Russians bought an all-time record number of gold bars in 2022, finance ministry data showed on Friday, as tax cuts on precious metals encouraged people to stock up on bullion as a safe asset.
Moscow scrapped its 20% VAT on physical gold trades for individuals last March in a bid to draw people away from using the US dollar as a safe haven.
It also exempted people from paying income tax on profits gained from selling gold bars, further boosting demand for the metal.
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According to the data, Russians bought over 50 t of gold bars in 2022, ten times more than the year before. The most sought after were 1 kg bars which accounted for about 60% of those sold.
The figures are not yet final and only cover the period ending November 2022, the finance ministry told Reuters.
State-controlled VTB Bank said it sold 33.8 t of gold bars to customers in 2022, with clients holding 50-billion roubles ($711 million) worth of the metal.
“Gold was a good protective financial solution last year,” said Yevgeny Beresnev from VTB’s investment products department.
“Customers shifted funds into this instrument in order to diversify their assets and make a profit when long-term planning.”
Source: Reuters