The Gold Factor and Soviet Gold Industry during the Stalin Epoch

Abstract

The article analyzes publications and archive materials pertaining to gold mining in the context of the development of the Soviet gold industry in the 1920s — early 1950s, and demonstrates the significance of gold as a factor of the state policy. The author highlights the stages of development of the Soviet gold industry: the period of 1923–1930 was characterized by exclusive benefits provided to gold industry enterprises, and permissible private capital; the period of 1931–1945 was associated with the existence of ordinary and extraordinary sectors expressed in the activities of the two major organizations — Glavzoloto/Glavspetsmet and Dalstroy; in 1946–1953, the entire gold industry of the country was functioning under the jurisdiction of the Soviet Interior Ministry on the basis of labor mobilization of convicts. Gold was mostly produced by two entities: Glavzoloto/Glavspetsmet and Dalstroy mined 2,029.4 tonnes of gold in 1931–1950, including 1,116.2 tonnes (approximately 55 %) produced by Glavzoloto, and 913.2 tonnes (roughly 45 %) by Dalstroy. Gold was one of the few commodities which was always in demand on the global market and used in case of national emergencies and crises to correct foreign trade deficit, to guarantee foreign loans, and to procure goods which the Soviet Union was either unable to make or could not afford the cost of their production. The development of the Soviet gold industry was not determined by the estimation of loss and revenue; it was effected by the decisions made by the national governments in the late 1920s — early 1930s based on the belief in the absolute significance of gold for the functioning of Western economies.