Is gold liquidation during crises a crazy decision or a survival strategy? An analysis of Russia's controversial decision

In an attempt to boost its monetary liquidity, Russia has taken a bold and controversial economic step: liquidating nearly 71% of its gold reserves in the National Wealth Fund over just three years. The quantities decreased from 554.9 tons in May 2022 to 160.2 tons on January 1, 2026. This decision, which some classify as “economic madness,” reflects real economic pressures on the Russian economy.

Gold Reserves Decline: From 554.9 to 160.2 Tons

Official data from the Central Bank of Russia reveal a sharp decline in physical gold reserves. While Russia has maintained total liquid reserves of approximately 4.1 trillion rubles (gold plus Chinese yuan reserves) in unknown accounts at the Central Bank, the upward trend in liquidations indicates increasing pressure. Analyses warn of the possibility of an additional 60% withdrawal (about 2.5 trillion rubles) if oil prices and the ruble remain at current levels.

Currency Pressure and Liquid Reserves: Real Risks

The pessimistic scenario paints a bleak picture: reserves gradually decline, the ruble’s value faces increasing pressure, and the exchange rate encounters real challenges before any major economic move. Observers see these steps as a genuine drain on Russia’s financial safety net. For those who understand market dynamics and potential bullish trends, the scene may appear sensitive and risky — which followers are watching very cautiously.

This situation reflects the madness of emergency economic decisions, where the Central Bank is forced to choose between tough methods to ensure liquidity and economic survival.