The price of gold in the first quarter of the year was the highest recorded since 2016. Several factors have contributed to this, notably stock market and geopolitical uncertainty.
The Trump Administration’s changing policies on tariffs have also driven up prices of the valuable metal, with many using it as a protective asset amidst global market volatility caused by the United States and its shifting international trade relations. Continuously rising inflation and a weakened US dollar have also encouraged a stronger demand for gold, surpassing peak demand in 2024. Projections for the coming months indicate that the economic landscape will continue in this direction, advising individuals to manage their financial portfolios closely in case of any eventuality.
Gold has always maintained its stored value during periods of economic uncertainties. The value of gold strengthens as other assets weaken in times like these, which makes it unsurprising that it has again become the most sought-after metal at present. Traders, investors, and central banks all have gold reserves to keep them afloat when necessary. And with some preparing for a recession in the 2020s, gold will be the safe haven for all. However, even with the appeal of gold, some fund managers state that gold should only compose 1-2% of one’s portfolio to properly diversify it, even in times of crisis.
Silver is also being eyed in 2025 as a strong partner to gold. Demand for silver has similarly increased, considering it also has a consistent stored value. Given the high price of gold, some investors prefer the “affordability” of silver hence we see an uptick in silver prices. Investors looking to purchase silver should consider purchasing soon, considering that silver demand is set to go up, with supply anticipated to have difficulty catching up.
In summary, both gold and silver are good investments in 2025, but have become more expensive compared to the same period in 2024. It is projected that prices of both metals will continue to rise in the coming months.
