London Coin Galleries


Difficult Economic Times Increase Buying and Selling of Precious Metals

During economic recessions, people have historically traded silver, gold, and other precious metals when they needed money. History has a way of repeating itself. During the job market collapse and economic dip due to the COVID-19 pandemic, people around the globe are turning to the precious metals market yet again. In difficult times, you might also want to consider these metals as an investment or a way to make money in a pinch.

Buying & Selling Gold During a Recession

Historically, gold has been a winner during recessions. During the eight stock market crashes between 1976 and 2011, gold has dropped in value only twice, while increasing in value the six other occasions between 6.2% and 53.8%. This happened during significant falls in the S&P 500, which remains a benchmark for economic performance to this day.

During economic crises, gold also tends to rise dramatically in value. Amid the Great Recession in 2008, gold rose nearly 47%, as well as in 1976, when it rose over 50% in value. However, the bullish uptick in the value is often met with bearish consequences. Because of this, gold is superb to sell during a recession, but buying and holding it following the recession can result in massive losses. Like other types of investments, buy low and sell high.

Investing in Silver During a Recession

Conversely, silver is a great investment during a recession, but selling it can cause substantial losses due to a drop in value. During the last eight major recessions prior to COVID-19, silver only went up in value twice. Every other time, it’s lost between 10% to 20% of its value.

While much of this loss during recessions can be attributed to silver’s industrial applications and less manufacturing as a result, silver still has a certain degree of volatility. Some of this volatility has to do with whether the stock market is bullish or bearish following the recession. If certain elements point toward a bullish market in the near future, silver is a great investment. But if the stock market continues to shrink or appears bearish, silver is a definite sell.

Buy and Sell Coins During a Recession

Because of the collectibility and numismatic value associated with coins, they have value above the type of metal they’re made out of. But because coins are only worth what someone is willing to pay, a recession is typically a time when you’ll hold onto coins.

The reason why coins earn a hold rating during a recession is that many collectors have less disposable income to buy coins. While highly collectible coins may remain impervious to a bear market, many other coins will sell for far less than in an economic expansion.

We’ve been an Orange County coin dealer for multiple decades,   We lead with experience and integrity.  If you want to sell, buy or trade any coins, gold, silver, scrap, or simply have a question, we’re here to help.

Whether you invest or sell gold, silver, coins, or something else, you can earn some decent money. Just make sure you take your precious metals to the right place. By going to a reputable precious metals dealer, you won’t have to worry about paying too much or receiving too little. This is your opportunity to turn the recession from the COVID-19 pandemic into an opportunity to profit or weather the storm.