Gold and silver are showing a strong recovery today after being dragged into one of the worst crashes in their centuries-old history last week.
The two precious metals combined lost more than 10 trillion in market value in three days, which is almost seven times the current value of Bitcoin (BTC).
Bargain hunters strike
Gold is up 5.67 percent today and is currently trading for $4,923 per troy ounce (that’s just over 31 grams). This means that part of the historic blow has been absorbed, but the precious metal is still about 12 percent below its record of last Thursday.
Silver rebounded even more strongly, gaining 10.57 percent to $87.22, but remaining 27.9 percent below its all-time high.
According to JPMorgan, the recovery is mainly technical in nature. “People are buying the dip,” said Yuxuan Tang, head of Asia macro strategy at JPMorgan Private Bank. “This is what happens after a 20 percent drop.”
The selling wave started on Friday after the news that US President Donald Trump wants to nominate Kevin Warsh as the new chairman of the central bank (Federal Reserve).
The dollar shot up and basically all other assets, including Bitcoin and other cryptocurrencies, took a hard dive.
The reaction was by far the strongest on the precious metals market. Gold experienced its biggest daily decline in more than forty years, silver fell even harder.
The prices of both gold and silver, currently the two most valuable assets in the world, rose in almost a straight line for a long time. The unprecedented rally was mainly driven by crumbling confidence in the financial system (with exploding government debts) and geopolitical tensions. Central banks still play a major role in gold and have purchased on a large scale.
Gold and silver next to crypto at Bitpanda
At Bitpanda, Dutch people can buy gold and silver in addition to crypto such as bitcoin and ethereum. The platform started as a crypto exchange, but has now grown into a place where multiple markets come together. Precious metals have been available for years and are fully physically covered.
Investors can invest in gold or silver for as little as 1 euro. The underlying precious metal consists of real bars that are stored in secure vaults in Switzerland. You can buy and sell at any time, just as easily as with crypto.
The range has recently been further expanded. Users can now also trade stocks and ETFs within the same app. This makes it possible to invest in crypto, precious metals and traditional stock market products from one platform.
Source: https://newsbit.nl/goud-en-zilver-herstellen-na-historische-crash-zo-koop-je-makkelijk-edelmetalen/
