Gold and silver have both rocketed over the last week as we have begun to see the damage done to the global economy due to the coronavirus crisis. The prices of precious metals are on the rise as investors seek safe havens to protect their future wealth.
Gold prices have risen since the COVID-19 crisis first hit, reaching never seen before heights. Last Wednesday (13th May), the price surged up to £1,400 – but it did not stop there. The price of a troy ounce of gold is now over £1,455 (as of midday today).
Our live pricing charts show that gold has seen a monthly upwards change of over 8.3% with a monthly high of £1,459 and an average of £1,387.
Silver has now also entered the game. With prices dipping to below £11 an ounce during March, silver has been steadily recovering with prices taking a huge hike last week. The price of a troy ounce of silver is now over £14.35 (as of midday today).
Our live pricing charts show that silver has seen a massive monthly upwards change of over 20% with a monthly high of £14.34.
With many parts of the world starting to ease their lockdowns, now is the time we will begin to see the full impact of the damage done to the global economy due to weeks of inactivity.
Last week, the chancellor Rishi Sunak stated that the UK economy will be facing a significant recession. The UK lockdown has seen GDP sink by 5.8% in March compared to February and drop by 2% during the first quarter of 2020 - meaning the UK is already in the first stages of a recession. With these figures only including the first stage of the lockdown, the figures for the second quarter of this year are expected to be much worse.
The UK government is now attempting to return the country to work in a bid to get the economy moving again. However, the lifting of lockdown restrictions in England have been heavily criticised, with Wales, Scotland and Northern Ireland continuing their full lockdowns in fear of lifting too early and risking a second wave of the pandemic. A second wave would no doubt see future full lockdowns, and the country and economy back at square one.
The coronavirus pandemic remains a very difficult enemy to conquer. As the crisis continues and investors continue to read negative headlines concerning the global economy, and turn to precious metals yet again as their save haven, could we see the current record-breaking prices surge even higher?
It sure looks like it could be that way.
This blog represents one person’s opinion only. Customers should conduct their own research and take advice before making an investment. We do not offer investment advice.