For the first time in 15 years, Gold has broken the US$2,000 barrier and Uranium has passed US$80 a pound. The past year has been an eventful one for commodities in general, fuelled by investor demand for a safe-haven for their wealth and an appetite for higher raw-material prices as the world economy gradually recovers from the consequences of the coronavirus pandemic.
The surge in Gold and Uranium prices has been especially striking. Gold is running at its highest level since August 2012 while Uranium has its highest since November 2005. Experts are attributing this to many factors including investor demand for bullion and increasing industrial demand from tech companies and nuclear energy production.
It appears that investors are particularly keen on Gold as food for their safe-haven portfolios. As the value of the U.S. dollar weakens, investors are turning to precious metals to protect their wealth from currency depreciation. This is not only limited to gold; Silver prices have also been boosted over the past year, with a more than 60% increase since this time last year.
The industrial demand for both Gold and Uranium is also on the rise. Tech companies are using gold for its superior electrical conductivity and its protective properties, while the nuclear energy sector is driving the increased Uranium prices.
It will be interesting to see whether Gold can break records set as far back as 1980 when it reached $2,500 and $40 for Uranium. However, analysts are warning that investors should remain cautious and consider diversifying their portfolios, lest they experience wild fluctuations in commodity prices.
For now, it seems that Gold and Uranium prices will continue to be elevated, particularly as the demand for industrially-viable bullion picks up. It remains to be seen what other commodities will be driving the market in the coming months but it is likely that the implications of the coronavirus pandemic will be felt for a long time to come.
For the first time in 15 years, Gold has broken the US$2,000 barrier and Uranium has passed US$80 a pound. The past year has been an eventful one for commodities in general, fuelled by investor demand for a safe-haven for their wealth and an appetite for higher raw-material prices as the world economy gradually recovers from the consequences of the coronavirus pandemic.
The surge in Gold and Uranium prices has been especially striking. Gold is running at its highest level since August 2012 while Uranium has its highest since November 2005. Experts are attributing this to many factors including investor demand for bullion and increasing industrial demand from tech companies and nuclear energy production.
It appears that investors are particularly keen on Gold as food for their safe-haven portfolios. As the value of the U.S. dollar weakens, investors are turning to precious metals to protect their wealth from currency depreciation. This is not only limited to gold; Silver prices have also been boosted over the past year, with a more than 60% increase since this time last year.
The industrial demand for both Gold and Uranium is also on the rise. Tech companies are using gold for its superior electrical conductivity and its protective properties, while the nuclear energy sector is driving the increased Uranium prices.
It will be interesting to see whether Gold can break records set as far back as 1980 when it reached $2,500 and $40 for Uranium. However, analysts are warning that investors should remain cautious and consider diversifying their portfolios, lest they experience wild fluctuations in commodity prices.
For now, it seems that Gold and Uranium prices will continue to be elevated, particularly as the demand for industrially-viable bullion picks up. It remains to be seen what other commodities will be driving the market in the coming months but it is likely that the implications of the coronavirus pandemic will be felt for a long time to come.
