With the looming impact of the coronavirus at hand, the prospect of a downward economic spiral predicts the probability that a recession will occur. The Australian government has introduced a stimulus package in anticipation, which shows they expect the retail, education and other professional industries/sectors to run into a reduced performance capacity over the foreseeable future.
A stimulus package may in turn devalue the Australian dollar, as the Australian Government ventures out to secure both international loans and cash in on nationally-sponsored investment schemes to finance the 17.6bn (PM Scott Morrison, 2020) they need to realise the strategy in the face of a reduction of productivity and retail activity/performance. With this, comes the idea that entities dealing with gold as a primary product, such as jewellers, companies supporting the technology sector (gold as a base element used for circuit boards and electricity conduits), as well as gold smiths and other professionals in creative and gold serviced industries, will be have service in reduced demand, creating less demand for gold, and greater power to consumers.
In a similar vein, with economic instability, come ideas for other interventions to support societies impacted workers, including wage negotiations in response to adjustments of worker capacities, duties and employer expectations. Active schemes and interventions may be supported by the government (see SMH article for context), which could devalue house hold income, and create urgency for alternative avenues to support compensatory financial action, which may include the selling of tangible assets such as gold items including bullion-based investments.
In any case, our dealers at Logan Gold Buyers will continue to operate with insight, integrity and understanding, supporting our customers, and providing the highest payouts for gold and silver items. Whether selling or buying, we will engage in online, over the phone and mail order based means of service (as well as face-to-face/in store) to support precautionary measures by our valued customers.
If you’d like to discuss prospects for your gold, both sales and purchases, come in and see us today.