Gold in a month and a half, it lost almost 11 percent of the historically record value it recorded at the beginning of August this year. While it was trading at $ 2,075 an ounce at the time, it fell yesterday price up to $ 1850.
“Even more interesting is the situation with silver, which lost an incredible 27 percent over the same period. In the first half of August, it was quoted for as much as $ 29.70 an ounce, but yesterday it was not even $ 22 an ounce, “says analyst Tomáš Volf from the Citfin financial group. It has only fallen since the beginning of this week price of silver by 14 percent, adds economist Štěpán Křeček from BH Securities.
“It simply came to our notice then dollar exchange rate, in which precious metals are traded. It has strengthened against most other currencies in recent weeks. This has made the purchase of precious metals more expensive for most people who do not buy them in dollars, ”explains Křeček.
“Nothing has changed in the long-term strengthening trend of both precious metals, and the assumptions about further highs will probably be confirmed in the future. The current fluctuation should be only a slight collapse of the markets before another possible breath, “thinks Volf.
“Several months of gaining value in the first half of the year took just a step back. After all, both precious metals are already trading at stronger values today than they were yesterday. Today, gold is around $ 1,870, ”adds Volf.
Gold, as a store of value, is still pulling and nothing will change in the long run, Volf emphasizes. In times of uncertainty, assets move from the riskier ones to the dollar or gold, he recalls.
“It’s more complicated with silver. This not only serves as a store of value, but above all has its irreplaceable place in the manufacturing sector of industry. Silver is part of the vast majority of consumer electronics, which is almost non-recycled. Mining capacities are not nearly as strong as gold. The face value of gold is more than 80 times higher than silver. The growth potential in the long term is more than open for silver, ”says Volf.
“The second wave of the pandemic may bring the price of gold back to historic highs,” Křeček assumes. “The second wave of uncertainty in the development of the economy. This can encourage investment in preservers of value, including gold and other precious metals. In addition, the world’s central banks are trying to raise inflation as loose monetary policy. This leads to the devaluation of money, which can motivate the purchase of gold or other precious metals, “he adds.
