MINING REFINING

VTB: Russians have increased demand for gold

05 April 2024

MAGADAN. KOLYMA-INFORM. The volume of physical gold purchased by VTB clients exceeded 70 tons. Over the past year, the gold bullion portfolio has increased by 51%, and since the beginning of this year - by another 8%. During the first quarter of 2024, more than 100 transactions were concluded for 5 tons of precious metal.

Bank clients are also actively showing interest in gold in impersonal form. In total, more than 50 thousand unallocated metal accounts (UMA) have been opened, which store more than 35 tons of precious metals. Gold accounts for more than 50% of the total number of contracts for the opening of compulsory medical insurance. In ruble equivalent, this metal also ranks first - more than 80% of investments in compulsory medical insurance. The average compulsory medical insurance check for gold is 133 grams.The high demand for the precious metal is explained by the rise in the gold rate. According to the Bank of Russia, in 2023 it will increase by 46%. Over the past three years, the price of gold has doubled, and over the past ten years, it has quadrupled.

“Gold is traditionally considered a “defensive” asset and helps reduce the risk of ruble devaluation. This metal is a profitable alternative investment that allows you to hedge currency risks and diversify your portfolio during periods of economic instability. We traditionally recommend that clients allocate up to 7% of their total portfolio to alternative investments. At the beginning of the year, we again note the demand for gold against the backdrop of an increase in its value, and we also record stable interest in the metal in its impersonal form. Thus, clients can reduce the share of unfriendly currencies in the portfolio by transferring them to an alternative instrument,” commented Evgeny Beresnev, Deputy Head of Sales of Investment Products at VTB Bank.

Source: https://kolyma.ru/news/124826-vtb-rossiyane-uvelichili-spros-na-zoloto.html