Why the Pandemic Will Build an Ongoing Need for Precious Metals

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Written By Barry Lenson

“Isn’t the pandemic creating a lot of demand for precious metals,” a caller asked us recently. “Gold, silver and platinum and even cadmium are used in medical devices and medications, and isn’t the demand for those things increasing because of the pandemic?”

The answer to that question is, not really. That man was correct in a way, because precious metals really are used in health care. Cadmium tips are used on probes that are used in cardiac tests. Silver is used in bandages, because silver inhibits the growth of bacteria. Gold is found in all kinds of devices that are used to perform medical tests. And platinum is finding new uses in medications to fight cancer and other diseases. But the thing is, none of those activities and applications has increased much because of Covid-19.

But before you conclude that the Pandemic has not increased demand for precious metals, consider the following trends, which have increased the demand for gold, platinum, silver and the metals we love the most.

The Increased Demand for Home Electronics Has Boosted the Demand for Gold

Students are taking their classes from home. Professionals are working from home. And schools and businesses of all kinds have had to increase their ability to provide remote instruction and meetings.

This dramatic increase in the use of technology has increased the demand for gold and silver especially and will continue to exert a positive force on trading prices for the foreseeable future.

Suddenly, Batteries Are Everywhere

We are all reading articles, almost every day, about the dramatically increasing need for large battery packs for electric and hybrid cars. Yes, that is a trend.

But we expect an additional trend to impact precious metal markets to – the increasing demand for lithium and cadmium-based batteries that are used to power small devices in the home and in businesses too. So expect cadmium and lithium to enter the category of “precious” among the metals you may want to invest in. The landscape is changing.

People Are Investing in More Luxury Goods

Many people have suffered extreme economic problems due to Covid. But at the same time, a segment of America’s wealthiest people have ramped up their spending on luxury items like home entertainment systems, high-end cars (many of them electric) and even jewelry.

Call it escapism, because some wealthy people are saying, “As long as I am suffering all this pent-up time at home, I am going to buy all kinds of fun stuff to keep me occupied.”

It’s yet another reason the demand for precious metals will stay strong in the coming year.

A Good Time for Investors . . .

Whether you prefer to invest in gold scrap, silver scrap or platinum scrap, the coming year will be good for you. And we believe that as the pandemic subsides, which it will, opportunities for precious metal investors will become even better.

Barry Lenson
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