By Anastasia Stognei and Leslie Hook
Financial Times, London
Friday, February 10, 2023
After Russian President Vladimir Putin announced the countrys invasion of Ukraine last February, Natalia Smirnova’s phone started ringing off the hook. The financial adviser’s Russian clients were panicking.
“Should I buy gold?” one asked her. “If worse comes to worst, at least I can bury it.”
That attitude was shared by many — and turned Russia into an unexpected nation of gold bugs almost overnight.
Demand for gold bars and coins last year grew faster in Russia than in any other country, rising to nearly five times the level of the previous year, according to data from the World Gold Council.
While Russia has long been one of the world’s largest gold producers, accounting for almost a tenth of global production, its retail investors have historically shunned the metal, partly due to a 20% value added tax on purchases of bars.
People usually turned to dollars and euros during times of trouble. But that has all changed.
“Private citizens are looking for a way to save money, and euros and dollars are in short supply, so the popularity of gold has surged,” said Vitaly Nesis, chief executive of Polymetal, an Anglo-Russ ian gold producer. “As long as we experience geopolitical instability, the demand for gold may be significant.”
The switch to gold has been strongly encouraged by the Russian government. …
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https://www.ft.com/content/
