Media report that Russians have purchased 300 tons of gold since the beginning of the war.

The demand for gold in Russia surpassed the reserves of Spain and Austria

Since the beginning of 2022, Russian citizens have purchased 282 tons of gold, surpassing the gold reserves of countries such as Spain and Austria. The increase in demand is driven by sanctions and currency transaction restrictions.

The war against Ukraine and Western sanctions have significantly impacted the economic priorities of Russian citizens. Since the beginning of 2022, Russians have purchased 282 tons of gold in the form of bars, coins, and jewelry, exceeding the gold reserves of Spain and Austria, which amounted to 281.5 and 279.9 tons, respectively. According to forecasts from Al Banyan Tree Research, in 2023, Russians intend to purchase an additional 62.2 tons of gold.

The increase in demand for physical gold has become significant compared to pre-war years when purchase volumes were 34.8 tons in 2020 and 46.8 tons in 2021. After the start of large-scale sanctions, currency became less attractive for investments, and gold became the main means of saving. BCS Global Markets analyst Dmitry Kazakov noted that this trend is a consequence of the shift from investments in real estate and foreign currency.

Against the background of restrictions imposed by foreign exchanges and the London Precious Metals Market Association, Russia, as the world’s second-largest gold producer, faces a problem with gold sales. In 2024, gold exports from Russia fell to 166 tons, almost half of what it was in 2021. It is expected that this figure will fall by another 16% by the end of the year, reaching 139 tons.

Since 2022, the Russian government has abolished VAT on the sale of gold bars to individuals, leading to increased demand. To prevent further gold outflow abroad, the government plans to introduce restrictions on its export — no more than 100 grams per person. The Ministry of Finance of the Russian Federation sees gold flows replacing cash currency in illegal operations, including money laundering and drug trafficking.

It should also be noted that the price of gold continues to fall, dropping below 4,000 dollars per ounce after the strongest collapse in the last decade.