Silver and gold poised to shine in 2023
Amid persistent inflationary pressures and the worst year for stocks since 2008, precious metals like silver and gold are positioning themselves as a safe haven for traders in the coming year.
Often considered recession or inflation-proof, gold and silver registered gains, outpacing the three major U.S. stock averages. The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite finished lower last year.
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In an interview with FOX Business, David Russell, VP of market intelligence at the TradeStation, said “Gold and silver are go-to assets when traders are bearish on stocks and the economy.”
“The commodities are also classic hedges against the kind of inflation we’ve seen in the last year,” he continued. “Right now, precious metals have a certain appeal because a lot of investors think stocks are overvalued and they view gold and silver as alternate assets.”
“Both metals could also benefit from a recession and the Fed halting interest-rate hikes,” he added.
How bright will they shine in 2023?
Investors could see silver jump more than 50% in 2023 to reach $38 an ounce, while gold could top out at a record $2,100 an ounce, according to a Kitco News’ online survey.
Russell said, “Silver often follows gold, so it can go up when times are bad.”
On Tuesday, Comex silver for January delivery gained 0.83% to $24.059 per troy ounce. Comex gold rose1.10%, to $1839.70 per troy ounce.
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“However, it has industrial uses and can be extremely volatile, and a broadly bearish environment could be difficult for silver, as its status as an industrial metal is a mixed bag for investors,” he continued. “Gold will remain the key product to watch because silver is unlikely to rally without help from the big kid…