Ban VAT on precious metals. Russia did.

Sberbank customers have opened 300,000 new unallocated metal accounts between January and September, Interfax reported, citing the bank’s statement this week.

And the total amount of precious metals sold was around 100 tonnes. According to the bank, nearly seven tonnes of that was gold, 89 tons was silver, and a tonne each of platinum and palladium.

On gold, Russians spent around $550 million at Sberbank.

Unallocated precious metal accounts mean the bank remains the owner of the precious metal bought, and the clients’ accounts only get credited. Sberbank has developed the option of unallocated precious metals accounts to expedite the process of opening the account and selling precious metals.

Back in March, Russians went on a gold-buying spree as the ruble collapsed following the country’s invasion of Ukraine.

Major local banks have reported a surge in demand for gold as Russians rushed to invest in the bullion and coins to protect their savings. The country’s central bank even had to temporarily halt the country’s own gold purchases from local banks to leave the inventory for regular consumers.

During the same month, Russian President Vladimir Putin signed a law scrapping the 20% value-added tax on metals purchases. The move was designed to encourage the buying of precious metals over foreign currencies such as the U.S. dollar and euro at a time when the Russian ruble was plummeting.


6 Responses to “Ban VAT on precious metals. Russia did.”

  1. sovereigntea says:

    Never be tempted into buying gold certificates rather than physical metal.

  2. Tapestry says:

    Agreed. If VAT and CGT on precious metals were banned we would not need currency from government, and could organise our own. In fact that’s how the world ran for thousands of years until 1815 when paper money was introduced. Prior to 1815 there was no inflation. Since 1815 when 16 ounces (£1 in weight) of sterling silver equated to an ounce of gold, gold was £1. It is now over £1500. Let’s go back to how it was pre-Rothschilds paper money which destroyed us with fake promises. The only party that will campaign for that is the Teds. The English Democrats.

  3. paullewis says:

    always ends in failure and always a con

  4. Tapestry says:

    In theory 5 £s is exactly 5 lbs of sterling silver in weight. In 1815 when paper money was first introduced, £5 was worth 5 lbs. Now 5 lbs costs £1500. That’s 16 oz per lb = 80 ounces. 16 ounces of silver in 1815 was worth 1 oz of gold. Today’s gold price makes £5 then cost £7500 now. We should allow people to buy precious metals tax free – no VAT and no CGT. Then they could protect themselves from banker’s fake promises, government printing presses and inflation. Support The Teds. The English Democrats.

  5. paullewis says:

    yep – and whats the current silver/gold ratio – silver price is more suppressed – for now