Russian consumers are acquiring unprecedented amounts of gold, driven by economic instability and the impact of international sanctions, according to new data from the World Gold Council.
The Council’s report, released on Wednesday, reveals that Russian consumers purchased a record 75.6 metric tons of gold in 2024. This marks a 6% increase compared to the previous year and a dramatic 62% surge from 2021, just before the war in Ukraine escalated.
Gold, traditionally viewed as a safe-haven investment, has become an increasingly popular choice among Russians as they cope with soaring inflation and a weakening ruble. In 2024, Russia’s inflation rate reached 9.5%, the highest since the onset of the war in February 2022, with further price hikes recorded in early 2025.
Western sanctions have compounded Russia’s economic challenges, causing the ruble to plummet to historic lows. With limited options to diversify their investments abroad due to cross-border payment restrictions, many Russian citizens are turning to gold as a reliable alternative to traditional assets.
The Russian government, while facing limited outlets for its vast gold reserves, likely welcomes this trend. Russia is one of the world’s largest gold producers, mining over 300 metric tons annually. However, the central bank has significantly reduced its gold purchases since the war began, after previously being the world’s largest gold buyer.
For Russian consumers, the timing of their gold acquisitions has been fortuitous. The price of gold surged by 28% in 2024 and has already risen by 10% in 2025. On Wednesday, the price reached a new high of $2,902 per ounce, up nearly 1% on the day.
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