The Russians were seized by a gold rush: precious bars are sold out like hot cakes

Our country has become the world leader in demand for the “yellow metal”

Demand for gold bars and coins in Russia last year grew faster than in any other country in the world, according to the Financial Times, citing data from the World Gold Council. And they show that sales of gold to private investors and individuals in our country have grown by as much as five times compared to the previous year. However, both the authors of the article and independent experts interviewed by MK agree on one thing: investing in gold can bring not only profit, but also a headache.

Among Russian investors, demand for the precious metal rose last year against the backdrop of the abolition of VAT at a rate of 20% on the purchase of gold bars, writes the Financial Times. Commentators also explain the popularity of gold by the shortage of foreign currency – dollars and euros. The article cites the words of the Minister of Finance of the Russian Federation Anton Siluanov, who back in March 2022 spoke about the instability of the dollar and suggested using precious metals as an alternative. The Russians clearly heeded these recommendations and “lined up” for gold, the article says. It also highlights that as long as Russia experiences geopolitical instability, demand for gold could remain strong.”

At the same time, storing gold can become a problem, experts warn. Many people keep bars at home, although any scratch can reduce their value. “Not everyone understands that bars cannot be stored in a shoebox,” the newspaper writes.

According to the newspaper, in 2022, the demand for gold in principle grew worldwide, increasing by 18% – to a record level in more than 10 years. This happened, first of all, due to active purchases of the precious metal by central banks. Moreover, according to industry analysts, the Bank of Russia became the largest buyer, but there is no full confidence in this, since the regulator stopped reporting its reserves after the start of the special operation in Ukraine.

How to evaluate the “gold rush” that swept the Russians? Is this the right direction of investment from the point of view of an ordinary person?

“Gold is positioned as a “protective asset” in case of economic and political risks, an increase in inflation. The demand for it has greatly increased in our country last year precisely for these reasons, ”explains Mark Goykhman, Chief Analyst at TeleTrade. According to the expert, for many citizens who have lost confidence in banks and are afraid of some kind of “freeze” of funds, it is important to have “live” gold that can be felt in their hands. Hence the high demand for bullion and coins. But if a person wants to make a profit from investing in gold, his calculation should be for the long term. “During the year, for many reasons, the value of gold fell and jumped repeatedly. Therefore, the income or loss of specific buyers depends on the period in which they purchased the metal. In general, in the future of several years, there is a possibility of further growth in gold quotes,” the analyst points out.

Valery Emelyanov, stock market expert at BCS World of Investments listed in a conversation with “MK» several reasons for the “gold boom” in Russia at once: a shortage of cash dollars, increased risks of storing currency in banks, ruble instability, a temporary excess of gold in the domestic market, the abolition of the tax (VAT) on bullion, the general tone of the state in favor of increasing the population saved in gold, not in currency.

At the same time, the analyst does not believe that you need to transfer your savings in whole or in large part into gold. It should be no more than 10% of all investments, and preferably in an impersonal form, it is much cheaper and more profitable.

“The main danger that Russians should be aware of when buying gold bullion is related to the possibility of losing such property – for example, as a result of theft. Therefore, it is worth keeping it in a bank cell. Another risk of gold has to do with its physical properties. It is worth at least taking care that the ingot is not damaged. Gold is a very soft metal. Even fingerprints greatly reduce the cost of selling it back to the bank,” warns Yemelyanov.