menu-control
The Jerusalem Post
The Jerusalem Post: Business and Innovation

Russia selling oil for gold in September

 
 Russia selling oil for gold in September (photo credit: PR)
Russia selling oil for gold in September
(photo credit: PR)

Country announces plans to use oil revenue windfall to purchase large amount of gold this month

The Russian Finance Ministry announced it will exponentially increase its gold purchases beginning Friday.

According to Russian news agency Interfax, the government will increase its gold purchases from 1.12 billion rubles per day to 8.2 billion rubles per day for the next month.

Russia using oil to get gold

The report states the finance ministry expects a significant oil and gas revenue of 162 billion rubles in September, a huge jump compared to the 10.9 billion rubles generated in August.

With that money, Russia plans to purchase more gold. 

 Net purchases of gold by central banks in 2024. (Source: World Gold Council)
Net purchases of gold by central banks in 2024. (Source: World Gold Council)

As the war in Ukraine rages on, Russia’s central bank has been a net purchaser of gold through the 2024 calendar year, though it has only added about 4 tonnes of the metal to its reserves.

Embracing gold in Russia

In early 2022, just as the war with Ukraine began, Russia married the ruble to gold and created a new gold standard. According to The Conversation, Russia shifted the currency to gold to isolate its economy from transactions requiring American dollars. That effort has been taking place since 2013.

Russia has long been a top producer of gold. Last year, the country produced 321 metric tons, second only to China’s 378 metric tons.

 Gold production in 2023. (Source: World Gold Council)
Gold production in 2023. (Source: World Gold Council)

So far, Russian leader Vladimir Putin’s bet is paying off, as gold hovers around $2,500 an ounce, near its all-time high.

Featured Partners (Ad)

Augusta Precious Metals

Fees:

$0 (10 Years)

Minimum:

$50,000

"Best Overall" by Money Magazine, Award-Winning for 6 Years, Thousands of 5-Star Rankings

Expand DetailsRenowned for its exceptional customer service and commitment to transparency, Augusta Precious Metals has garnered numerous accolades, including "Best Overall" from Money magazine and "Most Transparent" from Investopedia. The company's dedication to educating and supporting its clients has earned it top ratings from organizations such as A+ from BBB and AAA from BCA.

Goldco

Fees:

Vary

Minimum:

$25,000

Industry leader with over $2 Billion in gold and silver. Top rated precious metals company with buy back guarantee

Expand DetailsFrom Precious Metals IRAs to direct purchases of gold and silver, Goldco have helped thousands of Americans place over $2 Billion in gold and silver. TOP-RATED PRECIOUS METALS COMPANY Rated A+ by the Better Business Bureau Rated Triple A by Business Consumer Alliance Earned over 6,000+ 5-Star Customer Ratings Money.com 2024 Best Customer Service 2024 Inc. 5000 Regionals: Pacific Ranked #17 2024 Gold Stevie Award, Fastest Growing Company Inc. 5000 Award Recipient, 8+ Years

Birch Gold Group

Fees:

Vary

Minimum:

$10,000

Since 2003 BGG served over 32,000 customers. A+ rating with BBB, AAA from BCA & has multiple celebrity endorsements

Expand DetailsBirch Gold Group is a leading precious metals dealer established in 2003. They empower customers with education and prioritize customer satisfaction. Their experienced team offers gold, silver, and other metals for investment and IRAs. With a strong reputation (A+ BBB rating) and focus on personalized service, they aim to be your trusted partner in securing your financial future through precious metals.

This article is for informational purposes only. The opinions and analysis herein are those of the author and are not financial advice. The Jerusalem Post (JPost.com) does not endorse or recommend any investments based on this information. Investors should consider their financial situation, investment goals, and risk tolerance before making any decisions. Consulting a qualified financial advisor is recommended. JPost.com is not liable for any investment losses from using this information. The information provided is for educational purposes only and should not be considered as trading or investment advice.

×
Email:
×
Email: