Russia adds 500,000 Ounces of Gold to its Reserves in June 2014
As Tensions in Ukraine Increase, So Do Russia’s Gold Reserves.
With Tensions Rising in Ukraine, Russia Continues to Add to its Gold Reserves
Russia adds another 500,000 oz. of gold to its reserves in June after adding 300,000 ounces in May.
We have been following the flow of gold from west to east since last year and noted the trend continues into this year. Russia, along with China has been part of this trend.
Earlier this week, the United States placed a fresh round of sanctions on Russia. Last month we noted that Russia was responding to sanctions with three initiatives designed to minimize their impact by:
1. reducing its U.S. Treasury Reserve holdings;
2. conducting more non dollar trade. To that effect Russia is working on a non dollar oil deal with Iran and has signed a long term gas deal with China; and
3. boosting its gold reserves.
Russia is at the center of an accelerating “de-dollarization” campaign as part of the BRICS alliance.
Recently, Russian President Vladimir Putin said that United States sanctions would backfire.
It seem as the tensions rise in Ukraine, so do Russia’s gold purchases.
Russian Gold Reserves 2014 (through June 2014)