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Bank of Russia is world’s largest buyer of gold

Bank of Russia is the world’s largest buyer of gold in September, according to the data of World Gold Council (WGC). The report shows that the central bank bought 16.55 tons of gold during the month and kept its leading position for twentieth consecutive month. Russia is the largest purchaser of gold during the last years, as the central bankers are trying to keep the foreign reserves against the falling local currency and low oil prices.

According to the report, another aggressive buyers of gold in September were China and Kazakhstan, respectively 4.98 tons and 4.14 tons.

The central banks of Russia, China and Kazakhstan are the only banks in the world, whose reserves of gold increased in 2016.

On other side was the Central Bank of Turkey, which sold 13.45 tons of gold in September. The volatility of gold reserves in the country are connected with the fact that stocks of the yellow metal include gold to commercial banks, which can store it in the Central Bank.

In contrast, Canada, which is one of the world’s top 10 gold producing countries, has recently wound down its gold reserves to basically nothing after a multi-year strategy of selling them off in favour of hoarding other countries’ currencies instead.

The demand for gold from some central banks in September did not helped much to maintain its prices. The price of gold fell from 1,316 USD per ounce in September to 1,250 USD per ounce in October.

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