2016-05-12 Thu

Gold bullion coins have become popular in the East—especially China, Russia and its neighbouring countries over the last five to seven years. The Russian Finance Ministry is contemplating about issuing a gold coin in the future. China is eyeing economic supremacy globally by making the yuan (AKA renminbi) a global currency and introducing gold coins.

Plunging oil prices have affected the Russian economy as the country depends majorly on exports of oil and natural gas energy to Europe and its neighbours. Late last year, the ruble touched an all-time low against the dollar. But Russia ranks sixth in the world in official gold reserves with over 1,400 metric tonnes.

This helps buffer the ruble’s foreign exchange rate and de-dollarize. By using this technique, Russia cut its foreign debt by 14% last year. In the first week of March, Russia added $5.8 billion to its gold reserves and has a target of have gold reserves worth half-trillion dollars in the coming three-to-five years. 10 years from now, Russia might introduce a gold-backed ruble currency, sighting popularity of gold bullion coins in the east.

Strangely though, the Government recently auctioned about 25 troy ounces of gold nuggets to the public.