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Although the price of gold has behaved quite discreetly since the start of the year and the value of silver has even fallen, the volatility of the financial market caused by the bankruptcy of Silicon Valley Bank It has started to make investors nervous, as the dollar also shows no signs of strength.
After it became the number one coin last year, Currently, the dollar has fallen 0.27% and is currently trading at $0.93 against the euro and $0.82 against the pound sterling.
Faced with this scenario and Faced with the specter of a possible economic recession circling the United States, various economists do not see how the dollar can rise and even mention that it could depreciate even more.
About, Jonathan Rose, CEO of Genesis Gold Group, noted In an interview with CNN that the rarefied panorama in the US economy favors investments directed towards gold and silver.
“Things are starting to heat up. In fact, long-term projections in the precious metals market could be even higher and regardless of the Fed’s position, few Americans have faith that the US dollar will strengthenproviding a strong case for allocating a portion of the funds to a safe, tangible asset.
historically speaking, you’d be hard-pressed to find a more consistent option than precious metals to put your hard-earned money into when the economy is collapsing“, he indicated.
# LAST MINUTE The US central bank (Fed) increases the reference rate by a quarter of a percentage point, to 4.75-5.00%, and expects new increases, the Federal Reserve itself announced in a statement pic.twitter.com /1sIDEGCrRA
— Agence France-Presse (@AFPespanol) March 22, 2023
One factor that could boost the price of silver from the second quarter of this year is the application that it is being given in the automotive sector in the replacement of electric vehicles by those that run with internal combustion engines. This need will automatically raise the value of this metal.
Regarding gold, Until before 1944, said currency was used as global currency and although the monetary and financial conference of the United Nations decided to cede said post to the dollar, investors have never stopped taking refuge in the golden metal when financial turbulence demands it.
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