Gold Breaks New All-Time Highs – Is Silver Next?

We're witnessing history in the making!

Gold has just shattered its own record, passing over $2,580 per ounce on Friday. This gold rush is being propelled skyward by mounting expectations of a Federal Reserve rate cut at next week's crucial meeting.

In a world fraught with economic question marks, rising global tensions, and political drama, gold is not just flexing its muscles as the go-to safe haven – it's leading the charge. With an impressive 25% gain this year, gold is outpacing many major asset classes, proving once again why it's the cornerstone of smart investing. 

Your decision to invest in gold has never looked better. As we eagerly await the Fed's next move, the case for gold grows stronger by the day. 

Gold Price Breaks Past $2,500

After a quiet summer, gold has broken free from its $2,300-$2,450 range, shattering the $2,500 barrier while building momentum. 

Since August, we've witnessed a roughly 6% increase, with new records set almost daily. The yellow metal's performance has been notably strong:

• Friday, September 13, 2024: New all-time high of over $2,580/oz
• 2024 year-to-date gain: Over +25% 
• Since 2020: Roughly +67% increase 

Gold's ascent is grabbing headlines, but silver could be the next metal to watch. 

Silver: The Next Big Move in Metals?

While gold reaches new highs and basks in the limelight, silver has been quietly building potential. Up 31.5% year-to-date, silver has actually outperformed gold in 2024.

However, it's still trading within its summer range of $27.00 to $32.00.

Silver's price chart reveals a classic consolidation pattern, suggesting pent-up market energy. This phase of consolidation, often likened to a coiled spring, often serves as a precursor to a major price movement. 

With key economic events looming, particularly the Fed's interest rate decision, silver’s price appears poised for a potentially explosive upward move.  

Silver’s Historical Outperformance 

Silver's market dynamics offer unique opportunities for investors. With a market size significantly smaller than gold's, silver tends to be more sensitive to supply and demand shifts. This translates to higher gains during bull markets: 

• From 2008 to 2011, gold gained 166%, but silver skyrocketed by 448%.
• While gold surged by an incredible 2,328% in the 1970s bull market, silver's price soared even higher, climbing by as much as 4,000%.

If you're interested in learning more about silver's remarkable performance during the 1970s bull market, I highly recommend checking out Mike Maloney's insightful video below. He provides some great historical context about what many consider the greatest metals bull market in history. 

By diversifying your precious metals holdings with silver, you're positioning yourself to potentially capture even greater returns as this bull market unfolds. 

Remember, while silver's volatility can lead to higher gains, it also comes with increased risk. As always, it's crucial to align your investment strategy with your personal financial goals and risk tolerance. 

With interest rates very likely being lowered next week, now could be the perfect time to increase your gold or silver holdings – before prices potentially react to the news. 

Buy Gold or Silver Today

That’s it for this week's GoldSilver Nuggets. We'll be back next week with more news and updates.   

Best,

Brandon S.  
Editor
GoldSilver