Investors are flocking to gold and other precious metals amid fears of another economic downturn.
Call it the new gold rush. Prices have jumped more than 27 percent this year. On Monday, gold hit a record 1,944 dollars per ounce. Michael Wittmeyer says his company, Dallas-based JM Bullion, has had trouble keeping up with demand for physical gold and silver since the pandemic and economic shutdowns began in March.
“I think there was a major sentiment shift into some concern and some flight to safety. Gold and silver have typically performed well in crisis type environments. [The response] has been overwhelming,” Wittmeyer said.
Investors are worried about a COVID resurgence, the falling dollar, and a ballooning deficit. Financial analysts say if you’re jumping into gold, do you research first. They also encourage you to diversify and don't rely only on precious metals.