Question

During which of the following economic periods is the price of a precious metal, such as...

During which of the following economic periods is the price of a precious metal, such as gold, silver or platinum, likely to increase?

Recession

Depression

Peace time

Deflationary

Inflationary

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Answer #1

During the period in an economy in which the market is not performing that much well, precious metals like gold, platinum, siver etc. performs well. The reason behing such phylosophy is that these gives the investor a better and safe option to hedge the risk.

Accoding to the past records that have seen and analysed, during the times of reccession,gold has performed so well in the market.

Deppression is the state of severe reccession, it can be observe that gold and other precious metals have given a considerable level of returns in the times of depression.

Deflation and gold prices shares a opposite correlation with each other. in the state of inflation, gold falls and in deflation it increases.

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