UDC: 336.761:330.322
https://doi.org/10.25198/2077-7175-2025-6-51


viewing

INVESTING IN PRECIOUS METALS IN THE CONTEXT OF THE MODERN ECONOMY

A. S. Lebedeva1, E. P. Zozulya2, K. A. Beloborodova3
State Marine Technical University, Saint-Petersburg, Russia
1 e-mail: aslebedeva11@gmail.com
2 e-mail: zozulya.liza05@mail.ru
3 e-mail: basket.ksu@gmail.com

Abstract. At the current stage of Russian economic development, characterized by economic and geopolitical instability, the issue of preserving and increasing capital by creating a diversified investment portfolio that includes not only securities but also other assets, such as precious metals, is particularly relevant. The development of investment strategies, taking into account the specifics of the domestic precious metal’s investment market, remains open and poorly understood. In this regard, the purpose of the study is to substantiate recommendations for the conservative investment strategy in the domestic precious metals market based on the analysis of the investment attractiveness of the metal’s types and forms in order to improve the efficiency of capital management. This paper identifies factors that influence the investment attractiveness of precious metals compared to other investment options. Based on the authors’ proposed methodological approach, which includes a system of criteria and indicators using an integrated methodology, graphical-analytical, economic-mathematical and scoring methods, the investment attractiveness of gold, silver, platinum and palladium is assessed, taking into account their short-and long-term profitability, potential for tax benefits, volatility, liquidity, Sharpe ratio, industrial demand and other factors. The analysis results in a ranking of precious metals based on investment attractiveness, with silver ranking first due to its high profitability, availability and widespread industrial application. Particular attention is paid to a comparative analysis of investment options in precious metals, which substantiates their impact on the attractiveness of investing in a particular type of metal. Their characteristics are systematized in terms of liquidity, risks and possible additional costs, the advantages and limitations of investing in them are determined. The proposed approach, along with practical recommendations for diversifying investments between gold and silver, including platinum and palladium as niche assets demonstrating growth potential in the context of developing high-tech industries, contributes to the development of the classical theory of rational investor behavior and can be used by private investors, financial advisors and government agencies to make informed decisions about investing in precious metals, developing new financial instruments and improving government support measures. In future research on this topic, it seems appropriate to study in more detail the specifics of the platinum metals market and the motives of investor behavior in this market segment using empirical research methods, which will expand and refine recommendations for developing effective investment strategies.

Key words: precious metals investment market, conservative investment strategy, types and forms of precious metals investments, profitability, volatility, Sharpe ratio, industrial demand for metals.

Cite as: Lebedeva, A. S., Zozulya, E. P., Beloborodova, K. A. (2025) [Investing in precious metals in the context of the modern economy]. Intellekt. Innovacii. Investicii [Intellect. Innovations. Investments]. Vol. 6, pp. 51–68. – https://doi.org/10.25198/2077-7175-2025-6-51.


References

  1. Balashev, N. B., Solopova, Yu. V. (2020) [Trends in Investing in Precious Metals]. Ekonomika i biznes: teoriya i praktika [Economics and Business: Theory and Practice]. Vol. 5–1 (63), pp. 57–62. – https://doi.org/10.24411/2411-0450-2020-10375. (In Russ.).
  2. Kolganova, K. V. (2019) [Problems of the Precious Metals Market Development in Russia and Their Solutions]. Ekonomika i biznes: teoriya i praktika [Economics and Business: Theory and Practice]. Vol. 6–1, pp. 158–163. – https://doi.org/10.24411/2411-0450-2019-10842. (In Russ.).
  3. Lastovenko, A. V., Zimovets, A. V. (2025) [Analysis of the Investment Attractiveness of Gold: Features of Placing Capital in Precious Metals]. Ekonomika, predprinimatelstvo i pravo [Economics, Entrepreneurship, and Law]. Vol. 15. No. 3, pp. 2101–2116. – https://doi.org/10.18334/epp.15.3.122789. (In Russ.).
  4. Levda, N. M., Postnikov, V. P. (2013) [Optimal Models of Investing Free Cash Funds in Precious Metals]. Ekonomicheskiy analiz: teoriya i praktika [Economic Analysis: Theory and Practice]. Vol. 6 (309), pp. 51–55. (In Russ.).
  5. Manakhov, B. M. (2021) [Prospects for the Development of the Gold Market in the Information Economy]. Vestnik Volgogradskogo gosudarstvennogo universiteta. Ekonomika [Bulletin of the Volgograd State University. Economics]. Vol. 23. No. 4, pp. 18–30. – https://doi.org/10.15688/ek.jvolsu.2021.4.2. (In Russ.).
  6. Pokshivanova, O. P. (2021) [Investments in Precious Metals]. Ekonomika i biznes: teoriya i praktika [Economics and Business: Theory and Practice]. Vol. 5–3 (75), pp. 40–42. – https://doi.org/10.24412/2411-0450-2021-5-3-40-42. (In Russ.).
  7. Akhtaruzzaman, Md, et al. (2024) Hedging precious metals with impact investing. International Review of Economics and Finance. Vol. 89 (PA), pp. 651–664. – https://doi.org/10.1016/j.iref.2023.07.047. (In Eng.).
  8. Badura, P., et al. (2018) Precious metals market in the new millennium. Global Journal of Business Economics and Management Current Issues. Vol. 8. No. 2, pp. 61–66. – https://doi.org/10.18844/gjbem.v8i2.3503. (In Eng.).
  9. Fatima, S., Gan, Ch., Hu, B. (2022) Price Stability Properties and Volatility Analysis of Precious Metals: An ICSS Algorithm Approach. Journal of Risk and Financial Management. Vol. 15. No. 10, pp. 465. – https://doi.org/10.3390/jrfm15100465. (In Eng.).
  10. Ghazali, M. F., Lean, H. H., Bahari, Z. (2013) Is Gold a Hedge or a Safe Haven? An Empirical Evidence of Gold and Stocks in Malaysia. International Journal of Business and Society. Vol. 14. No. 3, pp. 428–443. (In Eng.).
  11. Ksenzhuk, O. (2018) Determinant of the Development of the Precious Metals Market and Peculiarities of Investments in Precious Metals. EUREKA: Social and Humanities. No. 4, pp. 10–16. (In Eng.).
  12. Lydia, J. (2023) Investing in precious metals: is a better choice for investors. Journal of Xidian University. Vol. 14. No. 4, pp. 1318–1328. (In Eng.).
  13. Rana, H. M. U., O’Connor, F. (2023) Domestic macroeconomic determinants of precious metals prices in developed and emerging economies: An international analysis of the long and short run. International Review of Financial Analysis. Vol. 89. No. 3, pp. 102813. – https://doi.org/10.1016/j.irfa.2023.102813. (In Eng.).
  14. Theu Dinh, et al. (2023) Diversification benefits of precious metal markets. Available at: https://shs.hal.science/halshs-04057273/document (accessed: 02.03.2025). (In Eng.).
  15. Walczak, M. (2014) Precious metals roles in investment portfolio – comparative analysis of Czech, Hungary and Poland. Economy & Business Journal, International Scientific Publications, Bulgaria. Vol. 8. No. 1, pp. 1220–1230. (In Eng.).