Russia has accumulated about 150 tons of gold this year

Russia has become the world's largest official gold buyer this year, although this may be due to the country's problems and the depreciation of the ruble. Russia has amassed about 150 tons of gold this year, according to news reports citing the head of the Russian central bank.

"This means that the central bank of Russia has bought about 35 (tons) of gold since the end of September, according to the International Monetary Fund, and 115 (tons) the central bank has acquired during the first nine months of this year," analysts at HSBC said.

“Based on our calculations, the central bank of Russia is the largest buyer of gold by the official sector this year, accounting for almost 65 percent of all gold purchased by central banking authorities,” they added.

The central bank explains that it bought gold in order to diversify its foreign exchange reserves. "While the purchase of gold by Russia could be interpreted as a positive sign for the yellow metal, we caution that the purchase may be related to the country's difficulties in selling locally produced gold abroad," notes HSBC.

"Earlier this month, Reuters reported that foreign banks are being deterred from buying Russian gold after tensions have escalated since the beginning of this year, leaving the central bank as the main source for covering bullion. In addition, a drop in oil prices is likely to reduce purchases of the Russian official sector in the future, "continued an analyst at HSBC.

"Energy exports account for 70 percent of Russia's foreign exchange earnings and half of Russia's government revenues, according to official figures. Surplus foreign exchange reserves - largely as a result of previous high energy prices - allow the central bank to buy bullion .... However, weak oil prices will constrain accumulation of reserves and is likely to reduce purchases of gold, "concluded HSBC.