Investors Flock to Precious Metals Amid Trump's Economic Uncertainty
A surge in investment in silver and gold has been observed, with prices skyrocketing as US President Donald Trump continues to reshape the global economy.
The two precious metals have experienced a remarkable rise, with gold hitting an all-time high of nearly $5,595 per ounce. Silver, meanwhile, has quadrupled its price over the past year, reaching over $118 per ounce. This sharp increase is attributed to Trump's policies, including aggressive tariffs and threats against other countries, which are causing investors to seek safe-haven assets.
According to Giuseppe Sersale, a strategist at Italy's Anthilia, "the market has all the hallmarks of a mania," describing recent price moves as "parabolic." This sentiment is echoed by Daniela Hathorn, a senior market analyst at Capital.com, who states that gold and silver are signaling a re-pricing of trust in currencies, institutions, and economic stability.
The primary driver behind this surge appears to be investors' perception of Trump's chaotic approach to economics. The administration's policies have led to concerns about inflation risks, currency devaluation, and the erosion of trust in institutions. As a result, gold has traditionally been seen as a safe haven asset, capable of maintaining its value during times of economic uncertainty.
Central banks are also contributing to this trend by adding to their reserves, albeit at lower levels than last year. However, retail investors are playing a significant role in driving the price increases, often fueled by speculation and a desire for diversification.
The dollar has been under pressure, depreciating against other currencies due to concerns about Fed independence and Trump's economic policies. However, US stocks have performed strongly over the past 12 months, driven by tech companies' soaring revenues. Analysts believe that investors are optimistic about fresh interest rate cuts in the coming months, which may continue to support stock prices.
As a result of these market dynamics, some analysts warn that a bubble may be forming, while others are more sanguine about the current price levels. One thing is clear: Trump's economic uncertainty has created an environment where investors are flocking to precious metals, seeking safe-haven assets and diversification opportunities.
A surge in investment in silver and gold has been observed, with prices skyrocketing as US President Donald Trump continues to reshape the global economy.
The two precious metals have experienced a remarkable rise, with gold hitting an all-time high of nearly $5,595 per ounce. Silver, meanwhile, has quadrupled its price over the past year, reaching over $118 per ounce. This sharp increase is attributed to Trump's policies, including aggressive tariffs and threats against other countries, which are causing investors to seek safe-haven assets.
According to Giuseppe Sersale, a strategist at Italy's Anthilia, "the market has all the hallmarks of a mania," describing recent price moves as "parabolic." This sentiment is echoed by Daniela Hathorn, a senior market analyst at Capital.com, who states that gold and silver are signaling a re-pricing of trust in currencies, institutions, and economic stability.
The primary driver behind this surge appears to be investors' perception of Trump's chaotic approach to economics. The administration's policies have led to concerns about inflation risks, currency devaluation, and the erosion of trust in institutions. As a result, gold has traditionally been seen as a safe haven asset, capable of maintaining its value during times of economic uncertainty.
Central banks are also contributing to this trend by adding to their reserves, albeit at lower levels than last year. However, retail investors are playing a significant role in driving the price increases, often fueled by speculation and a desire for diversification.
The dollar has been under pressure, depreciating against other currencies due to concerns about Fed independence and Trump's economic policies. However, US stocks have performed strongly over the past 12 months, driven by tech companies' soaring revenues. Analysts believe that investors are optimistic about fresh interest rate cuts in the coming months, which may continue to support stock prices.
As a result of these market dynamics, some analysts warn that a bubble may be forming, while others are more sanguine about the current price levels. One thing is clear: Trump's economic uncertainty has created an environment where investors are flocking to precious metals, seeking safe-haven assets and diversification opportunities.