Businesses Are Closing: What Does It Mean for Precious Metals Investors
The coronavirus pandemic has sent waves of uncertainty through all markets. The highly infectious nature of this virus has put an end to life as we once knew it. Being in close proximity or even in an enclosed space increases the chances of infection and therefore, governments have been forced to cease business activity and encourage working remotely.
The effects of lockdown
With businesses having to switch to working remotely to control the spread, productivity, and revenue has been negatively impacted. Most businesses were unable to switch to an efficient work from home system, while the service industry practically shut down.
Companies began laying off their staff since they could no longer afford to pay them which led to panic and more uncertainty. People reduced their spending significantly and only focused on necessities. Eventually many businesses had to shut down across the nation. Some might never reopen again too.
Effect of business closure on precious metals
Precious metals can be bought at a bargain price
Since many businesses have had to liquidate, there’s a possibility of precious metals being sold off as well. Some companies invest in precious metals to make up their assets, while other businesses like jewelers and jewelry factories have a significant amount of precious metals on hand. The closure of such businesses means precious metals can be bought at advantageous prices.
As a precious metals investor, this is the perfect time to increase your investment in gold, silver, and palladium. You get to buy it at a low cost and sell them off at a later date when the price is much higher.
Such sales, however, are made privately so you need to be aware of what’s going on in the market to make the most of it.
Investors restructure their portfolio
Investors with shareholdings in various companies have been effected by the closure of businesses. Many have had to rethink their investment portfolios.
The stock market crash of March proved that many investors wanted to get rid of their shareholding while they could and invest elsewhere. The increasing price of gold and silver proves to be a promising investment option during this time.
Precious metals have a history of performing well under these uncertain circumstances. The same effect was noted back when the SARS outbreak happened.
However, when investing in gold and silver, you need to choose a reliable company. If you’re looking for top gold IRA companies, or to invest in gold coins, get in touch with Orion Metal Exchange. We have years of experience in this market and our experts can guide you.
Call us at 1-800-559-0088 to learn more about our services!
