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24-07-2020

WHERE DOES THE MONEY GO IN THIS CRISIS?

WHERE DOES THE MONEY GO IN THIS CRISIS?
This time we are going to explain in the simplest way that we can what is happening at the macroeconomic level with the Coronavirus and the reason why since February and March of this year 2020 there was a considerable drop in the stock markets and gold, but also there has been a very fast recovery... At least for now...
 
We begin by highlighting the generalized behavior of all economic agents in the face of a global crisis that is basically the need of obtaining liquidity and therefore individuals, companies and institutions want to have their money out of the economy and have it available to themselves because of fear that they may lose it, meaning that the Banks have to respond to a very strong monetary demand. This is the reason why Central Banks, knowing this necessity, adopt incredible fiscal policies, injecting money in a massive way into the economy, so that supply and demand are balanced. This is how they have prevented the stock market from collapsing as it happened in 2008, which according to the MSCI Index that includes the most important companies in the world had a drop of 40%, when this time it was a 20% and practically now it is fully recovered.
 
This crisis is humanitarian, not financial like the one of 2008, this is the reason why at the moment it has not been reflected in world markets in a considerable way...
 
Now, the current result is that the indexes are presenting at all-time highs, just like gold, and that is why it’s important to be at the forefront of what may happen in the short-medium term...
 
We do not want to delay this article much more... Our recommendations regarding what concerns us “gold” are; If you have the need for financing, do not hesitate to sell it or pawn it now because it is really very high. However, those people who want to take refuge in this raw material, it is also a good option to buy now despite its high value because the trend is still bullish and many of our clients have already had this initiative...
 
Gold is currently at $1,800 and its forecast that it will reach $2,000, 10% more, although be careful with the benefits that could make the price vary in the short-medium term.
 
If you want more specific information in both investment and gold, including silver, you can call us during our hours open to the public to answer any questions.

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