Russia Is Buying Up Gold

By Greg Scoblete
February 11, 2013

Russia is the world's largest gold buyer.

According to Bloomberg, Russia has become the world's largest buyer of gold. The Russian central bank has added 570 metric tons of the stuff to its reserves, mostly to defend against the collapse of the dollar or euro, which their buying habit suggests is a real possibility.

Not everyone's buying, though:

'While Putin is leading the gold rush in emerging markets, developed nations are liquidating. Switzerland unloaded the most in the past decade, 877 tons, an amount now worth about $48 billion, according to International Monetary Fund data through November. France was second with 589 tons, while Spain, the Netherlands and Portugal each sold more than 200 tons.

Even after Putinâ??s binge, though, Russiaâ??s total cache of about 958 tons is only the eighth largest, the World Gold Council said in a Feb. 8 report. The U.S. is No. 1 with about 8,134 tons, followed by Germany with 3,391 tons and the Washington-based IMF with 2,814 tons. Italy, France, China and Switzerland are fourth through seventh. While gold accounts for 9.5 percent of Russiaâ??s total reserves, it accounts for more than 70 percent in the U.S., Germany, Italy and France.

'

(AP Photo)

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