With no resolution to the economic chaos in sight, Russians are turning to gold as a safe haven to shield their hard-earned savings.
Data from Al Banyan Tree Research reveals that Russians have bought 282 tons of physical gold in the form of bars, coins, and jewelry since early 2022.
This total surpasses the state reserves of several major European economies, including Spain (281.5 tons) and Austria (279.9 tons).
Russians are expected to maintain their strong appetite for gold investments, according to findings from the Hong Kong-based research firm.
Projections indicate they will purchase approximately 62.2 tonnes of gold (nearly 2 million troy ounces) throughout this year.
Gold acquisitions hit an all-time high of 73.7 tonnes last year, up from 71.2 tonnes in 2023 and 60.7 tonnes in 2022.
In contrast, Russians purchased only 34.8 tonnes in 2020 and 46.8 tonnes in 2021.
The shift away from traditional safe-haven investments stems from stringent Western sanctions imposed on Russia.
“Individuals have historically preferred to invest in real estate and foreign currency, but after the sanctions-related restrictions, currency became a less convenient way to preserve savings, and since 2022, demand for gold has increased,” Dmitry Kazakov, a Moscow-based analyst at BCS Global Markets, told Bloomberg.
Kazakov suggested that Russians may have transferred their gold holdings overseas for protection, dealing another setback to the Kremlin.