Gold and silver got another nice boost today as it’s becoming increasingly clear that risk is rising, inflation fears are resurfacing, and liquidity is looking skittish.
Indeed, there’s good reason to be nervous.
Actually, there are four …
- Dollar weakness: The U.S. dollar has slipped materially today, making gold and silver cheaper for foreign buyers and thus boosting demand. YTD, the U.S. dollar has fallen more than 8%. Check it out …
- Geopolitical jitters: Reports of increased tensions in the Middle East, along with chatter about the Chinese-U.S. trade war, create demand for non-correlated assets. Precious metals shine when unpredictability rises.
- Silver as an industrial hedge: Silver isn’t just a safe haven, it’s also tied to solar, EVs, electronics, industrial alloys, and soldering. With industrial demand expected to grow rapidly through the end of the decade, silver serves a dual purpose: hedge and growth.
- Rebalancing flows: Some large hedge & commodity funds are trimming equities and boosting hard assets. The “rush to physicals” may still be modest, but the signal is clear.
If you’ve been underweight gold or silver, this might be your “second signal.” Today is telling us that for gold and silver, this isn’t just a tactical bounce. It might be a healthy combination of strategic inflection, geopolitics, and real yields converging.
Worth noting: I do believe silver may offer more upside from here due to the continued and rising demand for the white metal. In fact, I actually recommend that investors buy shares of silver miner Silvercorp Metals (NYSE: SVM) in December 2024, when it was trading for $3.25 per share. I saw that writing on the wall and, at that time, knew silver was being underpriced.
As I write this, Silvercorp is trading at $7.12 per share. That’s a 119% gain in less than one year.
This, dear reader, is how you create wealth!
Long-term, I maintain that you should keep a portion of your portfolio in hard assets, with gold and silver being top choices.
Disclaimer
We are not an investment advisor and is not registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory Authorities. Further, our owners, employees, agents are not acting as investment advisors and might not be registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory Authorities.
The sender of this email makes no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended in this email, and makes no representations or warranties concerning said company or entity’s compliance with applicable laws and regulations, including, but not limited to, regulations promulgated by the SEC or the CFTC. The sender of this email may receive a portion of the proceeds from the sale of any products or services offered by a company or entity mentioned or recommended in this email. The recipient of this email assumes responsibility for conducting its own due diligence on the aforementioned company or entity and assumes full responsibility, and releases the sender from liability, for any purchase or order made from any company or entity mentioned or recommended in this email.
The content on any of our websites, products or communication is for educational purposes only. Nothing in its products, services, or communications shall be construed as a solicitation and/or recommendation to buy or sell a security. Trading stocks, options and other securities involves risk. The risk of loss in trading securities can be substantial. The risk involved with trading stocks, options and other securities is not suitable for all investors. Prior to buying or selling an option, an investor must evaluate his/her own personal financial situation and consider all relevant risk factors.
The information presented in this site is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. Nothing in our research constitutes legal, accounting or tax advice or individually tailored investment advice. Our research is prepared for general circulation and has been prepared without regard to the individual financial circumstances and objectives of persons who receive or obtain access to it. Our research is based on sources that we believe to be reliable. However, we do not make any representation or warranty, expressed or implied, as to the accuracy of our research, the completeness, or correctness or make any guarantee or other promise as to any results that may be obtained from using our research. To the maximum extent permitted by law, neither we, any of our affiliates, nor any other person, shall have any liability whatsoever to any person for any loss or expense, whether direct, indirect, consequential, incidental or otherwise, arising from or relating in any way to any use of or reliance on our research or the information contained therein. Some discussions contain forward looking statements which are based on current expectations and differences can be expected. All of our research, including the estimates, opinions and information contained therein, reflects our judgment as of the publication or other dissemination date of the research and is subject to change without notice. Further, we expressly disclaim any responsibility to update such research. Investing involves substantial risk. Past performance is not a guarantee of future results, and a loss of original capital may occur. No one receiving or accessing our research should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing any applicable prospectuses, press releases, reports and other public filings of the issuer of any securities being considered. None of the information presented should be construed as an offer to sell or buy any particular security. As always, use your best judgment when investing.
Disclaimer: Past performance is no guarantee of future performance. This product is for educational purposes only. Practical application of the products herein are at your own risk and our partners, representatives and employees assume no responsibility or liability for any use or mis-use of the product. Please contact your financial advisor for specific financial advice tailored to your personal circumstances. Any trades shown are hypothetical example and do not represent actual trades. Actual results may differ. Nothing herein constitutes a recommendation respecting the particular security illustrated.
