Table of Contents
- The Facts About Gold and Silver Prices
- Gold and Silver Prices Began to Appear in Currency
- Why Do Gold and Silver Prices Rise and Fall Everyday?
- Why are Gold and Silver Prices Falling while Stock Prices are Plummeting?
- The Current Price of Gold
- Do you Know Central Banks Liquidity Crisis Post Coronavirus?
- Why Do Gold And Silver Prices Fluctuate?
- PRICE OF GOLD UPDATE 13/01/21:
- Current PRICE OF SILVER UPDATE 13/01/21:
- Gold and Silver Prices Ratio
- What Should You Buy Silver or Gold?
- How Correlated Are Gold And Silver Prices?
- Is Gold a Safe Haven?
- What About the Retail Market for Gold & Silver Bullion?
- Do Gold And Silver Prices Move Together?
- Gold Prices News from Bullion Market
- Different Trading Venues of Silver and Gold Prices
- Calculating the Price of Gold
- Buying Investment Gold
- Gold ETFs
- Gold Mutual Funds
- India Has Major Gold Jewelry Market
- Regardless of where Gold is Traded
- Investors Look Back at Gold Prices
- What is the History of Gold and Silver Price?
- What is About Paper Gold?
- How to Buy Paper Gold?
- What is Gold Fluctuations?
- 1929 – the Stock Market Crash
- A Diversified Portfolio of Gold
- Silver to Outperform Gold?
- What is the Gold Prices in This Year?
Why are gold and silver prices falling right alongside stocks post Coronavirus? Usually gold silver prices do the opposite of what stocks do.
If stocks go down most of the time gold goes up, and if stocks go up, usually gold goes down. Its all pretty predictable because gold and silver are physical tangible assets.
Keep reading to know the current price of silver and gold in this pandemic situation.
The Facts About Gold and Silver Prices
That is why gold and silver have always been a great balance in any investment portfolio. Gold has always been a symbol of wealth and is considered to be one of the most precious metals in the world.
This soft amber metal is respected globally for its value and has been sacred in many cultures since the beginning of time.
Gold and Silver Prices Began to Appear in Currency
Coins containing gold and silver prices began to appear in currency around 800 B.C and this precious metal has been used to trade since time immemorial.
Even though gold used as money isn’t part of our daily lives today as it once was, most of the leading nations of the world hold gold as a fiscal insurance policy.
Gold is a type of permanent national wealth and while paper money can and has become obsolete in many societies due to inflation, current price of gold does not and always holds its value and more importantly it’s buying power.
Why Do Gold and Silver Prices Rise and Fall Everyday?
Every day, gold is trading in markets around the world, with each market reacting to news as it happens. The Gold and silver prices are set and reset by the constantly changing supply and demand factors by all those who trade in gold each day.
The gold and silver prices market amounts to billions of dollars every day and every day the price is changing because of the hundreds of factors that influence its price.
So why is this different? Traditionally gold silver prices do the opposite of what stock prices do such as JM bullion and provident metals.
So why are gold and silver prices falling at the same time stock prices are falling? Is it the coronavirus?
Why are Gold and Silver Prices Falling while Stock Prices are Plummeting?
The last time the bullion industry saw large-scale gold and silver prices drop at the same time stock prices plummet, was during the financial crisis of 2008. Many people are wanting to know why, with demand being so unprecedented, why are gold and silver as well as other precious metals prices are falling?
The answer lies in the liquidity of the financial system as a whole and how gold and silver price contracts are used.
The spot gold price is the current price of gold per ounce as contained in gold bars of 100 and 400-oz which are traded on the commodities exchange. With silver, it’s the cost of 1 oz silver in a 1000 oz silver bar.
The Current Price of Gold
The current price of gold is somewhat different from future gold and silver prices where parties have to transact an asset at a pre-determined future date. Large traders such as central banks, mining companies, etc buy and sell futures contracts for hedging, physical delivery, or long/short exposure.
