Warfare And The Precious Metals Involved – Is All Fair In War?

Since the dawn of time, mankind has waged war for many reasons and purposes.

These reasons and purposes have all varied from property to conquest, from ending tyranny to abolishing slavery, the list goes on and on. For every conflict that has arisen, there is always a cause as to its effect, verbal or physical. And war is one of the most grim and saddest personifications of that fact. 

One of the most common causes of war, particularly in the past, was wealth. Wealth is measured in gold and commerce, of trade and value, of money and resources. The latter is a special case, for resources, especially in the land, hold both an abundant and finite number of materials within, precious metals like gold and silver. But what is it about these rocks and metals that make them so valuable to start a war over?

The History Of Blood For Silver And Gold

The use of precious metals in warfare (see more here) has a long and storied history, dating back to ancient times. From the adornment of warriors to the financing of military campaigns, gold, silver, and other precious metals have played significant roles in shaping the outcomes of conflicts throughout history.

Ancient Warfare– in ancient times, precious metals held both symbolic and practical value. Gold and silver were often used to decorate armor and weapons, signifying power and prestige on the battlefield. Additionally, these metals were employed as a form of currency to pay soldiers and fund military endeavors. The lavish display of riches also served to intimidate and demoralize opposing forces, influencing the psychological dynamics of war as well as the materialistic ones.

Medieval Warfare– during the medieval period, these metals continued to hold sway in the realm of warfare. In addition to their traditional uses in adornment and commerce, gold and silver gained traction as ransom payments for captured nobles and knights. The plundering of precious metals from conquered territories became a lucrative pursuit for victorious armies, often serving as a primary motivation for military conquests.

Modern Warfare– in modern warfare, the role of precious metals has evolved to encompass their utilization in advanced weaponry, electronics, and communications systems. The strategic importance of securing access to rare earth elements and precious metals has become a key consideration for nations engaged in military conflicts. Moreover, the economic implications of controlling precious metal reserves have influenced geopolitical strategies and alliances in the contemporary era of warfare.

Financing The Waterfront

Throughout history, gold and silver have been the go-to materials for financing wars. Nations have constantly sought to accumulate these metals as reserves to back their currencies or to use them directly in times of conflict. The intrinsic value and scarcity of gold and silver make them reliable assets to finance war efforts. 

Gold, in particular, has been considered a stable store of value, offering a hedge against inflation and currency devaluation. This characteristic has made it a favored choice for governments seeking to secure their financial standing during times of war. Additionally, the portability and durability of gold and silver have made them convenient for transporting wealth across borders, especially during tumultuous times.

More on the validity and value of gold can be found at the website below:

https://www.investopedia.com/articles/investing/071114/why-gold-has-always-had-value.asp

Silver, while it is usually overshadowed by gold, has also played a significant role in war financing. Its abundant industrial applications, particularly in the production of weaponry and ammunition, have made it a valuable commodity for funding military operations. The dual role of silver as both a monetary metal and an industrial material has contributed to its relevance in war financing strategies.

Materials For Technology

Metals such as platinum, gold, and silver are used in the production of various military armaments. Gold is highly valued for its corrosion resistance, making it an ideal material for electrical connectors and plating in electronic components of advanced weaponry. Platinum, with its high melting point and catalytic properties, contributes to the manufacturing of missile guidance systems and jet engine components. Silver, known for its conductivity and anti-microbial properties, finds applications in circuit boards and military medical equipment.

The significance of precious metals in military technology cannot be overstated. Their exceptional conductivity, durability, and resistance to extreme conditions make them indispensable in a wide range of military applications. These metals are utilized in advanced communication systems, radar technology, and thermal imaging equipment, enabling the military to gather critical intelligence and maintain tactical superiority on the battlefield.

War And Market Value

War has historically had a substantial impact on the precious metals market. Historical trends reveal that during times of conflict and geopolitical instability, the demand for metals such as gold, silver, platinum, and palladium tends to surge.

This is primarily driven by the perception of these metals as safe-haven assets, making them a preferred investment choice for investors seeking to hedge against economic and political uncertainties. This is one way of how war affects the price of gold, among other things.

One example of this in more recent times is the current conflicts arising in the Middle East. The escalation of geopolitical tensions, such as trade wars and territorial disputes, has led to increased investor interest in precious metals as an asset.

Other examples include the surge in gold prices following the 2019 Iran–United States military confrontation and the impact of the Ukraine crisis on the prices of palladium and platinum. Suffice it to say, the complex interplay between war, geopolitical instability, and market dynamics underscores the influential role of global events in shaping the value and demand for these valuable resources.

Conclusion

In conclusion, the relationship between war and precious resources has been a recurring theme throughout history. From ancient times to the present day, the demand for these metals has been closely tied to conflict and war.

As geopolitical tensions continue to impact global economies, the role of precious metals as assets remains significant. Understanding the historical and contemporary dynamics between war and precious metals is crucial for investors, policymakers, and anyone seeking to grasp the complexities of global financial markets.

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