Russia ranks fifth in the world after the United States, Germany, Italy and France in terms of gold reserves. And the abandonment of the dollar and the reform may lead to a sharp demand for precious metals, Izvestia reports.
The National Wealth Fund (NWF), following the de-dollarization strategy, will abandon the American currency within a month and convert it into euros, yuan and gold. The share of the latter will be 20 percent of the total fund.
Experts clarify that it is impossible to replenish the stocks of the NWF with gold in a month – the volume is too large (tens of millions of troy ounces or thousands of tons). But this will not be necessary, since the country has been increasing its reserves for the past 12 years. “If in 2008 there were only 400 tons of gold in the bins of the Central Bank, then by May 2021 the reserve approached 2.3 thousand tons. According to this indicator, the Russian Federation took the fifth place in the world after the USA, Germany, Italy and France. However, the share of gold in Russian reserves is much lower than that of these four countries, ”the newspaper specifies.
Gold was chosen as one of the investment options because over the past 15 years it has shown the best dynamics – its quotes have grown almost six times. The Ministry of Finance announced that it will protect the NWF from inflationary risks. Economists believe that government purchases of precious metals will strengthen Russia’s gold mining industry. And investors are advised to maintain the volume of gold in the portfolio at 20 percent.
Earlier, Finance Minister Anton Siluanov announced that the National Welfare Fund (NWF) will completely get rid of the dollar in the coming month. Instead, the share of the euro and the yuan will grow in the structure, and gold will also appear. This statement was commented on by the press secretary of Vladimir Putin Dmitry Peskov, calling the de-dollarization, which is being carried out in Russia, a constant process that is taking place in many countries of the world.