Gold and silver prices took a tumble days ago when pharmaceutical company Pfizer announced it had created a COVID-19 vaccine that is about 95% effective. This past week, pharma giant Moderna also unveiled news about their vaccine promising similar results. Now, with Pfizer filing for COVID vaccine approvals and other drug companies wrapping up preliminary studies on their own Coronavirus elixirs, the situation seems hopeful that by this time next year the pandemic may be ramping down.
What does all of this mean for precious metals? It's a mixed bag, really... Many panic buyers stocked up on gold and silver when the virus seemed to portend a type of coming doomsday situation, helping put upward pressure on bullion prices. Now with the ongoing pandemic apparently -- and hopefully -- on the verge of ending in the months ahead, there's a sense that the economy will eventually return to a sense of normalcy.
This may mitigate the frenzy of doomsdayers who were buying precious metals in the face of perceived economic collapse on an international scale. But this also means something else: industrial use of gold and silver will eventually increase once the manufacturing sectors regain strength. This commercial demand for gold and silver will certainly serve as a positive influence on bullion prices as the economy recovers.