by Riley Waggaman, Off Guardian:
That’s classified information, buddy.
On March 25, the Bank of Russia announced it would buy gold at a fixed price of 5,000 rubles per gram. Less than two weeks later, on April 7, Russia’s central bank canceled its new gold-buying policy, opting instead for a negotiated price (at a discount).
The logic behind this move, according to an excellent report by Interfax, is fairly straightforward: sanctions have made it difficult for commercial banks to export their gold to foreign markets. The Bank of Russia is taking advantage of this conundrum by offering to gobble up their gold—at a reduced price. Yes, it’s a bit stingy, but at least it keeps Russia’s gold miners and merchants in business, and it also ensures Russia’s gold stays inside the country. Everyone wins.