Skip to content

Precious Metals Playing Tug of War

There are two major forces driving gold and silver right now. On the one hand, the continued escalation of conflict throughout the Middle East, triggered by the Israel-Hamas war is continuing to strengthen safe haven demand. On the other hand, there's an even stronger pull on the markets with U.S. monetary policy, namely when and if the Federal Reserve plans to drop interest rates. Over the past few months, this has been the tug of war that has kept gold and silver rangebound so far in 2024, with gold above $2,000 an ounce and silver between $22-24.

Gold and silver spot prices reacted negatively this week after Fed chairman Jerome Powell confirmed that Americans should not expect rate cuts any time in the near future. Continuing to hold high rates for a longer period of time will be bearish for precious metals, yet when the Fed finally prepares to cut rates, we should see gold and silver rise swiftly in response.

As a response to Powell's commentary, silver has dipped again this week. Silver fell 3.8% in January after dropping 6.1% in December.

In the last bull market, gold peaked at 650% gains from the previous lows, but silver blew gold out of the water with 1,000% gains from its lows. Silver's high was set during the last bull market was $50 an ounce, yet silver today is nowhere near that high... yet. Historically, silver tends to lag behind gold, and then move explosively, whether to the upside or the downside. 

In 2020, we saw this pattern in action. Gold reacted strongly to the safe haven demand caused by the upheaval of the pandemic. While silver's upward trajectory initially held off, leading to the highest gold-silver ratio of all-time, silver spot prices jumped 48% by the end of the year, outperforming nearly every single asset class in 2020, including gold.

So, is silver set to explode in 2024? Not just yet, but that makes now the perfect time to take advantage of lower spot prices.

More big moves are coming in silver over the next few years, if key metrics are to be believed. Drivers for demand are expected to increase drastically over the next decade, while silver supply is set to diminish for the third consecutive year. The combination of dwindling supply and rising demand may send silver skyward over the next few years, so the time to act is now!

Today, we're offering the new 2024 1 oz. Silver Maple, the first of the Maple series featuring the profile of King Charles III. Give us a call at 1-800-831-0007 or email us to place your order today!



1 oz. Silver Canadian Maple Leaf Coins
As low as $2.99 over spot*


*Prices subject to change based on market fluctuation and product availability. Prices reflected are for cash, check, or bank wire. Minimum order is 100 oz. silver. Shipping, handling, and insurance are included on any purchase of 500 oz. of silver or more. Premium of $2.99 per ounce over spot available for orders of 500 oz. of silver or more. Premium of $3.49 per ounce over spot available for orders of 499 oz. of silver or less. Offer expires Friday, February 9, 2024, or while supplies last.