Russia’s central bank has announced that its gold reserves reached a record high of $207.7 billion in October. The proportion of gold in Russia’s total international reserves increased from 31.5% in September to 32.9%, the highest level since November 1999, when it reached 34%. According to RIA Novosti, the historic peak of gold proportion was 56.9% on January 1, 1993, and it dropped to a low of 2.1% in June 2007. Despite the rise in gold holdings, Russia’s overall international reserves experienced a slight decline, dropping from $633.7 billion in September to $631.6 billion in October, as reported by the Bank of Russia. Central banks have been increasingly interested in purchasing gold to diversify their reserves for financial and strategic reasons, a trend observed at the recent London Bullion Market Association conference. Despite recent price rallies, the demand for gold has remained steady, as it is valued for both security and diversification purposes. Most central banks continue to store their gold reserves in London.
