Russians Flock to Gold as Currency Restrictions and Deposit Worries Bite
Russians have been purchasing gold at an unprecedented rate since March 2022, as restrictions on foreign currency transactions and concerns about deposit restrictions encourage people to shift their savings into gold bars.
The amount bought by individuals is approximately 200 tons of gold, which accounts for nearly 9% of the country's total gold reserves. According to Deputy Finance Minister Alexei Moiseev, this amount is 1.5 times the 131.5 tons of gold held by Russia's National Wealth Fund as of September 1.
The demand for gold bars increased sharply after the war began, with authorities restricting foreign currency withdrawals and abolishing VAT on gold bar purchases. The measure was applied retroactively from March 1, 2022, making gold a more attractive investment option.