This week, the President's Office will announce the recipients of state awards. which are handed out just before Independence Day on February 24.

Silver is one of the main components, but over the past six months, the price of silver on the global market has tripled.

The Order of the Cross of Terra Mariana, which is bestowed on foreigners who have rendered special services to the Republic of Estonia, contains the most silver. The award is made of a silver alloy with a silver content of 92.5 percent.

Sporrong, the company that produces the state decorations, monitors prices daily.

"It is a challenge for both procurers and producers. The current geopolitical situation, where we do not know what tomorrow will bring, is complicated. We cannot do anything about market prices, which fluctuate," said Sporrong key account manager Hendrik Karlson.

He suggested that contracts for producing the medals could include a clause that accounts for changes in global market prices, as is the case in Finland and Sweden.

Sporrong recently signed a new contract with the president's office for the production of state decorations, with prices fixed for two years. The value of the contract is approximately €92,800, plus VAT.

"If we look even at neighboring countries, their fixed prices are set in such a way that if the price of precious metals changes by more than 5 percent, then the portion that increases or decreases is adjusted in the product price when the specific product is ordered. That is one option that could be considered," said Karlson.

Last week, the Bank of Estonia issued a silver commemorative coin for the Milan-Cortina Winter Olympics, priced at €95. This is more than double the cost of the coin for the Beijing Winter Olympics in 2022, which was priced at €45.

"For the most recent coin, we set the price, and after the management board of the Bank of Estonia reviewed it, another fairly steep price increase occurred within three or four days. Our planned price went up in smoke," said Rait Roosve, head of the bank's cash and infrastructure department.

He said the problem is not only the rise in raw material prices but also the entire technological process, which has become longer and more difficult. If the current price increases continue, the central bank is considering whether to issue commemorative coins at all.

"In a worst-case scenario, if the price of silver continues to behave this way and keeps rising, we may have to take a very, very critical look at our plans, because there is no point in producing a product for which there is no demand or that no one is buying," said Roosve.

The prices of gold and silver have reached new record highs following fresh threats from U.S. President Donald Trump to impose new tariffs on European countries.

The price of gold has now reached nearly $5,000 per ounce, while an ounce of silver costs about $94. Gold has traditionally been seen as a safe haven for investors during uncertain times.

--

Follow ERR News on Facebook and Twitter and never miss an update!