Russia's Central Bank Gold and Silver Reserves Since 1990
Since the Soviet Union collapsed in 1991, Russia's central bank has changed how it handles its reserves, especially concerning precious metals.
Though gold reserves have long been a key part of the country's financial policy, silver was just recently introduced to the central bank's holdings.
This article provides a detailed overview of Russia's official gold and silver holdings from 1990 until now, emphasizing key milestones, policy changes, and the strategic reasons for these developments.
The Early 1990s: Post-Soviet Turbulence and Modest Holdings
Following the collapse of the Soviet Union, the Russian Federation inherited a fragmented economic infrastructure and limited financial reserves.
In the early 1990s, Russia's official gold holdings were believed to be about 3,000 tonnes. However, precise data is challenging to confirm because of inadequate record-keeping during the transition period.
In 1993, Russia held approximately 3,059 tonnes of gold. However, due to limited foreign exchange (FX) reserves, the proportion of gold relative to total reserves was unusually high—about 34%. This proportion declined over the next decade as Russia built up its FX reserves in foreign currencies.
| Year | Gold Reserves (tonnes) | FX Reserves (US$ billion) | Gold as % of FX Reserves |
|---|---|---|---|
| 1993 | 3,059 | — | 34% |
| 1995 | 2,824 | 17.2 | 16% |
| 2000 | 3,708 | 28.0 | 13% |
2000–2010: Economic Growth and Reserve Diversification
As Russia entered the new millennium, it began to experience significant economic growth, driven largely by rising energy prices. This period saw an expansion of FX reserves, which reached nearly $480 billion by 2007. However, gold remained a small percentage of total reserves.
In 2007, despite significant gold holdings, the metal accounted for only about 2.5% of the total reserve portfolio. The focus during this time was on diversification into U.S. dollars and euros.
In 2010, the Central Bank of Russia (CBR) began to slowly increase its gold purchases, partly in response to the global financial crisis of 2008, which exposed the risks of overreliance on fiat currencies.
2010–2020: Strategic Accumulation
From 2010 onward, Russia embarked on an aggressive campaign to accumulate gold. This move was largely strategic, aimed at reducing dependency on Western financial systems and currencies.
By 2015, Russia's gold reserves had reached 1,382 tonnes. This coincided with increasing geopolitical tensions, particularly following the annexation of Crimea in 2014 and the subsequent imposition of Western sanctions. Gold, as a non-sovereign asset, provided a reliable hedge against financial isolation.
By 2019, Russia's gold reserves stood at 2,241 tonnes, accounting for roughly 20% of the country’s total reserves. The gold accumulation continued into the early 2020s, with reserves peaking at around 2,336 tonnes by the second quarter of 2024.
| Year | Gold Reserves (tonnes) | FX Reserves (US$ billion) | Gold as % of FX Reserves |
|---|---|---|---|
| 2015 | 1,382 | 368.4 | 13.2% |
| 2019 | 2,241 | 540.9 | 20% |
| 2024 | 2,336 | — | — |
As of early 2025, the value of Russia’s gold reserves stood at approximately US$217 billion, solidifying its place as the world’s fifth-largest holder of gold.
Why Gold?
Several motivations underlie Russia’s strategy:
- Geopolitical Security: Gold is a non-sanctionable asset, making it ideal for a country facing international sanctions.
- Currency Diversification: Accumulating gold reduces exposure to the U.S. dollar and euro.
- Inflation Hedge: Gold retains value in times of currency debasement or economic uncertainty.
- Trust and Liquidity: Gold is universally accepted and liquid, giving the central bank financial flexibility.
The Introduction of Silver: 2024 Onward
For decades, silver was largely absent from Russian central bank reserves globally. However, in a major policy shift in late 2024, the Russian government announced its intention to begin acquiring silver as part of its official reserves. This move was formalized in the Draft Federal Budget for 2025–2027, which allocated 51.5 billion rubles (approximately US$535 million) for silver purchases.
While the exact volume of silver intended for acquisition was not disclosed, the announcement marked the first time in the modern era that a central bank included silver in its reserve policy.
| Period | Action/Announcement |
|---|---|
| Pre-2024 | No official silver holdings |
| October 2024 | Announcement of silver acquisition plan as part of reserve strategy |
| 2025–2027 Plan | ₽51.5 billion (~US$535 million) budgeted for silver purchases |
This policy is believed to be driven by two key factors:
- Industrial Demand: Silver's critical role in renewable energy (e.g., solar panels) and electronics makes it a valuable strategic asset.
- Supply Deficits: Global silver markets have been experiencing annual deficits since 2022, adding to the investment rationale.
Russia is now among the first central banks in decades to diversify into silver, signaling a possible trend in strategic metal accumulation beyond gold.
Broader Reserve Strategy and Outlook
Russia's approach to reserve management has evolved significantly over the past three decades. Initially focused on fiat currencies, the central bank has pivoted toward tangible assets to mitigate geopolitical and financial risks.
This evolution reflects a broader trend among emerging economies, many of which have begun to question the sustainability of the U.S.-led global financial system. By increasing gold holdings and initiating silver acquisitions, Russia is positioning itself for a multipolar economic future.
If current trends continue, Russia may further diversify into other strategic metals like platinum and palladium, both of which already feature in its broader resource strategy.
Conclusion
From modest beginnings in the early 1990s, Russia has grown into one of the largest gold reserve holders in the world. The country’s central bank has used gold not just as a financial asset, but as a tool for geopolitical independence and financial resilience.
The recent decision to begin acquiring silver marks a new chapter in Russian reserve policy and may influence other nations to follow suit.
With the global financial landscape becoming more uncertain, tangible assets such as gold and silver are expected to have a greater role in the reserve strategies of central banks around the world.