| Author |
 Replies: 9 / Views: 1,668 |
|
|
Pillar of the Community
United States
589 Posts |
Hi All,
I know politics are not discussed here but I have a question relating to a comment made by Russia recently.
They said something like if the West impose sanctions on them, they would hurt the US economy severely.
What I would like to know is what would something like this do to the precious metals market? Would it drive up prices or bring them down?
Thank you.
John
|
|
|
|
Pillar of the Community
Japan
666 Posts |
platinum and palladium would go up as Russia is one of the two main sources of these metals
P.S. I don't think the West will impose any severe sanctions ... world it too interconnected than it was 50 years ago
|
|
Valued Member
United Kingdom
183 Posts |
if russia sells us dollars/bonds and manage to get the us dollar to weaken
then the price of all goods denominated in dollars should go up.
HH
|
|
Valued Member
United Kingdom
477 Posts |
If they impose any serious sanctions then as far as I know as mentioned it would effect us as well, so it would probably even out across the board(cutting noses to spite faces). Minor metal fluctuations, maybe-I doubt any more as this world needs to get along :).
Interesting fact Russia has a mass of impact diamonds, from a soviet era meteorite impact. They can't be used for Jewellery as far as I know-i.e. not high grade for jewellery but someone would probably use them. But they are good for machinery and they have a lot of them. Sorry for the random fact.
|
|
Pillar of the Community
United States
3789 Posts |
Russia is nothing but "noise" right now. This problem will be here today, gone tomorrow sort of thing,,, and we will be on to other bigger and better things. Please do not put ones hopes on higher PM prices over this silly nonsense in Russia, nor in what goes on in China.
|
|
Pillar of the Community
United States
808 Posts |
As of the end of 2013, Russia holds approximately $138.6 billion in US debt. Dumping this debt could cause some short term market turmoil. Russia could also, as bekiz suggests, directly impact the global platinum and palladium market due to their position as a major supplier. Both of these scenarios seem unlikely since Russia would suffer as much or more than anyone else.
The war risk is the biggest area of concern. I think the financial markets have already factored in "Russia behaving like Russia" so the bigger question is how Europe and the US will/would respond to an escalation of the Crimean crisis. The potential EU response is going to be tempered by their dependence on Russian natural gas imports and it's very nervous member nations in the East. As for the US? Any strategy involving sanctions isn't likely to result in meaningful pressure on Putin to change his current course of action. Just like Russia's invasion of Georgia back in 2008, the international response will ultimately amount to posturing and face saving and righteous indignation. A big yawn as far as the markets are concerned. But, then again? Ya never know.
|
|
Bedrock of the Community
13014 Posts |
Russia cant do anything economically. Their debt holdings arent even 1 percent thats insignificant. China hates Russia and wouldnt destroy their own economy helping out.
Russias economy is based entirely on petrol dollars and gas sales. The EU actually does have the ability to damage to Russia if they had the spine to do it which they dont.
About the only thing Russia could really do economically is turn off the gas to Europe which would destory their economy and dollar in the process.
In the end none of it matters since its been proven time and again that Putin will be allowed to do what he wants and while we refuse to build pipelines that could actually weaken them spouting nonsense for a billionaires political donations, Russia just plugs away reminding the world of who they really are.
In the end the markets drop from the "shock" and then normalize. I really dont understand why theres even really a shock that a KGB officer is running Russia like its the USSR when the cold war never ended as far as theyre concerned.
|
|
Pillar of the Community
United States
3789 Posts |
I agree for the most part with BB. Russia is doing its thing, and anyone who worries about rushing is really wasting their time.
What everyone here should be asking themselves right now is NOT if/how/when this Russia noise makes prices go higher, but rather, those of you who have regrets for NOT selling some or all gold and silver... all of you should be considering booking some profits if you lamented the slide down we had in prices and you were kicking yourself because you didnt raise a little cash out of your gains in silver and gold.
When folks start talking about higher prices, and the interest cranks up in gold and silver, I take that as a good chance prices are ready to do opposite of what everyone is focused on right now, which is higher prices.
|
|
Pillar of the Community
United States
808 Posts |
Markets have moved on far more tenuous news, but good points, all.
|
|
Bedrock of the Community
13014 Posts |
Don't get me wrong I expect a reaction as we've seen I just think at some point most people will realize it is what it is and the EU doesn't have the spine for a confrontation. Until some elections happen Eastern Europe is Putins for the taking. I'm only really surprised that so many people are surprised he would do that
|
| |
Replies: 9 / Views: 1,668 |
|
Posted 03/17/2014 09:26 am
