Putin’s Big Bet on Gold Is Paying Off
Russia has been the biggest sovereign gold bug for years. Now others are following in its footsteps.
Fine gold, indeed.
Photographer: Andrey Rudakov/Bloomberg
For years, Russia has been the world’s biggest sovereign gold bug: Even while gold prices were in the doldrums, it doggedly kept increasing its reserves. Now that gold is at the highest level since 2013, the tactic appears to be paying off.
The U.S. dollar’s dominance as a global reserve currency is commonly thought to result from the dearth of safe assets. Russia, however, recently has provided an example of how a sizable economy with the world’s fifth biggest international reserves can minimize dollar assets and still do well. So far, it doesn’t have many followers, but gold buying by central banks is going up.