Interesting info about the ruble's fall and the rush to gold in Russia
This is tucked in at the end of a Fortune article about the decline of the ruble in the last few weeks. I found it particularly interesting given the crypto boom of the last 5 years and the dominance of the Euro, the Yuan, and the US Dollar:
A Russian gold rush
The ruble’s plunge has hit average Russians hard. Fortune recently detailed the experiences of 10 Russians dealing with the ruble’s collapse. “It’s like money doesn’t mean anything anymore. It all disappeared at once,” investment consultant Arthur, 31, said of the new Russian reality. “Everything is so volatile right now. I’m waiting and lying low at the moment.”
In an effort to protect their earnings, many Russians are investing in gold, hoping to capitalize on its history as a safe-haven asset in times of economic uncertainty and take advantage of the Russian government scrapping a 20% value-added tax on purchases of precious metals.
Russia’s central bank was forced to halt its own purchases of gold this week as demand for the asset from Russians continues to soar.
Last week, Russia’s Sberbank said that demand for metals like gold and palladium has quadrupled since the war began. The bank plans to increase the number of its offices selling precious metals to “help people protect their savings.”
--Severian the Lame