As the world continues to grapple with the effects of the COVID-19 pandemic, the global economy has been thrown into a state of uncertainty. However, amidst all the chaos, two precious metals have managed to hold steady and even increase in value – silver and gold.
At the time of writing, silver is trading at around $27 per ounce, while gold is hovering around $1,950 per ounce. Both metals have seen significant gains over the past few months, with gold hitting an all-time high of $2,075 in August.
So, why are silver and gold holding steady in the midst of a global crisis? There are several factors at play.
Firstly, both metals are seen as safe-haven assets. When investors are uncertain about the future of the economy, they tend to flock to assets that are considered to be low-risk. Silver and gold have a long history of being reliable stores of value, which makes them attractive to investors during times of economic turmoil.
Secondly, the COVID-19 pandemic has caused a lot of uncertainty in the markets. With many businesses shutting down and people losing their jobs, there is a lot of fear and uncertainty about the future. This has led to a flight to safety, with investors looking for assets that are likely to hold their value even in the face of economic uncertainty.
Finally, the US dollar has been weakening in recent months. As the world’s reserve currency, the US dollar is often seen as a safe-haven asset in times of crisis. However, with the US government printing trillions of dollars to stimulate the economy, the value of the dollar has been declining. This has made silver and gold more attractive to investors, as they are seen as a hedge against inflation.
So, what does the future hold for silver and gold? While it’s impossible to predict the future with certainty, it’s likely that both metals will continue to hold their value in the coming months. With the pandemic still raging on and the global economy in a state of flux, investors are likely to continue seeking out safe-haven assets like silver and gold.
In conclusion, silver and gold have proven to be reliable stores of value in the midst of a global crisis. While the future is uncertain, it’s likely that both metals will continue to hold their value in the coming months as investors seek out safe-haven assets.