GRAND RAPIDS, Mich. — When unemployment is on the rise and the stock market crashes, some people turn to precious metals as another form of currency. That's what the folks at Grand Rapids Coins have noticed in response to the market mayhem.
“In times of uncertainty, everyone always goes towards gold," said Ben Soldaat, co-owner of the business. "They have for years.”
Soldaat said he knew the phones were going to be ringing off the hooks all day Monday once he saw news about the stock market.
“For the first time since the 1980s, Japan actually shut down the stock market exchange because it was falling so much. So we knew it'd be a busy phone day," he told FOX 17.
Soldaat said Grand Rapids Coins received at least three times the normal call volume, with most people looking to buy amid fears of a recession.
“It's not only the stock market," he said, "it's cryptocurrency. Employment's way down; houses aren't selling as fast. So, [in] times of uncertainty, people go to safe haven demand, and that's been gold.”
The value of gold and silver didn't dodge a dip either, falling more than 2% and 5% respectively on Monday.
"Gold had a little minor correction this morning, but nothing compared to the stock market or to crypto markets.”
Soldaat said precious metals have survived the test of time, and that's one of the many reasons he feels they are a proven alternative.
“I'd say the floor might be in on gold when they quit printing money," Soldaat said. "When they quit printing money and running up large deficits, that's when the floor comes. Until that happens, I think it keeps heading north.”
Soldaat said, in 2008, the price of gold and silver went up, which he said generally goes hand in hand with a recession.
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