The Central Banks of Russia and China are looking to dominate gold trade with the creation of a joint platform that would unite gold trading by the world’s two biggest gold buying countries.
“BRICS countries are large economies with large reserves of gold and an impressive volume of production and consumption of this precious metal. In China, the gold trade is conducted in Shanghai, in Russia it is in Moscow. Our idea is to create a link between the two cities in order to increase trade between the two markets,” Sergey Shvetsov, First Deputy Governor of the Russian Central Bank told Russia’s TASS news agency.
China is the world’s largest gold producer. In 2015 it produced 490 tons.
Russia is the third largest gold producer, following Australia, with around 295 tons produced last year.
Overall, the countries account for 25 percent of global gold production.
The Central Banks of Russia and China are the world’s largest gold buyers.
Since the end of 2008 China’s gold reserves have nearly tripled – from 600 tons to 1,762 tons.
The Central Bank of Russia purchased 356,000 ounces of gold in February, becoming the largest buyer of the precious metal among the world’s central banks, according to IMF data.
Russia currently has a reported 1,415 tons of gold.
Among the countries with the largest gold reserves, China is fifth and Russia is sixth following the U.S., Germany, Italy, and France.