Russia Is Selling Its Gold, And That’s Good News For Owners 

Published: 10-23-2026, 11:37 am

Russia just sold gold for the 10th straight month. On the surface, that sounds like bad news for anyone holding the metal, especially with gold and silver both already down this week. Look closer, though. The sequence tells a different story — one that actually supports owning gold, not against it. 

Why Is Russia Selling Its Gold Reserves? 

The Bank of Russia sold about 6.2 tonnes of gold in September. That’s according to central bank data reported by Reuters and the Moscow Times. The sale brought reserves down to 72.8 million troy ounces, or roughly 2,264 tonnes, the lowest level since late 2019. Since December, Russia has drawn down about 62 tonnes, its largest sustained gold sell-off since the 1998 financial crisis. 

The driver is simple: money. Russia’s 2026 budget deficit is projected at 7.3 trillion rubles, almost double the original target. Military spending alone consumes close to 38% of federal outlays, and falling oil and gas revenue has widened the gap further. As a result, the reserve’s value dropped from about $333.5 billion to $301.6 billion in a single month. 

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Does This Mean Central Banks Are Done Buying Gold? 

No. Russia is the exception here, not the rule. Central banks bought a record 1,136 tonnes of gold in 2022, then about 1,050 tonnes in 2023, and buying has stayed well above its historical average every year since. Western central banks — the U.S., Germany, France — still hold 60% to 70% of their foreign reserves in gold, a gap one Bundesbank president has tied directly to gold’s freedom from counterparty risk, while emerging-market central banks average just 5% to 10%. So Russia’s drawdown shrinks that gap slightly, but it doesn’t reverse the broader trend. 

Why, then, does one seller matter more than the math suggests? Because of which asset Russia chose to sell last. The World Gold Council surveys central banks on exactly this question. In its most recent survey, 71% named “no default risk” as a reason to hold gold at all. Russia’s sell-down is that same property, showing up from the other direction. 

What Does Russia’s Sell-Down Actually Prove About Gold? 

Russia’s foreign-currency reserves were already frozen by Western sanctions back in 2022. Oil and gas revenue is down, and the ruble is under pressure; gold is one of the last levers left. It’s the one Moscow has reached for only after the others ran dry. 

That sequencing matters more than the headline. A government doesn’t sell its most defensible asset first; it sells what’s left once everything easier is already spent. Gold held outside the banking system carries no counterparty. No bank, no bond issuer, and no foreign government can freeze it or default on it. That’s precisely why it gets used last, not first — Russia is demonstrating the mechanism here, not disproving it. 

Should This Change Your Own Gold Allocation? 

The lesson isn’t really about Russia. It’s about what role gold plays in a portfolio in the first place. 

A long-term allocation isn’t built for next week’s headline. It’s built for the moment every easier option has already been used, which is precisely the moment Russia is living through right now. 

For a government under fiscal stress, gold holds its value regardless of who else is in trouble. An individual saver enjoys the same protection. Physical gold held outside a bank or a brokerage doesn’t depend on another institution’s solvency, and it’s not the first thing you’d touch in a pinch. That’s exactly the point of holding it.

SOURCES
1. Reuters (via see.news) – Russia Sells Gold for 10th Month, Reserves at 2019 Low – October 20, 2026
2. The Moscow Times – Russia’s Gold Reserves Fall to Lowest Since 2019 as Budget Deficit Widens – October 20, 2026
3. World Gold Council – Central Bank Gold Survey and central bank purchase data
4. goldsilver.com – Gold Price Chart – October 23, 2026
5. goldsilver.com – Silver Price Chart – October 23, 2026

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Always consult a qualified financial advisor before making investment decisions.   

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