Russia May Sell 50 Tons of Gold in 2009

10-23-2009 • CNBC

The sales from Russia's State Precious Metals and Gems Repository (Gokhran) could account for 0.5 to 1.25 percent of global consumption of the metal, which soared in price to a record of $1,070.40 per ounce on Oct.14.

"More than 20 tons, but less than 50 tons of gold will be supplied this year," the source familiar with the matter said on Friday, adding that the sale was intended to increase state budget revenues.

The source said the sale would be the first major gold sale by Gokhran since the 1991 fall of the Soviet Union, which kept a veil of secrecy over its sometimes significant foreign sales of gems and precious metals.

Two other sources in the Russian government confirmed the planned gold sale but declined to comment on the volumes involved. The sales will be carried out by state owned Almazjuvelirexport.