The outbreak of the Corona virus has had seriously profound consequences on the global economy. It has sent governments scurrying for ways to respond, put pressure on the health care industry and caused people to lose their jobs and unveiled the economic disparities that exist in the world – even in the wealthiest nations in the west. China, where it originated has shown that tougher policies can help stem the impact of the virus – the problem is that some of the policies that leaders have to adopt come with harsh economic tradeoffs.
To combat the rapid spread of the virus, governments like Australia’s government had to put countries on lockdown and enforce laws on social distancing thereby slowing down economic activities. In China’s case the strict curfews and restrictions on mobility affected some provinces negatively. The rest of the world has been learning from China and South Korea which had a better handle of the virus. Some succeeded and others are struggling with sporadic flare-ups occurring all over. According to economists, the virus will force the economy to take one of two directions.
Deflation will persist because of the debt bubble popping together with the economic shutdown.
We are currently facing the same scenario the world faced in the recession of 1929. The bottom line: we are in big trouble! The stock market and real estate markets will suffer but one asset class that is doing well in this economic climate is gold. If you have been wondering when the best time to sell bullion would be, the answer would be now.
The economy can be pushed into hyperinflation with the trillion dollar stimulus packages that are being pumped into the economy. The government can print as much money as they want to, but what would it be worth when this is all over?
The first quarter of the year has ended. This was the quarter where everyone was panicking. People were buying as much as they can in preparation of the end of the world. Other people took the “let’s wait and see approach and hoped that things would turn around. Six months down the line, there is no vaccine and people are dying by the thousands. If we could trade hope, we might be in a better position but unfortunately hope is not tradeable, it has no value. Hope does not pay your bills or pay for gas in your car. In these trying times gold is king. If you have gold items of any kind your can sell for cash. Find a reputable gold buyer in your area and do just that.
It is time to take stock of your gold coins and bars and approach a gold buyer who will offer you a good price for these valuable items. Rather than wait for the stimulus package to kick in and that government grant that will prove not to be enough anyway, you should sell your gold. According to the gold market traders, all decks are clear for precious metals like gold and silver to go up. All indications show that this is the best time to sell. In fact analysts predict that the price of gold has nowhere to go but up. However, since the outbreak, dealers have been having supply issues. This has been caused by the travel restrictions. If you want to sell bullion, there is better time than this. All analysts agree that this is just the beginning, that the price of gold is likely to go even high especially if the supply doesn’t improve anytime soon.