Financial Analytics: Science and Experience

Abstracting and Indexing

Referativny Zhurnal VINITI RAS
Google Scholar

Online available



Cyberleninka (12 month OA embargo)

Investment potential of precious metals: The current status and prospects

Vol. 11, Iss. 4, DECEMBER 2018

Received: 18 May 2018

Received in revised form: 22 June 2018

Accepted: 29 June 2018

Available online: 29 November 2018


JEL Classification: G14

Pages: 454–469

Zaernyuk V.M. Russian State Geological Prospecting University (MGPI-RSGPU), Moscow, Russian Federation

ORCID id: not available

Borisovich V.T. Russian State Geological Prospecting University (MGPI-RSGPU), Moscow, Russian Federation

ORCID id: not available

Subject The paper studies the strengthening of the precious metals' role as a means of accumulation to insure income and create a gold reserve in terms of economic instability in the financial markets.
Objectives The paper aims to evaluate the investment potential, demand and supply of precious metals based on the analysis of emerging trends in the domestic and global markets.
Methods The research uses the principles of systems approach, economic analysis, logical and integrated approaches to the assessment of economic phenomena and processes.
Results There is a growing interest in precious metals as an investment. World gold holdings are increasing. The uptrend is going on in 2018.
Conclusions The global precious metals market in 2017 showed a variety of trends, but it looks better than the previous year. The demand for gold and palladium went up, affecting the growth of prices, especially palladium. Investment demand slackened in silver and platinum markets. There is a necessity of further detailed study and analysis of the issues related to the assessment of the precious metals markets' efficiency, the problem of financial bubbles, and the impact of precious metals on inflation and interest rates.

Keywords: precious metal, investment potential, demand, supply, metallic reserve storing


  1. Yankevich S.V. [Evolution of precious metals and precious stones circulation in Russia in 1917–2005]. Finansy i kredit = Finance and Credit, 2015, vol. 21, iss. 11, pp. 50–60. URL: Link (In Russ.)
  2. Maloney M. Rukovodstvo po investirovaniyu v zoloto i serebro [Guide to Investing in Gold and Silver]. Minsk, Popurri Publ., 2009, 320 p.
  3. Katasonov V.Yu. Zoloto v istorii Rossii: statistika i otsenki [Gold in Russian history: statistics and evaluation]. Moscow, MGIMO Publ., 2009, 312 p.
  4. Nikulin A.A. [The world gold market: Current status and prospects of development]. Problemy natsional'noi strategii = National Strategy Issues, 2015, no. 1, pp. 151–174. URL: Link (In Russ.)
  5. Borisovich V.T., Madzhidov B.S., Garaev E. [Analysis of gold production leaders in today's market]. Razvedka i okhrana nedr = Prospect and Protection of Mineral Resources, 2016, no. 4, pp. 59–63. (In Russ.)
  6. Gaganov S.Yu. [Research of demand for gold as a tool of influence on the national economics]. Rossiiskoe predprinimatel'stvo = Russian Journal of Entrepreneurship, 2014, vol. 15, iss. 7, pp. 10–25. URL: Link (In Russ.)
  7. Levin J.E., Wright E.R. Short-run and Long-run Determinants of the Price of Gold. Research Study No. 32. World Gold Council, London, 2006, 64 p.
  8. Sukharev A.N. [Gold as a monetary commodity: evolution and modern times]. Finansy i kredit = Finance and Credit, 2015, vol. 21, iss. 45, pp. 2–10. URL: Link (In Russ.)
  9. Borisov A.N. [Gold is the most important element of the world monetary system at the moment, the main function of which is to use it in international economic relations as an international reserve and an international payment in emergency situations]. Innovatsii i investitsii = Innovation and Investment, 2017, no. 2, pp. 196–205. URL: Link (In Russ.)
  10. Kombarov M.S. Vozvrat mirovoi valyutnoi sistemy k klassicheskomu zolotomu standartu v roli edinoi mirovoi valyuty [Return of the world currency system to the classical gold standard as the common world currency]. Almaty, 2012. URL: Link
  11. Kuznetsov A.V. [China's currency policy: A challenge to U.S. hegemony?]. Finansy i kredit = Finance and Credit, 2017, vol. 23, iss. 16, pp. 914–926. URL: Link
  12. Smith M.L. A Monetary Explanation of Distribution in a ‘Gold Money Economy’. Contributions to Political Economy, 1996, vol. 15, iss. 1, pp. 33–61. URL: Link
  13. Kumanova L.R., Yavarova I.D. [Pros and cons of investment in gold]. Ekonomika i sotsium, 2015, no. 2-2, pp. 1365–1369. (In Russ.) URL: Link%202.pdf
  14. Borisovich V.T., Gaganov S.Yu. [Investment entity of gold as a basis for efficiency gold mining]. Izvestiya vuzov. Geologiya i razvedka = Proceedings of Higher Educational Establishments. Geology and Exploration, 2015, no. 3, pp. 73–79. URL: Link
  15. Parshina L.N. [The role of gold in reserves of countries]. Finansy i kredit = Finance and Credit, 2016, vol. 22, iss. 23, pp. 2–8. URL: Link (In Russ.)
  16. Sukharev A.N. [The gold reserves of the Bank of Russia: Trends and current status]. Finansy i kredit = Finance and Credit, 2017, vol. 23, iss. 9, pp. 490–500. (In Russ.) URL: Link
  17. Ishkhanov A.V., Linkevich E.F. [On ways of return to the gold standard] Novaya nauka: sovremennoe sostoyanie i puti razvitiya, 2015, no. 3, pp. 110–113. (In Russ.)
  18. Mitchell D.J.B. Dismantling the Cross of Gold: Economic Crises and U.S. Monetary Policy. The North American Journal of Economics & Finance, 2000, vol. 11, iss. 1, pp. 77–104.
  19. Bernstein P.L. Vlast' zolota. Istoriya navazhdeniya [The Power of Gold. The History of an Obsession]. Moscow, Olimp-Biznes Publ., 2004, 400 p.
  20. O'Connor F.A., Lucey B.M., Batten J.A. et al. The Financial Economics of Gold – A Survey. International Review of Financial Analysis, 2015, no. 41, pp. 186–205. URL: Link

View all articles of issue


ISSN 2311-8768 (Online)
ISSN 2073-4484 (Print)

Journal current issue

Vol. 11, Iss. 4
December 2018