The price of gold has been in consolidation mode for over a year. On Monday, the precious metal logged its third consecutive daily loss and reached its lowest level in five weeks. Gold produces very trying price swings for investors of the safe haven, but central banks are still keeping a tight grip on their holdings.
Central banks became net buyers of gold in 2009 for the first time in decades, with Russia and China leading the way. According to recent IMF data compiled by Bloomberg, Russia’s central bank added 570.1 metric tons of gold to its stash over the past decade, the most of any nation in the world and almost triple the weight of the Statue of Liberty. China and Turkey were the next largest gold accumulators with 454.1 and 243.5 metric tons, respectively.
Evgeny Fedorov, a lawmaker for Vladimir Putin’s Untied Russia party, tells Bloomberg, “The more gold a country has, the more sovereignty it will have if there’s a cataclysm with the dollar, the euro, the pound or any other reserve currency.”
Putin has not been shy about his feelings towards the U.S. dollar and its role in the global financial system. In recent years, he has said the nation is “living like parasites off the global economy and the monopoly of the dollar. Countries like Russia and China hold a significant part of their reserves in American securities…there should be other reserve currencies.”
Who holds the most gold…
If you would like to receive professional analysis on miners and other precious metal investments, we invite you to try our premium service free for 14 days.