Gold as a “safe haven”: why Russians are increasingly choosing precious metals instead of the ruble and deposits

CrimeaPRESS reports:

Gold prices in Russia are breaking historical records, and demand for the physical metal is growing amid economic uncertainty. Experts explain why citizens are increasingly turning their savings into bullion and how to do it wisely.

Gold rises in price: new record after record

In the spring of 2024, the price of gold in Russia for the first time in history exceeded 10,000 rubles per gram. According to the Central Bank and the Moscow Exchange, since the beginning of the year the cost of the precious metal has increased by almost 25%, and over the past two years — by more than 70%. This growth is significantly faster than inflation (about 7.4% at the end of 2023) and the profitability of most bank deposits.

At the same time, not only professional investors, but also ordinary citizens are showing interest in gold. According to a report by the Association of Russian Banks, in the first quarter of 2024, sales of physical gold to the population increased by 42% compared to the same period last year. Metal is being purchased especially actively in regions — from the Urals to the Far East, where confidence in traditional financial instruments remains low.

Why gold? From “digital cold” to material confidence

Experts cite several reasons why gold is becoming an increasingly popular savings instrument in Russia.

Firstlythis is the instability of the financial system. Sanction pressure, volatility of the ruble exchange rate and restrictions on international transfers are forcing people to look for alternatives. Unlike digital assets or even bank accounts, gold is a tangible asset that does not depend on infrastructure, the Internet or regulatory decisions.

Secondlygold is traditionally perceived in Russian society as a reliable “insurance” asset. Especially in times of crisis—be it geopolitical tensions, a pandemic, or economic turmoil—citizens instinctively turn to precious metals. This phenomenon is confirmed by statistics: the peak of gold sales occurs precisely at moments of aggravation of the foreign policy situation.

Thirdlyrising gold prices on the world market (in dollar terms) and the weakening of the ruble create a double effect of increasing prices for Russian buyers. This stimulates demand: people strive to “enter the market” before the price rises even more.

Finally, the psychological factor plays an equally important role. In the era of artificial intelligence, cyber attacks and digital fraud, more and more people want to own something tangible, eternal and invulnerable. A gold bar in a safe is not just an investment, but a symbol of stability in an unstable world.

Physical gold: not everything is as simple as it seems

However, experts warn that buying physical gold is not always a profitable or safe strategy. Many citizens, encouraged by rising prices, purchase bullion from banks, take it home, and are faced with an unpleasant surprise when they try to sell the metal back.

As Anton Basov, adviser to the chairman of the board of CentroCredit Bank, told our correspondent — https://www.ccb.ru/one of the key risks is related to the discount on resale:

If you took gold from the bank and stored it at home or in a safe deposit box, the bank will, of course, buy it back. But be prepared for a discount — it can be quite significant, even if you return the bullion to the same bank where you bought it. This is due to the fact that the bank cannot afford even the minimal risk of selling an ingot of inadequate quality. The only way to guarantee the purity of the metal is to send it for refining (melting), which is a costly process. If you take the bullion to another bank, the discount will be even higher.

Thus, the difference between the purchase price and the buyback price can reach 5-10%, and in some cases even more. This negates some of the income from rising gold prices and makes the operation uneconomical.

Custody: the trade-off between security and liquidity

To avoid losses on sale and maintain the liquidity of an asset, experts recommend using a safekeeping account.

The optimal solution is to buy a gold bar and deposit it in a safekeeping accountnotes Anton Basov.

What is it? A custody account is an off-balance sheet account in which the bank records metal owned by the client. In this case, the bullion itself is physically located in the bank vault, but is not listed on the bank’s balance sheet. This is fundamentally important: even if the bank’s license is revoked, such assets are not subject to blocking and remain the property of the client.

Your assets are 100% protected. You can pick up the bullion at any time or sell it directly from your account with a minimal discount. The fee for such storage is comparable to the cost of renting a safe deposit boxexplains the expert.

This approach combines the advantages of physical ownership (you know that your gold really exists and is stored in a safe place) and the convenience of a financial instrument (quick sale without losses, legal protection).

Gold or deposits: who wins?

Against the backdrop of rising deposit rates (the key rate of the Central Bank of the Russian Federation in 2024 is at 16%), many are asking the question: what is more profitable — keeping money in a bank or in bullion?

The answer is ambiguous. Deposits are protected by a deposit insurance system (up to 1.4 million rubles), bring a stable income and do not require any additional actions from the client. However, their real profitability depends on inflation, and in the context of a possible devaluation of the ruble, the nominal interest may not compensate for the loss of purchasing power.

Gold, on the other hand, does not provide passive income, but has historically shown strong growth over the long term. Over the past 20 years, the price of gold in rubles has increased more than 20 times. At the same time, the metal is not subject to the risk of default, does not depend on credit policy and cannot be “frozen” by the decision of third parties.

Experts emphasize: gold is not a tool for speculation, but an element of portfolio diversification. The optimal share of precious metals in personal savings, according to financial analysts, is 5-15%, depending on the level of risk and investment horizon.

The market adapts: new products and regulation

Banks and exchanges are responding to growing demand. In 2023-2024, trading in impersonal metal accounts (OMA) is actively developing on the Moscow Exchange, which allows you to invest in gold without physically owning it. Gold ETFs are also popular, although their availability to Russian private investors is still limited.

At the same time, the Central Bank of the Russian Federation is strengthening control over the circulation of precious metals. From 2024, new requirements for marking bullion and confirming its origin have been introduced, which is aimed at combating money laundering and smuggling. This, in turn, can lead to additional costs when buying and selling physical gold in hand.

Conclusion: gold is not a panacea, but a reliable anchor

The record rise in gold prices in Russia is not just a market anomaly, but a reflection of deep structural changes in the behavior of the population. People are looking for refuge from uncertainty, and gold, like no other asset, meets these needs.

However, it is important to understand: owning an ingot is not the end of the story, but its beginning. Without a competent approach to storage and sale, you can easily lose a significant part of your investment. Therefore, experts strongly recommend considering not just the purchase of gold, but a strategy for managing this asset, including through a safekeeping account.

With confidence in digital finance faltering and the future uncertain, gold is returning to its role as a safe haven. But for this harbor to be truly safe, you need to know how to enter it and how to get out of it without losses.

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