Amidst the coronavirus panic, many industries are facing substantial challenges and potential problems–and investors are finding themselves wondering what they need to do next in order to protect their assets.
Is Coronavirus and the economic difficulty associated with it also affecting silver?
Yes. In fact, silver has fallen 6% in response to the economic challenges associated with coronavirus and the other challenges faced by the economy.
However, while silver, gold, and platinum have all experienced drops–platinum has matched silver at 6%, while gold faced just a 3% loss–precious metals have not experienced drops as substantial as those faced across other industries, most notably oil, which logged a 24% price decline in a single day.
Panic Encourages Liquidation
Amidst the panic following the coronavirus outbreak, including the closure of many businesses and the need for investors to have more cash on hand, many investors are choosing to liquidate their investments, including investments in gold and silver.
While gold and silver are usually seen as safe-haven assets, they may take a hit when investors feel that they need to raise cash fast–especially if those investors feel the need to protect their investments against immediate losses.
Right now, investors around the world are getting the worst possible news from the media. Fear-based predictions help encourage viewers to watch, click, and take in more content–but that content is also raising panic and causing people to sell off their assets in an effort to provide as much protection for themselves as possible.
Ultimately, once the panic subsides, silver and other precious metals are likely to return to the safe haven investment they usually are.
Handling Your Investments Amid Coronavirus Concerns
Coronavirus concerns are impacting every aspect of many people’s lives, including their investments.
Should you get rid of your gold and silver investments?
Should you liquefy as many of your investments as possible to protect yourself as the market drops?
Consider: The market is likely to self-correct, given time.
As governments around the world respond to the coronavirus outbreak, and especially as things go back to normal, the market will likely correct itself.
Investments like silver, which has always been a solid investment choice, are likely to return to their usual safe status–and, given enough time, most investors will probably see their investments grow in value once more.
The silver market may correct faster than other areas. Silver typically holds its value over time and remains high in value even during periods of disruption. Holding on to silver investments may mean a faster correction in your financial portfolio than other types of investments.
Talking with a financial adviser is the best way to make decisions about your specific financial situation and needs. If you have specific concerns about your investments, including your precious metal investments, amidst the current crisis, take the time to talk with your financial adviser.
In fact, many advisers are still hard at work and will connect with you virtually to ensure that your concerns are met and that you have a plan in place that will help protect your finances as much as possible, both in the midst of the current crisis and with regards to your long-term goals.
While the current coronavirus crisis is impacting the silver market, it is not having as substantial an impact on silver as it is many other markets. Some investors are even choosing to invest in silver now, while prices are down, with an eye to long-term benefit.
As the impact of the coronavirus continues, many investors will need to make decisions about whether to liquefy their assets now or to hold on to them and wait for that important market correction.