The Functioning of Market of Precious Metals and Stones in Ukraine: Current State and Perspectives

The article researches the main developmental trends of the domestic market of the items made of the precious metals and stones. The theoretical essence of the market shaped by the production and operational segments has been set forth herein. It is specified that the market of items made of the precious metals and stones should be viewed as the mechanism of coordination of the demand and supply in relation to the strategically essential resources like the precious metals, the precious stones, the precious stones of organic sediments, and the semi-precious stones. The reader is offered a schematic presentation of structure of the market of the items made of the precious metals and stones according to its specialization. In the supply part the production segment deals with the units of processing and treatment, while the operational segment points out to the units of operations and trade. The demand part determines the main market entities, that is, the government, the banks and financial institutions, the businesses (further processing and trade), the interbank currency exchange, the foreign entities, and the household consumers. The author's vision of the main problems of the domestic market most evident in the managerial, entrepreneurial, resource and sector aspects is explained herein. The key problems the resolution of which determines the prospects for further development of Ukrainian market of the items made of the precious metals and stones have been described. The problems and consequences of non-compliance by manufacturers with the requirements of Ukrainian legislation in the area of application of technical regulations and standards, and the shortcomings of regulatory and legal regulation in general, have been outlined first of all. Resolution of this problem requires implementation of the international quality standards. It is necessary to pay attention to the risks associated with the inefficient quality control system of the items made of the precious metals and stones in Ukraine that results in uncompetitiveness of the national products, decrease of the export potential of the national products. It is reinforced that lack of the proper informational support hinders the possibilities of the national scientists and experts to analyze the market development trends. It has been concluded in the summary that the market development prospects should be directed into the area of resolution of the relevant problems associated with insufficient government regulation, import dependence of the raw materials, inefficient product quality control system, inadequate competitive environment, technical backwardness in the processing of certain materials, lack of statistical data and common practice of the sector problems like that of the illegal amber mining.