IMF: Russia Is Largest Buyer of Gold In Last Ten Years

February 11th, 2013 by

russia-gold

Bloomberg reports in its article “Putin Turns Black Gold to Bullion” how Russia was the largest government purchaser of gold over the last ten years, as Putin directed the Russian central bank to use state oil profits to purchase bullion to the tune of 570 metric tonnes over the decade.

Despite Russia’s massive bullion purchases, gold still only accounts for less than 10% of their central bank reserves. The policy is seen as hedging against devaluation of the U.S. dollar, which is still seen as the global reserve currency.

Bloomberg reports Evgeny Fedorov, a lawmaker for Putin’s United Russia party in the lower house of parliament, as saying in a telephone interview from Moscow, “The more gold a country has, the more sovereignty it will have if there’s a cataclysm with the dollar, the euro, the pound or any other reserve currency.”