Gold prices are expected to rise sharply if Russia carries on with its adventures in the Crimea.
The ever mercurial metal price could hit $1,400 (£842) an ounce by the end of the year, according to the German bank Commerzbank.
While this would be a dramatic turnabout for investors, it is well known that gold is the safe harbour in times of turmoil.
The German bank said it has been surprised by the rise of 15% already this year. It pointed to turmoil “in several emerging economies”, including the threat of escalation of the conflict between Russia and Ukraine.
Gold is currently trading around $1,340 per ounce.
Commerzbank believes that increasing demand from industry will continue, poking up prices.
China and India together had more than 2,000 tonnes of gold last year, which was 50% of the global market. But a recent slow-down in the Chinese economy may see its demand taper.
Silver prices slumped last year, but analysts expect it will jump back to $24 an ounce by the end of the year, assuming that industrial demand from the industrial countries will revive.
