The pandemic that began in January 2019 has caused a lot of fluctuations in the price of many different commodities. The volatility is due to several factors, including uncertainty about how long the crisis will last and how severe it will be. This has affected the market of trading metals. However, one thing has remained consistent: metals have been volatile since the pandemic first hit world markets.
Gold
Gold is a safe investment. It’s been proven to be a solid hedge against inflation, uncertainty, currency devaluation and stock market volatility. Gold is a hedge against geopolitical instability. The gold market has always thrived during periods of geopolitical instability. This trend will continue as long as political uncertainties negatively affect global economies.
Silver
The precious metal silver is a good investment choice, but it can be volatile. Silver is used in jewellery, electronics and photography. It’s also a hedge against inflation because it holds its value over time.
In the Covid-19 pandemic, the prices of silver were highly volatile due to shortages for industrial uses and demand for jewellery and coins from investors.
Nickel
Nickel is a base metal used in many industries, including batteries and stainless steel. It’s a relatively new commodity to trade, so there is only a little historical data available to use in your trading strategy.
Since the pandemic hit world markets and prices have been volatile during this period, individuals trading metals need to consider factors such as supply/demand and economic factors when deciding whether to buy nickel futures contracts.
Zinc
As the world has become increasingly aware of the threat posed by the Covid-19 pandemic, demand for zinc has increased. The metal is used in batteries and galvanized steel, both of which are in high demand as countries prepare for a possible global outbreak. It’s also used to make coins, and many governments have stopped printing currency until it’s safe to do so again.
Lead
Lead is a toxic heavy metal. It is used in car batteries, plumbing and paint. The use of leaded gasoline has been phased out, but it takes many years for the levels to drop back down again due to its long lifetime in the environment compared with most other chemicals found on Earth.
Iron ore
Iron ore, a key ingredient in steel production, has been one of the biggest losers since the pandemic’s start.
The market for iron ore has experienced significant volatility since its first swoon in early 2019. In January and February, prices fell as low as $58 per metric ton before recovering slightly by mid-year and then dropping again following a report from The Wall Street Journal detailing how China had restricted its imports from Brazil because of concerns over heightened risk. By August 10th 2020, iron ore hit an all-time low of $43 per metric ton. However, since that date, it has regained some ground with prices around $50 per metric ton as we approach 2021’s end.
Metals have been volatile since the pandemic first hit world markets. Gold has been one of the best performers, with silver also doing well.
Gold has been one of the best performers as the pandemic spread and markets began to respond. In fact, it has risen from $1,197 per ounce at the beginning of 2019 to $1,678 per ounce today. Gold has always held a special place in many investors’ hearts as a safe haven during times of uncertainty, and this is reflected in its performance since Covid-19 hit world markets. Another metal known for its safety benefits is silver, which also did well during these periods, with prices climbing 76% over the same period (to reach $16,500 per ounce). Other metals that have done well include zinc ($2,150), copper ($4,000), lead ($4,300) and iron ore ($90).
The volatility of metals in the Covid-19 pandemic results from a greater demand for them, which has led to increased prices and decreased supply. This has been especially true for gold and silver, which have outperformed other metals in terms of gains made since the pandemic began.
