BUFFALO, N.Y. (WKBW) — Economic concerns during the pandemic bode well for the precious metals industry.
“If the economy goes south, those stocks and bounds lose value and inversely gold and silver are going up in price,” explained Scott Hunt.
Hunt is the president of Jack Hunt Gold and Silver in Buffalo. The company has been around since the 1960s. It’s a wholesaler and retail consolidator of scrap and precious metals and a wholesaler and retailer of bullion precious metals, or gold and silver coins. “We’re one of only 13 companies world wide that have the distinction of buying gold and silver bullion produced by U.S. Mint as a distributor,” Hunt said.
Hunt said much like the 2008 financial crisis, business is good. “When things are upside down in the economy, investors tend to be drawn to precious metals because it’s a tangible item that they can hold and store on their own that’s outside of the financial system.”
Hunt said there are things to consider to avoid being scammed.
- Seller pressures you to buy bullion.
- Seller attempts to sell you a gold coin as a collectors item.
“If you have an opportunity to “score” so to speak, why wouldn’t the person selling them just buy all these coins? Why do they need to sell it?”
3. The bait-and-switch scam: inquiring about one coin and the seller tries to sell you a more expensive piece.
4. A seller’s buy back policy. If they aren’t willing to pay what they charged, it 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 earnings,” explained President and Founder of Ogorek Wealth Management LLC, Tony Ogorek.
“If you have a company, you’ve got a share of common stock and you have a piece of an operation that’s got earnings. You can put a price on it," Ogorek explained.
Bullion experts like Scott Hunt said gold and silver is a wise long term investment and he believes that will continue for sometime.
“I do not see anything changing in the industry until the inflation rate gets under control.”