• 386 days Could Crypto Overtake Traditional Investment?
  • 391 days Americans Still Quitting Jobs At Record Pace
  • 393 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 396 days Is The Dollar Too Strong?
  • 396 days Big Tech Disappoints Investors on Earnings Calls
  • 397 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 399 days China Is Quietly Trying To Distance Itself From Russia
  • 399 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 403 days Crypto Investors Won Big In 2021
  • 403 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 404 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 406 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 407 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 410 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 411 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 411 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 413 days Are NFTs About To Take Over Gaming?
  • 414 days Europe’s Economy Is On The Brink As Putin’s War Escalates
  • 417 days What’s Causing Inflation In The United States?
  • 418 days Intel Joins Russian Exodus as Chip Shortage Digs In
Is It Time To Pay Attention To Gold Miners?

Is It Time To Pay Attention To Gold Miners?

The invasion of Ukraine by…

U.S Targets Russian Gold Stockpiles

U.S Targets Russian Gold Stockpiles

In its latest round of…

  1. Home
  2. Commodities
  3. Precious Metals

Central Banks Double Down On Gold

Gold

Russia is growing its gold stockpiles as analysts begin to sound the alarms, suggesting another worldwide recession might be in the making.

According to its foreign reserve data updated on Friday, Russia’s central bank’s gold reserves increased by 31.1 tonnes to 2,149 tonnes in February. The move is not a substantial surprise to some experts who expect that worldwide central bank gold demand will persist as an important theme for the gold market.

Ronald-Peter Stoeferle, fund manager at Incrementum AG and author of the annual In Gold We Trust report, noted, “Russia’s demand for gold is part of the whole de-dollarization story that continues to get stronger and stronger,” adding, “Central bank gold demand is clearly a trend that is gaining momentum.”

Stoeferle included that with the growing debt concerns in the U.S. it’s not surprising that central banks are looking for alternative assets. The commodities market’s intensity and liquidity make it the ideal asset for financial powers, he stated.

According to product analysts at Bank of America Merrill Lynch, Russia has actually been the most notable gold customer for the last ten years. The analyst kept in mind that Russia has also been the most aggressive country in diversifying its foreign reserves considerably from the U.S. dollar. They said that the share of U.S. dollars in its reserves fell from 46% to 22% in 2015. Related: China: The New King Of Caviar

Authorities on the matter have stated that the growing international central bank need bodes well for the gold market, of which Russia is anticipated to remain the dominant player. Central banks around the world bought an overall of 651.5 tonnes of gold last year, the most substantial quantity since 1971.

What is behind the Russia gold grab?

Gold is generally utilized to hedge against financial unpredictability. As sanctions are levied on other countries, the U.S. dollar loses power within the world economy.

Russia is not alone in looking for to diversify out of U.S. debt holdings and transfer wealth into rare-earth elements.

If sanctions grow tighter and more numerous, the international economy will continue to shutter. The world is primed for huge amounts of gold shifting hands this year, with several countries constructing growing gold stockpiles.

By Michael Kern 

More Top Reads From Safehaven.com:

Back to homepage

Leave a comment

Leave a comment