Russia to ‘Double Production’ of Gold
Last week we republished Jim Rickard’s “Axis of Gold” article talking of the strategic gold moves by China, Russia, Turkey, Iran and others tiring of the USD hegemony.
Topically, RT reported over the weekend news that Russia is looking to double its gold mining production over the next decade having already doubled over the last two decades. From RT:
“In 2017, Russia extracted 8.8 million ounces, accounting for 8.3 percent of total global production, according to data by the UK consultancy Metals Focus, as quoted by the media. The newly discovered gold deposits will reportedly allow miners to increase extraction by half in seven years. By 2030, extraction is expected to grow by nearly eight million ounces.”
Currently Russia is the world’s 3rd largest producer behind 2nd placed Australia however “that could change in less than a decade, according to Mikhail Leskov, deputy CEO at the Moscow-based Institute of Geotechnology, as quoted by Vedomosti.”
This increase is in total contrast to the ‘rest of the world’ which is looking at reductions in production as we reported here.
For context the chart below shows their relentless accumulation of gold. In April they surpasses 1900 tonne after adding 600,000oz or 18.7 tonne in that month.
Last year they added 224 tonne to their reserves which was almost entirely their total domestic production. One can only wonder how much of this additional supply will leave their borders, if any. The accumulation of gold in their reserves is in stark contrast to their holdings of that other (current) reserves stalwart… US Treasuries.