Russians are buying gold at levels never seen before. Since early 2022, citizens have purchased 282 tons of physical gold in the form of bars, coins, and jewelry. This amount is higher than the official gold reserves of several major European countries, including Spain with 281.5 tons and Austria with 279.9 tons.
The spike in gold buying came after Western sanctions and restrictions made holding foreign currency more difficult. Many people in Russia now see gold as a safer way to protect their wealth.
The trend has been growing year by year. In 2022, Russians purchased 60.7 tons of gold. In 2023, that number rose to 71.2 tons, and in 2024, it reached a record 73.7 tons. This year, purchases are expected to total 62.2 tons, which is nearly 2 million troy ounces.
Gold Becomes the Preferred Way to Save
Before 2022, most Russians invested in real estate or held foreign currency as a way to save money. These were seen as reliable options. However, after sanctions and limitations on currency transactions, holding dollars or euros became more complicated.
As a result, gold has become the go-to option. People can buy it in small amounts, store it safely at home, and use it as a long-term store of value. The government has also encouraged this trend. For example, removing taxes on gold bar sales for individuals helped boost purchases among ordinary citizens.
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Russia is also one of the largest gold producers in the world, with an annual output of more than 300 tons. However, gold exports have fallen sharply since the start of the conflict in Ukraine. Exports dropped from 302 tons in 2021 to 166 tons in 2024, and further reductions are expected this year, bringing exports down to 139 tons.
This drop in exports is partly because Russia has been cut off from major Western gold exchanges, which set global trading standards. With fewer options to sell gold internationally, domestic demand has become increasingly important.
Government Measures and Broader Uses of Gold
To manage the surge in gold purchases, the government has introduced rules to prevent large amounts of gold from leaving the country. New limits are being drafted that would restrict individuals from exporting more than 100 grams of gold at a time.
Even with these rules, it is unclear how much of the gold purchased remains in Russia. Some people may have moved their gold holdings abroad as a way to safeguard their wealth.
Gold has also started to be used in ways similar to cash. It now serves as a tool for money storage and transactions, including illegal activities such as money laundering and other covert operations.
The combination of sanctions, currency restrictions, government support, and rising domestic demand has created a historic boom in gold buying. Russians are increasingly seeing gold as a secure way to protect their savings in uncertain times.
The trend reflects not only the desire for financial security but also the ways in which people adapt to changing economic conditions. Gold, a traditional store of value, is once again at the center of personal finance in Russia.