All that Glitters is Gold at the Sochi Olympic Games and Beyond

The notion of “going for the gold” has been synonymous with the Olympics throughout history and this year’s Games in Sochi, Russia are no exception. As the world gathers to celebrate the pinnacle of international athletic competition, the gold medal remains the crowning achievement of global sport.

In the Olympic Games nations compete on equal ground no matter how large or how small and regardless of size, wealth or power. Reaching the international Olympic stage and competing against the best in the world is the ultimate end-game for any athlete. The competitors decide which country wins or loses, which flags are raised, and which anthems are played by virtue of their talent, their passion, their heart, and their desire to win. The victors get the satisfaction of international fame, worldwide media exposure, and the instant heroism that comes when one is a sudden source of national pride.

And they get something else … a medal.  For over a hundred years we have rewarded Olympic excellence with Gold, Silver and Bronze medals. The medal sequence, which designates one winner along with a first and second runner-up, actually started 110 years ago at the Summer Games of 1904. Solid gold medals were awarded in those games and again in 1908 and 1912. Due to the rise in the value and importance of gold; however, 1912 was the last time that a solid gold medal was bestowed.

This year’s Sochi Gold Medal is one of the largest in history at 10 millimeters thick and 100 millimeters in diameter. It is 92.5% silver and contains 6 grams of gold. It features a glass and metal patchwork design which reflects the mountainous and coastal landscape of Sochi and the region near the Black sea.

Ironically, it is a region rich in natural resources, and Russia is a country rich in precious metals. According to the Russian Ministry, Russia has the second largest gold reserves in the world and Russian gold production has risen dramatically since 2008. In a clear move away from reserve currencies like the dollar, the Russians have been on a gold buying spree, having purchased 181.4 tonnes of gold in 2013, an 8.3% increase over the previous year. Russia is stockpiling gold for its long-term value as well as protection from currency fluctuations and global economic instability.

So while the world’s athletes go for the gold in Sochi during this year’s Olympic Games, the Russian Federation will continue to go for the gold long after the Closing Ceremonies with projected increases in gold mining, production, and acquisition. It may come in handy, as Sochi is on track to be the most expensive Olympic Games in history with a price tag currently topping out at over $50 billion.

The Russians seem less concerned with the price tag, however. They know that the Olympic Games are an opportunity for the host country to shine. They are an exercise in pride and cultural exchange. Perhaps they also know that gold is in short supply and rising global demand could push prices substantially higher in the coming year and beyond.