The prominent gold trading centers, according to the World Gold Council, are the US futures market such as COMEX, the London OTC market, and the Shanghai Gold Exchange made up of more than 90% of world trading amounts. Gold prices are complemented by smaller market centers.
If gold and silver prices are going up usually stock prices are going down.
Do you Know Central Banks Liquidity Crisis Post Coronavirus?
Private equity holdings and real estate aren’t liquid while gold silver and other precious metals, for instance, are highly liquid. So to raise cash to meet margins, gold and silver price positions are sold off by all the major banks.
In financial markets, no one can do without cash and small businesses won’t be able to borrow and the coronavirus has the means to bring on a liquidity crisis.
Cash is king. It is why, despite new dollars being injected into the system, the value of the dollar is rising.
Why Do Gold And Silver Prices Fluctuate?
All over the world, bankruptcies and defaults are rising and dollars will evaporate from the financial system, resulting in deflationary pressure and more stimulus to offset the existing dollars existing with gold and silver prices.
Regardless of the amount of gold and silver prices you have, whatever payments you need to make – rent, taxes, groceries – you will have to sell your gold if you want to purchase dollars, the only tangible means of exchange.
PRICE OF GOLD UPDATE 13/01/21:
The spot price of gold has bounced back to pre Coronavirus levels for the most part. Gold prices were at $1677 on March 9th then dropped all the way down to $1482 on March 18th. Today April 2nd, 2020 the spot price of gold looks to be holding steady at $1640.
Should I Buy Gold or Silver Post Coronavirus?
The Covid-19 Pandemic has presented a Silver Buying opportunity. This update was written on April 2nd, 2020.
Since the price of gold has mostly recovered to Pre-Coronavirus gold price levels, but the price of silver has not, I believe silver is a much better buy. I believe a healthy gold to silver ratio should be around 50 ounces of silver to 1 ounce of gold.
However, the gold and silver prices ratio has been floating around 80-90 ounces of silver to 1 ounce of gold for the last few years, which in my opinion is still too high.
Current PRICE OF SILVER UPDATE 13/01/21:
Silver is a different story, as the spot price of silver has not completely recovered from the current price of silver by Central Banks silver sell-off to meet margin calls due to fears from the Covid-19 pandemic and the potential of historically high unemployment rates.
The price of silver reached $18.61 on February 24th then bottomed out at $12.12 on March 19th. Since then silver has rallied a little to $14.67 on March 24th, but has not fully recovered to its pre Coronavirus silver price and has hit a stable plateau for the past week and a half. Today is April 2nd and the spot price of silver is $14.40.
Gold and Silver Prices Ratio
Post Coronavirus the gold and silver prices ratio topped out at 122 ounces of silver to 1 ounce of gold on March 18th, 2020, but the more surprising news is gold/silver ratio has held steady well above 100 since then and is at 111 ounces of silver to 1 ounce of gold as of today April 2nd, 2020.
If you look closely at the past year in the gold and silver prices ratio chart below you can see that the ratio has held steady above 80 ounces of silver to 1 ounce of gold. It approximately at those levels for the past 5 years. Now notice the drastic spike in the gold to silver ratio soon after the Coronavirus pandemic started.
Gold and silver prices ratio chart supplied by Hero Bullion.
What Should You Buy Silver or Gold?
It essentially means silver is ON-SALE and I’m buying as much as I can without putting my family in a tough situation financially during the fallout of the Covid-19 Pandemic.
Obviously, cash is king right now during the coronavirus pandemic, so be sure not to buy so much silver that you are going to need to sell over the course of the next month.
How Correlated Are Gold And Silver Prices?
But if you have extra cash laying around and you’re not worried about running out of money in the next 6 months due to the pandemic, BUY SILVER NOW! You should buy as much silver as you can with your disposable income, or income you have designated for investment opportunities.
Just to be clear one last time: Do not spend your mortgage payment on Silver. Pay your mortgage… But if you have extra money to spend, my money is on silver.
Is Gold a Safe Haven?
