How Did Precious Metals Perform During the Pandemic
Precious metals such as gold, silver, platinum, and palladium have always been popular among investors. Owing to its stable nature and long-term profitability, investing in precious metals helps investors safeguard their fiat currency in times of uncertainty.
As was the case during the 2008 financial crisis, precious metals also saw an upward trajectory during the pandemic. In this blog below, we’ll look at the gains of different precious metals, the reason behind their popularity, and the outlook for the future.
An Overview of Precious MetalsDuring the Pandemic
There is plenty of research and data that shows precious metals were a prime choice for investors during the pandemic. Here’s how different precious metals are performed.
Gold reported an all-time high during 2020 and crossed $2,000 per troy ounce. This exponential growth was similar to the 78 percent gain gold witnessed during the 2008 recession.
Close behind, silver prices, too, saw a seven-year all-time high as the demand for silver grew by 65 percent.
Platinum reported an increase of ten percent in its prices as the unprecedented pandemic lockdown halted the global industries.
Palladium is another Platinum Group Metal (PGM) that soared in demand during the COVID-19 pandemic and witnessed a 20 percent gain in its price.
Why the Popularity?
While the industries were closing down, stocks were toppling; what drove the upward trajectory for precious metal companies?
Unlike stocks that saw a dip during the pandemic year, the stable nature of precious metals kept the investors’ trust. Stocks and real estate, known for their volatility, therefore sank compared to precious metals.
Hedge Against Inflation
Whenever a currency loses its value, precious in that country takes a hike. The same case was witnessed during the pandemic as investors turned to buy gold bullion bars and silver coins to protect themselves against expected inflation.
Means to Secure Wealth
As investors and businessmen feared losing the value of their currency, buying precious metals seemed to be a smart move. This helped many around the globe protect their wealth against possible currency declines.
What Does the Future Hold?
Here’s what the situation looks like for precious metals from 2021 and onwards.
Gold Continues to Rolls
Gold has a long withstanding position in the global market. It’s expected that gold will continue to dominate the precious metals market with a large production volume and high demand.
Silver Gains Momentum
Silver is ready to become the most sought-after precious metal as the industrial use for the metal accelerates.
Invest in Precious Metals Today
If you’re looking to avail the benefits of investing in precious metals, then reach out to us at Orion Metal Exchange. We’re a precious metal dealer offering precious metals investment companies, storage, and precious metals ira services.