The Reason Putin Is Buying So Much Gold

Why Putin Is Buying So Much Gold

Yahoo: By Everett Rosenfeld 

Russian President Vladimir Putin is developing a taste for gold (CEC:Commodities Exchange Centre: @GC.1).

With all of its income from selling oil (Intercontinental Exchange Europe: @LCO.1), Russia is diversifying its reserves by buying massive amounts of gold, said William Rhind, CEO of the World Gold Trust Services.

Of all the central banks that make their reserve actions public, Russia has been the "largest, most active" gold accumulator, he explained. Still, Rhind said, the "elephant in the room" is how much gold China is buying, as Beijing does not publish these figures.

A recent report from the World Gold Council showed that many central banks, including Russia's, have beefed up their gold reserves. This investment, the report suggested, was "driven by a number of factors including a continued diversification away from the U.S. dollar and the backdrop of ongoing geopolitical tensions."

Still, Rhind explained that the move towards gold buying…

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