Official figures are virtually impossible to get, but it appears the Soviet Union has been selling gold heavily in recent months in order to gain foreign currency.
Soviet gold sales in 1985 are estimated at about 6.8 million oz. They could reach nine million ounces in 1986 according to Drexel Burnham Lambert.
The Soviets’ willingness to sell into any rising market has effectively put a cap on any strong gold rallies.
Last year oil sales earned the Soviets about 44% of its foreign currency earnings. With oil prices much lower today, precious metals sales are picking up some of that slack.
Be the first to comment on "Soviet gold sales depress market"