Month: April 2020

If there is anything that can be learned from our present situation, it is that we should be prepared for unexpected situations. In the pandemic of 2020, millions of businesses closed across the nation, people stayed at home for months, and the stock market flipped upside down and back again.

Sudden, unexpected events like this demonstrate the need to be prepared for emergencies the best we can. During this new way of life, we have learned many lessons that should not be forgotten and should help us be more prepared for events like this in the future.

Right now, there are signs that part of the country is beginning to return to the new normal. Across the nation, some areas are slowly starting their attempts to open commerce in an effort to lessen the financial impact on their citizens. Some states, counties, and towns are allowing certain industries to reopen and are even allowing the public to begin a modified version of social distancing in public spaces.

Unfortunately, not everyone will be able to pick up where they left off.

No matter how soon lockdowns and distancing measures are repealed, a lot of damage has already been done. By the time restaurants and other closed businesses across the nation can reopen, the amount of income workers have lost will be in the trillions.

Even worse for many, temporary furloughs and layoffs have extended beyond the initial time frame as businesses continue to close at record numbers. While efforts are being made to save as many small businesses as possible, a significant number have already had to close or are on their last legs.

On top of all of this, COVID-19 has not disappeared. There is not yet a vaccine, and many elements of the pathogen are still unknown by scientists studying the virus.

There could be a second wave of infections.

The CDC has cautioned that there is likely to be a second wave of the virus in the fall. To make matters worse, this second go-round is predicted to occur around the same time seasonal flu spreads. Combined, these two illnesses could be a deadly tag team, making it difficult for doctors to track who has which disease – and many experts are predicting that it could lead to the need for a second series of lockdowns.

Unlike the last wave, whose quick acceleration caught many off guard, we have time to plan ahead even get prepared for the next wave should one happen.

Now is the time to think about preparation.

Nothing has been so dramatically underlined by these past few weeks than the importance of caution and preparation. If the nation truly returns to “business as usual” then there may be no better opportunity to be prepared for another disaster. The best time to prepare for a turn for the worse is always before it happens, when there is a turn for the better.

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Precious metals have proven to be a timeless safe haven in times of uncertainty and especially downturns. That said, you’re more likely to hear market analysts talking about gold—not silver—when times get tough. Learn more about this often-overlooked precious metal and its historical performance before, during, and after a recession.

To get a sense of how silver performs, let’s look at a recent period of economic turbulence. You’ll see that recessions have historically been a ramp up period for silver prices and tend to set the precious metal up for solid price gains post-recession.

Silver During the Great Recession

Before March 2020, one of the steepest economic declines in the U.S. was the Great Recession. This economic fall-off officially started in December 2007 and lasted until June 2009.

At the end of August 2007, four months ahead of the Great Recession, the price of silver sat at $11.95/oz. By the end of December 2007, it had jumped to $14.76/oz. The peak price of silver hit $19.24/oz. at the end of February 2008 but then decreased to $9.09/oz. near the end of October 2008. At the close of the Great Recession, the price of silver stood at $13.94/oz.

The price of silver went through several swings during the Great Recession, with a roughly $10/oz. gap between the high and low prices.

But just a year later, in 2010, silver started a hot streak. Toward the end of April 2011, the price of silver skyrocketed to $48.70/oz. and stayed above Great Recession levels well into 2013.

Therefore, if you had purchased one ounce of silver at its lowest price ($9.09/oz.) during the Great Recession, its market price tag would have shot up 435.8 percent by the time it reached its post-recession high of $48.70/oz.

Could silver surpass a high of $48.70/oz. following another recession? The precedent has been set. That means it could be an opportunity to buy silver now—while the price sits around $15/oz.

Leveraging Silver Price Changes During a Recession

There’s a silver lining for both silver buyers and owners when it comes to silver prices before, during, and after a recession.

If you’re looking to increase your position in silver, consider buying in bulk. Buying bulk silver is a way to achieve large-scale financial diversification, fast. Bulk silver purchases also afford buyers “economies of scale” benefits. The more you buy at one time, the more you save.

If you’re already well-positioned with silver when a recession strikes, it could benefit you to maintain your course. Silver prices have a documented history of bouncing back and hitting new highs following a recession. And silver isn’t going anywhere anytime soon. It’s played a role as a trading metal in nearly every ancient and modern culture, notes The Silver Institute, and continues to earn its place in the portfolios of different types of people for that very reason.

A Note on the Gold-to-Silver Ratio

No one knows precisely how silver will perform during the current economic crunch—or any economic slump. However, tracking the gold-to-silver ratio can help you determine when it might be a good time to buy silver (or to buy gold instead).

The gold-to-silver ratio measures how many ounces of silver it takes to buy one ounce of gold. A smaller number signals that silver is outperforming gold, while a larger number indicates that gold is outperforming silver.

Theoretically, the bigger the number, the more silver you’d need to buy one ounce of gold. If you keep your eye on the prices of these two precious metals, you can easily calculate the ratio by dividing the price of gold by the price of silver.

What’s a typical gold-to-silver ratio? Historical patterns show that it’s about 50:1. During a recession, though, the ratio often shifts dramatically. A rule of thumb is that if the ratio surpasses 80:1, it means the buying opportunity for silver might be particularly attractive.

In 2003, someone who purchased silver after the ratio reached 80:1 enjoyed returns of 390 percent in five years, according to U.S. News & World Report. And if someone had bought silver in November 2008, when the gold-to-silver ratio had increased to 80:1, and had then held off on selling the silver until April 2011, the gains would have been 350 percent, U.S. News & World Report notes.

At U.S. Money Reserve, we’re always tracking silver prices, and you can, too. Bookmark our Silver Prices Chart and call U.S. Money Reserve when you’re ready to add more silver to your portfolio.

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“”silver price”” – Google News

Osisko Announces Gibraltar Silver Stream Amendment Toronto Stock Exchange:OR  GlobeNewswire

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Kitco News

(Kitco News) – The U.S. Department of Energy announced Tuesday the launch of the $9 million American-Made Challenges: Solar Desalination Prize, a competition to accelerate the development of systems that use solar-thermal energy to produce clean water from very-high-salinity water.

The post Department of Energy launches $9 Million desalination prize appeared first on WorldSilverNews.

Kitco News

(Kitco News) – Great Bear Resources (TSX-V:GBR) announced Wednesday it obtained a final order from the Supreme Court of British Columbia yesterday allowing it to implement the company’s Ma previously announced plan to reorganize its business, including the spin-off of its wholly-owned subsidiary, Great Bear Royalties.

The post Great Bear receives court approval appeared first on WorldSilverNews.

Kitco News

(Kitco News) – Los Filos Mine in Guerrero State, Mexico, saw its suspension of non-essential activities until May 30, 2020, with the potential for earlier start-up on May 18, 2020 in areas with low or no cases of COVID-19.

The post Los Filos suspension extended by Mexican gov’t appeared first on WorldSilverNews.