COLORADO SPRINGS — As gold and silver prices skyrocket, Hallenbeck Coin Store is seeing many people coming to both buy and sell during the pandemic.
The price of gold on Monday was $1,955.27 per oz and $27.17 per oz. Gold hit $2,000 per oz in July – which the market hasn’t seen since the end of the recession in 2011 and 2012.
Hallenbeck Coin Gallery is practicing social distancing, limiting the number of customers in the store, and requiring masks due to COVID-19. They are currently selling and buying gold. Many people lined up to make a profit from the high prices.
“If they have some gold, this is a good opportunity to take advantage of these high prices,” said Dr. Tatiana Bailey, Director of UCCS Economic Forum in the College of Business.
Dr. Bailey says there’s a variety of reasons the prices are so high – but normally the stock market and gold prices work in the opposite direction. She says the pandemic is just one factor.
“We still have so many economic pressures. We have millions of people out of work, we still have emerging hot spots for COVID-19, we have limited economic activity both on the demand side and supply side. Probably a little bit more so on the demand side. Another reason gold is doing so well is the relativity of interest rates,” said Dr. Bailey.
“We also have the fact the US dollar has depreciated – because many other countries, particularly the Asian countries have emerged from the pandemic and are recovering more quickly than we are so relative to the US dollar the other currencies are doing better and that also creates a demand for gold in the United States,” Dr. Bailey added.
Dr. Bailey will be hosting the UCCS Economic Forum event on October 1st and will be speaking about the national, state, and local economy in the context of COVID-19.