Coronavirus is back and wreaking economic havoc
Resurgence of the coronavirus and its plentiful variants are not only continuing to take a toll on the world’s population, but ongoing lockdowns continue adding to the global economic slowdown. China’s strict coronavirus induced lockdown continues to prevent cargo from getting where it needs to be and the domino effect it’s creating throughout the world is nothing short of monumental. The BBC reports that up to 500 ships are waiting in Shanghai to load and sail to their destinations. Even from space, Shanghai Harbor looks like a massive traffic jam. The supply chain crisis is causing empty store shelves, missing parts, and an absence of necessary components that prevent final product completion. An ongoing trucker shortage in many areas has not helped the problem and areas without a shortage have truckers waiting at global ports for hours to get loaded or unloaded.
Economic confluence is adding to downturn.
Combined with rising interest rates, rising inflation, and reduced economic productivity, the outlook will probably get worse before it gets better. Stocks are suffering and as a result the S&P recently fell to its lowest level for the year. The rising demand is causing expensive workarounds, which in turn is causing suppliers and retailers to enter bidding wars in some instances, for priority handling and distribution. Additional expenses incurred, necessarily have to be passed on to the consumer. The backlog created by this perfect economic storm has appropriately been called “Containergeddon.”
Precious metals still providing safe haven.
The logistics scenario is tough enough to deal with, but the constant delays compounded by new coronavirus outbreaks are making the economic condition all the more severe. All of the factors being created by this economic Armageddon are the exact pressures that historically cause precious metal values to rise. Don’t let today’s lower prices be anything but another reason to convert an even greater percentage of your portfolio, to the safety and security provided by physical gold, silver, and other precious metals. Call the seasoned precious metal professionals at American Bullion now! Call (800) 531-6525 or (800) GOLD-IRA.