During the past year, demand for gold investments in Russia surged dramatically, rising from about 5 tons to roughly 75 tons as reported for the 2020–2021 period and continuing into 2022. This sharp uptick is linked in part to a policy shift that removed value added tax on the private purchase of gold bars, a move that caught the attention of financial observers across the region. The information comes from a statement by the Ministry of Finance and was reported by RIA Novosti at the time of the policy change.
Industry data from Russia’s largest banks indicate that more than 75 tons of gold bars were sold to individual buyers in 2022. By comparison, the earlier years saw purchases of about 5 tons in 2020–2021, with silver purchases exceeding 8 tons in the same period. The magnitude of these numbers underscores a notable shift in how individuals approached precious metals as a store of value and a hedge against currency risk, a trend that has drawn attention from financial planners and regulators alike in the United States and Canada where investors often compare domestic options to similar assets abroad.
The legislative change to abolish VAT on the sale of gold bars to private individuals was enacted in Russia in March 2022. Additional incentives followed, including permission for banks to offer gold bars for sale to individuals in exchange for cash, along with exemptions from personal income tax on income generated by citizens from selling gold bars in 2022 and 2023. These reforms were designed to stimulate domestic participation in the gold market, streamline the retail process, and make gold a more attractive option for ordinary savers. Market observers in North America have noted how such measures can influence cross-border investment decisions, prompting questions about how similar tax policies might affect precious metals demand in Canada and the United States over time, and what this could mean for exchange rates and monetary stability in those economies. This summary reflects the official note accompanying the policy changes and is cited as coming from the Russian tax and finance authorities and echoed by financial press outlets at the time of publication.
In late February, authorities including financial intelligence services and the central bank highlighted concerns about money laundering risks tied to precious metals. Officials underscored that the role of gold as an investment tool has grown in importance as confidence in foreign currencies has wavered in certain contexts. This cautionary stance from Rosfinmonitoring and related financial regulators is part of an ongoing international conversation about how precious metals markets intersect with anti-money-laundering standards and financial transparency. For readers in North America, the discussion offers a comparative lens on how different jurisdictions manage risk while preserving access to legitimate investment instruments, and it emphasizes the need for diligent due diligence among buyers, sellers, and financial institutions when engaging with physical gold assets. The overall takeaway is that gold continues to attract attention as a tangible asset with potential diversification benefits, even as regulators call for vigilance against misuse. This analysis reflects the official communications from Russian authorities and monitoring bodies as reported in the period cited. [Cited: Ministry of Finance press service; Rosfinmonitoring statements; central bank briefings.]