The Russian Central Bank is the largest purchaser of gold in the world. Moreover, according to the results of present year, Russia may rank second in gold production and mining, leaving behind Australia, taking this position now.
Following the results of 2013 Russia produced 8 million ounces of gold (248.5 tons), and Australia produced 8.53 million ounces of gold (265.3 tons) for the same period. As we know, gold production in Russia is growing annually by 26.6%. By some optimistic estimations, the total gold production in Russia may estimate 10.1 million ounces of gold by the results of 2014 (314.6 tons).
Even if Russia increases gold production by 20% by the end of the year, it will not manage to reach China, the world leader in mining and production of yellow precious metal.
However, Russia has all chances to move up in list of gold-producing countries by the results of the present year. It is also noteworthy that Russia and China are among leaders in increasing the gold reserves.
If Russia is regularly informing IMF about every purchase of gold, China is still keeping secrecy in this matter. Last time it was in 2009, stating 1054 tons, when China gave information about gold reserve. However, precious market analysts are sure that China owns golden reserve at least three times larger. Such secrecy about state-owned gold has political reasons. Only when China believes the right time has come, from the political point of view, it will announce true figures of the golden reserve.
Many western experts also believe that China keeps silence about purchasing gold to prevent world market prices from sharp rise. Until prices remaining low, it is possible to increase reserves without notice.
Anyway, Russia and China will continue purchasing gold, openly or secretly, in order to reduce dependency on American dollar. Besides, both countries have signed bilateral agreements on cooperation in sphere of trade in national currencies, leaving dollar aside. Hence, the dollar hegemony in world trade is coming to an end, though it may take years before American currency weakens completely.
It is interesting to note that share of gold in international reserves of Russia and China is insignificant. That is why they have to increase it as soon as possible if they are intending to play an important role in world trade in the near future.
The annual growth of the gold production in Russia amounts 26.6%. In 2014, from January till 116.7 tons of precious metal were produced including mining, taking into account gold as a side-product during other metals development. Usually gold peak in Russia is reached in the second half of the year, before winter, when gold mining companies are hurrying to close the season.