Britain’s economy shrank by 20% in the three months leading up to June. This was the furthest fall of any large advanced economy. Now during this extended period of economic uncertainty as we head into a bleak winter, as tighter coronavirus restrictions looms large and talk of a circuit breaker national shut down, the price of Gold continued to rise, providing growth for investors.
Bank of England boss Andrew Baily touched on negative interest rates last week, which would bring the cost of borrowing to zero and would cause a ripple effect in the nation’s economy, driving investors toward safe haven investments such a s physical gold and silver. This is in response to 3rd quarter output being 10% lower than in the end of 2019.
The IMF managing director Kristalina Georgieva also weighed in back in early October suggesting that despite global economic contraction of 4.4%, although less than initially forecast, we are now in a deep recession. Adding further fuel to the move toward safe haven investment such as Gold for investors.
Recession, negative interest rates and of course the impending US election see the Price of Gold marching onward and upwards.