Performance of Precious Metals During the Pandemic
The adverse effect of the pandemic on the global economy is no secret. The world’s top economies suffered major deficits throughout the pandemic, with regular inflation constantly sending currency rates into distress. However, one market exchange commodity that retained its value was precious metal investment.
Economy During the Pandemic
The adverse effects of the pandemic were first noticed on the stock market charts when rapid withdrawals saw the market fall by 30% in 2020. The results continued to infiltrate other major industrial sectors of the country, causing a direct economic loss of 2.9 trillion US dollars, which aided the 8% loss in overall growth globally.
This market uncertainty moved investors to consider investing in precious metals as a crucial move for constructing a safe portfolio. This is because silver and gold were noted as prudent investments in a disruptive economical year.
Performance of Gold
Gold investment managed to continue its historical feature of gaining value against a declining currency. We saw this phenomenon in the great recession, the great depression, and now during the time of the pandemic.
As the economy began to decline and the inflation risk was at an all-time high, the gold prices recorded their highest value in history, with the numbers crossing the $2000 mark. The prices managed to climb up to $1900 by the end of 2020, starting the year at just over $1500.
Along with the pandemic, other geopolitical and trade issues worldwide aided the progress. These issues included trade issues between China and the US, rising public debt, political unrest in the US, and a disrupted supply chain.
Performance of Silver
The high industrial uses of silver are the driving factor for the prices of silver. While the industrial sectors were halted during the pandemic, the hindrance in mining boosted the market prices for silver investment.
Silver grew by 65% in 2020, taking the price to a seven-year high at $29.14. The prices felt further pressured by the stimulus offered by the new fiscal year, which brought the sparkling precious metal biggest gains since the year 2013.
Performance of Platinum
Like the other members of its family, platinum soared during the time of the pandemic. The price increase of this precious metal may have been higher than any other members of its family. Platinum saw a price increase of about 90% from 2020 to March 2021.
The initial decline in demand caused a deficit of about $1,000,000, but the drastic fall in supply took the precious metal to unprecedented values. The value grew to $1305 from the initial figure of $1059. However, the volatility of platinum continued as the shift in the balance of supply and demand tweaked the surplus charge.
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