Every investor expects gold to retain its value during market turbulence and investors look for a safe haven to limit their exposure to losses. In these turbulent times, why is gold looked upon as a safe haven asset? The strength of gold is based on the speculative gold prices in dollar terms.
As in 2008, when gold fell so drastically, gold’s value is increasing and you have to use less gold to buy the same amount of dollars inequities.
Once the global market sell-off eases and the demand for the dollar also eases, gold, as well as other precious metals, outperform just as in 2009 – 2011 when gold rose from $740/oz to $1900/oz and silver from $8.50/oz to $50/oz. Silver is more volatile than gold and today you see that the gold: silver ratio at an all-time high.
What About the Retail Market for Gold & Silver Bullion?
The biggest domestic supply of retail bullion in the US is the United States Mint. In 2019 that produced 120,000 Gold American Eagles and 61,500 1 oz American Gold Buffaloes. While there is a robust secondary market, with new products.
The total value of new-minted gold was $281M in 2019, using an average $1550 gold spot price. Each business day, gold production amounts to a little over $1M.
On the different gold exchanges around the world, the speculative value of estimated gold trading each day is $100 billion. Yes, gold is being produced by other mints for the retail market and the retail gold market globally is more than $1m/day, already been previously minted doesn’t mean a new demand.
Do Gold And Silver Prices Move Together?
It is only gold that is newly minted that will affect the gold and silver prices spot market.
If the US Mint were to increase output 10x immediately, they would still only be producing $10M in gold coins each day in a market that trades $100B per day. If all the mints of the world were to produce $1B of newly minted retail gold product each day, it would still only represent 1% of global trading volume each day.
Is the price of gold manipulated? Who knows? These are the sort of arguments that one might have and want to consider at another time, but today they aren’t directly relevant as to why gold silver prices aren’t moving today because of retail gold coin demand.
Gold Prices News from Bullion Market
When you get gold news like, when gold produced positive returns in 16 of the last 19 years, that gold doesn’t have a political preference, or that gold doesn’t need inflation to appreciate, you begin to realize that you need to be up to date with news on gold if you’re an investor or interested in trading gold.
You have to be updated on news relating to gold prices because whether or not it has performed well in the past, the question remains – will it perform well in the future?
Nothing in the finance world is certain and you need to be keeping a constant eye open for how gold is priced.
Do you Want to Invest in Gold and Silver?
This means that your investment decisions are made from being informed and up to date. If you’re on Facebook, for instance, you can even get pop-up notifications when you have your web browser open on your computer.
You can get notifications and stay up to date on gold by checking out these notifications that pop up in the corner of your screen. The Internet is ideal for getting up to the minute gold and silver prices news and updates and the price of gold comes from reliable sources with a good track record in forecasting gold silver prices.
What is the Relationship between Spot Price and Future Price?
There are plenty of websites that bring you all the latest live gold news, data analysis, information, and headlines so that you can keep up to date with gold market news from around the world.
Often times analysts don’t quite fathom how markets work. A bull market starts slowly and gathers momentum. Some experts suggest that in terms of silver and gold prices, the gold prices forecast shows a slow start in 2020, and its price rising to $1,750/oz in 2020.
Different Trading Venues of Silver and Gold Prices
It is possible to invest in the precious metal through brokers or on the stock exchange in the form of gold funds, gold certificates, or gold ETFs, without receiving physical gold.
The most important trading venues for trading in gold are London, New York, Zurich, and Hong Kong with the most important stock exchanges being –
- The New York Mercantile Exchange (COMEX)
- The London Bullion Market Association (LBMA)
- The Tokyo Commodity Exchange
- The Korean Futures Exchange
- The Chicago Board of Trade
- The Euronext/LIFFE
- The Bolsa der Mercadorias e Futuros.
You can say that if you are interested in investing in gold, the first part of gold investing will be understanding how the price of gold works. The price of gold is set by a benchmark known as the London Gold Fixing. This is a meeting of representatives from 5 bullion-trading firms who have a telephonic meeting twice a day.
There is active gold trading based on the intra-day spot price and which comes from the gold-trading markets as they open and close during the day.
