Russian Gold Purchases in October 2014

Russia adds 600,000 ounces of gold its gold reserves in October

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Russia Continues its Gold Buying Binge – Adds Another 600,000 Ounces to its Gold Hoard in October

Today the Central Bank of the Russian Federation published its October official reserve assets and other foreign currency assets report indicating that it had added 600,000 ounces of gold to its reserves.

Russia’s gold reserves now stand at 37.6 million ounces.

We have been reporting on Russia’s monthly gold purchases since May. In September, Russia made its largest gold purchase in 14 year, buying 1.2 million ounces.

Earlier this month Russia announced that it had added 150 tons of gold to its reserves in 2014. These gold reserves provide some hedge against a falling rouble as they account for about 10% of Russia’s foreign reserves.

Currency Wars/Gold Wars

Russia has been buying gold as part of its de-dollarization strategy and in reaction to western sanctions.

Against a back drop of furious gold buying, the Russia economy has suffered from inflation of about 9 percent due to a decline in the value of the Rouble of about 30 percent.

Tough Times For Russia

While western sanctions have harmed the Russian economy and value of the Rouble, Russian President said speaking to the People’s Front this week that the United States will never ‘subdue’ Russia.

“They do not want to humiliate us, they want to subdue us, solve their problems at our expense,” “No one in history ever managed to achieve this with Russia, and no one ever will.”

Earlier this month Ksenia Yudaeva, deputy chairwoman of Russia’s central bank, noted that Russia may need to sell some of its gold to fund its imports, “if necessary”.

For now, however, Russia is still a net gold buyer.