Russians are massively buying gold. Analysts: Purchases in 2025 reached as much as Spain's gold reserve
Gold purchases by Russian consumers could reach the level of the state reserves of Spain or Austria, with the metal being one of the most popular forms of savings in Russia over the past four years, a study shows.
Russians buy gold massively. Archive photo
Retail purchases of gold in the form of bullion, coins and jewelry are expected to reach 62.2 tonnes (nearly 2 million troy ounces) this year, nearly as much as the gold reserves of Spain or Austria, according to Al Banyan Tree Research, a Hong Kong-based quantitative research startup founded by financial analysts and risk managers with experience in the Russian commodities sector.
Although purchases have slowed from 2024 as gold prices recently rose above a record $4,000 an ounce, total retail purchases since the Kremlin sent troops to Ukraine in 2022 are expected to reach 282 tonnes, Al Banyan Tree estimates.
The trend highlights how Russians, cut off from traditional savings options such as the euro and US dollar, are looking for new ways to preserve their wealth. Gold has become one of their favorite refuges, according to Bloomberg.
Retail purchases have intensified since 2022
Source: World Gold Council (2020-2024); 2025 – estimate made by Al Banyan Tree
“Individuals have always preferred to invest in real estate and foreign currency, but after the restrictions related to sanctions, the currency has become a less convenient way to preserve savings, and from 2022, the demand for gold has increased“, said analyst Dmitri Kazakov at Moscow-based BCS Global Markets.
Lenders in Russia have largely phased out deposits in euros and dollars, while cross-border transactions in these currencies have become increasingly difficult. The Russians may have moved some of their gold hoard abroad as a way to transfer capital, although the exact amount is impossible to estimate, Kazakov said.
Russia extracts 300 tons of gold per year
Russia, the world's second-largest gold producer, mines more than 300 tons of the precious metal a year. However, as of 2022, Russian bullion has been banned from Western markets, and the London Bullion Market Association, which sets global gold trading standards, no longer accepts them.
In response, Russia removed the value-added tax on retail gold purchases to boost domestic demand and help sanctioned miners find an alternative to exports.
Without stronger domestic demand, Russian miners would have faced greater difficulties. The country's central bank, once the world's biggest sovereign gold buyer, halted purchases in 2020 and, although it cleared the way for them to resume in 2022, its gold reserves have remained largely unchanged for years at about 75 million troy ounces.
Domestic sales are also supported by purchases from Russian lenders, which held 57.6 tonnes in August 2025, Al Banyan Tree estimates. The firm uses econometric models and AI-based analytics to interpret complex commodity market data.
Russia this month began physical gold trading on the St Petersburg Stock Exchange as part of efforts to replace the LBMA's benchmark prices, but so far only a few bars have been sold. At the same time, gold exports fell, according to Al Banyan Tree Research.
The shift in domestic demand suggests that trade patterns and saving behavior may not fully recover even if sanctions are eased. “We doubt that if the sanctions are lifted, everyone will start selling gold“, as mistrust of the dollar and euro will persist, Kazakov said.
