Gold and silver prices remain in flux during the week of June 10, 2021, but are staying close to recent highs amid rising concerns over inflation. It’s not been all bad news, of course… The United States economy is roaring back to life nearly a year and a half after the COVID-19 pandemic saw closures of businesses in virtually every major sector and subsequent layoffs for tens of millions of Americans. The job market is red-hot right now — but the problem? Many Americans aren’t yet returning to work. And this is partially to blame for production shortfalls and a stuttering rebound for many businesses, which have led to rough patches on Wall Street.
As the stock market leaves much to be desired for many investors, speculators are turning to precious metals as safe havens amid what is increasingly becoming an inflationary economy. Gold prices hover just below $1,900 an ounce after piercing that threshold a couple times over the past week and staying more than $130 over this time last year. Meanwhile, silver prices have been in the range of $27.65 per ounce — robust, given that the current price represents an increase of $9.50 over a year ago.
At this point one year back the United States was in the throes of the COVID-19 pandemic, shaping up to endure a long, hot summer with few safe opportunities for vacations, concerts, or other experiences usually associated with the warmest time of year. At the same time, the national morale was dour as waves of closures and rounds of layoffs decimated the economy. Gold would eventually hit a record of $2,060 later that summer, while earlier this year silver flirted with $30 per ounce for the first time in a decade following a run on the whitish metal.
Opportunities abound for precious metals, which have proven to be solid performers in times of uncertainty. Even as the United States is poised for continued economic recovery, expensive stimulus bills recently passed under both President Donald Trump and President Joseph Biden threaten the strength of the dollar. If the dollar weakens further and inflations emboldens, silver and gold prices could be heading through the roof.