Gold and Silver fall victim to Coronavirus Recession

After a month-long shutdown of local businesses, companies, and restrictions on the transfer of goods, the impact has started to visible in the global stock market and financial activities. The major share and equity market are showing a nosedive in the price for the past one week. Gold, Silver and other precious metal that usually considered as a safe haven due to less volatility in the prices, registered a negative progression in its prices. The panic caused by the deadly spread of Coronavirus has not left these safe-haven assets untouched. Gold, Silver, and Platinum have started to lose their values as the global stock markets continued to bleed.

Gold and Silver were considered as the safest assets and while the stock market was witnessing a record low, the prices of precious metals show a positive uplift. However, the recent collapse in the price of Gold and Silver confirmed that during the financial crisis triggered by the Coronavirus, no asset is left unimpacted. The price of silver recently touched $19, which was a considerable gain over a couple of years. But, the recent panic sales brought down the price gained by this valuable metal since 2018. In the row, the price of Gold, one of the most precious and widely traded metal, witnessed a drastic fall in price after hitting a high of $1,700. The price went down to $1,450 losing 12% of its value gained in past years. Famous economist Peter Schiff blamed the recent down of Metal’s price to the unawareness of traders. In a tweet, he explained that investors are not aware of the long term impact. He further warned that the Gold market will rebound and the price will skyrocket again once the current crisis starts to fade away.

The Cryptocurrency and stock market are known for volatility and have been already plunged and do not show an indication of upward movement anytime soon. On the contrary, Gold is popular for its stability in such an uncertain time. The decline in the price of these precious metals indicates the possible recession and widespread slowdown in the future over the Coronavirus outbreak.