Silver advanced 4.3% in October after rallying 7.9% in September and gaining 0.7% in August. Silver is now up 31% in 2024, down slightly from last month's gains. However, the current dip may be a "silver lining", a temporary opportunity to act.
What's causing it?
Precious metals tumbled last week on rising bond yields and a stronger dollar after Donald Trump’s reelection to the White House.
Separately, the Federal Reserve shaved interest rates by another 25 basis points last Thursday, in line with economists’ expectations. The Fed’s decision was the second rate cut in a row after a 50 basis point reduction in September. Lower interest rates are typically considered bullish for gold and other precious metals.
However, silver prices back below $31 an ounce are providing investors an excellent opportunity to add to their position. Key fundamentals are still in place for the precious metals bull market to continue over the next few years.
As precious metals continue to stairstep towards highs in this ongoing bull market, temporary dips provide opportunities for savvy investors to strengthen their positions in gold and silver.
In the previous bull market silver saw gains of 1,000% over the previous lows when it established the current all-time high of $50 per ounce in April of 2011.
If divisibility and diversification are priorities for you, we recommend taking advantage of lower spot prices and relatively low premiums to add silver to your portfolio today.
