No Haven Safe: Silver, Gold and Other Precious Metals Nosedive Alongside Bitcoin

Amidst an economic crisis, precious metals like gold and silver often act as a safe haven for capital, while other assets fall in value.

However, growing concerns over the coronavirus and a possible recession in the near future have created such hysteria and panic, that not even silver, gold, platinum, palladium and other precious metals are proving to be a safe haven for investors during a time of crisis.

Safe Haven Assets Aren’t Safe From Spreading Fear and Panic

Certain attributes shared between Bitcoin and precious metals caused a safe haven narrative to take off around Bitcoin in early 2019, as the asset began to rise in value alongside gold – the undisputed king of safe-haven assets.

But as the coronavirus turned from new discovery to a global pandemic, Bitcoin has been collapsing, putting an end to the safe haven narrative.

Related Reading | Silver, Gold and Bitcoin: Even Safe Haven Assets Cannot Withstand The Coronavirus

And while a potential recession on the horizon and investors fleeing the stock market in droves typically translates to an increase in value in gold, silver, platinum, and palladium, the recent fears have caused these assets to nosedive in value as well.

It seems no safe-haven asset is safe from the widespread impact of the coronavirus.

Gold, Silver, Platinum, and Palladium Crushed By Coronavirus Panic Selloff

Gold recently hit a high of $1,700 – the highest value since the last recession – but later the stock market collapse set the gold rally back nearly a year to $1,450 at the low.

Silver peaked at nearly $19 in 2020, but the selloff has erased all gains in the asset since the last recession hit in 2008.

Platinum also tanked, falling to prices not seen since 2004, dropping from over $1,000 to $575 at the low.

Palladium, which recently set an all-time high at $2,900, saw its parabolic advance get broken, and an immediate crash to $1,500. The fall nearly wiped out half of the asset’s value in just a few short days.

Comparing these charts to Bitcoin, and taking into consideration the fact that these precious metals have been trading for centuries next to the digital asset’s short ten years, suggests that the first-ever cryptocurrency isn’t doing all that bad after all.

Related Reading | Stock Market, Bitcoin, and Gold: Everything Is Collapsing Together

It also suggests that while the coronavirus remains at such a critical level, no market is safe for capital during the current economic climate and emotional state the public is in.

Until the outbreak is kept at bay and the economy shows signs of recovery, these safe-haven assets could very well suffer for the foreseeable future as the world hunkers down for what could be the worst recession the world has ever seen.

Featured image from Shutterstock

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Source: Newsbtc

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