According to Fitch Solutions, Russia will become the world’s largest gold producer for 10 years. 11.6 percent will belong to our eastern neighbors global gold market. At the moment, Russia has 10.6 percent
Why does Russia want to intensify mining and have more gold? According to US analysts, it is about American sanctions that are imposed on Russia.
Interestingly, the increase in gold production in Russia may be related to US sanctions. Fitch Solutions write that “the risk of Russian banks being cut off from dollar assets and difficult relations with the US are prompting the central bank (Russia) to increase gold reserves, which will translate into strong domestic demand.”
Until now, the Russians bought gold from local producers and bought it. The Central Bank of Russia stopped doing this a few weeks ago. According to analysts, this is a temporary break, and intensification of production is to be another – next to buying – a way to increase reserves.
According to Fitch Solutions, the Russians want to overtake the world’s largest gold producer, which is currently China. 453 tonnes of gold are mined there annually. Analysts emphasize that China has no way of increasing production, if not slightly (0.2 percent versus 3 percent over the past decade), and Russia has.
There will also be a third rival to overcome – 363 tonnes of gold are mined in Australia annually, but Fitch Solutions predicts that by 2030 it will be 441 tonnes.
To sum up, American analysts say that within 10 years there will be an increase in gold production from today’s 3296 tonnes to 4136 tonnes in 2029.