The economist assessed the risks and benefits of increasing Russia's gold reserves

An increase in gold reserves strengthens confidence in the national currency and reduces the vulnerability of the economy. Evgeny Shatov, a partner at Capital Lab, told Izvestia on November 13. According to him, gold is a key defensive asset in the face of sanctions pressure and geopolitical uncertainty.

"The presence of large gold reserves reduces the sensitivity of the economy to currency fluctuations, allows for more confident management of the balance of payments and the ruble exchange rate, and also provides the Central Bank with a tool to stabilize the financial market in the event of external shocks," the expert said.

He explained that the acceleration of reserves growth is primarily due to the rise in gold prices on the global market. Since November 2024, the price has increased by almost 65% and peaked at $4,356 per ounce, which significantly increased the value of Russian reserves. At the same time, the physical volume of gold even decreased by about 3.1 tons over the year. The de-dollarization policy also played a significant role: the Bank of Russia redistributed assets in favor of gold and the yuan.

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Shatov drew attention to the fact that an increase in the gold component of reserves carries both advantages and risks. Gold cannot be frozen, it increases the country's creditworthiness and remains a liquid asset during global crises. However, the metal does not generate regular income, and its value may decrease with a drop in world quotations, which reduces the volume of gold and foreign exchange reserves. Additional costs arise for the storage and safety of metal. The excessive share of gold in reserves can limit the flexibility of the Central Bank in managing liquidity.

"Given the current geopolitical situation, it is advisable for Russia to continue building up reserves in the form of gold. It is also likely that gold will retain the status of a priority asset in the recently changing global financial system. This may become especially relevant if cooperation within the framework of BRICS and other alternative international organizations continues to expand. At the same time, the pace of accumulation will depend on the price dynamics of gold in the global market, as well as on the need to diversify reserves," the economist concluded.

On the same day, it became known, according to the Central Bank of Russia, that Russia's gold reserves have grown by a record $92 billion over the past year. It is assumed that this happened due to the rally in the gold market: metal prices increased 1.5 times during this period, to $4 thousand.

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