CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • Fund
  • Buy
  • Language
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • Bitcoin Price Analysis
  • CryptoPotato Crypto Fund
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • bitcoin
    BTC$35,188.00
  • ethereum
    ETH$1,201.46
    • Market Updates
    • BTC Analysis
    • ETH Analysis
    • XRP Analysis
    • Interviews
    Home » Crypto News » Russia Will Stop Buying Gold But Will Sell It Internationally, Report Says

    Russia Will Stop Buying Gold But Will Sell It Internationally, Report Says

    Author: Jordan Lyanchev

    Last Updated Apr 1, 2020 @ 09:45

    After years of purchasing significant quantities of gold, the Central Bank of Russia will cease buying more as of April 1st. The country announced it yesterday without explaining the move.

    Local analysts, however, claimed that the nation already has a lot of gold stashed in reserves and might start selling to international investors because of the high demand.

    Russia Stops Buying Gold

    The precious metal is often regarded as the preferable safe-haven investment instrument by many. Individual or institutional investors, businesses, and even central banks and governments choose to rely on it. Russia, for example, has been especially eager to buy substantial quantities in the past five years to increase its bullion.

    A recent Bloomberg report informed that after building a considerable amount worth over $120B, the world’s largest country by landmass will halt purchasing more from April 1st.

    Russia's Gold Purchases. Source: bloomberg.com
    Russia’s Gold Purchases. Source: bloomberg.com

    The bank didn’t provide a valid explanation on the move. Tatiana Evdokimova, an analyst at Nordea Bank in Moscow, believes that gold accounts for about 20% of Russian international reserves. A historically high level, especially when compared to other central banks.

    She added that the Central Bank of Russia “probably doesn’t want to increase gold’s share in reserves, while the size of reserves is falling.”

    Sell Gold Internationally

    According to Dmitry Dolgin, ING Bank’s chief economist in Russia, halting massive gold purchases is a clear sign for sellers to turn their attention to the international scene:

    “The central bank is now signaling to gold sellers that they should redirect their supplies externally. Global demand seems to be high.”

    Dolgin also added that large buyers from London, India, Turkey, and Singapore have already expressed interest in purchasing portions of Russia’s gold.

    But the demand from investors is rising almost everywhere in the world today. A popular precious metal dealer recently noted that in March, the interest reached the previous highest level of early 2009 – during the last financial crisis.

    However, the situation now seems considerably different, mostly because of the global chaos caused by the COVID-19 outbreak. As most economies are shut down, the physical gold supply has also been affected. Consequently, this led to extremely high levels of spread fluctuations and a shortage of actual gold for investors to purchase. Independent metals analyst, Ross Normal, explained:

    “Because of the supply chain issues, it has been difficult to [deliver gold], and hence the premium went sky high.”

    And as basic economic principles dictate, when the supply of an asset decreases, while the demand increases, its price should, in theory, rise.

    Even though gold’s price plunged when investors were panic selling all their assets in mid-March, it has since recovered well and is currently trading at $1616 per ounce. In fact, it’s one of the best-performing assets during this time of uncertainty.

    XAUUSD. Source: TradingView
    XAUUSD. Source: TradingView
    Enjoy reading? Please share:
    Facebook Twitter LinkedIn Telegram
    SPECIAL OFFER (Sponsored)
    Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

    PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO35 code to get 35% free bonus on any deposit up to 1 BTC.

    You Might Also Like:

    • GoldBitcoinRussia
      Crypto More Popular Than Gold Among Russian Investors: Report
    • bitcoin_whales
      Report: After Buying Bitcoin's Bottom In March, Whales Continue Accumulating
    • Russia
      Russia Can Legalize Bitcoin Mining But There's a Catch
    Read more on: Banks Gold Russia

    About The Author

    Jordan Lyanchev View more posts by this author

    Jordan got into crypto in 2016 by trading and investing. He began writing about blockchain technology in 2017. He has managed numerous crypto-related projects and is passionate about all things blockchain. Contact Jordan: LinkedIn

  • bitcoin
    BTC$35,188.00
  • ethereum
    ETH$1,201.46
  • Join Our Community

    FacebookTwitter YouTubeTelegram


    ADVERTISEMENT
    binance
    Bitcoin Editorials
    Ethereum 2.0 Staking on Exchange vs. Creating Your Node: What You Need to Know

    Ethereum 2.0 Staking on Exchange vs. Creating Your Node: What You Need to Know

    5 Possible Reasons For Bitcoin’s Price Surge Over $30,000

    5 Possible Reasons For Bitcoin’s Price Surge Over $30,000

    2020 Year In Review: Bitcoin’s Journey From $3800 To Nearly $30K

    2020 Year In Review: Bitcoin’s Journey From $3800 To Nearly $30K

    6 Reasons For The Ongoing Bitcoin Bull-Run Beyond $20K

    6 Reasons For The Ongoing Bitcoin Bull-Run Beyond $20K

    Is Blockchain The Answer To COVID-19 Led Misinformation and Rumor Mongering?

    Is Blockchain The Answer To COVID-19 Led Misinformation and Rumor Mongering?

    Join Our Newsletter
    Become a CryptoPotato VIP
    One Weekly Email Can Change Your Crypto Life.
    Sign-up FREE to receive our extended weekly market update and coin analysis report
    We NEVER send spam. You can unsubscribe at any time.
    Invalid email address
    Thanks for subscribing!
    About
    Advertise on CryptoPotato
    About Us | Contact Us

    Terms of service | Privacy Policy | GDPR
    More Sections
    IEO List | Evaluations
    Airdrops
    Scholarship
    Cannabis Stocks News | Market Analysis
    Disclaimer
    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
    © Copyright CryptoPotato 2016 - 2021
    Scroll to top
    One Weekly Email Can Change Your Crypto Life.

    Sign-up FREE to receive our extended weekly market update and coin analysis report

    We never send SPAM. You can unsubscribe at any moment
    Invalid email address
    Thanks for subscribing!