There were increases in silver and gold of 6.5% and 10.2%, respectively. Demand for gold and silver as a safe-haven has increased since the current economic downturn that has impacted US and European banks. The price of the precious metal will increase significantly over the next few days, according to experts who are bullish on both silver and gold. During recessions, they advise investors to hoard it. 

A Closer Look at the Current Market Conditions Favouring Gold & Silver

•   The use of Renewable Energy increases exponentially Demand for Silver: The globe is making more investments in clean energy sources as it works to reduce its carbon impact. This might raise demand for silver as a utility metal for solar panels and electric vehicle batteries, acting as a driver for further price hikes. This year, silver prices may possibly surpass expectations and reached a nine-year high of $30 per ounce.
•   Uncertainty in the Financial Markets:

o   The two devastating events were the failure of two big banks (Silicon Valley Bank and Credit Suisse Bank) and Russia’s invasion of Ukraine in February of last year escalated gold spot prices mark up to $2,000/ounce.

o   The worldwide economy, which many believe will enter a recession, will also influence investors’ choices. Since the market seems unfavourable, the price of gold will increase sharply.

o   Most recent statistics from the World Gold Council shows, central banks have also been stockpiling gold, adding an additional 77 tonnes to global reserves during the month of January. In 2022, central banks purchased 1,136 tonnes.

Given their outstanding liquidity and swift conversion capacity into cash, gold, and silver form good investments. Precious metals investments can help you diversify your holdings, reduce your exposure to these risky investments, and lower the impact of any losses in these situations.

In the upcoming weeks, both valuable metals are expected to experience another price increase. Au bullion is here to help if you’ve been having trouble deciding where to purchase. Both online and offline sites are available, and we also offer advice on how to make this important decision.