Neck and Neck: Russian and Chinese Official Gold Reserves

For the last 10 years, the Bank of Russia has been aggressively adding to its official gold reserves, especially since 2014. Russian official gold reserves now stand at 1779 tonnes, the world’s 6th largest sovereign gold stockpile. Meanwhile, China, the world’s 5th largest sovereign gold holder with 1842 tonnes, has mysterious not ‘officially’ added any gold to its reserves since October 2016.

This has created a situation in which the Russian Federation could soon have more sovereign gold holdings than its neighbour and rival, the People’s Bank of China.

Realistically both countries, especially China, probably hold more sovereign gold holdings than they officially report. Between 2001 and 2015, China had a habit of only rarely revealing additions to its gold reserves. This changed in July 2015 when it began to report updates monthly, with small monthly accumulations. However, since October 2016, China claims it hasn’t bought any more sovereign gold. But with Russia about to displace China as the world’s 5th largest gold holder, can the Chinese sit back and let this happen, or will they make a strategic announcement at a time of their choosing?

Powered by WPeMatico