Financial Analytics: Science and Experience

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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


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