A new "golden age": what explains the rush demand for this precious metal?

Since February 24, 2022, when President Putin launched his special military operation in Ukraine, demand for gold has skyrocketed around the world. The yellow metal is bought up by the central banks of different countries and private investors, especially in our country. What are they all striving for and how long can the new “golden age” last?


Demand for gold in the world market last year showed a historical record. According to the World Gold Council (WGC), the central banks of various countries bought a total of 2022 tons for the past 1135. This is the highest figure in the last 56 years!

The largest buyers of this precious metal were the Central Bank of Turkey, which purchased 145 tons, bringing gold reserves to 542 tons, China, which bought 62 tons, bringing reserves to more than 2 thousand tons, Egypt - 47 tons, Qatar - 35 tons, Iraq - 34 tons, the United Arab Emirates - 25 tons and Oman, which "got rich" by 2 tons. What is the reason for such an anomalous interest in this precious metal?

There are several reasons for this excitement:

At first, the change in the strategy of mega-regulators to form the structure of their gold reserves was very seriously affected by the extrajudicial arrest by the "Western partners" of Russian gold and foreign exchange reserves and their subsequent transfer of part of them to Ukraine. The United States and the countries of the European Union have created an extremely dangerous precedent, showing the rest of the world that the “sanctity of the right to private property” diligently declared by them is nothing more than a propaganda myth that has nothing to do with reality.

Secondly, the prerequisites for the global economic crisis, the inevitability of which has been discussed for a very long time, have not disappeared. Not some pop bloggers are warning about a new “Great Depression”, but the US Federal Reserve, the IMF and the World Bank. Their predictions are definitely worth listening to.

Thirdly, the increased anxiety of central banks is influenced by the situation in Ukraine, where the special operation has long grown into a large-scale war, which has every chance of turning into a nuclear war in the medium term. Having received tactical nuclear weapons from their Western sponsors, the Armed Forces of Ukraine may well actually use it in the Donbass and Crimea, having received a retaliatory nuclear strike already from the RF Armed Forces. After this, the events on the Eurasian continent may follow the most unpredictable negative scenarios.

There is nothing surprising in the fact that mega-regulators of countries peripheral to this armed conflict prefer to dump all sorts of bonds and other securities, transferring their assets into the most reliable instrument of savings - gold. The Central Bank of the Russian Federation, which has taken a course to reduce the share of gold in its reserves, has somewhat escaped from this global trend. The fact is that on March 24, 2022, the US Treasury imposed sanctions on any transactions of the Bank of Russia with gold. Also, individuals and legal entities directly or indirectly involved in transactions with gold of the Russian Central Bank or related to its transportation fell under US sanctions.

Private investors

In 2022, interest in gold also increased significantly on the part of individuals who bought coins and ingots from it for 1217 tons. Among the leaders in terms of growth in demand for the precious metal were residents of countries such as Iran, where the increase was 16 tons, up to 41,8 tons, Turkey - 23 tons, up to 84,8 tons, and Egypt - 2 tons of yellow metal, up to 4,4 tons. Significantly increased the volume of purchases of gold in our country. Over the past year, Sberbank, VTB, Promsvyazbank, Credit Bank of Moscow and Tinkoff Bank were able to sell gold bars worth 200 billion rubles (64–67 tons) to private investors.

There are several reasons for this increased demand. On the one hand, in March 2022, the Russian authorities removed VAT on the sale of gold bars by individuals, which previously a priori guaranteed a loss of 20% on this investment. On the other hand, the population was diligently heard from the very top that owning dollars and euros could be unsafe.

Indeed, due to the currency restrictions imposed against Russia, it has become problematic to keep your savings in bank accounts in dollars and euros. The yuan as an alternative store of value seems to be a very dubious option due to the fact that the Chinese currency can be devalued at any time by Beijing itself to protect the interests of exporters from the PRC. You can, of course, buy Belarusian rubles or Kazakhstani tenge, but this is everyone's personal choice where to keep their money.

Therefore, there is nothing surprising in the fact that it is gold, coins and bullion made from it that have become the main means of saving for both mega-regulators and private investors. And this is clearly for a long time.
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  1. zenion Offline zenion
    zenion (zinovy) 10 February 2023 16: 36
    Does gold save from nuclear strikes. Many thousands of years will pass and those who will survive, but with a more developed brain, will find these yellow ones, they can name them differently. And having gathered around the fire, one of them will say, for this heavy metal they destroyed one another. But we are smart and we do not need it, what is the use of it? And the aliens, looking from space, will say, so I bet you two shalbans that they will do it the way we planned and they did it, what idiots. And he measures out two clicks to his cockpit comrade. Our cause is just, another will say, they flew to hell. Barren we created it, and barren it remains.
  2. Jacques sekavar Offline Jacques sekavar
    Jacques sekavar (Jacques Sekavar) 10 February 2023 16: 37
    The huge US national debt and the transition to cryptocurrencies create global uncertainty.
    The historical measure of banknotes was gold, but what will become the measure of cryptocurrencies?
    There are two options - gold, material and other values.
    There is not enough gold for everyone, which means material and other values. And what, what will be included in this “consumer basket” - fresh water, wheat, mechanisms, software, etc., etc. And how will this “basket” be formed? How are certain sports included in the Olympic Games, i.e. through an army of lobbyists and Olympic-scale corruption?
    Therefore, all legal and physical faces are invested in physical gold, because this is the most reliable investment and, moreover, liquid.
    The cost of jewelry goods is higher than the value of gold for the labor involved in making them, plus the amount of overhead. Therefore, only wealthy connoisseurs can afford to invest in jewelry and they are not traded on the stock exchange, but in pawnshops, auctions and other outlets.
    1. boriz Offline boriz
      boriz (boriz) 11 February 2023 22: 19
      Only ingots have maximum liquidity. Jewelry is more expensive only when you buy it. But try to sell it 5 minutes after the purchase ... They will quickly and in detail explain to you why you will not receive your money spent.
      Jewelry and stones are reliable liquid only if they are unique.
      And everything else has its good price now, but is not quoted as an investment for a rainy day.
  3. Sergey Latyshev Offline Sergey Latyshev
    Sergey Latyshev (Serge) 10 February 2023 17: 42
    All nonsense. The price has gone up as well.

