Many people are wondering how the precious metals markets will evolve over the coming weeks and months. How this will pan out, remains to be determined, but a price rise remains the most likely course of action.
Coronavirus Restrictions Ease Globally
There have been some promising developments regarding the global coronavirus crisis in recent weeks. Numerous countries have begun easing up on restrictions at this time, which was only to be expected.
Claiming how the virus is under control, may be a bit too optimistic. However, economies need to be kickstarted again before the situation gets out of hand even further. As such, easing up on restrictions makes sense, assuming everything can be done in a safe manner.
These changes will also make an impact on the global financial markets. More specifically, it is expected that the precious metals markets will see an influx of buyers once again. As production is still at the low side of the spectrum for the foreseeable future, the gold price is likely to appreciate over time.
For now, however, these assets are all into rather uncertain territory first and foremost. Anything can happen, thus there will undoubtedly be some market volatility in the short-term. Gold has performed quite well as a safe haven asset during the coronavirus crisis, getting investors very excited for what the future may hold.
Portfolios Will Still Contain Gold
One thing seems to be certain” portfolio managers will keep a close eye on gold and other precious metals. The overall performance of silver and gold during the coronavirus crisis has made more people aware of how powerful these assets can be regardless of global market circumstances.
Moreover, the “sell off” affecting all precious metals was not as intense as some had expected. Investors and speculators tend to sell off to mitigate stress, followed by a buyback by those who sold at an early stage.
As the global financial tension is now beginning to recede, there is a good chance those buybacks will come in very quickly. Combined with recent predictions of how the gold price may push for a new all-time high in 2020 or 2021, the expectations are certainly high.
Anyone with exposure to the equities markets will be exploring different options available to them. Anyone looking for cash to overcome the foreseeable future may want to try and explore gold as an option. After all, it is a very liquid market that offers ample potential for making good money at any given time.
One other thing to consider is the overall employment rate. So far, the coronavirus crisis has made a big impact in this department. Employment rates across different countries have fallen dramatically. As such, those rates will make their mark on the future gold price as well.