Ruble devaluation strengthens “Russian” gold

In the past year, one of the main factors, influencing the price of gold, in addition to continuous uncertainty with interest rates of the Federal Reserve System, was the strengthening of the US dollar against other currencies, including the Russian ruble.

However, despite the fact that the strengthening of the dollar contributed to the decline in prices for the precious metal, Russian companies increased their revenues due to significant reduction in the cost of the production because of the ruble depreciation and investors increased the yield from investments in gold.

"The devaluation of the ruble in 2015 gave a breath of air to the Russian gold mining, and if this trend continues, we will continue to get nourishment, but it will be a short-term point of the growth, because the industry exhausted all the available reserves, and it is necessary to look for new, deeper point in the production, which will help to further increase the gold production in the country," - said chairman of the Russian Union of Gold Producers Sergei Kaszuba.