Experts say precious metal prices soaring as U.S. dollar weakens
BISMARCK, N.D. (KFYR) - Gold and other precious metals are going up in value. That's good news for investors. But, experts say it could be because the value of the U.S. dollar is in trouble.
Precious metals hit a peak high they haven’t seen in years on Tuesday.
Commodity experts say this is due to a devaluing of the U.S. currency in response to the coronavirus pandemic.
The owner of Bismarck Gold and Silver exchange says he’s had a lot more customers since the pandemic began. In his 40 years of running the Exchange, Larry Schnieder has never experienced anything like it.
“So, this is more activity than we’ve seen, both buying and selling, since we’ve been in business,” said Schnieder.
The cause: a weakened dollar.
Monetary aid from the federal government has been working to devalue currencies.
“There is no way we walk through this inventing of up to ten trillion dollars, if this current stimulus package is passed, and not have a cause and effect. There will be inflation because of this. When the economy is fully robust in 2021, that’s what you’ll see,” said Commodity Trade Expert Eugene Graner of Heartland Investor Services.
This, now prompting investors to turn to precious metals as a safer store of value. “Metals have historically for thousands of years been a hedge against your collapsing currency or a hedge against inflation, which is both the same,” Graner said.
It’s not just gold prices on the rise. Silver has doubled in price over the last three months.
“The target price for a lot of our customers was silver at $20 an ounce. And, it reached over $20. Now, it’s at $22.5. So, a lot of people came in and sold. At the same token, there’s as many buyers as there are sellers right now,” Schnieder said.
Experts say precious metals are still undervalued and expect an even bigger increase in the coming months.
Graner says that because silver is a commodity and the price is going up, he predicts other commodities will become inflated as we go into the next year.
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