Russian sanctions are designed to hurt Russia generally and Putin specifically. However, there’s no doubt that any hit to the Russian economy will also damage the economy here in the EU.
One place where this has been seen is in the precious metal market. The value of both gold and silver is being hit by recent sanctions.
Newest Round of Sanctions
Ever since its invasion of Ukraine, the EU and its allies have placed a number of sanctions on Russia. It’s hoped that the conflict can be de-escalated without direct military intervention from European countries. By putting economic sanctions in place, EU leaders are hoping to damage Putin financially and starve him of the funds he needs to keep fighting.
The most recent round of sanctions involves silver and gold bullion. These have come mostly from the US, which is stopping any importation of oil, gas, and other commodities, including precious metals. Russia is rich in gold and silver, so preventing this from being exported to a country as huge as the US is bound to have consequences for the world.
The Cost of Gold in the EU
As a direct result of these sanctions, the price of gold and silver has gone down across the EU and the world. In London – no longer part of the EU – a dramatic drop in value was seen. Gold in the British capital is now worth $50 less per ounce. This is partly due to the fact that the Russian central bank is now only buying precious metals, not selling them.
A similar drop in the value of gold was seen in India and other major economies. A kilogram of gold is currently worth ?61,955, representing a slight drop off from the start of the war in Ukraine. This drop isn’t as bad as some feared, but experts are waiting to see what happens next, especially with the Kerimov family selling their $6 billion stake in a Russian gold miner.
Still a Worthy Investment Opportunity
Overall, most agree that precious metals are still a worthy investment. In fact, doing so now while prices are low could be a smart move. If the war ends soon and the global economy begins to grow again, the value of gold and silver could shoot up in value. Especially if you’re buying your bars from an EU nation and not from Russia.
You can easily find gold or silver bars online and choose to buy some bullion for yourself. As is the case with all investments, your capital is at risk. Recent events have shown how the value of your investments can fluctuate. If you’re interested in this kind of scheme, though, it may still be worth putting your money into precious metals.
Recent sanctions are hitting Russia’s supply of precious metals. However, this is likely to be temporary. Unlike other aspects of the economy, gold and silver in the EU tend to be relatively stable investments. Experts are continuing to monitor the situation to see how the market changes in the coming weeks.
