feb
2017. Source: ZeroHedge
Gold Prices (LBMA AM)
02 Oct: USD 1,273.10, GBP 956.48 & EUR 1,084.55 per ounce
29 Sep: USD 1,286.95, GBP 963.15 & EUR 1,090.82 per ounce
28 Sep: USD 1,284.30, GBP 961.04 & EUR 1,091.40 per ounce
27 Sep: USD 1,291.30, GBP 963.83 & EUR 1,099.54 per ounce
26 Sep: USD 1,306.90, GBP 969.59 & EUR 1,105.38 per ounce
25 Sep: USD 1,295.50, GBP 957.89 & EUR 1,089.26 per ounce
22 Sep: USD 1,297.00, GBP 956.15 & EUR 1,082.09 per ounce
Silver Prices (LBMA)
02 Oct: USD 16.58, GBP 12.46 & EUR 14.12 per ounce
29 Sep: USD 16.86, GBP 12.60 & EUR 14.27 per ounce
28 Sep: USD 16.82, GBP 12.53 & EUR 14.28 per ounce
27 Sep: USD 16.89, GBP 12.58 & EUR 14.38 per ounce
26 Sep: USD 17.01, GBP 12.67 & EUR 14.43 per ounce
25 Sep: USD 16.95, GBP 12.57 & EUR 14.27 per ounce
22 Sep: USD 16.97, GBP 12.52 & EUR 14.18 per ounce
