14 Feb 2023 10:57

VTB to launch gold buyback service in Q2

MOSCOW. Feb 14 (Interfax) - VTB plans to launch a service to buy back physical gold in the second quarter of 2023, the Russian state bank said.

The service will be available to customers who acquired gold bars and kept them in the custody of the bank, so additional inspection of the metal will not be necessary, VTB.

The gold will be repurchased at VTB quotes on the date of the transaction in rubles.

VTB sold 34 tonnes of physical gold to customers last year, making it the leader on this market. The average transaction was 10 kg, which amounts to about 44 million rubles in today's prices. This instrument is aimed at wealthy clients, as the minimum purchase is 1 kg.

"There was strong demand for physical gold, and a large share of the gold remained in our vaults as an alternative to savings. People felt at ease, because they could take this gold at any time and dispose of it as they saw fit," VTB management board member Anatoly Pechatnikov told reporters, speaking about the results of 2022.

"Obviously, an exit is needed from this saving investment, so we will buy back those bars that were left in our custody from our clients and provide such an additional service," Pechatnikov said.

The portfolio of physical gold held by VTB's wealthy clients totaled 50 billion rubles at the end of 2022 after growing by more than 50% in the second half of the year. This year, taking into account the repurchase program, the portfolio will grow more slowly and total 55 billion rubles by the end of 2023, VTB forecast.