London Daily

Focus on the big picture.
Friday, Jul 10, 2026

Russia sets fixed gold price as it restarts official bullion purchases

Russia sets fixed gold price as it restarts official bullion purchases

Russia's central bank resumed its gold purchases from local banks on Monday, but it set a fixed price on the precious metal.

Starting this week, the Russian central bank will pay a fixed price of 5,000 roubles ($52) per gram between March 28 and June 30, the bank said on Friday. This is below the current market value of around $68.

The central bank added that the resumption in buying will ensure supply and uninterrupted production of local gold.

Two weeks ago, Russia's central bank announced that it was halting its official gold purchases from local banks due to a surge in demand from regular consumers.

This is because Russians went on a gold buying spree in March to protect their savings as the ruble collapsed. Major banks in Russia reported a rush of consumers investing in bullion and coins.

Sberbank, Russia's largest financial institution, reported that demand for gold and palladium has quadrupled in the last few weeks. Meanwhile, Russia's Ministry of Finance also referred to gold as an "ideal alternative" to the U.S. dollar.

Setting a fixed price for gold reminds some analysts of what the U.S. did during the “gold standard” years. The period between 1879 and 1914 is known as the classical gold standard era, during which one ounce of gold would represent $21. Then in the 1930s, the U.S. banned gold ownership and raised the value of the dollar in gold from $20.67 to $35 per ounce.

That price remained fixed until 1971 when Richard Nixon put a halt on the U.S. dollar's convertibility into gold, which meant that other countries could no longer redeem dollars for gold. In 1973 the gold standard was scrapped.

"I am reminded of what the U.S. did in the middle of the Great Depression. For the next 40 years, gold's price was pegged to the U.S. dollar at $35. There is a precedent for this. It leads me to believe that Russia's intention would be for the value of the ruble to be linked directly to the value of gold," Gainesville Coins precious metals expert Everett Millman told Kitco News. "Setting a fixed price for rubles per gram of gold seems to be the intention. That's pretty important when it comes to how Russia could seek funding and manage its central bank financing outside of the U.S. dollar system."

Gold is one of the most logical international currencies to use when you are trying to get around sanctions, Millman added.



Sanctions against Russian gold

Last week, the U.S. Treasury banned all gold transactions with Russia's central bank.

"U.S. persons are prohibited from engaging in any transaction -- including gold-related transactions -- involving the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation or the Ministry of Finance of the Russian Federation," the Treasury said on its website.

These types of sanctions could be effective to an extent, said Millman. "It can have a significant impact if for no other reason than to force other partners to shy away from doing transactions with Russia in gold. At the same time, knowing that the global gold market can be rather opaque, it would be much more difficult to enforce that type of restriction or regulation," he explained.

In response to escalating sanctions from the West for Russia’s invasion of Ukraine, Moscow said that "unfriendly" countries could be required to pay for Russian gas in rubles or gold, according to the chair of Russia's Duma Committee on energy.

"If they want to buy, let them pay either in hard currency, and this is gold for us, or pay as it is convenient for us; this is the national currency," Pavel Zavalny said at a news conference on Thursday.

Russia is also considering accepting Bitcoin for its oil and gas exports and being more flexible in general regarding payment options with "friendly" countries.

"We have been proposing to China for a long time to switch to settlements in national currencies for rubles and yuan … With Turkey, it will be lira and rubles," Zavalny said. "You can also trade bitcoins."

Comments

Oh ya 4 year ago
But now that the ruble has gone up the Russians are actually getting 7.8% more than world price. Thus the sanctions the US put pn Russia just killed the would reserve currency the USD as Russia has a gold and commodity backed currency unlike the US that backs it with a promise from a country 31 trillion in debt and has to borrow money from poorer countries just to pay the interest on the debt. Biden checkers, Putin chess

