My Gold News | 21 February 2023

Current Silver and Gold Prices: Is Now The Time to Invest?

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At the beginning of 2021 silver shot up over $30 USD a Troy ounce while gold continued to meander around $1,750 USD and begging many to consider whether it had run its course and plateaued for good with a bull run that has lasted since 2013. With everybody pretty much sick and tired of COVID restrictions and more than ready for the world to get back to business, multiple markets have been showing stagnancy, often evidenced by very chopping behavior gradually moving down in value but with lots of intraday movement up and down at the moment. None of that really signals a strong price point or support for gold, but silver has been enjoying a resurgence in the new year’s first and second months.

When is Gold Going to Do Something?

Part of the problem with gold’s price movement has been lackluster demand in 2020. The stock markets in many countries have been adjusting to new political dynamics, not willing to let go of their value dramatically but not seeing a reason to keep charging ahead either. In fact, many corners expect a rash of policy changes increasing taxes to pay for massive stimulus spending in 2020. That in turn will be seen as a depressing factor on the economic side, dampening growth with additional cost burdens to operate or function. It also removes discretionary income, the bread, and butter of consumer spending. The other problem that first manifested in the early Fall of 2020 and continued well into February 2021 was cryptocurrency. The incredible run-up of money in digital currencies pulled in an amazing amount of money internationally. For example, from Christmas until the end of January the cryptocurrency market jumped from $900 billion USD to $1.2 trillion, all chasing quick gains due to the astronomical price of Bitcoin and similar digital coins. That pulled in a lot of money that otherwise might have gone to gold or silver looking for more value holding. However, since mid-February, the digital markets have been in correction mode, shedding significant dollars off their high point. And to hold onto that cash value of sales, many are again looking for gold and silver to protect their digital gains from market havoc in traditional investments. It could be very likely that as the digital currency markets continue to have an exodus, gold and silver may very well have another resurgence. The regular stock markets are fragile and volatile, not necessarily a viable alternative offering a stable holding place for money unlocked from Bitcoin or similar. So gold looks like a better choice, far more similar to digital currencies in that the asset is not impacted or influenced directly by government policies or tax changes. 


Who’s Buying Silver?

Silver had a big run-up in February 2021 but many experts and market watchers felt that it was part of a Reddit-style conspiracy to pump up the price of the precious metal for gains and then drop it dramatically right after. The sentiment came from the extraordinary drive-up of GameStop company stock from Fall 2020 through to January 2021, all driven by followers who saw an opportunity to hammer institutional brokerages by combining a large number of individual buys and transactions. The GameStop stock ran up to well over $325 per share for a company that is ready to go through liquidation and bankruptcy. In a similar fashion, silver started to move when brokerages and institutions started banning purchases of GameStop and only allowing sales. Suddenly, silver started to move and orders couldn’t be filled for physical coins. Everyone pointed the finger at Reddit and another market push, but, in reality, it has appeared that the silver buy was not connected at all.

Watch Out for Markups

Unfortunately, when either gold or silver or both are in high demand, there tend to be significant and sometimes outrageous markups on gold and silver products. These margins are pure profit-taking. They have nothing to do with the actual value of the metal, even at the best market spot price of the day. Yet, amazingly, people still pay these add-ons because they don’t take the time to window shop and price compare multiple offerings for the same bullion or precious metal products. The markup habit tends to become incredibly common when precious metals are realizing a run-up and demand is high. In fact, some of the best times to buy gold or silver tends to be during the opposite windows, when precious metals are losing their value, and it becomes a bit of a fire sale with sellers suddenly trying to unload their holdings to preserve their last worth or close to it. Many expert precious metal buyers do so all the way down the slope, picking up good price deals repeatedly, and waiting later for the next cyclical gain to come along a few months later. 


MyGold Can Help You Avoid a Lot Buying Pitfalls

At MyGold you can keep track of current gold and silver prices as well as what the market is demanding for various bullion products as well. We have an extensive tracking system tapped into all the major gold and silver markets internationally, being able to not only inform our customers on the latest price points but also how they translate real-time to current offerings and products that people would actually pay for. When our customers make a purchase, we lock the gold or silver pricing applicable and ensure that with a financial commitment made, there is no price slippage, especially if there has been significant market movement on that given day. MyGold also has a tremendous connection with the Perth Mint, being able to access and sell all the latest Perth issuances in both gold and silver. These bullion produces are absolutely amazing both in craft and quality of the metal itself. There's a reason Perth has been considered an international standard for other government mints to achieve, and today the Perth Mint continues to maintain that consistently high quality with the latest offerings. Because of our official dealership and representation, MyGold is proudly able to offer these sets and collections to New Zealand. So, again, while there are obvious channels available elsewhere to buy your bullion or precious metals, MyGold makes the entire process easy, simple, and effective with some of the best gold and silver inventory available internationally. With all that's available to a regular Kiwi customer, it begs the question of why anyone would settle for less, especially when there is no additional cost, no fees, and no outrageous markups. MyGold can be your priority destination for all your gold and silver needs in New Zealand, just give us a call.