As evidenced by the Russian central bank, it appears that Russia has added another 1,200,000 ounces of physical gold to their reserves. Total Russian gold reserves now stand at 37,000,000 ounces, or 1049 tonnes. The following chart, courtesy Goldchartsrus, shows the increase of Russian gold reserves over the last 8 years.
The latter part of the chart shows the monthly change. It is very interesting to note how September 2014 attributed to the biggest month-on-month increase ever. Only in May 2010 was there an increase which came close to the one of last month with an addition of 1.1 million ounces.
As we said in March of this year in our article Russia Touches U.S. Achilles Heel: Petrogold instead of Petrodollar, we believe gold equals strength. It is no coincidence that the petrodollar system is losing ground and that countries like Russia and China keep on hoarding large amounts of gold. This trend could end up in a lost of trust in the US dollar leading the world reserve to collapse. That is the also unspoken Achilles heel of the US.
Ed Steer notes in his daily newsletter that the 1.2 million troy ounces is considerably more gold than Russia digs out of the ground in one month. “I get the impression from this big deposit in September that they have gold stashed away somewhere that doesn’t show up in the books of the central bank, as a deposit that size can’t be explained any other way.”