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 Replies: 16 / Views: 7,581 |
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Pillar of the Community
United States
3843 Posts |
What impact will the Coronavirus that is currently rapidly spreading through Asia and possibly the world in the coming months have on precious metals? Even if the virus doesn't have a widespread impact on Europe or the U.S. it still may crash the economy. Do you see precious metals going up as economic certainty falters and the world possibly heads into a repeat of the Great Recession?
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Bedrock of the Community
Australia
21786 Posts |
The coronavirus has had zero overall effect on the World economy so far.
The 1918 'Flu virus killed 20 million people World wide, and that had no real effect on the gold price at the time.
An increasing Gold price is mostly dependent on poor World economic conditions.
Think about the 20 trillion dollar U.S. debt instead.
So buy or sell your PM's now if you have to, but definitely not for the reason of the coronavirus.
Instead,
worry about your health, happiness and your relationships, but not your gold.
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Pillar of the Community
United States
7027 Posts |
When I think about gold and gold prices, three things go through my mind
1) buy gold
2) save gold
3) repeat
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Bedrock of the Community
Australia
21786 Posts |
Looks like you intend to go right through and out the other side, of the coming gold price spike.
No loss, no gain.
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Pillar of the Community
United States
4333 Posts |
Gold, up as more move to a safe haven.
Silver, down as manufacturing slows.
When I listen to LED ZEPPELIN...so do my neighbors...
Roll hunting since '77
Dirt fishing since '72
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Pillar of the Community
United States
1026 Posts |
If I may adjust my answer slightly ..... while my Kitco experience was good, I recently made a purchase from SD Bullion and was very pleased. Plus they have free shipping on orders over $100 (at least currently). |
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Pillar of the Community
United States
2023 Posts |
Found this article on the topic yesterday: "Dillon Gage, a world leader in physical precious metals, explains why the coronavirus epidemic ravaging China may send gold futures prices to seven-year record highs above $1,700 an ounce and up." Still one person's opinion; still anyone's guess. http://news.coinupdate.com/dillon-g...cts-on-gold/ |
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Pillar of the Community
United States
3343 Posts |
Sell gold when you need to. Buy gold when you can afford it.
Coronavirus is unrelated, at least on the surface. But it has affected world trade and travel. Gold is sensitive to disruptions in equities, which are doubtless affected in China right now. Petrochina for instance is down over 30% since the beginning of the year.
"Two minutes ago I would have sold my chances for a tired dime." Fred Astaire
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Pillar of the Community
United States
5826 Posts |
Hoping gold goes up, and a vaccine to cure this virus soon, but this vaccine will worth more than the weight of gold.
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Bedrock of the Community
Australia
21786 Posts |
A very effective vaccine will certainly drive the gold price back down, to where it was, before the corona virus threat started.
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Moderator
 Australia
16826 Posts |
In an absolute worst-case scenario and a global COVID-19 pandemic wipes out 2% of the world's population, there would be a slight decrease in the price of gold, due to reduced demand.
In the years following the Black Death in Europe in the mid-1300s - a far more lethal plague, with a 30% to 50% death rate - the price of land and physical assets plummeted. Cities were emptied and farms abandoned due to a lack of people. Trade stagnated as the survivors re-learned to feed themselves with locally produced goods, plus a resurgence in paranoia and fear of strangers meant that traders would not be welcomed. Noblemen were forced to actually pay their labourers to stay on the land, rather than rely on the ancient feudal system to keep the serfs working for free; wages soared due to the resultant scarcity of labour and a de facto rapid inflation set in as the value of money collapsed. Gold, being a form of money at the time, was part of that monetary collapse.
It's even speculated that the sudden reduction in agriculture and mass re-forestation of former farmland across Eurasia may have helped decrease carbon dioxide levels and accelerate the advent of the Little Ice Age in the 1400s. So for the worry-prone, it means that the world might be heading towards a global pandemic, or global warming, but probably not both at the same time as those two apocalypses tend to cancel each other out.
Don't say "infinitely" when you mean "very"; otherwise, you'll have no word left when you want to talk about something really infinite. - C. S. Lewis
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Pillar of the Community
United States
1590 Posts |
I think it will actually lower prices, and I believe we are seeing it now.
The reason is that Chinese demand has gone down as people who would normally buy, in China, are not; for a variety of reason. Not least of which is probably a decreased access to the internet.
Note also that Crude futures are tanking now due to lower demand from China, as cities and areas are quarantineed. I just paid $1.94 for gass today. That is with a recent ten cent tax increase.
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Pillar of the Community
United States
819 Posts |
And on the West coast I just paid 3.29 a gallon.
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Pillar of the Community
United States
5207 Posts |
Quote:
And on the West coast I just paid 3.29 a gallon. And when I checked 2 minutes ago gold dropped $100 an ounce and silver $2 an ounce and platinum the same from this morning. I had always been told when the market crashes metals go up and vice versa. I guess not. |
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Pillar of the Community
United States
4333 Posts |
Quote:
I had always been told when the market crashes metals go up and vice versa. Not in today's highly rigged markets. When I listen to LED ZEPPELIN...so do my neighbors...
Roll hunting since '77
Dirt fishing since '72
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Pillar of the Community
Canada
5239 Posts |
Someone has speculated that silver, being partly an industrial metal, dropped in price due to the coronavirus causing an industrial slowdown.
True or not, the experts' prognostications aren't particularly good, so this seems as plausible as theirs.
My LCS is not making any bulk sales of bullion at the moment, so bargain hunters may not be able to buy.
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Replies: 16 / Views: 7,581 |
Posted 02/22/2020 12:05 am
