Russian Investors Prefer Holding Cryptocurrencies More Than Gold – World Gold Council

0
While gold is considered a safe haven, it is not currently a mainstream investment among Russians, whose money is more likely to go into other options, including cryptocurrencies.

The World Gold Council is an authority in the industry of gold and tha last week it has published an interesting research which is a result of a survey of more than 2000 Russian Investors. The research concludes that less than one-fifth of Russian investors, or just 16 percent, own gold and coins, but most are positive towards the idea of investing in the yellow metal.

The poll showed that savings accounts are the most popular investment choice in Russia, mostly due to their accessibility. Foreign currency is the second most desirable investment, with 78 percent of respondents keeping their savings in US dollars and 56 percent opting for euros. Real estate rounded off the top three options, followed by life insurance.

Cryptocurrencies, which are considered by some to be a high-risk investment, are gaining popularity among Russian investors. Benefiting from being an accessible investment, especially online, they topped gold in investors’ portfolios.

Gold is considered more experimental and less habitual in Russia, analysts at the WGC say. However, investors are far from ruling it out, with 57 percent of those polled saying they would consider doing so, despite never having invested in gold previously. While most respondents think that bullion will never lose its value and two thirds perceive it as a safeguard against currency fluctuations and inflation, some 20 percent of them said they wouldn’t buy the metal.

The main factor stopping Russians from betting more on gold is that Russia has the highest rate of value added tax (VAT) levied on gold bullion bars (20 percent), the WGC found. Lack of necessary knowledge around how to invest in gold, and a fear of being sold fake or counterfeit gold products, are other key barriers to demand for the precious metal on the Russian market.

The WGC believes that the situation may improve over time. It hopes that the Russian government will adopt a legislation to remove VAT from bullion bars, eventually boosting demand. However, such a proposal was blocked by lawmakers in January this year.

“Provided these areas are addressed, gold investment in Russia has the potential to develop into a healthy market, capitalizing on the positive underlying attitudes towards gold and the role it can play in helping investors to meet their objectives,” the WGC concluded.

Share.

About Author

Ethan Hunt

Bitcoin Maximalist and Toxic to our banking and monetary system. Separation of money and state is necessary just like the separation of religion and state in the past.

Disclaimer: All content found on 7bitcoins.com is only for informational purposes and should not be considered as financial advice. Do your own research before making any investment. Use information at your own risk.

Leave A Reply