With the recent surge in Omicron cases triggering fears that the pandemic is far from over, the global economy has once again taken a nosedive. As the future seems uncertain, potential investors everywhere are opting to take a wise approach to where and when to place their hard-earned money. Yet with every rule, there is an exception, and the exception, in this case, is the precious metals market.
Long-regarded as a stable and sound investment that exists independently from the state of an economy, precious metals tend to retain their worth even in the most volatile markets. They have also been proven to rise in value when other stocks and investments fall. In a recent conversation, the Senior Partner of GSI Exchange, Anthony Allen Anderson, shares that despite Omicron, the future for precious metals in 2022 is highly positive.
“Like everything else, precious metals took a hit during the darkest days of the global pandemic,” explains Anderson. “However, things have since stabilized, and although Omicron had the potential to rock the boat again, I believe the integral worth and value of precious metals will shine through. Gold is already once again the asset of choice for investors who are opting to capitalize on a weak U.S. dollar and negative interest rates,” he adds.
With various ultra-loose fiscal and monetary policies predicted to be pursued by the governments across the globe as the pandemic continues, GSI Exchange’s Anthony Allen Anderson believes that the stage is set for precious metals to outperform all expectations. He explains, “2022 could potentially be the year of large-scale insolvencies, while currency debasement is already happening. With inflation a real and present danger, it is not difficult to predict that the prospects for precious metals in the coming years are the best they’ve been in a long while. In my opinion, there’s every reason to remain bullish about the trade.”