As the value of the ruble continues to drop, Russians have been sinking their devalued currency into dollars, jewelry, and big-screen TVs. Apparently such superfluous goods are now considered stable investments.
Bloomberg: Russians are shifting their cash into foreign currencies and buying things they don’t need as the economy stalls and the central bank weakens its defence of the ruble, signaling a larger devaluation may be on the way. The currency has fallen 16 per cent against the dollar since August, when Russia’s invasion of neighbouring Georgia helped spur investors to pull almost $200 billion out of the country, according to BNP Paribas SA…
Property is now a protective investment, not just a status symbol, said Sergei Polonsky, founder of real estate developer Mirax Group, which is building Moscow’s tallest skyscraper…
For the burgeoning middle class, investments of choice range from electronics to gold jewelry. Evroset, Russia’s largest mobile-phone chain, is telling people to buy anything they can.
“It’s better to feel happy that you own something than to fear losing the money you have earned,” Chairman Yevgeny Chichvarkin says in a letter posted at 5,200 Evroset stores. “If you need a car, buy a car! If you need an apartment, buy an apartment! If you need a fur coat, buy a fur coat!”
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