Good News for Gold Investors: Gold Surges on Wall Street Rebound despite New COVID-19 Surge
President Donald Trump has released a statement about reopening the economy, despite an increase in the coronavirus cases.
He has said that the states such as Florida, Georgia, and South Carolina that have reopened after the lockdown are showing significant progress. This shows that loosening an absolute lockdown is a better solution to the problem, if not the best.
He also stated that even the nonessential businesses are helping the economy heal from the pandemic-induced slowdown. While this statement may have invited criticism on medical grounds, it has proven profitable for gold markets.
Economic Benefits of the Opening States
After easing restrictions in the business sector, the Labor Department reported that employment increased by 2.5 million. This was a major relief for the working population that was laid off or furloughed. With a steady increase in income, investment prospects are expected to shine better.
With the death toll rising every day, it’s important to note that many dependents are left struggling. There continues to be an increase in bread winning mothers who have mouths to feed and bills to pay.
They must return to earning their usual livelihood with proper SOPs. This will not only restore normalcy in the hysterical atmosphere of the country but it will also revive the economy.
Gold: Ultimate Store of Value
The demand for gold investments has spiked as investors allocated $14.8 billion to gold in the first quarter of the year. April recorded the largest inflows for gold ETPs as $9.2 billion investments poured in. This surge in gold demand has helped the precious metal industry recover from industrial fallout in the first few months of 2020.
It has revived the trust in gold as the ultimate store of value. It’s not only a way to protect your wealth but also shield you from currency depreciation, inflation, and other economic pressures.
The investment demand from investors and central banks is expected to grow stronger by the end of the year. Short-term supply pressures, gold becomes an increasingly attractive commodity to store in investment portfolios.
Preparing for the Future
Even though states have reopened and businesses are going back to normal, there’s still a high chance that the pandemic is here to stay. WHO has stated that COVID-19 might be an endemic so we’re a long way from fully recovering from it.
Households need to prepare for times to come. Be it an endemic or a recession, it’s crucial to save money to sustain themselves in the coming years. Gold offers the perfect form of investment for a time such as this.
Want to invest in precious metals but on a budget?
You can buy gold coins or silver bullions as low as $21.38 at Orion Metal Exchange. We’ve been in business for the past 50 years and never turned a customer away because of a lack of funds. Contact our consultants for more budget-friendly investments.