Russians embrace precious metals: Sberbank sold 89 tons of silver and 7 tons of gold in 2022

(Kitco News) Russia’s biggest lender, Sberbank, sold 100 tonnes of precious metals, including 89 tonnes of silver.

Sberbank customers opened 300,000 new unallocated metal accounts between January and September, Interfax reported, citing the bank’s statement this week.

And the total amount of precious metals sold was about 100 tons. According to the bank, nearly seven tons of gold, 89 tons of silver and one ton of platinum and palladium.

On gold, the Russians spent about $550 million in Sberbank.

Unallocated precious metal accounts mean that the bank retains ownership of the precious metal purchased and customer accounts are only credited. Sberbank has developed the option of unallocated precious metal accounts to speed up the process of opening the account and selling precious metals.

In March, Russians went on a gold-buying spree when the ruble crashed after the country invaded Ukraine.

Major local banks have reported a surge in demand for gold as Russians rush to invest in bullion and coins to protect their savings. The country’s central bank even had to temporarily suspend the country’s gold purchases from local banks to leave the inventory to regular consumers.

In the same month, Russian President Vladimir Putin signed a law removing the 20% value added tax on metal purchases. The move was intended to encourage buying precious metals rather than foreign currencies such as the US dollar and euro at a time when the Russian ruble was collapsing.

Disclaimer: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. This is not a solicitation to trade commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for loss and/or damage resulting from the use of this publication.

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