The global pandemic has taken a significant toll on the economy. While we’re shifting back to a return to normal at the moment, it should be noted that not every commodity was affected negatively by COVID-19. In fact, popular forms of bullion like gold and silver have done remarkably well, which wasn’t unexpected. The professionals from First National Bullion and Coin, San Diego gold and bullion dealers with years of experience collectors can rely on, explain how the pandemic has affected the value of bullion.
Bullion Has a History of Performing Well during Uncertain Times
Gold and silver are the top precious metals that tend to perform extremely well in terms of value during times of economic uncertainty. This is something that has happened many times throughout history. During the financial crisis of 2008, the price of gold spiked by nearly 80 percent.
Similar Results Were Seen during the Pandemic in 2020
According to Forbes, gold rose by close to 8 percent during the early days of the pandemic in 2020. During the same period, the stock market dropped by approximately 20 percent. By the time August 7th, 2020, rolled around, gold had reached an all-time high of $2,067 per troy ounce. Around the same time, silver, according to the Silver Institute, rose to its highest value in seven years at $29.14 an ounce. Platinum and other precious metals largely had only moderate price increases in 2020. The most likely reason for this is because platinum and some other precious metals besides gold and silver are on the rare side, which means smaller quantities are available for purchase.
Bullion Values Have Leveled Off in 2021
Mounting debt and other factors affecting the economy are still driving the demand for commonly sought-after precious metals in 2021. However, values have leveled off with both gold and silver in 2021. Still, values are generally higher than what’s typical during times of broad economic prosperity.
Analysts Predict a Modest Bull Run in 2022
Forbes and some leading market analysts are predicting a “modest bull run” for precious metals heading into 2022. For this reason, many of those same analysts are stating that it’s a good time to explore your options with bullion for your investment portfolio.
It’s Possible to Take Advantage of Higher Bullion Values
It should be noted not all precious metals in bullion form are expected to significantly rise in value in 2022. For instance, silver is forecast to see only modest gains going into the new year. Gold seems poised to stay at a higher value for the foreseeable future. Because of the many variables that apply to investments involving physical forms of precious metals, it can be beneficial to work with a financial advisor or investment professional as you weigh your investment options. The main drawback with higher bullion values is spending more for your initial investment. However, this can be balanced out if you know when to sell some of what you obtain. This is another reason to seek input from an investment professional.
Whether you’re a veteran gold coin collector or you’re interested in buying bullion for investment purposes, you’ll find a fantastic variety of high-quality precious metals at First National Bullion. San Diego residents who are looking to work with only the most reputable precious metals experts should give us a call at 858-666-6570 to speak with one of our knowledgeable representatives.
The statements made in this blog are opinions, and past performance is not indicative of future returns. Precious metals, like all investments, carry risk. Precious metals and coins may appreciate, depreciate, or stay the same in cash value depending on a variety of factors. First National Bullion does not guarantee, and its website and employees make no representation, that any metals for sale will appreciate sufficiently to earn the customers a profit. The decision to buy, sell, or borrow precious metals and which precious metals to purchase, borrow, or sell are made at the customer’s sole discretion.