A pronounced fourth wave of the coronavirus crisis, accompanied by new restrictions, will also have an impact on the prices of gold, silver, platinum and palladium. In addition, the availability of stationary trading in precious metals will again be under threat.
The first three global waves of the pandemic shook the global economy as well as financial markets. The highly dynamic fourth wave is likely to lead to new turbulence due to renewed restrictions up to complete blockage.
Supply chain bottlenecks due to supply chain disruptions have been causing material and product shortages for months. Further tensions on this front should be feared. As a result, price inflation has already reached a level that has not been observed for several decades.
The debt of states has also risen sharply due to various aid programs. Given the world's record-breaking debt, it remains questionable whether all those financially harmed by the restrictions can once again hope for normal levels of compensation from governments. Thus, the risk of stagflation increases even more. In the current fourth quarter of 2021, individual economies are likely already in the midst of stagflation.
The monetary metal gold should benefit from the stagflationary environment. Silver, about half of which is processed industrially, followed the price of gold more than the price of platinum or palladium during the first three waves of the pandemic.