Gold and silver prices have skyrocketed this year, which isn’t surprising considering the current economic state. However, why didn’t gold and silver experience a similar surge last year? The answer could be in perfect timing, as two key variables currently influence these precious metals’ values.
Silver and Gold prices are determined by two dominating forces: supply and demand. Fortunately for those bullish on the precious metals market, these factors push gold and silver toward higher ratings.
Investor appetite is one key reason behind this rise in popularity; we’ve seen a significant surge in interest since 2018 from investors of all sizes eager to get their hands on these reliable commodities, but especially over the last few months when buying seems almost frenzied!
There are a few reasons.
The possibility of a recession intensifies daily, and it can no longer be disregarded. As the economy continues to struggle with households in debt, layoffs becoming frequent occurrences, and members leaving the workforce altogether; it becomes increasingly clear that troubling times are ahead. It has never been more apparent than now: The state of our economy is far from ideal.
Despite the ongoing market uncertainty, there’s still a glimmer of hope. Markets remain hopeful that Federal assistance will prevent further losses and protect their investments. That said, it’s important to remember: financial markets can stay irrational for much longer than you have liquid assets available – so make sure to cash out!
Even in times of irrationality, you can still take action to protect your investments. You can cash out or roll over your assets into a gold IRA, so you do not need to remain idle and witness the erosion of your wealth. Take control now, and preserve many of those gains made since 2016!
Americans are well aware of the surge in demand for gold and silver coins, pushing their prices up across the globe. However, it is vital to remember that when purchasing precious metal coins, you should expect to pay a premium on top of the spot price. The cost may be determined by this rate but will always come with an additional percentage included.
When you report the worth of your gold and silver assets, use the spot price as a base. However, at this moment, Gold and Silver market prices for buying and selling are above that point. Silver premiums have skyrocketed to over 100% due to high demand from investors and limited supplies available from mints.
Investing in gold and silver has become increasingly popular recently; however, it is important to remember that actual physical coins might be difficult to come by, given their current shortage on the market.
When it comes to a gold or silver IRA, only selected freshly minted coins are allowed in an account, and these coins are now hard to come by. For example, the US Mint sold just 980,000 ounces of gold coins last year compared with 1.252 million ounces in 2021.
How does a mint fail to keep up with sales during significantly increased demand?
The US Mint has encountered a range of provision issues in 2022. Not only have they been unable to find enough planchets for several silver coins, but many other mints worldwide need help to keep up with investors’ voracious gold and silver demand.
Although abundant silver and gold are readily available, extracting metal from ore, refining it for IRA-eligible coins, creating coin planchets, and transporting them to mints can be time-consuming and intricate.
When there are delays or blockages in the supply chain can have lasting repercussions, such as creating a surge in premiums for gold and silver coins. This has put several potential precious metals buyers at an uncomfortable disadvantage. All these stats are from World Gold Council!
Which Way Will Gold and Silver Prices Move?
With the growing uncertainty of an impending recession, it isn’t easy to imagine 2023 not being profitable for gold and silver investors. Demand remains solid, so prices are likely to climb.
But if US Mints can satisfy market demand without running into gold and silver supply issues in the coming months, premiums on coins could also decrease. Either way, investors will surely see gains through premium drops or price increases, motivating more people than ever to invest in precious metals this year.
Although the future is always unpredictable, we must still make decisions in the present. You must understand what drives gold and silver prices to secure retirement funds with a gold or silver IRA.
These commodities are seeing high Silver or Gold demand and supply issues today, which causes them to be sold at significant premiums higher than their spot price. However, this may mean that prices will stay relatively high in the foreseeable future.
If you’re considering investing in gold and silver, now may be the time to do it! Prices could spike anytime, so waiting for them to come down is only sometimes wise. In fact, following the 2008 bull market, prices never returned to their pre-2008 levels. Gold and silver coins are ideal if you intend to open a precious metals IRA; take advantage of this opportunity today!
Mynt offers high-caliber gold and silver coins eligible for an IRA, thanks to our well-connected relationships with renowned mints globally. We understand the difficulties of working within ever-changing markets and strive to provide prompt access.
As a leader in the precious metals sector, Mynt is your trusted source when it comes time to safeguard your savings through investing in gold and silver – give us a call now!
