Russia has begun rapidly stockpiling gold bullion from across the world as fears grow of an imminent World War.
The Central Bank of Russia has been buying bullion at an unprecedented rate, according to Argentine financial expert Gabriel Rubinstein.
BYPASS THE CENSORS
Sign up to get unfiltered news delivered straight to your inbox.
The stockpiling of gold is to protect the Russian economy in the event that World War 3 breaks out.
Putin Delivers Biden an Almighty Slap: 'Don’t Blame Me For Inflation'
Nestle CEO: Humans Do NOT Have a Right to Water, Should Be Privatized and Controlled
World Economic Forum To “Freeze Bank Accounts” of Meat Eaters To "Educate Them”
Biden Announces a New Plandemic Right before the Midterm Elections
Proof of Time Travel? These Famous Faces Appear Throughout History
Putin Declares Victory Over New World Order: 'Humanity Has Woken Up'
Mass Cattle Deaths Are an ‘Inside Job’ Designed To Cause Food Shortages in America
Christina Aguilera Performs For Kids Wearing GIGANTIC Strap-On
Angelina Jolie Admits to ‘Gruesome Illuminati Blood Rituals’
“Countries stockpile gold for strategic and defensive reasons; for instance, in case relations between nations are damaged and their currencies lose their value,” Rubinstein told Sputnik Mundo.
Sputniknews.com reports: If there is such a situation, according to the expert, gold reserves would be the basis for a new currency or other valuable assets in the future.
“Gold, this eternal financial resource, has a real value if compared to other financial assets. The Russian government believes that it’s better to have more gold resources than dollars. Hypothetically speaking, if Russia holds tons of US dollars and the US wanted to damage its economy, this would be possible through currency manipulations,” Rubinstein said, adding that gold guarantees against such a scenario.
The Russian Central Bank has significantly increased the pace of its gold purchases. In the period between January and September 2017, the regulator bought 4.2 million troy ounces of the precious metal worth over $5 billion, 15 percent more than in the same period last year.
As of October 1, the Russian Central Bank holds $73.6 billion in gold reserves, compared with $65.5 billion a year ago, according to its data.
Russia increased its purchases of bullion after sanctions were imposed by the United States and the European Union following the 2014 referendum in Crimea and the beginning of a military conflict in eastern Ukraine. Since then, according to the World Gold Council, the Russian Central Bank has been adding some 100 tons to its gold reserves each six months, more than any other central bank in the world.
Currently, Russia is the world-seventh largest holder of bullion, and if the current pace of its gold purchases continues it is likely to move to the sixth place, surpassing China with its current reserves of 1,842 tons.
During the past decade, the Russian Central Bank has changed its gold and foreign exchange reserves management policy, including decreasing the share of euro from 40 to 26 percent and increasing its gold reserves from $8 billion to $73.6 billion as of October 1 of this year.