How Will Russian Demand Affect Gold Prices?
Russia is ramping up its gold reserves and quickly. The most recent news shows the Russian Central Bank last year purchased two-thirds of all the gold bullion mined within Russia. As the worldâ€™s third-largest gold producer, that means the Russian Central Bank just purchased over 200,000 tons of gold bullion. Since 2014, Russia has increased its gold reserves by 75 percent.
These moves follow Russiaâ€™s drive to diversify its reserves and move away from U.S. currency and the euro. Gold now accounts for 17.7 percent of Russiaâ€™s total reserves and it is also looking into creating a national cryptocurrency. Russiaâ€™s not alone in its goal of increasing gold reserves, either. China has also been buying large quantities of gold and with these two crucial BRIC countries ramping up gold buying, many investors are starting to think bullishly about gold. Not only is Chinaâ€™s central bank investing heavily now that the yuan is essentially gold-backed, Chinese consumers are buying gold in large quantities thanks to profits from international real estate investments.
These are big moves for the gold market and it wonâ€™t be long before the live price of gold is impacted for private investors. At the same time, Russia and China are both shedding U.S. treasuries, long considered one of the safest paper investments you could make.
Itâ€™s beginning to look like 2018 will be a lot more uncertain than analysts were saying only months ago. Stock markets that had been hitting record highs have shown how jittery they are, the U.S. dollar is showing signs of weakness, and the markets are concerned about rising interest rates. If thereâ€™s one thing weâ€™ve learned at Silver Gold Bull Canada itâ€™s that uncertain markets lead to a spike in gold demand. Gold remains one of the safest ways to store your money and its inverse relationship to the stock market holds a big appeal when markets are nervous.
If youâ€™re an enthusiastic gold price watcher, one pattern you may be familiar with is the way gold initially declines with stock markets. In October 2008, all markets did badly due to the credit crisis. But the credit crisis set the stage for gold prices that would hit new records. Once it becomes clear that gold is on a bull run, youâ€™ve already missed out on some incredible gains. As the markets begin to show signs of weakness, it may be a good time to increase your gold position by buying gold bullion from Silver Gold Bull.
Gold is easier to buy than ever. Not only can you order gold bullion online, you can now learn how to buy gold with Bitcoin and other cryptocurrencies via Silver Gold Bull. With cryptocurrencies and markets alike showing weaknesses, now is a great time to invest in the safe haven that is gold. A larger gold position in your portfolio can help you prepare for just about anything. Invest in gold today before itâ€™s too late to take full advantage of goldâ€™s low prices.