2020 continues to be a chaotic year. The recent global health pandemic has caused an economic upheaval that has lead to massive government spending and also borrowing not seen since the 1940s. The US, Europe and many other countries are seeing public frustration with the political, financial, and cultural handling of the situation. All the meanwhile the US and China seem to be escalating their tit for tat political fight. As a result, gold and silver starts becoming more appealing to people.

Gold Historical Prices 1990-2020
Source: Banknote World

When uncertainty happens and when governments borrow so heavily, many people flee for precious metals like gold and silver. Gold is at or above its historical high and it has topped more than $2,000 an ounce in the last weeks.

Britain Britannia 1 OZ Silver Coin (left) & USA 2020 1 OZ Gold Buffalo Coin (right)
Source: Banknote World

Silver seems a bit more stable but I assume the current price (highest since 2014) is depressed by the lack of industrial use as economies remain partially closed. Silver spiked in 2011 due to an over-expectation of use in solar panels and other industrial applications along with higher investments that drove gold up at the same time. But other than that anomaly, silver has tracked pretty well with gold.

Silver Historical Prices 1990-2020
Source: Banknote World

Is it time to buy?

So is it a good time to buy gold and silver coins? I have no idea. Silver and gold coins are very attractive and there is someone unexplainable about holding these coins in your hands. Remember an early James Bond movie when he was sent into action and had a strip of gold South African Krugerrand’s? Or Goldfinger with his obsession with gold? Not only are precious metals attractive, they are important in our cultures.

Gold Bars
Source: Pixabay

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