Will Russia’s War on Ukraine Make Precious Metal Prices Soar?

Platinum ScrapRecycle Precious MetalsRecycling and Refining
Written By Barry Lenson

You have probably heard it said that now that there is war in the Ukraine, the flow of precious metals mined there will be shut off. Some people have even been saying that when that happens, the prices of platinum and other metals that are mined in Ukraine will rise exponentially.

That Will Almost Certainly Not Happen!

It will not happen because platinum is not mined in any large quantities in Ukraine. (Neither is gold or silver.)

However, other valuable natural resources are sourced from Ukraine, and you should know what they are:

  • Coal

  • Graphite

  • Iron ore

  • Magnesium

  • Manganese

  • Mercury

  • natural gas

  • Nickel

  • Oil

  • Titanium

According to data on AZOMining.com, the GDP of Ukraine in 2018 was estimated to reach $131 billion, which is $19 billion more than it was in 2017.

And What Precious Metals Are Mined in Russia?

The information above indicates that although the invasion of Ukraine will cause a number of economic, political, and security problems around the world, the immediate effect on the price of gold, platinum and silver will probably not be directly affected.

But what will happen if trade relationships between Russia and the rest of the world become so destabilized that the flow of Russia’s natural resources will be curtailed? Well, problems could occur. You see, Russia produces about 9% of all the gold that is mined worldwide every year, as well as 5% of the silver, 10% of platinum and 40% of palladium.

If Russia is no longer able to export those precious metals that it mines, how could that affect the price of the gold scrap, silver scrap, and platinum scrap that you invest in? The answer is that if Russia gets cut off from international trade, the prices of those metals could rise slightly – but only slightly. Why? It’s because about 95% of those precious metals that are used for all purposes (including the manufacturing of jewelry, industrial chemicals, electronic devices of all kinds) come from recycled sources, not mining.

That helps to explain why the coming years will be at least as good for investing in precious metals than previous years – if not even better.

Have you invested in gold scrap, silver scrap or platinum scrap? Would you like to know where their value is heading? Would you like to recycle your precious metals? Then give us a call at 800-426-2344.

We are here to answer your questions. And another thing – we are hoping every day for the safety of the people of Ukraine.

Barry Lenson
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