Russia's Gold Reserves Drop to Lowest Level in Over Six Years
Nashnova编辑部
Russia's central-bank gold holdings fell to 73.2 million ounces as of August 1 — the lowest since January 2020 — shedding $33.7 billion in market value in seven months as budget gaps forced sustained selling.
How much has Russia lost?
As of August 1, the Bank of Russia held 73.2 million ounces of gold, a low not seen since January 2020.
Year-to-date, reserves have shrunk by 1.6 million ounces; their market value dropped $33.7 billion in seven months.
This means → Russia is not trimming at the margin — it is drawing down its gold stockpile at scale.
Why is Russia selling gold?
The direct driver is the Russian Finance Ministry, which is selling gold and foreign-exchange assets from the National Wealth Fund to plug a budget shortfall caused by falling energy revenue.
In plain terms = oil income can no longer cover spending, so the government is cashing in its rainy-day gold.
The central bank runs offsetting trades on the domestic market to cushion the impact on the ruble and the financial system — a process known as the "mirror mechanism."
Wasn't Russia a massive gold buyer?
The Bank of Russia was once the world's largest sovereign gold buyer, routinely absorbing domestic mine output.
It paused purchases in early 2020. After the Ukraine war began in February 2022, Western sanctions blocked gold exports; the central bank pledged to resume buying to absorb domestic supply, but never restarted large-scale purchases.
This reflects a policy shift from active accumulation to forced drawdown.
What comes next?
The sustained sell-down marks a substantive reversal in Russia's gold-reserve policy.
The market's key question: can Russia return to net buying once fiscal pressure eases?
This means → as long as energy revenue stays weak and the budget gap persists, selling is likely to continue — the world's once-most-committed sovereign buyer has become a seller.
Content is for reference only, not financial advice.