What are the Bubbles in the Gold and Silver Market?

Just because the prices of gold and silver have been in the ups, and downs lately, does it mean that the market is going through a state of a bubble?

No, not really. To understand why the answer is no, one first needs to understand what exactly is a ‘bubble’ in economics. A bubble is basically an economic cycle that has the features of a quick rise in the market value of a certain object, this rise mainly occurs in the prices of the assets. However, this quick rise in the prices is followed by a quick crash in the value of the asset, or an instant decrease in the market prices. This phenomenon in the economy is known as ‘bubble burst.’

Many people think just because these princes are shifting in such a sense, the value price of both gold and silver are in some sort of a bubble. But they aren’t, and for more technicalities, one can easily get the data and information from a COMEX market review that mostly discusses the market changes in different industries. Many people are just trying to spread foundation-less facts about this issue.

Let us discuss a little about the shifts in the prices of gold and silver in the past ten years, and we can understand that they are always in this constant cycle where the rise in demand increases the prices, and the decrease in demand reduces the prices. It is just a basic economic phenomenon.

Silver Prices:

In the first half of 2019, the prices of silver remained at 14 – 16 $ per ounce. But because of the sudden reduction in the interest rates in the middle of 2019, the silver prices rose to 20$.

By the end of September 2019, due to the reduction in demand for silver in the industrial sectors, globally, the prices shifted back to 17$ per ounce. There has been a lot of changes in the prices of silver in the past ten years. Usually starting from 14$ per ounce and rising to 50$/ounce.

Gold Prices:

Gold has recently gone through a lot of major changes and price shifting. The worst time in the year 2020 for gold was in March when the dollar was up against the euros. The pricing falling to 1,900 $ per ounce. However, the prices have once again increased and are up to 2,075$ per ounce after the 23rd of July.

Back in 2015, the price of gold fell too much and then continue to rose slowly, slowly. The lowest peak was on 27th November 2015, with a price of 1,056$/per oz. If we just check the charts, we can observe that in august 2020, the prices of the gold have peaked up to 2.034$/per oz.

All these facts and price changes and fluctuations in the market of gold and silver show that it is just the nature of this market, and it isn’t going through any sort of bubble or something alike. Gold and silver have always been such a way when it comes to their market value.