Don't Ignore Gold Yet; Russia Isn't
(Kitco News) - While some have been shying awayfrom the gold market, with prices seeing their biggest daily decline in twomonths Friday, one country is paying close attention to the precious metal --Russia.
According to Shae Russell, leadeditor of Markets & Money, the country’s path to increasing its goldreserves is something that shouldn’t be ignored.
“Even though the precious metalisn’t at the center of the financial system today, gold still equals power,”she wrote in a post Monday.
“Since July 2014, Russia’scentral bank has increased gold stores by 75%,” she added.
Looking at the latest World GoldCouncil data, released in February, Russia currently holds 1,839.8 gold tonnes,making up 17.7% of its total reserves. The government’s “buying spree,” asRussell pointed out, has made the country the seventh-largest gold holder.
However, there is more to theRussia story, Russell noted.
Why is Russia doing this?
“Increasing the gold holding wasa way to diversify their foreign assets away from currencies, enabling Russiato get away from the oppressive U.S. dollar and euro,” Russell explained.
But that is not the only actionthe Russian government is taking.
As Russell explained, Russia isexploring cryptocurrencies in an attempt not only to move away from the U.S.dollar but also to protect itself against sanctions and attract more foreigncapital into the country.
“Russia plans to be the firstcountry to embrace a national cryptocurrency. Less than two weeks ago, a billwas submitted to Russian parliament proposing a ‘cryptoruble,’ a legalcryptocurrency that would work in tandem with the fiat ruble,” she wrote.
By Sarah BenaliFor Kitco News
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sbenali@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.