We have good news for investors from the gold market. Ore continues to gain on the chart. Is this a solstice yet? There is one factor that can prove this …
Gold during the crisis
The crisis continues. Although countries are slowly coming out of the “closing” stage of society, which was caused by the coronavirus pandemic, but we probably all know that this is only the beginning of problems.
For now, the economic haven is gaining a safe haven in the form of gold. Interestingly, it is difficult to buy even gold coins because they are actually unavailable in the mints. They can be purchased, for example, on websites like Allegro, but prices are falling off and exceeding the official values known from the charts.
“Over the last month, an ounce of gold increased by almost PLN 700 (over 10%). In effect market price in PLN royal gold is over 7,000 zlotys per ounce – the most in history ”
– you can read in the HRE Investments analysis.
In turn on the physical ore market for 1 ounce you have to pay approx. 8 PLN.
“What’s more, if someone does not want to obtain ore from a reliable source, and at the same time does not want to wait for delivery a month or two, then they must pay even more – about a thousand zlotys “
– HRE Investments chief analyst Bartosz Turek tells PAP.
“This is not just about the threat of infection, but the economic impact of the epidemic. Isolation of the population is a blow to economies. In response, central banks and governments have decided to launch stimulus and protection programs worth $ trillion. “
– he adds.
Time for correction?
So is it time for correction? Note that at the end of March, gold-silver parity reached its highest value in history. Now analysts have a problem: does it mean that silver is already there “Hopelessly cheap”? Or maybe the point is that gold is overvalued?
In any case, such a significant increase in the price of the course for ore, asks for correction. It is doubtful, however, that this would mean the end of the triumphant march on the chart … Too many bad things are happening in the world …
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