Gold and silver prices are starting the week on a major upward swing after a long weekend of ominous news headlines, including lockdowns and closures in several states and news that the 2020 Summer Olympic Games might be rescheduled to next year due to the COVID-19 pandemic. While the world is still in the midst of grappling with the deadly virus, reality is beginning to set in that we are in for what could be a major recession in the months ahead.
Morgan Stanley now projects there will be a GDP shrinkage of 30% in the second quarter, along with unemployment of more than 12%. If this comes to pass, the United States economy could be in the worst shape it’s been in since the waning days of the Great Depression. How all of this affects gold and silver bullion prices is yet to be seen.
But one thing is for certain: we will experience lasting economic effects possibly for years to come because of the pandemic. And this may have investors looking for some safe havens in which to store their funds. Gold and silver are sure to be among those places where they park their investment money as a hedge against inflation and bad economic times that are about to knock heavily on our nation’s door.