Analysis of the Precious Metals Market in Russia as a Component of the Global Financial Market in Modern Conditions

Abstract

The world precious metals market is an integral part of the global financial market, which determines its stability. It is mainly connected with historical development features of the financial market, where formation was related to circulation of precious metals. The world market still has high potential for growth that is especially relevant to Russia, which has high natural potential, advanced technologies for extraction and production of metals. It creates competitive advantage in the world market. The key players of this financial segment are commercial banks, which use resources of the precious metals market for diversification of its risks. It provides stability and sustainability of a bank segment. The purpose of the contribution is to study the process of formation of the precious metals market in Russia as a component of the global financial market and to identify problems, hindering its further development. The precious metals market in Russia is not completely formed and developed as there are some restrictions, which retard its development. The authors carried out the comparative analysis of gold and paper money as forms of cash equivalent of different historical eras. It allowed establishing the role of the precious metals market as a part of the financial market, which laid the basis for financial architectonics and provided financial market stability. The price fluctuations in the world precious metals market during 2000–2015 were analyzed, and the dependence of prices of various metals was defined. Based on these facts, the authors made a conclusion on the derivative character of asset prices of the precious metals market from gold prices. The key problems, hampering development of the precious metals market in Russia, were shown. The institutional imperfection of this financial segment is the most important.