Will Gold, Silver and Platinum Hold their Value in the Coming Months and Years?

Precious Metal InvestmentPrecious Metals InvestingRecycle Precious Metals
Written By Barry Lenson

We are about to enter one of the most uncertain economic periods in modern history – one that many analysts fear could rival the Great Depression.

We don’t like to write about the negatives, we really don’t. But if we want to formulate a strategy for retaining our investments’ value, we need to consider some of the bad things that could just happen in the wake of the current virus crisis:

  • A massive health crisis could affect the disadvantaged regions of the world. We are already facing such a crisis in the developed nations of the world. Things could well turn out to be even worse in parts of the world where medical care is scarcer than it is in the modern countries in Europe, Asia and North America. 

  • International commerce and trade are sure to be affected. We have already seen a retraction happening in international trade between nations, thanks to tariffs, lowered employment and production, and other factors. There is no way to predict with certainty what that will mean for precious metals, but chances are that imports of precious metals across international borders will decrease dramatically. The result is hard to predict, but it could well be that the value of gold, silver, platinum and other precious metals that are already located within the U.S. and Canada will increase because of demand.

  • Economic hardship could lead to a sell-off in precious metals. When people need to raise money – and they already do because of the virus crisis – they tend to sell possessions that have value. Apparently, pawnshops have already seen an increase in traffic from people who need to liquidate valuables in order to raise cash. That is just a small sign that begs a bigger question. If a large-scale sell-off of precious metals does in fact occur, would that depress the trading prices of gold, silver, platinum and other precious metals? Could it also create an opportunity to buy precious metals at low prices?

  • Lower consumer demand and manufacturing could reduce the immediate demand for precious metals. If our economy enters a true recession, demand for electronics and other consumer items that are made with gold, silver, platinum and other precious metals could decrease, which could further depress prices. That, in turn, could again, depress the value of the stocks of precious metals that investors are holding – and again, possibly increase the opportunities to acquire them at the bottom of the market.

And There Are Positive Predictions Too

  • As Americans return to work, spending is likely to increase quickly. During these months of shutdown, Americans have developed a keen eagerness to return to restaurants and to get back to the places where they spent money before the virus crisis began.

  • As businesses start up again, they will need to invest in computers and other systems. Production of many items could increase quickly, triggering higher demand for gold and other metals that are used to manufacture electronic devices of all kinds.

  • Businesses that suffered during the crisis will develop new lines of business, introduce new products, and find innovative new ways to make money. The result could be a vibrant rebound in American business, possibly in companies that will ramp up manufacturing of products domestically. And when business is strong, the value and prices of precious metals tend to stabilize and remain strong.

So, What Are Your Best Investing Strategies Right Now?

As we write today’s post, we are in a very uncertain time. That makes it difficult to define and recommend one or two foolproof investments right now.

However just as we have always been, we are very bullish on investing in precious metal scrap of all kinds, because you can acquire scrap at below-market prices right now and then wait to recycle and profit from it as our world economic climate strengthens and heals.

If you have scrap and would like to discuss the best strategies for testing and recycling it to make maximum dollars, call our consultants at 800-426-2344. We are here for you today.

Barry Lenson
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