Gold and silver are enjoying renewed demand from investors, being considered safe havens against inflation, geopolitical turmoil, uncertainty and falling interest rates, according to an analysis by a trading and investment platform.
"Gold and silver are two precious metals that differ not only in color, but also in their uses. Silver has a pronounced industrial use, while gold is considered more of a store of value asset. While gold does not have the same industrial appeal as silver, both metals are enjoying renewed demand from investors, being considered safe havens against inflation, geopolitical turmoil, uncertainty and falling interest rates," said eToro analyst Bogdan Maioreanu in a statement.
Gold prices have seen three years of growth, three consecutive months of progress and four positive quarters in a row. "If it weren't for that -0.4% drop in the third quarter of 2024, we would have had nine consecutive quarters of growth. The trend has remained unchanged for seven and a half years," Maioreanu notes.
According to the cited source, after 2011, the yellow metal seemed to have fallen out of investors' minds. With no new highs for almost a decade, a 44% drop and a recommendation from most investment advisors between 2017 and 2023: "no more than 1% of the portfolio," a Bank of America study showed.
Now, the scenario has reversed. "In the monthly BofA Global Fund Manager Survey in October, 'long gold' (43%) became the most popular trade, even surpassing the appetite for the 'Magnificent 7' (39%). This comeback is not surprising at all. Between April and June 2025, gold had already occupied the top spot in the ranking, with price increases of up to 58%, before temporarily giving way to 'short dollar' and technology hype. Now, however, the metal considered the world's refuge asset in turbulent times is back in the spotlight, and this is reflected in its prices," explains the analyst.
Since the beginning of the year, the price of gold against the US dollar has increased by 67%. However, it is not gold that is the star of the precious metals world today, but silver. Its price against the US dollar has increased by 87% since the beginning of the year, driven by reduced supply and strong demand from the industry. This is also reflected in the gold-silver ratio, which is on track to fall for the sixth consecutive month in October, the source cited reveals.
"The decline is not due to the weakening of gold, but rather to the fact that silver is currently growing faster. But, as always, past performance is no guarantee of future results. In the short term, the price growth of both precious metals seems overheated. However, the low ratio between the two metals continues to signal general optimism and hopes for a global economic recovery. However, this is only one side of the coin. On the other hand, supply constraints in the silver market are tightening. London (LBMA) stocks have fallen by about a third from the peak reached in June 2021, while demand has exceeded mining production for the fourth consecutive year," says Bogdan Maioreanu.
In the long term, silver remains an attractive investment, a hybrid investment that combines the characteristics of a fungible commodity with industrial applicability and store of value. It can be ideal for investors who are betting on the energy transition and protection against inflation. But it is also vulnerable to price corrections if demand decreases or new mining projects emerge.
Precious metals and stocks have recently hit record highs, and historically, such periods have reflected a mix of optimism and caution in the global economy - economic growth on the one hand and hedging against risks on the other. "While this overlap does not predict a direction, it can remind us of a timeless principle: no trend lasts forever. For investors, this could mean a time to assess the market, review risk tolerance and rebalance when necessary. It is not about predicting the future, a very difficult task, but about being prepared for it," concludes the eToro analyst.
eToro is a trading and investment platform founded in 2007 and is currently a global community with over 40 million registered users in 75 countries.
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