Silver in Recession posted by Bullion on Post - Seen many do not agree with grey unknown ....
- In the last 50 years there was 4 recessions of which 3 Silver climbed and one silver downward. Mid-1970s recession: In late 1973 and early 1974, stagflation drove the UK's GDP negative. This coincided with the silver price rising.
- Early 1980s recession: The UK was in a recession for five quarters. The larger spike seen on the chart related to Silver Thursday but still experienced a price climb the year after.
- Early 1990s recession: The early 90s saw significant economic change, with the US savings and loan crisis, as well the UK’s adoption of the Exchange Rate Mechanism. The silver price actually dropped during this time.
- The ‘Great Recession’: The financial crisis in the late-2000s pushed gold to a record price in Dollars. Silver also climbed to its peak Sterling price of £29.26 per ounce.
- 'Covid' recession : The outbreak of the global pandemic saw huge economic disruption, with much of the world entering some of the worst recessions seen in peacetime. After initially falling in price, silver rebounded on huge investor demand, and industrial demand as industries reopened.
A recession can in no way be considered a sure indicator of an impending price rise for silver. It can take a few years for the rise to begin, as happened with the recession of 2008, in which the price only peaked in 2011.
Ultimately however, a recession is a sign of an economy that is struggling, and this means all hedge commodities (including silver) could do well during this time.