In 2022, gold bullion demand surged in Russia, rising faster than in any other major market. This growth was reported to be five times higher than in 2021, a trend highlighted by data from the World Gold Council as cited by the Financial Times. The surge reflected a broader shift in investment behavior as citizens sought stability amid economic uncertainty and a tightening of access to foreign currencies.
Vitaly Nesis, chief executive officer of Polymetal, a Russian mining and metals company, noted that gold became a favored store of value as people faced shortages of euros and dollars. He observed that geopolitical volatility often drives stronger appetite for gold, given its traditional role as a hedge against currency and financial stress.
During the first half of March, Russia implemented policy changes aimed at boosting investment in gold. President Vladimir Putin signed legislation that removed value-added tax on investment-grade gold purchased by individuals, a move intended to encourage domestic saving and expand retail participation in the gold market.
Industry reporting later in the year, including updates from the RIA Novosti news agency, drew on data from national central banks. It was noted that by the end of 2022, China held the world’s largest reserves of gold and foreign exchange for the 17th consecutive year, while Russia ranked fourth in the scale of holdings. The trend underscored the evolving landscape of official stores of value among the world’s leading economies, as central banks adjust their balance sheets and strategic assets.
In December, Deputy Finance Minister Alexei Moiseev commented on the sharp rise in Russian demand for gold purchases, pointing to a tenfold increase in consumer interest and investment activity. The remark reflected a combination of policy shifts, market incentives, and ongoing economic pressures that collectively shaped demand patterns for precious metals in the nation. The exchange between policy signals and market responses continued to influence both domestic saving habits and international perceptions of Russia’s commodities strategy. [citation: Financial Times via World Gold Council]