Subject The article focuses on the gold reserves (monetary gold) of the Bank of Russia. Objectives The purpose of the study is to reveal the essence and economic substance of the process of increasing the gold reserves by the Bank of Russia. Methods The study rests on formal logic, systems approach and statistical data analysis. Results The paper presents an analysis of the Bank of Russia's policy aimed at increasing the monetary gold in international reserves. It shows negative implications of the policy and statistical data describing the value of precious metals of the Bank of Russia (2008–2016), as well as revaluation data. Conclusions To diversify international reserves, the Bank of Russia increases the volume of monetary gold, and this is against the general logic of many central banks in the world, which are, on the contrary, reducing their gold reserves. Gold reserves do not allow a central bank to achieve the objectives of its monetary policy; in this respect, they act as a useless element of international reserves. Gold in international reserves is not fulfilling its main function, i.e. in this case, gold is not an instrument of macroeconomic stability and a means of international settlements. It is possible to assume that by increasing its gold reserves, the Bank of Russia pursues its international political and strategic objectives rather than merely economic ones.
Keywords: gold, precious metals, gold reserves, international reserves, Bank of Russia
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