Conflict In Iran and The Prices of Gold and Silver
The prices of gold and silver dropped quickly and out of the blue when the US, Israel, and Iran went to war in 2026. This took place even though they were going up before the war. Usually, these metals would be investments that people could feel protected in when the world was unstable. This change in the market wasn't like that before. A rise in the values of gold and silver occurred while the war was going on. A flurry of investors raced to get in:
· Investing in gold bars · Two ounces of silver coins · The acquisition of silver monster boxes
Gold and silver prices dropped despite the war:
· Traders sold their stocks to meet debt calls and pocket the gains when prices hit all-time highs. · Foreign buyers had to pay more for gold that was priced in dollars when the dollar got stronger. This made fewer people want to buy gold. · Inflation worries led people to believe the Federal Reserve would keep interest rates high for longer as oil prices rose. It became less appealing to put money into things that don't make money, like gold. · After prices went up, people put their money into oil and other goods.
Supply Chains · There were fluctuations in demand at the British Royal Mint, Valcambi, Pamp Suisse, and Perth mints. · Silver producers Germania, Golden State, New Zealand, and Scottsdale saw a variety of order flows on their premises.
Palladium Market Due to demand from manufacturing areas, the price of palladium and platinum per oz changed in different ways from gold. There were outages because of problems in the supply line, but things are back to normal now.
A Lesson for Those Who Invest · In most cases, war does not drive up the price of gold. · In terms of macroeconomics, currency strength is important. · Diversifying is quite important.
The Iran War says that when there is a global crisis, market forces could cause the gold price per ounce and silver to fall. When investors look at economic data, they need to look beyond the news.
