Russian Gold Purchases Surge amid Inflation and Sanctions
Russians acquired a staggering 75.6 metric tons of gold in 2024, a 6% increase from the previous year, reports the World Gold Council. This significant demand is fueled by high inflation and geopolitical tensions.
Gold, a renowned safe-haven asset, is sought after during economic volatility. Its price recently reached a record high of $2,900 per ounce.
Russian consumers have amassed gold as inflation erodes the ruble's value domestically and internationally. The country's inflation rate in 2024 reached 9.5%, the highest since the war in Ukraine began.
Escalating sanctions have made gold purchases an appealing alternative to traditional investments. The ruble has plummeted since the war, and cross-border payment restrictions hinder investment diversification.
The Russian government welcomes the surge in gold purchases as it seeks to sell the over 300 metric tons of gold it mines annually. Furthermore, the central bank has reduced its gold purchases significantly.
Russian consumers have benefited from their gold investments. The gold price rose 28% in 2024 and has gained 10% so far in 2025.