Gold Rush: Russians Reportedly Buy Record Amount of Precious Metal Since 2014

The comments below are an edited and abridged synopsis of an article by Sofia Chegodaeva

Experts say the reason for gold being in demand right now is that during the coronavirus pandemic, when currencies have become volatile, gold has turned out to be a less risky investment.

Gold Rush: Russians Reportedly Buy Record Amount of Precious Metal Since 2014 - BullionBuzz - Nick's Top Six
Golden ingots with Russian flag. Foreign-exchange reserves of Russia concept. 3D rendering isolated on white background

Russians have bought a record amount of gold since 2014, the Russian media has reported. They bought four tonnes of gold bullion and coins in the past nine months, which is 8% more when compared to the previous year.

Gold investments have become popular in other countries as well, with Americans having purchased 91.3 tonnes of the yellow metal in the past nine months (+79%), while in China and India gold buying has surged by 54% and 24% respectively.

The difference between the amount of purchased gold can be put down to a 20% value-added tax (VAT) rate on gold bullion in Russia, which is the highest in the world. Russian authorities have been considering a bill to cancel VAT on gold investments as part of a broader program to support domestic gold demand. According to the latest reports, they will go ahead with this plan in 2022.

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