Whether one wants to admit it or not, the world is still in the firm grip of COVID-9. Pfizer claims it has come up with a successful vaccine, This positive news will make its impact on safe haven assets, including gold and silver.
Pfizer Makes a Bold Claim
The entire world is waiting anxiously for a coronavirus vaccine. Considering the damage this pandemic has caused throughout most of 2020, a solution needs to be found. That is always much easier said than done, however. Developing a vaccine is not something that will happen overnight, even though various companies are exploring their options.
One of the companies early to claim success is Pfizer. The firm claims its COVID-19 vaccine will have a success rate of up to 90%. That may sound good on paper, but in the real world, there are still a lot of lingering questions. Now is not the time to cut corners and get ahead of ourselves, A success rate of “up to 90%” is not sufficient when dealing with a global pandemic claiming over 1.2 million deaths worldwide.
Before one gets overly excited, there are several aspects to take into account. First of all, it is unclear if there are any long-term effects associated with this alleged vaccine. No one knows if it grants lifelong immunity, and if it is detrimental to one’s overall health. For now, it is far too early to draw any conclusions in that regard. As such, any optimism needs to be tampered until the full picture becomes clear.
Second, there is no indication that this vaccine will continue to work of the virus mutates again. Since it became a global pandemic, there have been dozens of different variations of COVID-19. A vaccine usually works against the strains scientists can identify. When it comes to any new variations, it is a proverbial toss-up. No one wants to take any chances in this regard. Again, another reason to tamper one’s expectations.
Limited Trial and Limited Results
Based on what we know so far, Pfizer tested the vaccine on 44,000 people. That is a very small sample size compared to the global population. Of the nearly 7 billion people on our planet, 39,600 have seemingly noted initial immunity against a global pandemic. Those odds are not exactly favorable, considering 4,400 of the 44,000 test subjects are not immune at this point.
One also has to consider the virus is going through its second wave of infections right now. It has triggered a new increase in mortality rates across different countries. This further indicates COVID-19 is still evolving. It is unclear how the vaccine by Pfizer will pan out if a third – or even fourth – wave were to occur in the future. Even if it provides immunity, not everyone will get the Pfizer vaccine in the next 12-18 months either.
Gold Price Responds Negatively to Pfizer Claims
It was to be expected there would be some excitement regarding the Pfizer news. As was the case when the first COVID-19 wave came to an end, that optimism proved to be premature. As far as the gold price, the Pfizer news triggered a steep drop from $1,960 to $1,875. The dip was quickly bought, though, as most people acknowledge the real challenge still lies ahead.
With the gold price currently hovering near $1,920 per ounce, there is no reason to panic yet. While the Pfizer news is promising, there is far too little evidence to get one’s hopes up. Until those lingering questions can be answered in a satisfactory manner, there will be no brighter future in sight. Hope is a powerful emotion, but it should never cloud one’s judgment.
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