Why now may be a good time for gold and silver
Lately, gold and silver prices have been on the decline, but lower prices for the metals aren’t likely to last long, according to one bullish strategist.
David Beahm, president and chief executive officer of precious-metals retailer Blanchard and Company, makes the case that now may be the appropriate time to scoop up metals that have been dinged in recent trade.
“With all of the uncertainty out there, now is the time to add gold and silver to a portfolio,” said Beahm.“ Both metals performed exactly as they should have during the 2008 financial crisis and they will do the same during the next crisis, wherever it comes from,” he said.
Gold futures prices GCM7, -1.60% which settled at one-month low of $1,248.50 an ounce Wednesday, scored a gain of 1.4% in April, but lost 1.6% last week, according to FactSet data tracking the most-active contracts. Meanwhile, silver pricesSIN7, -0.82% finished Wednesday at $16.546—the lowest since early-January. They’ve suffered from two-straight monthly and weekly declines.
“There are a number of economic, political and military events that Blanchard feels serve as the trigger for the next leg up in gold, and the current price consolidation for metals, while equities are pushed to all-time highs, serve as a great buying opportunity for diversification-seeking investors,” Beahm said.