Russia Is Dumping U.S. Dollars to Hoard Gold

Over the last decade Russian Federation nearly quadrupled its Gold Reserve, accounting for 42% percent of all purchases by central banks worldwide. According to Bloomberg, 2018 marked the most “ambitious year yet” for Russia gold buying. And as of May 2018, Russian Central Bank liquidated $81 billion in Treasuries, almost its entire holdings, and thus fallen off the list of Largest Treasury Holders. Coincidence?

Soon after Russia fell off the Largest Treasury Holders List, the US imposed more economic sanctions. In turn, Russia redoubled its efforts to de-dollarize, using alternative reserves such as Chinese Yuan and Gold.

For the first time in 2018, Russia’s gold purchases surpassed its own gold production according to the Finance Ministry Union of Gold Producers of Russia. If The Central Bank of Russian Federation continues to import more gold than it produces, or furthermore increases its rate of gold purchasing, the price of gold will certainly be pushed higher by this massive buyer of gold.

https://www.bloomberg.com/news/articles/2019-03-29/russia-is-stocking-up-on-gold-as-putin-ditches-u-s-dollars