Metals Minute 146: Relative Outperformance - Gold & Silver

It’s another difficult day so far on Wall Street, which also impacts the lower metals to a smaller degree. Over $57 trillion of losses in the stock and bond markets puts downward pressure on almost every asset class, including precious metals. When margin calls require quick cash, sometimes people turn to precious metals, which always have value. But periods like this lead to shallower losses for precious metals and quicker recovery times.

This is also an excellent time to consider various types of precious metals products, as shortages sometimes develop in markets worldwide. Physical metal is in high demand, with shortages making some British coins hard to find even in Great Britain, for example.

Building a diversified portfolio of bullion, investment grade, and historically significant coins will serve us well throughout all financial conditions, including those we see today. Part of the reason we see lower spot metals prices is the strength of the dollar internationally vs. our allies and trading partners. This gives us an advantage currently when purchasing gold and silver. When the tide turns for the dollar, it will be as wind to the sails for precious metals.