Russians buy 75 tons of gold bullion in 20222

Demand for gold broke all records шт Russia in 2022 as it increased 15 times. Russian citizens bought 75 tons of investment gold bullion in 2022 against only 5 tons a year earlier.

The demand for gold traditionally grows during periods of crises as people try not to lose their money.

According to the Ministry of Finance, Russians purchased 75 tons of investment gold bullion in 2022. Needless to say that the year 2022 became a turning point in both Russian and international history after President Putin announced the start of the special military operation in Ukraine.

In 2020-2021, the volume of gold purchases did not exceed five tons. The demand for gold increased due to economic uncertainty, geopolitical problems, apprehensions about the future of the Russian currency and the growing distrust of the currencies of Russia-unfriendly countries.

Most Russians would traditionally invest their ruble savings in euros and dollars. In today's reality, however, the dollars and the euros are no longer a full-fledged asset. Gold remains one of the most reliable money-saving investment. To crown it all, the Russian Central Bank introduced a number of measures that narrowed the range of available investment tools. It was currency restrictions that triggered the sharp increase in gold demand, analysts believe.

Investing in gold is a classic defensive financial asset. The profitability of such investment is usually estimated for a period of 10-15 years. It can be volatile over a short-term horizon. In 2022, gold showed high volatility of quotes — from a price ceiling of $2,200 per troy ounce to a quick decline to $1,600 and further growth to $1,800 by early months of 2023. Nevertheless, it was physical gold that central banks of world's leading economies used to replenish their reserves.