The coronavirus epidemic has paralyzed all economic activity in Europe and the United States. Politicians have to take decisive action. Main goal: reduce the spread of the virus to prevent the collapse of the health system. The governments of different countries are ready to allocate large sums of money for the implementation of protective measures. We are in a particular crisis now. Financial markets are in the red zone.
Over the past few days there have been significant fluctuations in the rates of various assets. Investors in a hurry were looking for additional liquidity. To do this, they sold stocks, bonds, gold, silver. For this reason, we have witnessed an incredible decline in the price of precious metals.
Current events in the financial world are the result of a monetary system that is not backed by anything and which is based on credit money. This experiment began in the 1970s. The coronavirus epidemic has become only an external factor. She showed the boundaries of growth and the weak spot of uncontrolled printing of money. Central banks continue to pursue a policy of "quantitative stimulus" to bring the pre-crisis situation back.
The problem is also that Central banks bear on their shoulders the unsolved problems of previous crises. But a critical situation occurs not only in financial markets, but also in the real sector of the economy. A crisis can spill over into all spheres of human activity: health, the economy, and the banking system.
Investors must always remember that the history of gold goes back more than 5,000 years. The yellow precious metal was able to survive all previous crises. During a crisis, gold always remains money. This is one of the most liquid assets that can be easily sold in case of urgent need.