Gold and Silver prices have dropped over the last week by 7 per cent and 32 per cent, respectively. Spot gold prices rose to hover around the $5,000-per-ounce mark on Monday. Spot gold rose 1 per cent to $5,008.51 per ounce after a 4 per cent climb on Friday. U.S. gold futures for April delivery also gained 1 per cent to $5,029.40 per ounce. However, investors have apprehensions about sudden price drops, and whether you should invest when prices drop. Spot silver climbed 2.4 per cent to $79.87 per ounce after a near 10 per cent gain in the previous session. It hit an all-time high of $121.64 on January 29.
"Silver is more of a risk asset than gold... when risk appetite is strong, you tend to see silver outperform gold," said Fawad Razaqzada, market analyst at City Index and FOREX.com.
"Gold reclaims its historical role as a neutral sovereign asset, which in my view explains the strong surge in demand for it, especially amid a clear decline in appetite for holding the US dollar as a safe haven," said Rania Gule, senior market analyst at XS.com.
"Gold and silver have reached record highs over the past year, but the journey hasn't been smooth. There have been dips along the way, and we'll certainly see more; as someone in the industry, I'd caution against panicking. Yes, gold and silver can be volatile in the short term, and past performance is no guarantee of future results, but historically, they've been seen as stable long-term investments," Rick Kanda, Managing Director at The Gold Bullion Company, stated.
"Investors should be aware of market fluctuations and not assume guaranteed quick returns. The market will continue to rise and fall, which may lead to individual concerns, but these fluctuations shouldn't worry you. The truth is that that is just how precious metals work. My advice to you is to ignore the background noise. Investing in gold and silver isn't about timing the market; it's about diversifying your assets when it suits you," Kanda said.
"Gold and silver investments should not be dependent on whether the market is either surging or falling; you should be more focused on whether your financial situation enables you to do so at that particular time. Gold and silver should always be seen as a long-term investment strategy," Kanda said.
"Silver is more of a risk asset than gold... when risk appetite is strong, you tend to see silver outperform gold," said Fawad Razaqzada, market analyst at City Index and FOREX.com.
"Gold reclaims its historical role as a neutral sovereign asset, which in my view explains the strong surge in demand for it, especially amid a clear decline in appetite for holding the US dollar as a safe haven," said Rania Gule, senior market analyst at XS.com.
"Gold and silver have reached record highs over the past year, but the journey hasn't been smooth. There have been dips along the way, and we'll certainly see more; as someone in the industry, I'd caution against panicking. Yes, gold and silver can be volatile in the short term, and past performance is no guarantee of future results, but historically, they've been seen as stable long-term investments," Rick Kanda, Managing Director at The Gold Bullion Company, stated.
"Investors should be aware of market fluctuations and not assume guaranteed quick returns. The market will continue to rise and fall, which may lead to individual concerns, but these fluctuations shouldn't worry you. The truth is that that is just how precious metals work. My advice to you is to ignore the background noise. Investing in gold and silver isn't about timing the market; it's about diversifying your assets when it suits you," Kanda said.
"Gold and silver investments should not be dependent on whether the market is either surging or falling; you should be more focused on whether your financial situation enables you to do so at that particular time. Gold and silver should always be seen as a long-term investment strategy," Kanda said.
