Written by Mark Yaxley, General Manager, Strategic Wealth Preservation.
Dear clients and contacts,
It’s been exactly a month since our last market update. Here’s the latest from the precious metals space:
Price Action
The positive momentum for precious metals continues, as the effects of COVID-19 linger and an overall risky marketplace continues to push investors towards safe havens.
The gold price is up another $30 since our last update on May 22nd, trading today at $1766/oz USD. That’s 27% year-over-year and 16% since January 1st, 2020 to the upside. All smiles over here.
Silver continues to rally, trading today at $18.01/oz and has pushed further into the $18+ range as of late. That’s a 4.7% gain in the last 30 days and much welcome news for silver investors.
Supply Chain and Product Availability
The most noticeable change in the precious metals space has been the availability of best selling products. The producers are back online and products are now available for immediate or also immediate delivery.
That being said, the effects of record sales in March, April, and May, throughout the industry, has created a situation where the fulfillment of back-orders has been lengthy and continues to work itself out.
To compound the situation, logistics providers and customs agencies are also playing catch up as their staff members come back to work and now have to deal with a backlog of shipments to process and packages to deliver. In some cases, their lack of foresight or contingency planning has led to longer than usual delays for shipments to arrive and be processed, which can be frustrating for investors who were already being asked to be patient.
The good news is, the issues are working themselves out, painfully at times, but progress is being made nonetheless. More and more metal arrives every day to our vaulting locations.
Premiums
Product premiums, particularly silver, are somewhere between “normalish” and ridiculous. Pick your products wisely. Gold, on the other hand, is the better buy in my opinion, at least from a premium perspective. In most cases, you’re only paying 1% more premium than usual for gold products. I don’t see premiums returning completely to normal until market demand subsides, which I expect will be months if not years ahead.
Investing in Precious Metals: An Educational Webinar
In case you missed it, we posted a webinar recently focused on investing in precious metals. It’s free and perfect for anyone who has been considering investing but hasn’t pulled the trigger yet or is always looking for more information about gold and silver. Check it out on our YouTube channel:
https://swpcayman.info/YouTubeWebinar
Wishing you all the best, enjoy the ride!
Mark Yaxley
Email – my@swpcayman.com
Twitter – @SWPGold
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Mark Yaxley is the General Manager for Strategic Wealth Preservation (SWP), a premier offshore precious metals dealer and storage facility located in the Cayman Islands. Following the completion of his studies at McGill University, Mark joined world-renowned Kitco Metals, serving as their Product Development Manager and Product Marketing Manager from 2006 to 2013. Mark joined Strategic Wealth Preservation in 2014, focusing on the diverse needs of SWP’s high-net-worth clients. He can be reached at my@swpcayman.com
This article was originally posted in the Strategic Wealth Preservation Blog and copied here with the permission of the author.