Russian Gold buying goes up whilst Oil prices go down, erstwhile Ukraine Loses Them

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Russia’s central bank bought more than 130 tons of gold this year. Russia has shifted even more assets into gold because it has had a particularly bad year.

Western sanctions, coupled with the fall in oil recently, has caused a lot of turmoil in their markets, their stock markets as well as in their currency markets. The country is heavily dependent on oil exports, and falling oil prices have had a ripple effect on the country’s already troubled economy.

China, India, and many other emerging economies have also been snapping up gold lately, according to  the World Gold Council.Until a few years ago, central banks were selling their gold assets.

However things are now changing as gold is seen as a safe haven, giving countries a degree of economic security during uncertain times within the Global economy.

Meanwhile Ukraine has slashed its gold reserves by more than a third in October ( not including the gold bullion that was airlifted out of the country ), data from the International Monetary Fund showed, as the near-bankrupt country reels from fighting a pro- separatist movement in the east of the country.

The data from IMF also showed Russia increased its gold holdings for a seven consecutive  months in the same period — the country’s longest such buying spree in more than a year.

Ukraine ended last month with 26 tons of gold, down by 14 tons from September, while Russia added another 18.9 tons, taking its total to 1,168 tons making it the  5th  biggest holding by a central bank.

Ukraine, is bordering  bankruptcy, and is totally dependent on international loans, and deeply in massive debt for natural gas from Russia’s Gazprom.

Its currency, the Hryvnia, has lost a whopping 83 percent of its value against the US Dollar this year and its foreign currency reserves plunged to a nine-year low last month.

Well folks 2015 is certainly going to be an interesting year for Gold and Silver.

In the name of the Gold & Silver Amen.



Categories: Business, Ukraine Crisis

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