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Tuesday, August 11th, 2020
Home » Trade » Gold was America’s top import in May. Why?

Gold was America’s top import in May. Why?

PortandTerminal.com, July 3, 2020

The value of gold imports increased more than 1,700% over the previous month of May, replacing computers as the top U.S. import.

WASHINGTON – U.S. trade fell a whopping 29.83% versus the same month last year and, for the first time, gold was the most valuable import, according to Census Bureau data released Thursday for the month of May.

Gold being America’s top import is a major red flag according to Forbes Magazine. Gold attracts buyers frightened by the economic outlook, sending the price higher. The value of gold imports increased more than 1,700% over the previous month of May, replacing computers as the top U.S. import.

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Nervous investors have flocked to gold as the pandemic struck. The price of an ounce of gold has increased by 28% versus a year ago.

The global gold market has been turned on its head by the novel coronavirus, with demand in China and India collapsing due to lockdowns while in the West investors rushed to buy bullion as a safe asset to weather a period of financial turmoil.

Until March, gold imports had topped $2 billion in a month only three times this decade. In March, the total was $3.07 billion, followed by $7.54 billion in April. The total for May was $8.77 billion. Imports in those three months top the previous annual record, set in 2016.

Passenger vehicles have traditionally been the top U.S. import but those were down 76.88% when compared to the previous May, slipping to a rank of No. 10.

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