There’s a palpable sense of unease among consumers who struggle to see a way forward in this shaky economy. The relatively stagnant gold and silver spot prices are only exacerbating this angst as investors desperately search for ways to protect themselves and their wealth for the future.

Watch this week’s The Gold Spot to hear Precious Metals Advisors Joe Elkjer and Tim Murphy explain the cause of the static spot prices, why now is still a perfect opportunity to invest, and what decision by the Fed could cause gold and silver prices to skyrocket.

Human Nature vs Stagnant Spot Prices

Gold and silver prices on the paper market have been going sideways and lower over the past few months much to the confusion of investors who sought protection in the metals. Although these lower spot prices represent a perfect opportunity for savvy investors to average down their costs by scooping up more gold and silver, it’s human nature to back off and wait it out.

This hesitation is isolated to the retail sphere as big players in the market increase their gold and silver holdings. Central banks around the world have been stacking up their precious metal reserves in anticipation of an economic collapse. Wealthy individuals and banks are following suit. These billion-dollar institutions know something retail investors don’t.

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The Physical Markets Continue to Face Shortages

“Demand for physical gold and silver is off the charts. I’ve never seen anything like it in 20 years of doing this.”
– Steve Rand, Sr. Precious Metals Advisor on The Gold Spot 10/5/2022

There are two sides to the precious metals story: the spot price vs physical price. As spot prices stagnate, the physical precious metals market faces dwindling gold and silver inventory. The New York Exchange, the London Exchange, and wholesalers are suffering from lean supplies as demand for physical gold and silver bullion products booms. This is leading to a jump in precious metal premiums and why 1 oz American Silver Eagle coins are so expensive right now.

How the Fed Could Cause Spot Prices to Skyrocket

Normally, high interest rates aren’t indicative of a boom in precious metals prices. However, the Fed’s aggressive interest rate strategy has already baked those hikes into the market. Jerome Powell has made it abundantly clear that rate hikes are the primary weapon the Central Bank is wielding to combat inflation.

Despite these expectations, physical metal supplies are strained as investors scoop up as much gold and silver as possible, especially in the Asian markets. If the Fed falls short of the anticipated 75-basis-point hike in November and 50-basis-point hike in December, the spot prices of gold and silver could take off like a rocket. On the flip side, the dollar would get slaughtered as confidence in the greenback wanes.

Buy Gold (and Silver) and Wait. Don’t Wait to Buy Gold (and Silver).

“Right now is not only a crucial time but a great time to be buying protection with precious metals.”
– Precious Metals Advisor Joe Elkjer

The truth of this old adage is reaching a new level of poignance as various economic conditions signal a bright near future for precious metals prices. Timing market ups and downs has been proven to be a losing strategy time and time again. The most effective way for all investors to get the most out of physical gold and silver is to simply buy and wait instead of waiting to buy. It’s only a matter of time before prices jump.

“If you buy [gold and silver] today, you’ll be very happy.”
– Precious Metals Advisor Tim Murphy

Reach out to one of our knowledgeable and supportive precious metals advisors by calling or using the live chat function to learn about gold and silver prices and availability. We’ll help you reach your investment goals.