The conflict in Ukraine reshaped how people invest, pushing many toward safer holds as markets waver. With equities selling off and volatility high, investors turn to metals, especially precious metals like gold and silver, as a refuge for capital.
World Gold Council data show gold priced around 57 euros per gram, roughly 11% higher than two months prior to the conflict, while the overall price sits near 51 euros according to the same source. The rise mirrors gains seen in other metals such as nickel, palladium, and cobalt, which can tempt retailers seeking to shield or grow wealth during troubled times. So, is it prudent to consider these markets during a crisis?
“In inflationary periods, money has historically sought shelter in these assets,” notes José Luis Herrera, market and sales analyst at Banco Big in Spain. He points to similar spikes during the 1970s and the late 1980s, as well as amid the 2008 financial crisis. The surge in metal values is linked to a mismatch between supply and demand following a restart of production after the pandemic. Although the largest impact is anticipated in metals heavily produced in Russia, such as palladium, where about 40% of global output concentrates, particularly in the automotive sector, the general trend affects other precious and industrial metals too. (Source: industry analysis reports)
Gold’s value extends beyond jewelry and savings; it plays roles in aerospace, medicine, certain cancer therapies, and even in smartphones. Silver, conversely, carries significant industrial value, which cushions its price against inflation and financial turmoil, helping preserve purchasing power in uncertain times. This is the view of Rafael Salgueiro, a professor at the University of Seville. (Academic testimony)
The push for energy transition will also raise demand for metals used to transmit and store electricity, including nickel, cobalt, copper, and lithium essential for electric batteries. (Industry outlook)
“A diversified portfolio should blend fixed income, growth assets, and uncorrelated materials like these raw resources,” Herrera suggests. (Market guidance)
investment methods
Deciding whether to invest depends on the individual profile beyond the current economic climate. Recognizing the noneconomic drivers that influence value and applying practical judgment alongside product knowledge is advised, say experts. (Market insights)
There are many entry points, with some accessible more than others. “The simplest and relatively lower-risk route is through mutual funds backed by physical metals or by mining-related companies,” Salgueiro explains. ETFs, which track the performance of assets or indices, are another option. In Spain, for instance, there are ETFs that reflect spot gold—meaning ownership is achieved through a financial instrument rather than holding physical gold directly. (Market commentary)
Directly purchasing shares in mining-focused companies is another path, though it can complicate diversification. Given large price swings, contracts for difference (CFDs) offer a way to trade price movements without owning the underlying asset. They carry substantial risk, as do futures, and while profits can be attractive, losses are possible. (Trading guidance)
Physical ownership of metals remains an option, with bullion or coins available for gold, silver, platinum, or palladium. When pursuing these purchases, buyers should verify product purity and the premium charged for the sale. Ownership itself can influence the effectiveness of certain financial instruments and their potential revaluation. (Purchase considerations)