Precious Metal FAQs: COVID-19 Edition
Every pandemic has grave economic implications. The length of the COVID-19 pandemic has caused American gold investors and other precious metal investors a great deal of anxiety.
Gold is currently experiencing a wide gap between supply and demand, and is being purchased in both paper and physical forms at record-breaking levels.
To put the minds of our investors at ease, we’ve compiled a list of frequently asked questions that will assist you in your precious metal investments during this time of global unease.
Should I invest in gold during the pandemic?
The US Mint temporarily shut down its West Point facility in New York, thereby stopping the production of platinum, palladium, gold, and silver bullion coins.
It’s not just the US Mint, either; many mints around the world have halted production to guarantee the safety of their employees.
It’s only a matter of time before gold supply tightens, and you want to get your hands on gold before that.It’s a good time to take advantage of the fact that gold prices are expected to go even higher.
Should I invest in silver during the pandemic?
The demand for silver has also increased since the pandemic began. In March, the US Mint reported sales of silver coins of 4.83 million ounces, which is almost four times greater than the monthly average of 1.24 million ounces last year.
Physical silver’s resurgence in demand is also due to its price being at its lowest since April 2009. At these low prices, the returns on silver are promising due to its proposed use in infrastructure post-pandemic.
How do I invest in precious metals when there’s a shortage?
Gold investments during the pandemics are mostly being made in the form of gold futures or through exchange traded funds that are backed by physical gold.
There isn’t really a shortage of gold—there’s a shortage in ounce bullions or kilogram gold bars that investors usually buy. The gold vaults at banks such as HSBC still contain 400-ounce bars, but these are of no use to an investor.
However, Orion Metal Exchange is in possession of a variety of gold and silver single-ounce bullions, including the Gold American Eagle and Silver American Eagle ounce coins. We offer safe and easy shipping to get your precious metals to you.
We’re a gold and silver investment company that cares about the financial security and well-being of our investors. At Orion Metal Exchange, we offer secure gold and silver storage for all our investors. Contact us today to learn more about our services.