Gold and silver trends: a year in review
Local business owners navigating the prices of gold and silver over the past year.
EAU CLAIRE, Wis. (WEAU) - During a tumultuous year, stocks in the S&P 500 index rose 16% to close 2020 at a record high, but it wasn’t just stocks.
The price of gold and silver offer a barometer of the current economic and political climate.
“Prices are influenced by the value of the dollar so when the dollar is weak or when the dollar is going down, it costs more dollars to buy an ounce of gold,” says Brian Zinn, owner of General Coin & Gun Exchange.
Zinn says now more than ever people are looking to invest their money in commodities.
“Metals are rising, in the last year they’ve gone up almost $300 for an ounce of gold,” says Zinn.
He says because of the pandemic, people have been reluctant to offload their coin collections or assets, creating a greater demand for the metals.
“A lot of mints are shut down, private mints that make products, silver or gold to sell and so the wait has increased quite a bit for us to buy goods to sell you,” Zinn says.
In March when the COVID-19 pandemic was declared, initially, jeweler Jacqueline Renee believed her business would dry up.
“There was just this terrifying part of, no one’s going to want to spend money and everyone’s just going to shut down and not spend,” says Renee.
She adjusted, and found working one on one with clients increased her business over the course of the year.
Personalizing her custom orders and repairs, played in Renee’s favor, regardless of the access to metals.
“We’ve had a tumultuous year so we’ve definitely seen some changes there, but gold has definitely gone up overall,” says Renee.
“Nothing ever goes straight up and straight down, you know it has spikes and increases then it has corrections and drops,” Zinn adds.
Zinn says he is starting to see more coin collections enter the market, being more comfortable in the late months of the pandemic, and expects the prices of both silver and gold to continue rising.
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