Russia relies on gold columns

For the first time, Russia holds more gold than US dollars in international reserves.

Russia has wanted to reduce exposure to US assets for years. The reserves in the form of gold now amount to 109.5 billion US dollars or just under 100 billion euros. This is the first time Russia has more gold than US dollars. 23 percent of the central bank’s inventory is now in the form of gold. Dollar fortunes fell from more than 40 percent in 2018 to 22 percent today. Russia wants to reduce the risk of US sanctions. Russia is now likely to be the world’s largest gold buyer.

The intention behind this is decoupling from the US dollar and creating stable reserves. In 2020 alone, Russia absorbed 274 tons. Gold also has the advantage that it has an asset that does not contain any claims against third parties.

Other central banks are also increasingly relying on gold. A good week ago the World Gold Council published the latest data. Gold assets increased (mostly until the end of November 2020) in India, Qatar, Uzbekistan, Kazakhstan, Malta and Ukraine. The gold stocks in Turkey and Mongolia declined.

The central banks know why they are betting on gold. The value retention of gold is simply unbeatable compared to currencies and other forms of investment. A few gold stocks in the depot would not be bad for the investor either, such as Condor Gold or Tarachi Gold.

Condor gold – – is making excellent progress on his La India gold project in Nicaragua. The project is wholly owned by Condor Gold and 98 percent is located in the historic La India gold mining district.

Tarachi gold – – Is well funded to advance projects in Mexico on promising land in Sonoro in the famous Sierra Madre gold belt.

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