Gold prices took a major hit this past week after falling by more than $50 in a single day on the news this past Monday that pharmaceutical company Pfizer had developed a COVID-19 vaccine with greater than 90% efficacy. The news sent stocks soaring, with gains of more than 800 points on the Dow. That’s the type of event that usually sends bullion prices lower, as Wall Street and precious metals often demonstrate an inverse relationship to each other when it comes to gains and losses.
Bullion prices have spent the past week finding a modicum of equilibrium. Gold hovered around $1,900 during and just after November 4, which was Election Day in the United States. Prices spiked to $1,950 on the news that President-Elect Jos Biden had captured enough Electoral College votes to ensure victory. Then prices tumbled to $1,860 on Monday on the heels of the Pfizer announcement and subsequent Wall Street rally.
This morning, prices are nearing the $1,890 mark, returning just shy of where levels were at this time last week. The wild ride for investors continues, but those who fared the best are diversifying their portfolios, which should include gold, silver, and other precious metals. Pre-1933 United States gold, pre-1965 90% silver coinage, and American Eagle bullion coins prove winners time and time again, offering speculators excellent liquidity and some of the best returns on their investment.
