The Advisor Metals Precious Metals Blog Post for April 5, 2025

As Ronald Reagan said to Jimmy Carter in 1980 “There you go again.”

All the major US markets dropped this week except the “safe haven” US bond market.

The prognosticators prognosticating on the physical precious metals markets said the decline was from profit taking.  I have opined many times before, “There you go again”.  I want to know who all those people are who are taking profits.

My 44 years of market experience says that it was margin calls and not profit taking in the metals markets.  When the stock markets drop significantly, investors on margin have to sell assets quickly to cover their margin calls.  What is liquid and can be sold fast?  Gold and silver!

The equity markets dropped in the double digits last week with the Russell 2000 Index and NASDAQ Index both going inro bear market territory with declines of over 20% from their recent highs.  Yet, gold doing what it does by hedging these downturns dropped only about 2.5% cushioning the stock market decline for those investors who have gold in their investment portfolios as it did after the 2007-2008 recession and during the 2020 stock market decline.

In my opinion, the fundamentals and technicals have not changed for the metals.  The smart money looks to buy on these dips.

Go to our website for more information or to contact me about making a purchase.  www.advisormetals.com ira@advisormetals.com 626 788 5770.