Connect with us

Hi, what are you looking for?

Saturday, Dec 9, 2023
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Gold

Russian citizens buy record numbers of gold as safe haven asset

Moscow eliminated the 20 per cent value-added tax on physical gold trades for individuals last March

The Kremlin. Photo by Random Institute via Unsplash

Russian citizens purchased over 50 tonnes of gold bars in 2022, which is ten times more than the year before.

According to data published on Friday by the Russian Ministry of Finance, the Russians have been buying record amounts of gold bars in 2022 as part of its strategy to diversify its foreign reserves away from the US dollar,  By buying gold, the Russian government is able to protect its foreign reserves from the effects of US sanctions and other economic risks.

According to the data, most of the purchases were in 1 kilogram bars, which composed 60 per cent of sales.

The figures were not final and only cover the period ending November 2022, according to the Russian finance ministry. Meanwhile, state-controlled VTB Bank indicated it sold 33.8 tonnes of gold bars to customers in 2022. At present, its clients hold 50 billion roubles (USD$711 million) worth of the precious metal.

Moscow eliminated the 20 per cent value-added tax (VAT) on physical gold trades for individuals last March to pull people away from using the United States dollar as a safe haven asset, according to data from the Russian ministry of finance published on Friday.

Read more: NevGold’s oxide gold drill program in Nevada finds positive results

Read more: NevGold starts drilling at Nutmeg Mountain property

The Russian government also offered an exemption from paying income tax on profits gained through the sale of gold. This consequently added to the demand for the metal.

 

 

Follow Mugglehead on Twitter

Like Mugglehead on Facebook

Follow Joseph Morton on Twitter

joseph@mugglehead.com

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Alternative Energy

The legislation would also increase the cost of nuclear fuel by 13 per cent

Gold

The most recent drilling in the Blackjack Zone found high-grade mineralization at depth in the southern portion of the deposit

Mining

Government funding will support metallurgical test work at the NICO cobalt-gold-bismuth-copper mine

Gold

Vanstar's primary asset is a 25 per cent interest in the Nelligan joint venture project, which IAMGOLD holds under an earn-in option