MarketsInsider/Natasha Dailey/3-15-2022
“According to a report from Reuters, the central bank said household demand for physical gold bars has increased following the ‘abolition of a value-added tax on these operations.’ Russians have been seeking safe havens for their wealth since the country’s attack on Ukraine spurred widespread economic sanctions and the subsequent collapse of the ruble — which is now worth less than a penny.”
USAGOLD note: Not sure how citizen demand for gold folds into Russia’s central bank suddenly deciding to curtail purchases for its reserves. We do understand, however, the connection between a rapidly deteriorating currency and private investor gold purchases. Abolition of the value-added tax greases the wheels. With sanctions no doubt inhibiting Russian imports of the yellow metal, the existing supply becomes all the more dear.
