The Stock Market Collapse and How Precious Metals Can Help
In times of economic uncertainty, when investors lose their risk appetite, precious metals become one of their favorite safe haven values. In the financial markets, investments in precious metals tend to hold their value for long periods. Their ability to maintain much of their value in adverse situations makes them a must investment for the main financial players in any economy.
Between the risk of recession and high inflation, the global stock markets are declining, exposing investors to potential losses. Amidst this uncertainty, investing in precious metals is a great option for investors to hedge their losses.
Let’s find out how precious metals maintain their value and can help you when the stock market collapse!
Why is there an Upward Trend in Precious Metal Prices?
The price of gold has increased by more than +58% over the last 5 years. The troubled geopolitical context has taken the price of precious metals to new heights, with records in gold prices exceeding $2,000 an ounce in 2022. As for silver, its price has also experienced a notable growth at around + 45%. This price hike is expected to continue in the future.
Concerning platinum and palladium, which we mainly find in vehicle catalysts, the new regulations on pollution from thermal vehicles should support demand for these two metals.
Returning to precious metals, the price of gold is following an upward trend over the long term. The resurgence of inflation that we are currently facing is continuously increasing the price of precious metals.
Let’s also not remember that onshore stocks of mineable gold are estimated to be between 10 and 15 years old. This situation of long-term shortage should also generate strong upward pressure on gold prices while its demand remains vigorous.
How Precious Metals Can Help You in Times of Crisis?
Precious metals are known throughout the world for their great value, but only some understand the role that the price of precious metals has in the global economy. They have always attracted investors for their relative stability and upward trend over the long term, particularly when the financial markets are uncertain.
These special raw materials, especially gold, are safe havens for investors in times of crisis. They are reassuring tangible assets that offer stability when all other investments seem risky, such as stock market prices which fluctuate, or currencies that can experience inflation. Therefore, many investors flock to precious metals, driving up their prices.
Research indicates that an investment portfolio with precious metals has higher returns and lower risk than a portfolio without them. Also, investing in precious metals, such as gold, silver, and platinum, can protect investors against stock price volatility.
Precious metals investment presents a low correlation and makes it an attractive instrument in periods of economic mismanagement or financial crises, the main characteristic of emerging markets.
Moreover, if you keep an ounce of gold for an eternity, you will always have an ounce at the end. Thus,investing in gold coins is the safest bet in this time of uncertainty, holding their values well and offering solid gain.
Reach Out to a Trusted Precious Metals Investment Dealer Today!
Considering the rise and fall of the price of precious metals, the recent fluctuations recorded, and the current macroeconomic context, precious metals investment is undoubtedly a safe haven. If you’re looking for a trusted precious metals exchange dealer, Orion Metal Exchange is the one you can count on.
Orion Metal Exchange has been a trusted partner of investors for years, where they can buy, sell, or exchange precious metals.
Visit our website and select from our wide range of precious metal products-gold, silver, platinum, and palladium products- and expand your precious metals investment portfolio.
