Connect with us

    Hi, what are you looking for?

    buzznificentbuzznificent

    News

    Precious Metal Trade Impacted by Russian Invasion

    The trade of precious metals is being significantly affected by the ongoing Russian invasion of Ukraine. As various countries impose sanctions and major global corporations withdraw from Russia, the economic pressure on Russia is intensifying. This pressure is particularly crippling for Russia’s key industries, including the export of critical materials.

    Russia is a major exporter of precious metals, with nickel being one of its most crucial exports. Nickel is essential for the production of batteries, stainless steel, and various other goods. However, with the halt of Russia’s nickel exports, the price of nickel has surged dramatically. As of today, the cost of one metric ton of nickel has surpassed $100,000 on the London Metal Exchange, leading to a temporary suspension of nickel trading.

    Ole Hansen, the head of commodity strategy at Saxo Bank, highlighted that the sharp rise in nickel prices is compounded by existing global market tension caused by ongoing supply chain challenges. He emphasized that the current nickel market is driven more by fear than by traditional supply and demand dynamics.

    Given the assumption that Russia’s supply chain would remain intact, many commodity investors had previously taken short positions on metal stocks. However, with the disruption in Russian supply, these investors are now facing significant losses. Hansen noted that the sudden cutoff of a major supply source from Russia has left these investors with exposed short positions that they urgently need to exit.

    You May Also Like

    Entertainment

    In 2009, renowned filmmaker James Cameron introduced the world to Avatar, a groundbreaking science-fiction movie that earned immense commercial success and became one of...

    Entertainment

    Adam Sandler, a seasoned actor known for his comedy, has also demonstrated his ability in more serious and dramatic roles. Following his performance in...

    Entertainment

    Last month, the filming of the movie “Being Mortal,” directed by Aziz Ansari and featuring Bill Murray and Seth Rogan, came to a halt...

    Entertainment

    Jon Stewart, a well-known television personality, was honored with the prestigious Mark Twain Prize for his successful career in television and stand-up comedy over...