The government plans to sell as much as 50 tons of gold this year to help plug a budget deficit in the first major bullion sale by its precious metals repository since the Soviet collapse, a high-level source said.

The sales from the State Precious Metals and Gems Repository, also known as Gokhran, could account for 0.5 percent to 1.25 percent of global consumption of the metal, which soared in price to a record of $1,070.40 per ounce Oct. 14.

“More than 20 tons but less than 50 tons of gold will be supplied this year,” a source familiar with the matter said Friday, adding that the sale was intended to increase state budget revenues.

The source said the sale would be the first major gold sale by Gokhran since 1991. The Soviet Union kept a veil of secrecy over its sometimes significant foreign sales of gems and precious metals.

Two other sources in the Russian government confirmed the planned gold sale but declined to comment on the volumes involved. The sales will be carried out by state owned Almazjuvelirexport.

Government spokesman Dmitry Peskov said a resolution allowing the sale had not yet been signed.

Gokhran, which traces its history to a decree by Peter the Great in 1719, holds the Russian state’s stocks of precious metals such as gold and palladium, and gems such as diamonds.

Spot gold rose to a high of $1,067.30 per ounce Friday. At current prices, Russia could raise as much as $1.7 billion if Gokhran sells 50 tons of bullion.

That would help it cover its first budget deficit in a decade, which is forecast to total nearly $100 billion this year, or about 7.5 percent to 7.7 percent of gross domestic product. Gokhran is subordinated to the Finance Ministry.

“There’s a budget deficit they need to fund, so a sale of gold does seem the most sensible thing to do, but I would have thought the impact on the market would be relatively limited,” said Robin Bhar, an analyst at Calyon.

But some traders said they were skeptical of the bullion sale plans as the Central Bank had increased stocks of gold as part of its international reserves by 14 percent in the last nine months to 19 million ounces.

“Why would they accommodate the international market when their own Central Bank is trying to buy gold?” said Afshin Nabavi, head of trading at MKS Finance in Geneva. “I don’t think the Central Bank would allow it to go into the international market,” Nabavi said.

Gold, viewed as safe haven in uncertain times, has soared in recent weeks as investors have sought protection against declines in the value of the dollar.

Russia was the world’s fifth-largest gold producer last year, accounting for about 7 percent of global output. Under a government order signed at the start of the year, Gokhran is allowed to sell precious metals worth 44.4 billion rubles ($1.53 billion) in 2009.

But the size of Gokhran’s stocks is a state secret and disclosure is punishable by imprisonment, though traders say Gokhran’s stocks are thought to be sizeable.