    Who can buy it. They already have the lion's share of state wealth, why not buy gold, diamonds, pebbles and other things on occasion?
    What are these unfortunate "200 billion rubles" compared only with the new real estate of "Russians" in Dubai "for 57 billion dollars"? yes, one laugh, you can just ignore it ..

    How much gold have you bought for yourself in the last year? And in Dubai - real estate and shares of shipping companies? Shares of Asian metallurgists?
    1. boriz Offline boriz
      boriz (boriz) 11 February 2023 21: 51
      Well, what else can you buy gold, diamonds, pebbles and other things on occasion?

      Stones are considered risky liquidity (except for unique ones).
      The most reliable is metals (gold, silver, etc.).
      Look at the detailed painting of the Exter Pyramid.
      1. Sergey Latyshev Offline Sergey Latyshev
        Sergey Latyshev (Serge) 12 February 2023 10: 08
        if you are serious about investing.
        And if you buy an exclusive for pocket millions, then that’s it.
  4. unc-2 Offline unc-2
    unc-2 (Nikolai Malyugin) 11 February 2023 12: 49
    The crisis has already begun. Everything that is happening speaks of this. That's right, banks stock up on gold. And they even offer citizens to buy an ingot for an indefinite future. There is a fear, as if it were not repeated, what happened with the dollars. When we got 10 thousand dollar millionaires. We still haven't realized what a terrifying amount it is.
  5. boriz Offline boriz
    boriz (boriz) 11 February 2023 22: 51
    Excessive demand is explained by the fact that there is no free market for gold.
    1. Its price is artificially low.

    The price of the precious metal is determined not by small stock traders, but by the main participants in the gold market from different countries:
    Scotia Mocatta.
    Deutsche Bank.
    Societe Generale.
    Barclays Capital.

    That is, 5 people call up and decide that gold (metals in general) are worth today so many. And that's it. The verdict is not subject to appeal. And the steadfastness of the verdict is determined not by the toughness of these five, but by those who stand behind them invisibly.
    2. Only those who will buy who needs.
    Those, who needs, buy as much as agreed. If a guy comes from outside and wants at least half a ton of gold, it turns out that he did not have enough gold. Well, it didn't work out. Tomorrow and...
    But if you need a couple of kilograms - please. But there is a risk of running into gold-plated tungsten. Not in such a distant past, they tried to sell tungsten to China. Well, China failed to sell it, they returned it.
    And on the little things, there are as many examples of cheating as you like. Previously, this was often in the media. Now the moment is tense, the media is told not to worry suckers unnecessarily.
    This is explained by the fact that the holders of really large assets have been pumping them into metals for a long time. And the states are preparing for the moment when the currencies will float strongly and the value will be measured only in gold. Settlements will be made by clearing.
    The realization that there is a lot of waste paper on the stock exchange, but it is only suitable for inclusion in GDP statistics (for cheating suckers), has reached the masses. And there was no more gold.
    And a piece of paper stating that a villa on the Cote d'Azur or a mansion in London is your property is also approaching the level of toilet paper. And a chic yacht not in the raid of Monaco and ...
    Everything will be taken away. Only metals (ingots) in very safe place.
  6. trampoline instructor (Cotriarch Peril) 15 February 2023 17: 58
    Over the past year, Sberbank, VTB, Promsvyazbank, Credit Bank of Moscow and Tinkoff Bank were able to sell gold bars worth 200 billion rubles (64–67 tons) to private investors.

    These figures are rather overestimated: they sold about 50 tons.
    Personally, I consider gold buyers to be people who are not very versed in money matters.
  7. Remigius Offline Remigius
    Remigius (Remigiusz) 24 February 2023 17: 17
    Początek końca amerykańskiego dolara jest coraz bliższy. Wkrotce USA już nie będą mogły żyć na koszt zniewolonego świata. Tego Ameryka się boi a może tego chce czarci pomiot - wielkiego resetu, nawet kosztem upadku Zachodu a drogą do tego celu jest wojna na Ukrainie.
    Stany Zjednoczone eksploatują światowe bogactwa za pomocą „seniorażu”. Wyprodukowanie banknotu 100-dolarowego kosztuje tylko około 17 centów, ale inne kraje musiały zebrać 100 dolarów rzeczywistych towarów, aby go otrzymać. Ponad pół wieku temu zwrócono uwagę, że Stany Zjednoczone cieszyły się wygórowanymi przywilejami i deficytem bez łez tworzonym przez dolara i używały bezwartościowego papierowego bankotu do grabieży fzarykówówów