BUFFALO, NY (WKBW) — Economic concerns during the pandemic bode well for the precious metals industry.
“If the economy goes south, those stocks and limits go down in value and conversely gold and silver go up in price,” explained Scott Hunt.
Hunt is the president of Jack Hunt Gold and Silver in Buffalo. The business has been around since the 1960s. It is a wholesaler and retail consolidator of scrap metal and precious metals and a wholesaler and retailer of precious metal bars or gold and silver coins. “We are one of only 13 companies worldwide that have the distinction of purchasing gold and silver bullion produced by US Mint as a distributor,” Hunt said.
Hunt said much like the 2008 financial crisis, business is good. “When the economy is in turmoil, investors tend to gravitate towards precious metals because it’s something tangible they can hold and store on their own, outside of the financial system.”
Hunt said there are things to consider to avoid being scammed.
- The seller pushes you to buy bullion.
- The seller is trying to sell you a gold coin as a collectible.
“If you have the ability to ‘brand’ so to speak, why wouldn’t the person selling them just buy all those pieces? Why do they need to sell it?
3. The bait and switch scam: you inquire about a coin and the seller tries to sell you a more expensive coin.
4. Seller’s buy-back policy. If they’re unwilling to pay what they’ve been billed, that may be a red flag.
“In my opinion, it’s never a good time to buy bullion. Gold is an inert investment. It has no dividends and it has no profits,” explained the president and founder of Ogorek Wealth Management LLCTony Ogoreck.
“If you have a business, you have common stock and you have part of an operation that generates profits. You can put a price on it,” Ogorek explained.
Bullion experts like Scott Hunt have said that gold and silver are a smart long-term investment and he thinks that will continue for some time.
“I don’t see anything changing in the industry until the rate of inflation is brought under control.”