Russian Gold & Silver Banned from Global Markets

March 29, 2022 – Russian gold and silver refineries have been banned from the largest global trading markets in gold and silver. The London Bullion Market Association (LBMA) and the Chicago Merchantile Exchange (CME) have both announced a suspension on Russian gold and silver from being traded on their markets. 

Why is this important?  

Russia has the world’s fifth-largest gold reserve – valued at $140 billion US dollars. By announcing these sanctions, the LBMA and US exchange markets have severely reduced Russia’s ability to raise money by using the precious metals. But if there is a reliance on these precious metals sourced from Russia, it could have a deeply negative effect on the world’s economy and production of goods. 

We at SiliconExpert have compiled a list of the refineries that have been suspended. 

Refineries Suspended by LBMA & CME 

• JSC Krastsvetmet  
• JSC Novosibirsk Refinery  
• JSC Uralelectromed  
• Moscow Special Alloys Processing Plant  
• Prioksky Plant of Non-Ferrous Metals  
• Shyolkovsky Factory of Secondary Precious Metals, SOE 

Gold Prices to Remain Steady 

We at SiliconExpert are carefully considering the impact this news has on the global electronics market. Our Supply Chain module is monitoring parts and source refineries to see if manufacturing plants rely on Russian bullion supplies. 

Current predictive models show steady lead times and stable pricing. This is also echoed by Ruth Crowell, CEO of the LBMA: “We do not expect there to be a huge impact on the global supply chain.” 

A reason for steady pricing is due to an abundance of gold and silver reserves. Bart Kitner, president of Kitco Metals Inc, noted “There’s no shortage at all of the metals needed to make coins and bars.” 

Impact on Future Supply 

Russia’s bullion stockpile does not have an immediate impact on global supply chain. However, Russia’s position as one of the largest producers of gold on the planet, with exports of $6.74 billion worth in 2019, the removal of their gold from consideration on the global market could have long-term effects. 

Predict Supply Chain Disruptions with Machine Learning Models 

SiliconExpert’s Supply Chain Module is designed to help you closely monitor situations that have the potential to impact the global economy and provides you alternatives to keep your supply chain intact. SiliconExpert is maintaining a close eye on the impact the Ukraine-Russia conflict is having on Raw Materials to help you understand how your business might be impacted. 

Gaining access to critical information on stock levels, lead time, and pricing could help you pivot quickly to avoid huge supply chain disruptions. 

Learn more about how SiliconExpert’s Supply Chain module can help keep your business on track!