My Gold News | 21 February 2023

Russian Gold As Sanctions Tighten [Global Nuggets Newsletter]

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Russian Gold Hits News Headlines Twice in a Week As Sanctions Tighten

Global Nuggets


As G7 leaders gather in Bavaria to discuss new measures against Russia, it has been agreed that Russian gold will be banned due to continued atrocities in Ukraine. What sort of effect will this have on gold prices and supply? Over the past few years, Russia has gone from being the 3rd most important to THE leading supplier of gold worldwide, but this abruptly stopped on 24th February when sanctions were imposed after the invasion of Ukraine. But it’s proving hard to keep tight control on this. Only this week, it was reported that Switzerland had restarted the import of gold from Russia – 3 tons of Russian gold reportedly imported via London in May – the first time since February 2022. This is only 2% of the total volume of gold refined in a year in Switzerland, but the change is significant. How effective will the new G7 ban be? Switzerland is home to 4 leading gold refineries, processing 2/3 of the world’s gold.


In other news, stagflation has become a cause for concern – continued high inflation and low economic demand. This economic position may become the norm in the coming months across many economies whilst countries struggle to pull out of inflation. In a recent precious metals commentary, gold is seen as a good hedge against stagflation, as seen in the last cycle in the 1970’s and 80’s where gold benefited.


And finally, it’s been another bad week for crypto and bitcoin miners report big losses. We’re convinced that the yellow metal would have been a safer alternative!

This Week's News

Here are a few snippets from around the world this week.

G7 agrees on a ban on Russian gold, led by London, the leading global gold hub

Switzerland imports 3 tons of Russian gold in May 2022

As Stagflation worries build, gold is the place to invest

A strong US dollar weighs on precious metals pricing

Bitcoin miners prepare for belt-tightening

Crypto’s ‘structural flaws’ make it an unsuitable monetary system, says Bank for International Settlements, report