Massive 1.6 tonne hoard of gold bullion kept in tightly-guarded locations across Russia due to ‘unpredictability’ of Donald Trump and fear of sanctions
Russia is one of the biggest purchasers of gold in the world
Russia is hedging its bets with a stockpile of 1.6 tonnes of gold due to Donald Trump’s “unpredictable” nature.
The hoard, which is stashed around Moscow, St Petersburg and Yekaterinburg, has seen Russia become one of the world’s leading gold buyers — a stance that it hopes will protect it from any drastic changes that the new US President might have on the world economy.
Russia’s gold reserves rank sixth in the world — with it reported the country wants to keep it away from the unpredictability of Donald Trump. His unpredictable nature has meant other super powers are ensuring they have a financial back up.
Konstantin Sakharovsky, who worked as a director of innovations at a large Russian jewelry retail company, told RBTH:
“Trump is unpredictable.”
“There could suddenly be a new wave of sanctions and a freezing of assets.”
“Gold will help Russia maintain its assets. Of course, there are also problems related to a possible drop in gold prices, but all this can be hedged.”
Almost two-thirds of the nation’s gold is kept in Moscow, in a Central Bank repository.
The location of the gold, mainly in bullions weighing from 100grams to 14kgs, is a highly-guarded secret.
But the country’s leader, Vladimir Putin, has inspected one of the storage sites, with Prime Minister Dmitry Medvedev also having carrying out visits.
Russia’s central bank has previously declared that gold was a
“100 per cent guarantee from legal and political risks”, making it worth the risk of a swinging price, GoldCore reported.
A Reuters report also suggested that by focusing its wealth into gold, Russia was reducing its exposure to the US currency.
One of the country’s biggest buy ups of gold bullion was just months before the US election, with Russia buying 1.3 million ounces of gold in 2016.