Russia may become the world's largest gold producer by 2029, surpassing China and Australia. Such a statement was made by Fitch Solutions analysts.

According to their forecasts, production of this precious metal in the Russian Federation will rise from 11.3 million ounces in 2020 to 15.5 million ounces in 9 years, in 2029. This indicates an average growth rate of 3.7% per annum. For example, in China, which is now the largest gold producer worldwide, production will actually stagnate, with expected growth of only 0.2% per year.

As noted by specialists of Fitch Solutions, in the long term, the driver of such growth in the gold mining industry in the Russian Federation will be new projects.

At the same time the analysts suggested that the risk of new U.S. sanctions against Russia may support gold market in the short term, as it is likely to push the Central Bank to increase the stock of gold. Such actions, according to Fitch Solutions, could be taken by the Bank of Russia due to the increasing risks that domestic state banks will be cut off from operations with dollar assets and amid ongoing tensions between the two states. According to foreign analysts, Russia's domestic demand for gold will persist as long as there is tension in relations with America.

Note that the Central Bank has for several years been the largest "consumer" of gold in the country, however, from April 1, it suspends the purchase of precious metal in the domestic market.

Earlier, it was reported that the citizens of Russia began to withdraw their deposits in foreign currency. Thus, the Central Bank data shows that Russian depositors took almost $510 mln from their bank deposits last month alone against $332 mln in June. At the same time, unlike last month, foreign currency deposits were withdrawn not only from systemically important, but also from smaller credit institutions, RIA Novosti reported.

Made in Russia // Made in Russia

Author: Ksenia Gustova