Russians have bought a record amount of gold since 2014, the Russian media has reported. They bought four tonnes of gold bullion and coins in the past nine months, which is 8% more when compared to the previous year, the reports specified.
Gold investments have become very popular in other countries as well, with Americans having purchased 91.3 tonnes of the yellow metal in the past nine months (+79%), while in China and India gold buying has surged by 54% and 24% respectively.
The large difference between the amount of purchased gold can be put down to a 20% value-added tax (VAT) rate on gold bullion in Russia, which is the highest in the world. The Russian authorities have been considering a bill to cancel VAT on gold investments recently as part of a broader programme to support domestic gold demand. According to the latest reports, they will go ahead with this plan starting 2022.
Yet, some experts and officials have been voicing concern regarding potential budget losses for Russia once this bill is approved, and about the risks of the country running out of gold.