Newsletter

Related Articles

0:00
0:00
Close
The AI Invoice Shock: Layoffs Didn't Save Managers Money — They Cost Them More
Concern: Sexually Transmitted Bacterium Among Men Develops Antibiotic Resistance
Following Massive Investor Demand: SK Hynix Raises 26.5 Billion Dollars on Nasdaq
Passenger Partially Pulled Out of Ryanair Jet After Cabin Window Fails Mid-Flight
After Four Years, and Under a Heavy Veil of Secrecy: King Charles Meets His Grandchildren, Harry and Meghan's Children
University College London Report Proposes Replacing Council Tax and Stamp Duty With National Property Tax
Treasury Places Amazon, Google, Microsoft and Oracle Under New UK Financial System Oversight Rules
Severe Heatwave Drives Dangerous Ground-Level Ozone Pollution Across Two Thirds of European Union
Westminster in Freefall as Farage's By-Election Gamble Triggers Broader Systemic Crises
Institutional Fractures and Political Volatility Reshape Britain's Domestic Landscape
Deadly Fire, Health Emergencies and Political Upheaval Shape a Volatile Global News Cycle
UK Energy Strategy Focuses on Storage and Offshore Wind to Support Renewable Transition
Regional Governments Gain Greater Role in Britain’s Infrastructure and Economic Strategy
Britain Strengthens Technology Sovereignty Through Tougher Artificial Intelligence Competition Rules
UK Government Expands Artificial Intelligence Use Across Public Services Despite Privacy Debate
UK Universities Warn of Financial Pressure After Sharp Fall in International Student Enrolment
Welsh Government Completes Rail Nationalisation With One Point Five Billion Pound Modernisation Plan
Northern Ireland Records Export Growth as Companies Benefit From Dual UK and EU Market Access
Greater Manchester Launches Two Billion Pound Plan to Convert Empty Commercial Sites Into Housing
National Grid Connects Europe’s Largest Battery Storage Facility in Yorkshire
UK Defence Ministry Plans Royal Navy Autonomous Fleet Deployment to Indo-Pacific
Scotland Approves Europe’s Largest Floating Offshore Wind Project Near Aberdeen
Competition and Markets Authority Blocks Forty Billion Pound Technology Deal Over AI Security Concerns
UK Launches Five Hundred Million Pound Artificial Intelligence Network for National Health Service Diagnostics
Bank of England Signals Possible Interest Rate Cuts After Inflation Falls Below Target
UK Government Unveils Major Wealth Tax Reform to Fund National Health Service Infrastructure Expansion
Flight Instructor Jumped to His Death — Student Landed the Plane: "You Know What You Need to Do"
The Physical and Electronic Barriers Disrupting Domestic Wireless Networks
France and Morocco Open World Cup Quarter-Finals as Collina Defends Refereeing
Prince Harry Suffers Major Court Defeat in Legal Battle Against Daily Mail Publisher
Bonnie Tyler, Welsh Singer Behind Total Eclipse of the Heart, Dies at 75
Barclays and PwC Report Examines Economic Opportunities from Financial Asset Tokenisation
Pound Sterling Strengthens as Investors Anticipate Further Bank of England Rate Increases
British Business Bank Invests Twenty-Seven Million Pounds in Kraken Technology Defence Expansion
UK Business Secretary Peter Kyle Backs State Investment Strategy Inspired by US Approach
UK Electricity System Issues Margin Notice as Heatwave Tightens Evening Supply Outlook
Labour Leadership Contest Opens as Andy Burnham Emerges as Expected Sole Candidate
Tech Pulse: The Future of AI and Screen Culture
Global News Briefing: Escalating Geopolitical Tensions and Corporate Shakeups
Global News Brief: Escalating Conflicts, Public Health Crises, and World Cup Drama
Rare Early Copy of US Declaration of Independence Found in British Archive
Cornish Language Revival Gains Momentum Through Schools and Community Programs
UK Authorities Face Criticism Over Prisoner Early Release Safeguards
Clacton By-Election Set After Nigel Farage Resigns Seat to Trigger Contest
Government Agencies Review Long-Term Fiscal Risks from Aging Population and Low Productivity
UK Heatwaves Expose Pressure on Public Transport and Housing Infrastructure
UK Government Prepares Welfare Review Amid Debate Over Personal Independence Payment Reform
UK Government Expands Rapid Endometriosis Testing Across NHS Services
Vistry Group Issues Profit Warning as UK Housing Market Faces Continued Pressure
Virgin Media Receives Record Twenty-Eight Million Pound Fine Over Contract Cancellation Failures
×