Russians Are Buying Huge Amounts Of Gold With The Ruble Under Pressure From High Inflation And Sanctions

Getty Images; Jenny Chang-Rodriguez/BI

• Russian consumers bought 75.6 tons of gold, a 6% rise from 2023, according to the World Gold Council.
• Gold is a safe-haven asset that is often in demand amid high inflation and geopolitical tensions.
• The price of gold hit a record high on Wednesday, jumping above $2,900 per ounce.

Russian consumers are buying record amounts of gold, according to data from the World Gold Council.

The organization said in a report published on Wednesday that Russian consumers purchased 75.6 tons of the precious metal, representing a 6% jump from 2023 and a 62% increase from 2021, right before the war in Ukraine broke out.

Russian's are piling up record amounts of Gold—often viewed as a safe-haven asset by investors— as surging inflation and strict sanctions eat into the value of the ruble both domestically and internationally.

According to the country's official statistics agency, Russia's inflation rate was 9.5% in 2024. That's the highest level since the war broke out in February 2022, and recent data shows that prices have continued to rise in the first few weeks of 2025.

An escalation of Western sanctions against Russia has also made gold purchases an attractive alternative to traditional investments, as the ruble has plunged to historic lows since the war broke out. Sanctions have also made it more difficult for Russian citizens to diversify their investments outside the country due to cross-border payment restrictions.

The Russian government is probably happy to see its consumers purchasing a record amount of gold, as it has few avenues to offload the more than 300 tons it mines yearly due to sanctions.

Additionally, Russia's central bank hasn't been purchasing nearly the amount of gold it has in the past when it was once the world's largest gold buyer before the war.

Russian consumers' purchases are so far working in their favor, as the price of gold jumped 28% in 2024 and is already up 10% year-to-date in 2025.

The price of gold increased nearly 1% to a record high on Wednesday at $2,902 per ounce.