Gold prices have been rising significantly. This surge must have caught the attention of many investors looking for stability and growth amid global uncertainties and inflationary pressures. Since these precious metals often serve as safe havens, the question arises: Is now the right time to invest in gold and silver?

Philip Newman, Managing Director of Metal Focus, offers insights into the current market dynamics.

Newman highlights the risk of profit-taking as gold reaches new heights.

With the market displaying rapid fluctuations, he warns that momentum could wane. This could led to a possible price correction.

Key markets in India and China are currently trading at discounts of $20-25 and $12, respectively, prompting questions about when these buyers will return.

However, if gold were to dip to around $2,400 per ounce, Newman believes it could entice many investors who missed out on the rally to re-enter the market.

“Any correction would likely be short-lived,” he adds.

On silver, Newman points out that while it’s currently lagging behind gold, it holds strong potential.

He observes that the gold-to-silver ratio is around 83. This shows there is an underperformance in silver.

Yet, he emphasises the “healthy fundamentals” for silver, particularly from the booming solar market. “This could drive prices,” he says.

Newman notes a shift in investor sentiment: “When gold reaches these levels, we see some investors switching their focus to silver.” This pivot could offer an opportunity for those looking to diversify their precious metals investments.

The bottomline

With gold’s potential for a correction and silver’s appealing fundamentals, now may be a time to invest.

The market’s volatility could create opportunities, especially if prices adjust.