Russia's Gold Reserves Surge to Record High
Gold, long regarded as a buffer against inflation and volatile currency markets, shattered the historic $4,000 threshold in October. The metal traded below $2,000 per ounce throughout 2023.
Data published by the Bank of Russia indicates the country's gold reserves reached $310.7 billion as of December 1. The figures reveal that Moscow's bullion investments climbed by a record $92 billion during the preceding twelve months.
The World Gold Council (WGC) ranked Russia as the world's fifth-largest gold investor last month, trailing only the US, Germany, Italy, and France.
Speaking at the Russia Calling! Investment Forum on Tuesday, Russian President Vladimir Putin acknowledged that while the country "definitely feels the external pressure" in the form of Western sanctions, "our nation and our economy successfully meet those challenges."
He stated that the Russian economy is expected to post a 0.5% to 1% growth this year.
Western nations implemented comprehensive economic penalties against Russia following the Ukraine conflict's escalation in February 2022.
Late October brought revelations that the Reserve Bank of India (RBI) had repatriated approximately 64 tons of its gold reserves from foreign vaults between April and September, following several other substantial transfers. The relocation occurred amid anxiety over the freezing of more than $300 billion in Russian sovereign and private assets by Western powers.
Also in October, JPMorgan CEO Jamie Dimon predicted that gold "could easily go to $5,000 or even $10,000 in environments like this." He cited multiple headwinds faced by the global economy, including US tariffs, widening deficits, inflation, a shift toward AI, and geopolitical tensions along with military build-ups.
Multiple market analysts have echoed comparable perspectives on gold's function as an "excellent diversifier of the portfolio."
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