Gold trading is done around the clock and there is always an open market, making access to live gold prices more important. Live gold and silver prices enable investors to monitor price activity, and also provide information to make buying or selling decisions. Live gold and silver prices indicate the spot price for gold.
Exchange-traded futures contracts are used to provide the price of gold explained spot. These spot prices of gold are always changing, which means that there will be different legitimate spot gold prices just in one day.
The price you see in your newspaper is most likely yesterday’s closing price, and other sources will also vary in terms of how up-to-the-minute they are. The U.S. Comex gives you up to gold and silver prices the minute price from the U.S. Comex trading exchange. Live gold prices are always updating and can provide price information for the spot gold market.
Knowing prices is important for any market, and gold doesn’t only have a spot price, but the LBMA gold price as well as regional prices. The LBMA gold price is used throughout the gold market, while regional gold prices are important to local markets.
Calculating the Price of Gold
If you want to calculate gold prices you’re able to calculate it using all weights such as gram, kilogram, karats, etc as well as all currencies of the world. A gold price calculator is based on the spot gold price and you’re able to view all rates in the local time of the country you’re in.
These tools are an essential tool for people to estimate the value of real-time gold in any karat and currencies of the world. If you know the purity, weight unit as well as your desired currency, such as the dollar, pound, rupee, etc, you simply include this information in the dropdown list to see the latest real-time gold rate calculation in your provided currency.
Whichever calculator site you choose, you will get a description of how to use this calculator of silver and gold prices. It’s a free service to calculate the value of your gold.
Commodities of Gold Prices
Ultimately, the price of gold is driven by supply and demand, but unlike other commodities, hoarding and dis-hoarding play a large role in affecting the price as the gold that has been mined still exists and can actually flood the market at the right price.
Because of the quantities of hoarded gold as compared to what is produced each year, the price of gold is essentially affected by changes in sentiment as opposed to changes in annual production. Investors buy gold as a means of diversification or for emotional reasons.
Gold has maintained its value throughout the ages and people have always looked upon gold as a means to preserve wealth. Generally, when the value of the dollar increases, the price of gold tends to fall in U.S.dollar terms. This is because gold becomes more expensive in other currencies.
As the price of commodities rises, there are fewer buyers and demand diminishes. silver and gold prices provide insight into the state of U.S. economic health and when silver and gold prices are high, it means the economy is battling. Investors buy gold as protection from inflation.
How Gold is Affected by Many Factors?
Gold has recognized the world over for its investment value and we all know how it is used in jewelry making as well. As a global market, silver and gold prices can be affected by a host of factors, some of which are –
- Jewelry demand
- Equity markets
- Interest rates
- Monetary policy
- Risk aversion
- Investment demand
- Currency market
Buying Investment Gold
There are a number of means for investing in gold – gold mutual funds, certificates, gold coins, mining stock, gold accounts, Gold ETFs, and options or futures.
Cold Coins of Gold
Many financial experts say that gold coins are the best way to start investing in gold. By starting out with gold coins, you avoid all the difficult aspects of gold investing and simply move straight into having an ounce of gold in your hand.
Some of these 1 oz. gold investment coins are among others –
- The American gold eagle
- The British Britannia coin
- The South African Krugerrand
- The Canadian maple leaf coin
- The Austrian Gold Philharmonic coin
- The 1 oz gold buffalo
Gold bullion coins are the most liquid and accepted form of gold bullion worldwide, and they are seen as the smartest way to buy gold.
The first gold EFT made its appearance in 2004, and since then, there are a number of ETF products. Like mutual funds, they offer diversification but there are also ETFs that don’t behave like traditional mutual funds.
They don’t hold a portfolio of stocks but rather physical assets such as the different gold exchange-traded funds, which hold gold bullion and thought to be just second to physical gold. Gold ETFs are sought after because of the ease of trading the fund.
With gold mining stocks you need to stick with mining companies that have a positive cash flow and strong balance sheet in silver and gold prices.
