Effects on the Value of Precious Metals Due to COVID-19 Crisis
For some people, the COVID-19 crisis was like a black swan event. It had an extreme impact on the world economy, and no one was prepared for what was coming.
In an uncertain market, business owners and entrepreneurs are more interested in investing in precious metals.
This is mainly because in most cases, the value of precious metals remains unaffected and they can also be used as a hedge against inflation.
How is Global Precious Metal Marketing Fluctuating?
While there aren’t many economic factors that affect the value of precious metals like gold, the pandemic did break down supply chains at key points.
Since most countries are under complete lockdown, the supply chain and halted operations at various manufacturing facilities have triggered a sharp rise in demand. This has also lead to inventory shortage.
If you’re an investor, this means the precious metals you have in your investment portfolio just got became more valuable.
What’s the Next Thing for Precious Metals (Gold, Silver, Platinum)?
Compared to other precious metals, the value of silver tends to fluctuate a lot. There are multiple external factors like the demand for brazing alloy, batteries, medicine, dentistry, LED chips, etc.
Most of these products belong to industries that were growing impressively before the pandemic hit.
The shortage and resultant spike in demand due to COVID-19 lead to up to 44.6% growth in the value of silver and gold was up at 23.8%.
If you’re looking to invest in gold to make money, this is the right time. According to the World Bank, in mid of 2020, the prices of gold reached an all-time high of 1,902 U.S dollars per ton. This trend will continue for a while.
Final Takeaway
Due to their rarity, the procedures involved in obtaining them, and the ever-growing demand, investing in precious metals guarantees lucrative returns.
If you wish to get started, make sure you only partner with companies that don’t just guide you through strategies to invest in gold but also help you make money off your investment.
Orion metal exchange has more than 50 years of experience in the precious metal investment industry. We have products available in gold, silver, platinum, and palladium.
For further details regarding the law, regulation, or any other concerns regarding the plan, you can contact us at any time.
