Translation for mixednews — Daniel Perov
The World Gold Council (WGC further) reports that a doubling of Russian gold reserves over the past five years has not gone unnoticed. During this period the Russian procurement exceeded 500 tons, it is the fastest growing gold reserves of the world. The fact that Russia has accumulated that amount, many heavily concerned. Some very skeptical of Vladimir Putin discussing plans regarding the Russian gold reserve.
Speculation about hidden motives Putin is widely increasing. Some suggest that he intends to use this metal for the impact on opponents grave political means, others think that he wants to use gold as an alternative currency. But to determine the growth of Russian foreign exchange reserves as doubtful, based only on the volume of stored and personality of a national leader is somewhat premature.
Russian and used to use gold as a financial instrument. And as the country’s officials encourage increased use of gold, it can not be called a whim. Besides, the TTO note that the role of gold grows internationally.
A striking example is the tendency for the banks, especially in developing countries, hoard gold to diversify their reserves. According to the WGC, in the second quarter of 2012, the official sector bought 157.5 tons of gold, this figure is more than double that for the second quarter of 2011. The share of Russian purchases account for only 22 tonnes.
Central banks, as well as many private investors will no longer find it convenient to keep their assets in dollars and euros. Some of them, such as the National Bank of the Republic of Kazakhstan, said so explicitly.
Is the doubling of gold reserves a special part of Putin’s plan or not — we will see. What can be said with certainty — the growth of Russia’s gold reserves closer to achieve the target set by the Central Bank more years ago.
In the 2005 edition of the Moscow Times reported on the intention of the Central Bank to increase the share of gold in reserves of the country from five to ten percent. Now accumulated 918 tons, which is equal to devyatiprotsentnomu indicator. This indicates that the plan is almost completed.
Putin then expressed his support of the Central Bank plans to double its gold reserves, and the government has taken measures to stimulate underdeveloped gold industry in the country.
Much of this precious metal stored in the reserves of the country, was acquired by the domestic market. But the biggest replenish the gold reserves have fallen to the presidency of Dmitry Medvedev, who led the country from May 2008 to May 2012.
While Putin was prime minister, however, there are many opinions that he made the decisions. However, it was in March of this year, shortly before Putin‘s inauguration, held the largest replenishment of gold reserves, which amounted to 16.6 tons. The second volume of the replenishment of the reserve, in the amount of 15.5 tons of gold occurred in May, when the men exchanged power.
Senior Market Analyst Kitco Metals Company once wrote: "All that we know — Russia is increasing its reserves, however, one must take into account that the previous" colleagues "Mr. Putin gutted the warehouse of the Central Bank, leaving only the bare walls, and this happened after the Communist regime in 1989 came to an expected end. "
On January 1995 sixty percent of the Russian state reserves was gold. WGC said that if Russia seeks to restore the previous level of reserves to a peak, then it will need to add to reserves for another five tons of gold, given today’s prices.
To some it can be unsettling, but it is expected that as long as Putin runs the country, purchases of gold will continue. For June, Russia has acquired about 35 tons. Based on the comments by officials, WGC says that this year the state plans to increase gold reserves per hundred tonnes.
Purchases formal sector play a major role in supporting the global gold market, especially in this year are seeing decline in investment demand. Those who wish to Russia reduced the volume of gold reserves, first have to think what will happen to the demand for the metal, decide the country suddenly get rid of it.