For several years, the Russian Central Bank had been purchasing a large amount of gold to maintain its reserves. So much so that according to the World Gold Council data, Russia has acquired 2,300 tons of gold thanks to this policy and the gold reserve has become the fifth largest country. However, Russia has decided to change its policy after the developments due to the coronavirus. Meanwhile, Turkey and Russia overtake while increasing their gold purchases.
Almost 150 Tons
According to the information shared by the Nikkei Turkey between the months of January-May this year bought more gold than Russia. The Central Bank of Russia made a 60 percent cut in gold purchases during this period and bought only 28 tons of gold. Takahiro Morita, founder of a financial research firm called Morita & Associates, comments this as follows:
“It seems that Russia has decided to reduce gold purchases due to the collapse in crude oil prices.”
Russia has purchased 28 tons of gold between the months of January-May total Turkey received 148 tons of gold. Turkey compared to a year ago, so that the gold purchases was increased almost three-fold. Turkey thus overtaking Russia on the purchase of gold. But Kota Hirayama, one of the SMBC Nikko Securities executives, is not sure exactly how accurate this is:
“Turkey does not need to force the economy to pick up so much gold at the moment.”