DZH(SH:601519) Sou Hu Cai Jing·2025-11-29 05:33Core Insights - The Russian Central Bank is selling physical gold reserves to compensate for budgetary needs due to the freezing of €300 billion in foreign exchange reserves [1][3] - Russia has increased its gold reserves for 12 consecutive months, accumulating 24 tons this year, bringing total reserves to 2304.5 tons, with gold's share in foreign reserves rising from approximately 5.5% at the end of 2024 to around 8% [1][4] Group 1 - The immediate reason for Russia's gold sales is to address budgetary shortfalls, indicating a financial crisis exacerbated by unprecedented sanctions from Western countries since the escalation of the Ukraine crisis [3] - Russia has faced over 30,000 sanctions affecting various sectors, leading to high domestic inflation and a continuous increase in fiscal deficit [3] - The country is not running out of gold, as it holds over 2300 tons and is the second-largest gold producer globally, mining over 300 tons annually [4] Group 2 - The current surge in gold prices, with an increase of nearly 55% since the beginning of the year, makes selling gold a financially advantageous move for Russia [4] - The sale of gold serves a dual purpose: it addresses immediate financial needs while capitalizing on the current high prices before a potential decline due to peace negotiations [4] - The expectation of a drop in gold prices following peace agreements suggests that selling now is a strategic decision to maximize returns [4]