Source says Russian banks bought 3% less gold in 2016

MOSCOW, Dec 20 (PRIME) -- Banks have signed contracts with gold producers to buy 6.298 million troy ounces, or 195.9 tonnes of gold in 2016, which is a 3% contraction on the year and accounts for 66% of all gold produced in Russia in the year, a source in the Finance Ministry told PRIME on Tuesday.

In 2014, banks also bought 195.9 tonnes of gold from producing companies. “This is a good business for banks. They issue loans to subsoil users who in their turn make settlements with banks with the gold they produce, which is later sold by the banks to the central bank,” the source said.

The Union of Gold Producers of Russia expects the country’s combined gold output to increase 1.2% on the year to 297 tonnes in 2016.

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