Gold Mutual Funds
These are attractive to the investor who isn’t able to buy physical gold but you still get a variety of gold-mining stocks. Mutual Funds are a portfolio of shares pooled by many investors. A Gold Fund is a mutual fund that invests mainly in gold bullion or gold-producing companies.
Gold funds can be a good investment tool for those wanting to protect their capital against inflation or political instability.
This is an of paper guaranteeing the holder a certain amount of gold. Between 1882 and 1933 gold certificates were used throughout the U.S. but it eventually was not legal to own gold in 1933 and all certificates were withdrawn from circulation.
India Has Major Gold Jewelry Market
Gold is typically denominated in U.S. Dollars, which means that the value of the dollar can have an impact on the live gold price. As the dollar strengthens, it has the means to make gold more expensive for foreign investors, and this, in turn, drives down the price.
If the dollar weakens it can make gold less expensive for foreign investors, driving prices higher in the process.
Gold can also be affected by the demand for jewelry, and India has a major gold jewelry market so that when demand for jewelry is strong, gold prices can rise, and when jewelry demand is slack, the result is weaker gold prices.
Interest rates too also drive gold prices. Higher interest rates can make holding gold more costly and lower interest rates can have a positive effect on gold. This is because lower rates lessen the potential opportunity cost of holding gold, making it more attractive to investors.
Regardless of where Gold is Traded
An ounce of gold remains the same. Most major gold markets use live gold prices denominated in U.S. Dollars. Fluctuations in currency values can make gold more or less expensive for investors using other currencies.
The gold price today in India was up 0.27 percent to Rs 39,624 per 10 grams. On 19 March 2020, there was a gold price drop today as prices saw a sharp fall in Indian markets. Gold has created a special niche for itself and it’s a tradition to buy and store gold for marriage for instance.
Gold rates in India depend on a host of factors such as local tariffs and international gold prices. The main reason that gold prices go higher, however, is the international prices, as when these go higher, gold rates change. When inflation goes higher, gold prices tend to fall.
A big factor determining in India is the currency movement of the rupee against the US dollar. The United States has the highest gold reserves in the country and when central banks buy gold it affects gold prices across the globe including India.
Investors Look Back at Gold Prices
Examining historical gold prices can be useful if you want to identify patterns. When the stock market flounders gold becomes the gold standard for investors. With fears around the coronavirus, this metal has been trading at its highest levels since 2013 causing investors to retreat to a safe haven.
Investors are wanting to know all the latest on gold prices – they want the gold price chart 30 years, they want to know gold price history 10 years, gold price history 2018, and also where are gold prices headed. An excellent website is measuringworth.org/gold/ as this site provides the historical gold prices for certain periods and markets.
Gold Price Backwards from the Market
For instance, you can get gold and silver prices ratio for the years 1687 to 1998, you can get British official prices for the years 1257 to 1945, London market prices for the years 1718 to 2001 and others. You’ll find a lot of useful information on historical gold prices as well as gold price charts. You can look at gold’s price history and look at gold prices in different currencies as well.
Looking at historical gold prices can give you information that can help you in your buying or selling decisions. Gold trended higher for many years before its all-time highs in 2011 of nearly $2000 per ounce.
You can also look at historical gold prices on a much smaller time period – from 10 minutes to 3 days to 30 days to 60 days and more, all depending on your investment objectives. If you just want to buy and sell gold, you may want to look at the hourly or 6-hour charts, and for investing in fold long term you may want to be looking at longer time frames – weekly, monthly or yearly.
What is the History of Gold and Silver Price?
You may want the daily gold price history and there are many reputable gold companies in the United States which provide this kind of information to those interested in purchasing gold. These companies will provide you with pricing and availability on all precious metals coin and bullion products and they provide you with links for everyday pricing.
The current month is updated on an hourly basis with the day’s latest value. For instance, the current price of gold on March 20, 2020, was $1,490.30 per ounce. The price of gold per pound is also updated every minute. The data, for instance, comes from the gold price in US dollars converted at the exchange rate of the USD/GBP pair.
