The $140 billion question: Can Russia sell its huge gold pile?

Bloomberg/Eddie Spence/3-16-2022

“Bank of Russia expanded its gold reserves almost sixfold since the mid-2000s, creating the world’s fifth-biggest stockpile that’s valued at about $140 billion. It’s the type of asset it could sell to shore up the ruble, which has plunged as global economies isolate Russia following its invasion of Ukraine. Doing so will be difficult.”

USAGOLD note: Though the headline above is an eye-catcher, it may be a moot point. We are relatively certain that China would be happy to buy any gold Russia would care to sell – without any fanfare. It might also be glad to take gold as collateral in a dollar loan – a currency well-represented in its national reserves. In short, there is no need for Russia to go through Western channels to utilize its gold, and as a result any sales (or other types of mobilization) are unlikely to have a market effect of any consequence.