By Douglas Trinder, Senior Numismatist & Precious Metals Analyst, Jack Hunt Gold & Silver
Since President Nixon’s abandonment of the Bretton Woods System in August of 1971 the price of gold in US Dollars has been allowed to fluctuate from its previously set price of $35.00 per troy ounce. Since 1971 there have been both extended periods of gold price stability as well as several instances of rapid price increases or ‘spikes’. This article will examine three of the more noteworthy gold price spikes.
The current global Coronavirus pandemic which is only now showing some evidence of winding down has already made an enormous negative impact on the U.S. and global economy. So-called experts are predicting future economic impacts ranging from a short-term recession to a lengthy world-wide depression. Most financial pundits agree that both the equities and bond markets have and will continue to suffer negative long-term effects from this horrific event.
This article is a follow-up to our last blog which discussed the merits of owning physical gold. Both novices and long-time investors stand to benefit from a review of the basics of owning physical silver. The following list contains some, but not all, of the reasons to buy tangible silver. Some items on the list hold true for any precious metal, others are unique to silver.
Part 1: Why Own Physical Gold?
As opposed to our usual format of discussing a hypothetical scenario, we thought an article along the lines of “An Intro to Gold Buying” might be in order. Both novices and sophisticated investors can benefit from a review of the basics. The following is a list, in no particular order, of some but not all of the reasons to purchase tangible gold.