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Russia increases gold reserves to $207.7B in October

Russia increases gold reserves to $207.7B in October

GrafaGrafa2024/11/12 11:00
By:Isaac Francis

Russia’s central bank reported that its gold reserves have reached a record $207.7 billion in October, marking a significant rise in the share of gold within the nation’s total international reserves.

According to the Bank of Russia, gold now accounts for 32.9% of the country’s overall reserves, up from 31.5% in September.

This level is the highest since November 1999 when gold’s share was 34%.

Historically, the highest proportion of gold in Russia's reserves peaked at 56.9% on January 1, 1993, and reached a low of 2.1% in June 2007, as per RIA Novosti data.

Despite the notable increase in gold holdings, Russia's total international reserves showed a slight decrease.

The reserves dropped from $633.7 billion in September to $631.6 billion in October.

This decline in overall reserves comes amid an environment where central banks globally are leaning more towards increasing their gold reserves for both financial security and strategic purposes.

This trend was highlighted at the recent London Bullion Market Association conference, where discussions emphasised the role of gold in diversifying national assets.

The increase in Russia’s gold reserves aligns with broader global trends, as central banks continue to find value in gold for both security and diversification purposes.

This demand has persisted despite recent fluctuations in gold prices.

The enduring interest from central banks underscores gold’s standing as a reliable asset during times of economic uncertainty.

In addition, gold continues to be valued for its ability to act as a hedge against currency fluctuations and economic downturns.

The bulk of central banks’ gold reserves, including Russia’s, are typically stored in established global financial centers, with London being one of the primary locations.

This practice reflects a commitment to maintaining gold in jurisdictions considered secure and financially stable.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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