Tinkoff Bank will launch mass home delivery of gold bars

Tinkoff (MOEX: TCSG)-the bank, which does not have offices for clients, is launching delivery of gold bars to the homes of mass investors, previously this option was available only to the bank’s premium clients. Major players in the segment were skeptical about the initiative, pointing out the high associated costs. However, such a service may be of interest to citizens, financiers admit. Initially, the delivery of banking products was generally perceived negatively by credit institutions, but has now become an integral part of the business; it was Tinkoff that started this phenomenon, Kommersant’s interlocutors remind.

Tinkoff is launching online sales of gold bars weighing from 10 g with home delivery, the bank announced. This method could make buying gold easier for retail investors who are increasing their investment in bullion from 2022, following the abolition of VAT (see below). “Kommersant” dated December 21, 2023).

The main banks selling gold to the population in the Russian Federation are Sberbank and VTB, but they do not deliver bullion. Tinkoff Bank had a service only for premium clients and from 500 g. Now gold bars of different weights are available for purchase – 10, 20, 50, 100, 500 g, 1 kg, as well as standard ones – from 11 to 13.3 kg. “If the buyer is in Moscow and the Moscow region, the bullion will be delivered to him free of charge to a convenient point by collectors in special armored vehicles,” the bank clarified. “The conditions for delivery of bullion to other regions depend on the number of bullion, their size and delivery distance.” To protect small ingots from external influences, several materials are used: transparent plastic packaging, a box, and a bag.

Most major banks that sell gold bullion have preferred to refrain from commenting on the idea of ​​home delivery of bullion.

VTB pointed out that gold in its pure form is a soft metal, it is easy to damage, which affects its value. “To minimize these risks, some clients prefer to leave the bullion for storage in the bank,” they explained. “It is with responsible storage in the bank that gold can be repurchased, which makes it a more liquid and attractive protective investment instrument.” All this speaks in favor of physically buying gold from a bank.

However, players who do not have such an extensive branch network find the idea interesting. “For bars with denominations of 1, 5, 10 g, the idea looks promising,” says the chairman of the board of Realist Bank. “Delivery can make small bars an everyday commodity, for example, as a gift or a collectible.” According to him, in the case of large bars, there are additional costs for delivery security – specialized vehicles and security, as well as the risk of bar substitution with the participation of several people in the logistics chain.

As an additional service, other organizations may offer something similar, but for banks this will not become a significant source of income, believes ACRA Managing Director Valery Piven.

“With proper promotion of the sale of physical gold as a solid and protective investment mechanism, the demand for such a bank service can be fueled,” says Ilya Zharsky, managing partner of the Veta expert group. “But the service is unlikely to have a mass effect.”

Tinkoff Bank, unlike most competitors, does not have offices and the costs of maintaining them. This is why Tinkoff became a pioneer in the field of courier delivery of banking products, experts say. “Initially, this idea was perceived by other banks extremely skeptically, but in the end it became almost an integral part of the service,” notes Kommersant’s interlocutor in the financial market.

According to the leading analyst at Digital Broker, Daniil Bolotskikh, the future of gold as an investment in Russia is “only gaining momentum”: gold may continue to be in demand among private investors and set a new record by the end of 2024–2025.

Ksenia Dementieva, Maxim Builov