Russia’s government has become the world’s largest buyer of gold, followed by other emerging economies

Russia’s government has become the world’s largest buyer of gold, followed by China, India, Mexico and few more emerging economies

Quartz

Russian President Vladimir Putin has been loading up on gold. As Bloomberg reports, the Russian central bank has amassed 570 metric tons of it in the last 10 years, making it the biggest global gold buyer.

Why is Russia’s central bank betting on gold rather than holding its foreign reserves in something with a bit of yield? It’s a hedge against a collapse in the value of one of the global reserve currencies. “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,” Evgeny Fedorov, a lawmaker for Putin’s United Russia party, told Bloomberg.

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Russia’s not the only one that’s been hoarding gold, though. China is the next runner up, having added one-quarter less than Russia, according to Bloomberg. Ambrose Evans-Pritchard argues that this is of a piece with what he calls a “

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Posted in Emerging Markets, Global Crisis 2007-2013...

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