Against the backdrop of rising inflation and a pandemic, the population bought the maximum amount of bullion and coins since 2014. In the first nine months of 2021, demand amounted to 4 tons, 8% more than in the same period in 2020.
Investors often use this defensive asset as a store of money during social and economic crises, as well as to reduce the risks of inflation and exchange rate fluctuations, said Tatiana Fitz, director of public policy and central banking at the World Gold Council.
Interest in physical gold has increased this year in other countries compared to the previous year: in the United States – by 79%, in China – by 54%, and in India – by 24%. In Russia, demand is constrained by the 20% VAT tax on gold bars. Its expected cancellation will significantly increase investments in the precious metal, Tatiana Fitz is sure. This is possible only after the creation of a transparent circulation of investment gold and its traceability in the electronic system, the press service of the Ministry of Finance said.
The largest banks confirmed the growth in demand of Russians for physical and anonymized gold this year. Interest in the precious metal is increasing due to geopolitical tensions, growing inflation and low rates on deposits, said Georgy Okromchedlishvili, portfolio manager of Zenit Bank’s Private Banking.
Read more in the exclusive material from Izvestia:
A veil of gold: Russians bought a record volume of bullion since 2014
Source: IZ
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
