Today has not been a good day for precious metal and cryptocurrecy markets. All of these assets are going in the deep red following the news out of Russia. According to president Putin, a coronavirus vaccine has been developed.
A Coronavirus Vaccine is Very Unlikely
The whole world is getting sick and tired of dealing with the coronavirus pandemic fallout. Restricted lifestyles are taking their toll on both children and adults alike. Moreover, economies will not recover for as long as these restrictions remain in place. Everyone is grasping for straws, but it seems unlikely that things will improve in the near future.
Big was everyone’s surprise when Vladimir Putin announced an alleged coronavirus vaccine. To make the ordeal sound more legitimate, this vaccine has apparently been tested on his own daughter. While that may be true, there are a lot of other questions that can’t be answered quickly. \
First of all, the vaccine has been registered in a very strange manner. This entire process has been rushed, without allowing for any external peer review of the solution. It is not unlikely that a vaccine exists, but this one has come out of the blue. After all, as far as the world knows, there have been no clinical tests or anything to validate the results.
Second, this is not a permanent coronavirus vaccine. Russian scientists claim it can provide immunity to this pandemic for a maximum of two years. A good start, but it cannot be mass produced as of right now. By the time that production is ramped up properly, we will be closer to 30 million COVID-19 cases worldwide, if not more.
Third, there is a genuine distrust of any news coming out of Russia. Similar to China, there is a lot of scheming and orchestrating going on at all times. No one in their right mind wants to serve as a guinea pig for this untested and largely undocumented vaccine.
Precious Metal and Bitcoin Markets Tank
This news of an alleged coronavirus vaccine has triggered a major shift in financial markets. All safe haven assets – gold, silver, Bitcoin – have started to lose value all of a sudden. Gold is headed to the low $1,900 range, whereas Bitcoin is drifting toward $11,300 once again. It is not the first time a country tries to directly influence the financial sector by spreading news that can’t be verified externally.
It is understandable that a lot of people want to get rid of the coronavirus altogether. That will not happen by simply willing it to go away. Nor will it happen by using an alleged vaccine providing very limited immunity. Until it is researched independently, and the potential side effects have been documented, there is nothing to get excited about.