Putin’s on a gold buying spree lately.
Russia increased its gold reserves for a sixth straight month in September, driving its bullion holdings to the largest increase since 1998.
Russian reserves, which overtook those of Switzerland and China this year, have almost tripled since the end of 2005 and are at their highest levels since at least 1993, data shows.
According to Bloomberg:
“The country, which defaulted on $40 billion of local debt in August 1998, is draining reserves as tumbling oil prices and U.S. and European sanctions over President Vladimir Putin’s intervention in Ukraine worsen the ruble’s losses and dollar shortage.”
The Russian government is turning to gold to help put the brakes on their troubled economy.
In fact, Putin himself was quoted as saying: “For us (Russia and China) it is important to deposit those (gold and currency reserves) in a rational and secure way,” according to IBT.com.
Photo courtesy of ibtimes.co.uk