Gold is rising in price, but not for us: is it possible to invest in “jewelry” in Ukraine?
15 October 20:27
EXCLUSIVE
Gold is once again in the focus of global investors. The price of this metal continues to grow amid global economic instability, a fall in cryptocurrencies and increased geopolitical risks. However, the situation is much more complicated for the Ukrainian market: currency restrictions, shortage of raw materials for jewelry production and limited access to monetary gold create unique conditions that significantly distinguish Ukraine from the rest of the world.
What is happening with precious metals prices in the country now and whether Ukrainians should invest in jewelry, analyzed
Gold as a safe haven for investors
As economist Oleg Pendzin explained in an exclusive commentary to the publication, interest in gold has increased due to general economic turbulence.
The price of gold is growing. And this is one of those ‘safe havens’ that investors are actively looking for. The more economic turmoil there is, the more expensive gold will be,” the expert noted.
“Traditionally, gold is considered an anti-crisis asset. When the stock or cryptocurrency markets fall, investors move their capital into tangible assets such as gold, silver, and bonds. After the sharp collapse of the crypto market in 2024-2025, this trend only intensified: many investors began to abandon risky instruments.
Analysts now predict that the average global gold price could exceed $2,500 per ounce by the end of 2025. The main drivers of growth at the moment are:
- instability of the US dollar;
- increased geopolitical risks;
- decreased confidence in crypto assets;
- inflationary pressure in global economies.
Ukraine as a gold and foreign exchange market with special conditions
According to the source
After the start of the full-scale invasion in 2022, the National Bank of Ukraine imposed strict currency restrictions to stabilize the financial system. Among other things, these restrictions affected transactions with precious metals.
“When the National Bank of Ukraine introduced the restrictions, our “jewelry” cannot buy gold abroad. And at the moment there is a huge shortage of raw materials (formed – ed.) simply because the restrictions on currency transactions do not allow us to bring gold bullion here,” explained Pendzin.
“As a result, Ukrainian jewelry manufacturers are forced to work exclusively with domestic scrap: old jewelry that people hand over for melting. This leads to a reduction in the range of products, a drop in the quality of products, and an increase in prices for finished products.
At the same time, the demand for jewelry in Ukraine has plummeted. After 2022, the market shrank by at least a third. The main reasons are:
- decline in household incomes
- millions of Ukrainians leaving the country;
- changing consumption priorities: people spend more on basic needs than on luxury goods.
This trend is confirmed by Oleg Pendzin.
This is due to the impoverishment of the population, due to the fact that a lot of people have left. When we talk about the peculiarities of buying and selling gold in Ukraine, they are completely covered by the situation of a special state,” the economist said in an exclusive commentary to
. [Kommersant]
He emphasizes that it is not economically feasible to invest in jewelry now.
“First, we have very big difficulties with these things. Secondly, it is almost impossible for people to invest in monetary gold in Ukraine today. You can buy jewelry as an investment, but when you sell it, if necessary, you will have a markdown of your jewelry as non-ferrous scrap, no more. That is, you will not sell it as jewelry, but as scrap,” the expert explained.
“And this is usually 50% of the value. Therefore, in Oleg Pendzin’s opinion, it makes no sense to invest in jewelry as an investment at the moment.
Read also: Gold is rising in price: how central banks and the Fed are pushing the metal to $4900 per ounce
Investing in gold: what is really available to Ukrainians
Experts who study the gold market in Ukraine agree with Oleg Pendzin’s vision and note that, given the limited access to foreign exchange transactions, buying monetary gold in Ukraine is almost impossible. The NBU only allows transactions that are not related to the outflow of currency abroad. This means that investment bullion can only be purchased if it is already on the domestic market.
However, such cases are rare. Most banks do not offer gold coins or bars on the open market. And if they do, the price is often 10-20% higher than the world market price due to logistics costs and a shortage of supply.
Thus, Ukrainians can use gold only as a savings investment, not a speculative one – to buy and hold it for a rainy day, but not to count on short-term profits.
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What’s next: will gold become a “new currency”?
Amid global financial instability, analysts are increasingly calling gold the “new dollar.” The BRICS countries are actively building up their gold reserves, and central banks around the world continue to buy the metal instead of US bonds.
This creates both challenges and opportunities for Ukraine.
If the NBU eases currency restrictions in the future, it will open up the potential for developing its own investment gold market through banking products, depositories, and exchange-traded instruments.
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