Although past performance isn’t always indicative of future results, gold’s price history can give you ideas as to where gold could be headed, although who could ever have predicted the impact of gold with the coronavirus? Looking at past gold prices, investors may be able to spot up- or downtrends as well as spot tradable patterns.
What is About Paper Gold?
Then again there is paper gold too which means that a piece of paper is a substitute for physical gold. You don’t own the gold, but rather a promise to receive physical gold. You’re a creditor of the corporation that issues the paper gold certificate.
Paper gold reflects the price of gold while not actually being gold itself. Examples of paper gold are gold certificates issued by banks and mints, giving you exposure to the gold price and you can make a profit by selling them to someone wanting paper gold.
The advantage of paper gold is that you don’t require storage costs. Investing in physical bullion requires a safe or choosing an institution that stores the metal for you. By buying paper gold, you avoid the bother and costs of storage.
The benefit of paper gold is that you’re able to invest in gold even if you don’t have sufficient capital to buy even an ounce of gold. This is because ETF shares usually reflect less than one ounce of gold and if you don’t have money to buy an ounce, ETFs are a possibility.
How to Buy Paper Gold?
You’re exposed to counterparty risk which isn’t too much of a risk if you use only a small portion of your capital for purchasing paper gold, but if a large amount of capital is at stake it becomes risky.
If you invest in gold ETFs it is important to choose funds that allow redemptions in gold or those that have their shares backed by silver and gold investment.
Oversupply of paper gold can also have an adverse effect on gold prices. Shares in gold EFTs allow investors to hedge their wealth through investing in gold, but without taking physical possession of any metal. It can work for some investors, but there is risk involved as it is unlikely the number of shares issued can be matched by the equivalent amount of physical gold.
What is Gold Fluctuations?
The dollar may well be one of the world’s most important reserve currencies, but in times of uncertainty, such as when the value of the dollar fell against other currencies between 1998 and 2008, people look to gold and this then raises the price of gold.
There are many factors that contribute to the fluctuation in silver and gold prices such as investor behavior as well as supply and demand. When you look at the gold price history, you’ll see that the price of gold is influenced by a host of social, economic, and political factors.
All these things can cause the gold and silver prices to fluctuate. But be that as it may, there are also patterns when we analyze the fluctuations. There are a few things that affect the price of gold – supply, demand, and economic and political changes. The economy has a huge impact on gold’s price.
Throughout history, there have been many events that have shown us this. It all started way back when, in 1948, the gold was discovered at Sutter’s Ranch, inspiring the Gold Rush to CA as well as the union of western America. The first United States paper currency was printed in 1861. That was the start of the gold standard.
1929 – the Stock Market Crash
In 1929, the gold price went from USD20.67 an ounce to USD35 an ounce in the year 1934. The economy was bad and the Federal Reserve was working to preserve the gold standard. The crash of the stock market in the year 1929 sparked The Great Depression.
Trading on the New York Stock Exchange was still spiraling upwards in a bull market and hundreds of thousands of small investors poured their money into Wall Street with abandonment.
Everybody knows 1929 as the crash that brought investors to a sudden, terrible end with some losing as much as 40 million dollars so that they had to file for bankruptcy. Look at this financial crisis as an example, when gold leaped up to record levels with investors fearing a complete global economic meltdown.
Before 1933, the value of the US dollar was determined by a gold price of $20.67 per ounce. It was in 1934 that President Franklin Roosevelt devalued the dollar, fixing gold at $35 per ounce, a price which held till the collapse of the international monetary system in 1971.
President Roosevelt endorsed the Gold Reserve Act, making it unlawful for people to own gold in most maximum forms. Because of this Act, people had to exchange their certificates, bullion, and gold coins for USD20.67 per ounce in paper money, helping the federal government to boost their gold reserves.
How Money was Printed and the Economy?
The drop in the price of this metal since the year 2012 is attributed to the fact that when Asia gets in crisis, so is gold. This is because this continent accounts for the considerable majority of consumption of this precious metal.
