The Covid-19 pandemic has acted as a catalyst for furthering investment in gold and silver in the US, with a new wave of investors who have never bought precious metals before now considering investing in such assets, Monex Precious Metals broker Albert Johnston III said during an LBMA-hosted webinar on September 24.
He noted that the majority of investors in the US were interested in bullion coins, adding that the US was not much of a bar market for investors, save for high-net-worth investors.
However, popular in the US is the 100 oz silver bar, made by North American refiners in the late 1970s and designed specifically for US investors.
Johnston stated that silver was becoming a companion to gold, rather than being perceived as “poor man’s gold”, adding that there was a strong affinity for silver in the US.
Platinum and palladium, meanwhile, were the “new kids on the block” in the US.
Johnston said platinum was geologically rare compared with gold.
He also pointed out that Americans tended to perceive platinum as an expensive metal, given its historically high price compared with gold.
Johnston believes platinum provides a good investment option.
Moreover, with the majority of platinum coming out of South Africa, supply problems are likely as occurred before when issues arose with State-owned power utility Eskom, which would drive up demand for the metal, he said.
Meanwhile, World Gold Council chief market strategist John Reade highlighted the “extraordinary” rise of gold ETFs this year.
He said there had been a very strong net inflows in ETFs this year, with an increase seen every month.
Moreover, he said that a notable feature of the market has been seen in terms of ownership, with a much better balance now in terms of North American and European listed funds, with this previously dominated by US listed funds.