Gold and silver rising on growing tension in Europe

Gold and silver have both started the week with new highs as tensions between Ukraine and Russia rise. Increasing rhetoric and predictions of an impending invasion have scared global markets and prompted investors to seek safe havens.


Following a solid previous week, Friday evening witnessed swift gains as the United States, United Kingdom, and other countries removed embassy employees from Ukraine and recommended nationals to leave as quickly as possible.


Despite ongoing diplomatic efforts on all sides, Russian troops have amassed on the Ukrainian border, and progress appears to be slow. Global stock markets plummeted Friday evening and have continued to fall this morning.


Markets are naturally anxious about any military action in Europe, but they are also concerned about the heavy financial sanctions planned by the US, UK, and EU. Oil and gas prices have already climbed in reaction to market pricing in the possibility of Russian supplies being cut off. Following months of exorbitant energy prices, any more increases will simply drive inflation higher. Despite the risk of slowing GDP and harming stock markets, hawkish central bankers are already raising interest rates.


Gold is currently trading at a near three-month high of £1,376 / $1,863 per ounce in both currencies. As many investors will very certainly recall in early 2020, gold generally rises sharply during times of conflict. The bombing of an Iranian general, as well as ensuing tensions between the US and Iran, caused gold to rise about 10% in January 2020.


So far today, silver has increased to £17.67 / $23.91 per ounce, returning to levels recorded three weeks ago. If tensions rise, silver is projected to be a more mixed bag. While investment demand is anticipated to rise, industrial demand for silver may fall, depending on the nature of any sanctions and the economic impact they have globally. GBP, on the other hand, has already gained more than 4% in the last week and may continue to rise in the coming days.


For the time being, markets are on high alert, waiting for any new information about diplomatic initiatives. The UK government has warned of serious preparations’ for a Russian invasion, but discussions are still ongoing today. In the case of gold, $1,900 per ounce is likely to be a critical level to monitor. There will almost certainly be resistance as the price approaches that level, but if it is breached, the precious metal could see rapid and big increases.

by Rachel Buscall

by Rachel Buscall

Co-Founder & Managing Director at New Capital Link. Having started her career in the financial sector, Rachel demonstrated a natural flair for entrepreneurship.

New Capital Link

Alternative investment specialists offering structured opportunities across the UK & Overseas.

New Capital Link is a boutique London-based introducer that offers unique UK & global investment opportunities worldwide.

Recent Posts

Follow Us

Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be very complex and high risk.

What are the key risks?

1. You could lose all the money you invest

If the business offering this investment fails, there is a high risk that you will lose all your money. Businesses like this often fail as they usually use risky investment strategies. 

Advertised rates of return aren’t guaranteed. This is not a savings account. If the issuer doesn’t pay you back as agreed, you could earn less money than expected or nothing at all. A higher advertised rate of return means a higher risk of losing your money. If it looks too good to be true, it probably is.

These investments are sometimes held in an Innovative Finance ISA (IFISA). While any potential gains from your investment will be tax free, you can still lose all your money. An IFISA does not reduce the risk of the investment or protect you from losses.

2. You are unlikely to be protected if something goes wrong

The business offering this investment is not regulated by the FCA. Protection from the Financial Services Compensation Scheme (FSCS) only considers claims against failed regulated firms. Learn more about FSCS protection here. or

Protection from the Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover poor investment performance. Try the FSCS investment protection checker here.

The Financial Ombudsman Service (FOS) will not be able to consider complaints related to this firm or Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA-regulated firm, FOS may be able to consider it. Learn more about FOS protection here.

3. You are unlikely to get your money back quickly

This type of business could face cash-flow problems that delay interest payments. It could also fail altogether and be unable to repay investors their money. 

You are unlikely to be able to cash in your investment early by selling it. You are usually locked in until the business has paid you back over the period agreed. In the rare circumstances where it is possible to sell your investment in a ‘secondary market’, you may not find a buyer at the price you are willing to sell.

4. This is a complex investment

This investment has a complex structure based on other risky investments. A business that raises money like this lends it to, or invests it in, other businesses or property. This makes it difficult for the investor to know where their money is going.

This makes it difficult to predict how risky the investment is, but it will most likely be high.

You may wish to get financial advice before deciding to invest.

5. Don’t put all your eggs in one basket

Putting all your money into a single business or type of investment for example, is risky. Spreading your money across different investments makes you less dependent on any one to do well. 

A good rule of thumb is not to invest more than 10% of your money in high-risk investments.

If you are interested in learning more about how to protect yourself, visit the FCA’s website here:

For further information about minibonds, visit the FCA’s website here.