Some years ago, London inventories were apparently about 3 years’ mine supply. A drop in Asian buying left the business with excess inventories resulting in a collapse of prices. Surplus inventories of London have now, to a great extent, dissipated, which is one of the reasons to consider that as the growth in Asia recovers, the price of gold may appreciate significantly.
The silver and gold prices drop when investors are feeling secure. Investors feel more confident about the success of speculative investments. Investors looking to benefit from an income from their assets may well be drawn to speculative investments in companies that are private because of the potential for large returns.
A Diversified Portfolio of Gold
Historically silver and gold prices excel most of the time but as with any investment, it’s important to consider the time frame of investing but to also look at market research to fathom out how markets will perform.
Gold has had its ups and downs but it has always rallied but still, its price fluctuates according to different factors in silver and gold prices. With all investment portfolios, diversification is important, and investing in gold diversifies a portfolio as a risky asset class.
So it wouldn’t be wise to invest only in gold, but because it is seen as something of wealth, you shouldn’t just dismiss it either as an investment option. Investors always turn to gold in difficult times when they are afraid, which boosts its value when other assets are falling in silver prices.
However, it needs to be paired with a diversified portfolio if you want to reap the benefits. There is always that question of how to own gold, but if you take some time to get to know gold you may well find that it isn’t as risky as some people think and certainly should be part of your diversified portfolio.
The End of an Uptrend Period?
The gold price in the USA per ounce is 1,597.10 in March 2020 and the price of gold 14k $26.62. Increased volatility has seen traders looking to invest in gold as a traditional safe-haven asset, but gold isn’t doing well and appears to be at the end of an uptrend period.
There is continued volatility across the financial markets with US stocks plunging to record lows in their prices. Traditionally, gold tends to go up in times of trouble but there has been an unprecedented swing in gold and silver prices in recent days with gold down to a low of $1,469 on March 16, the worst level since mid-December.
Gold rose again when the United States suspended travel from Europe. In fact, the yellow metal’s gold and silver prices rose to the highest level in 7 years as investors sought safe-haven assets after a rise in new coronavirus cases. And added to the woes of the global economic impact of the outbreak. With the virus hovering and deteriorating, it can go even higher.
The gold price forecast was first thought to be $1,600 an ounce gold by mid-2020. Now financial experts are projecting a rise to $1,700 and then soon after that to $1,750. Gold is being used as a strategic allocation to protect a portfolio of the likes of the outbreak and de-dollarization.
Silver to Outperform Gold?
When the price of gold and silver increases, people look at other precious metals such as silver. The supply of new silver each year is about 1 billion ounces while gold is about 120 million ounces.
While the silver market appears to be much bigger than gold, silver’s price is lower, making the value of yearly supply smaller than gold’s. At the current price of gold and silver, the annual gold supply is much bigger than silver.
Gold and Silver Prices Comparison this Year
Silver is more volatile than gold, taking a small amount of money to have a greater impact on its price. Most times silver will rise more than gold on up days, and on down days, it will fall more than gold.
Some financial experts tell us that in 2020 silver could outperform gold. Then again others say that the price of gold and silver rising volatility through financial markets will see the lower price of gold and silver today and for the rest of the year. It is expected that silver prices will average around $16.60 an ounce in 2020, down from the previous estimate of $17.10.
What is the Gold Prices in This Year?
Gold news now is full of how the coronavirus is taking its toll on global growth with oil and metal prices falling but gold prices are soaring and will gold prices go up even further is a question every investor is asking with the flight to safety pushing gold to even newer highs.
Bullion prices have risen with fears surrounding the virus, and there is speculation that the U.S. Federal Reserve will ease monetary policy if the global impact worsens further.
Gold has an ancient history as always being the currency of choice. The gold price last 5 years has been more or less steady but during the corona virus the price of gold has surged and risk aversion is high as markets attempt to price in these fears.
Gold has always been on an up-trend in recent years. The virus has led to a spike in volatility and some investors are rushing to gold as it fulfills its traditional role as a safe-haven asset.
Know more about the latest news and information on gold and silver from our Gold and Silver Bullion section.