A stumbling economy is making for an exciting precious metals market as big moves are made across the industry. Leading institutions report soaring gold demand, retail investors flock to metals to hedge against inflation, and Asia is ramping up its collection of precious metal assets.
Watch the video to hear Precious Metals Advisors Joe Elkjer and Todd Graf explain these recent phenomena, the current state of precious metals supplies, and what investors need to do now.
Global Demand for Gold and Silver Booms
The surging demand for gold and silver isn’t isolated to the United States. Institutional and retail investors across the globe are diving into gold and silver bullion for protection against a feared economic collapse. Central banks in Q3 alone stacked up record setting 400 tons of gold. On top of that, industrial businesses are actively scooping up supplies of raw metals for functional use.
Gold and Silver Frenzy Spreads East
The appetite for gold and silver is reaching new highs in Asia as the feeding frenzy moves eastward. Naturally, more and more precious metals products held in the west are being shipped off to buyers on the other side of the world. Asian markets are taking full advantage of relatively low gold prices to increase their supplies in anticipation of worsening economic conditions.
Currency Devaluation is the Driving Force
Out-of-control inflation is stoking fears of catastrophic currency devaluation which has already led some countries like Sri Lanka to the brink of collapse. People are getting less out of the dollars they earn, so they’re turning to gold and silver as inflation hedges to protect their wealth. It’s an age-old investment strategy that has helped savvy investors survive economic downturns for millennia.
More Buyers and Fewer Sellers
Ever since the pandemic rattled the global economy, the precious metals market has experienced unprecedented demand for gold and silver and a dearth of sellers. The combination of a growing hunger for gold bars, silver bars, gold and silver coins, and restricted supplies has strained the market as precious metals dealers struggle to meet demand.
Excellent Buying Opportunities
These supply and demand challenges urge investors to get into the market quickly while presenting great buying opportunities at the same time. For example, Morgan silver dollars and US Peace silver dollars are performing exceptionally well right now.
These silver coins are holding their value even in the face of relatively flat spot prices due to their inherent numismatic value. Their strong and steady values make these silver coins excellent options for new investors that want to avoid the natural undulations in the market.
If you have questions about precious metals investing or want to discuss specific product options, reach out to Scottsdale Bullion & Coin today. Our friendly and knowledgeable precious metals advisors will help you find the best investments based on your goals. Don’t forget to request your FREE COPY of our popular Silver Investor Report too.