Renowned economist Peter Schiff, famous for his prediction of the 2008 financial crisis, has issued a clear directive to investors: buy gold immediately but exercise caution with silver. He views the current gold price as a significant bargain while warning of heightened short-term volatility in the silver market.
Schiff's Precious Metals Strategy: Gold Now, Silver Later
In a recent statement on social media platform X, Schiff made a stark comparison between the two precious metals. He emphatically called gold "a steal" at its current price of $4,534 per ounce, seeing minimal downside risk. For silver, however, his advice was to wait. "There is too much short-term risk to buy physical silver now," Schiff stated, clarifying that he is not selling his own holdings but recommends new buyers wait for a market consolidation.
He suggested a potential support level for silver between $70 and $75, advising investors to look for a settlement around those prices before entering the market. This caution comes despite Schiff's firm belief that the "historic bull market still has a long way to run."
A Night of Wild Swings in the Silver Market
The chief economist at Europac highlighted the extreme volatility that has characterised the silver market. He detailed a dramatic trading session where silver surged to a new record high near $84 per ounce, only to sell off sharply to just above $75, before recovering to trade back above $80. This roller-coaster ride underscores the metal's unpredictable short-term movements, justifying Schiff's call for patience.
Recent market data confirms this pullback. Following profit-taking by investors and a slight easing of geopolitical tensions, both metals have corrected from their peaks. Gold dropped 0.4% to $4,512.74 per ounce after touching a record $4,549.71. Silver experienced a larger fall of 1.3%, landing at $78.12 per ounce after its own all-time high of $83.62.
Silver's Stellar Year vs. Gold's Steady Climb
Despite the current dip and warnings over volatility, silver has been the undeniable star performer of 2025, boasting a staggering 181% year-to-date increase. This spectacular rally far outpaces gold's impressive, yet more modest, 72% gain over the same period.
The drivers behind these rallies differ for each metal. Gold's surge is primarily fueled by:
- Anticipated interest rate cuts by the US Federal Reserve.
- Ongoing geopolitical turmoil around the world.
- Robust demand from central banks globally.
- Substantial investments flowing into gold-backed ETFs.
Silver's powerful rally, on the other hand, is attributed to a potent mix of factors:
- Its critical importance to various industries, especially in the United States.
- A persistent lack of sufficient supply to meet demand.
- Consistently growing industrial and investment demand.
Peter Schiff's analysis presents a nuanced view for Indian investors navigating the precious metals boom. His strategy advocates for immediate action on gold, capitalising on its perceived value, while advocating a watchful, strategic approach to silver, allowing its current turbulence to subside before committing new funds.
