Should you invest in gold or silver in 2017? While gold bears are saying the previous metals rally is over and it’s time to dump gold and silver, there are more than enough compelling reasons why investors should remain bullish on silver and gold prices in 2017. For those long on precious metals in 2017 and wondering how to invest in gold and how to invest in silver, there is a wide variety of investments to consider.
The first half of 2016 was great for gold and silver. By early July, silver had advanced 53% to a two-year high of around $21.23 per ounce; over the same time period, gold increased approximately 30% to $1,377 per ounce. Precious metals rallied on fears of a global economic slowdown and growing concerns that the Federal Reserve may have raised its key lending rate prematurely.
Chart courtesy of StockCharts.com
In the second half of 2016 though, precious metals gave up solid ground. Silver ended 2016 up 15.7% at $15.99 per ounce while gold finished the year up 8.5% at $1,151 an ounce. Gold and silver faced pressure after Donald Trump won the November election. Investors believed his economic policies, tax cuts, and infrastructure spending would provide the U.S. with a much needed economic jolt that would also benefit corporate earnings.
That remains to be seen, of course. And investors are not necessarily willing to throw caution to the wind just yet and trust their retirement portfolio with President Trump. Yes, stocks may be at record levels and investors sentiment is running strong, but so too are precious metals. Silver prices were up 15.6% at the end of February at $18.47 an ounce while gold prices were also bullish, up 9.3% at $1,258 per ounce.
The bullish sentiment for precious metals remains despite the fact the Federal Reserve is expected to implement the first of three proposed rate hikes at its next meeting in the middle of March.
Source: Lombardi Letters
