Over the past few months, precious metals like gold and silver have been shining bright in the economic sphere. With prices reaching record-breaking highs, one might wonder what’s fuelling this upward trend.
There are a number of economic factors at work. First and foremost is the uncertainty in global markets due to geopolitical tensions, which has led investors to seek out safe havens. Gold and silver, assets that have consistently held their value throughout history, are seen as safe investments amidst economic turmoil.
Secondly, lower interest rates globally have also had an impact. When interest rates are low, the opportunity cost of holding non-yielding assets like gold and silver decreases, making them more appealing to investors.
Finally, weaker dollar values have also contributed. As gold and silver are priced in U.S. dollars, a weak dollar makes these metals cheaper for those purchasing in foreign currencies, which drives up demand and consequently, prices. Read More
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