Russia, the world’s biggest buyer of gold, is losing interest in the precious metal.
After spending an estimated $40-billion on gold in the past five years, the central bank is starting to rein in spending. It bought 149 tons of gold in the first 11 months of 2019, 44% less than the year before. Annual purchases are expected to be the lowest in six years.
Analysts say that Russia’s central bank has maxed out the proportion of gold it wants to keep in reserve. They also view the threat of US sanctions and the need for a buffer against economic shocks diminishing as issues like the annexation of Crimea, election interference and the poisoning of a former Russian spy on British soil fade from public conversation.