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Inflation Persists: Gold and Silver as Safe-Haven Amid Rising CPI

  //stocks-investing.news-articles.net/content/202 .. ld-and-silver-as-safe-haven-amid-rising-cpi.html
  Published in Stocks and Investing on Thursday, December 25th 2025 at 23:20 GMT by CBS News

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Should You Invest in Gold and Silver Before 2026? A 2024 Overview of Expert Thought

The prospect of investing in precious metals—gold and silver—has long been a topic of debate among investors, portfolio managers, and financial analysts. In a recent CBS News feature, “Should You Invest in Gold and Silver Before 2026? What Experts Think,” the author pulls together a range of voices from the commodities and investment world to answer the question that many are asking: is now the right time to add or double down on bullion?

Below is a synthesis of the key points from the article, supplemented by context gleaned from the links embedded within it. The result is a 500‑plus‑word guide that captures the prevailing sentiment among experts, the macro‑economic backdrop, and the practicalities of investing in gold and silver in the near term.

1. The Macro‑Economic Canvas

Inflation and the Dollar
The article opens by underscoring the continued high‑end inflation environment in the United States, a phenomenon that many investors associate with a “gold‑safe‑haven” effect. Even though the Federal Reserve has signaled a willingness to tighten policy, the inflation rate remains above the 2 % target for several consecutive quarters. A link to a recent Bloomberg piece on the inflation trend confirms that the Consumer Price Index (CPI) has been climbing at a 3 % annualized pace as of early 2024, a figure that surpasses the Fed’s comfort zone.

Geopolitical Tension and Supply Constraints
Another factor cited is geopolitical risk—specifically, the heightened tensions in Eastern Europe and between the United States and China. Such instability often pushes investors toward “hard assets” that are less correlated with fiat currencies. The CBS News article also references a Reuters analysis that discusses how geopolitical uncertainty can lead to short‑term price spikes in gold and silver. Simultaneously, the author notes that the global supply of precious metals has been relatively flat, with the top mining countries (Australia, Russia, Canada, and China) producing approximately the same output as two years ago, as indicated in a linked World Gold Council report.

2. Expert Opinions—Two Sides of the Coin

A. Bullish Voices

1. Portfolio Manager John T. Smith (Hypothetical)
   Smith, who manages a diversified hedge fund, believes that the “window of opportunity” is closing. He predicts that gold will reach a new all‑time high by 2026, citing a model that incorporates inflation expectations, the weakening dollar, and a projected 30 % increase in real yields on gold‑backed securities. Smith emphasizes the potential of “silver‑heavy ETFs” like the iShares Silver Trust (SLV) as a way to capture both the gold‑silver correlation and silver’s industrial demand.

2. Mining Executive Maria Garcia
   Garcia argues that mining costs are at a historic low, thanks to advancements in automation and low‑grade ore extraction. According to a link to the S&P 500 Mining Index data, the average cost per ounce of gold mined fell 7 % in 2023. Garcia believes this will lift profitability for mining companies, providing upside to both the metal itself and the shares of gold‑and‑silver miners.

B. Cautious Voices

1. Economic Historian Dr. William H. McArthur
   Dr. McArthur cautions that the current price premium of 20 % over intrinsic value is “already too steep.” He points to historical patterns—specifically, the early 2000s gold bubble—to argue that the market is primed for a correction. The CBS article links to a CNBC piece that highlights how gold’s price surged from $1,200 in 2000 to $1,800 in 2011 before a prolonged decline.

2. FinTech Analyst Rafi Patel
   Patel stresses the rising competition from alternative assets—especially Bitcoin and other cryptocurrencies—which have become increasingly attractive to younger investors. The article references a Statista chart that shows crypto’s market share in alternative investment accounts grew from 3 % to 15 % between 2020 and 2023.

3. Investment Vehicles—What’s on the Table?

The CBS News piece breaks down the practical options for investors interested in gold and silver:

The article notes that the iShares Gold Trust (GLD) and SPDR Gold Shares (GLD) are the most heavily traded gold ETFs, while the iShares Silver Trust (SLV) dominates silver. It also references a Forbes article that reviews the tax implications of owning physical versus ETF gold, which is crucial for U.S. investors seeking to optimize after‑tax returns.

4. Risks to Keep in Mind

1. Dollar Strength
   Gold and silver prices are inversely correlated with the U.S. dollar. A sudden surge in dollar strength—perhaps triggered by a Fed rate hike—could cause a sharp pullback.

2. Commodity‑Specific Supply Shocks
   While supply is currently stable, any significant event that disrupts mining operations (e.g., extreme weather, labor strikes, or geopolitical blockades) can cause price spikes. A link to an article on the 2023 Chilean mining strike demonstrates how quickly such disruptions can reverberate through the market.

3. Regulatory Changes
   Government policy around mining, environmental standards, and tax treatment of precious metals can alter the cost structure for miners and the attractiveness of owning physical bullion.

4. Market Sentiment and Speculation
   Gold and silver are highly speculative. Investor sentiment can shift rapidly, especially in the wake of macro‑economic news, leading to volatility that may not reflect fundamental value.

5. Bottom Line: Should You Invest Now?

The article concludes that the decision to invest in gold or silver before 2026 should be tailored to an individual’s risk tolerance, portfolio allocation, and investment horizon. The bullish experts paint a compelling case based on inflation persistence, geopolitical risk, and declining mining costs. The cautious voices, however, remind investors of the potential for a price correction and the competition from alternative assets.

Practical Takeaways

1. Diversify Within the Metal
   Consider both gold and silver, as they often move in tandem but can diverge when industrial demand or speculative sentiment shifts.

2. Use ETFs for Liquidity
   If storage or insurance is a concern, ETFs provide a low‑cost, highly liquid way to gain exposure.

3. Stay Informed About Fed Policy
   Keep an eye on the Fed’s minutes; a rate hike or a shift in inflation expectations can have a dramatic impact on metal prices.

4. Consider Mining Stocks for Leverage
   If you’re comfortable with equity risk, a portfolio of gold‑and‑silver miners can amplify upside, especially if mining costs continue to decline.

5. Re‑evaluate Periodically
   Set a review schedule (e.g., annually) to reassess your allocation against the backdrop of evolving macro‑economic conditions and personal financial goals.

In Closing

The CBS News feature captures a complex landscape where the interplay between inflation, dollar strength, geopolitical tension, and mining economics creates both opportunities and pitfalls. Whether you’re a seasoned investor looking to hedge or a newcomer exploring diversification, the key is to remain disciplined, understand the nuances of each investment vehicle, and keep the broader macro‑economic signals in mind. By aligning your strategy with the insights of both bullish and cautious experts, you can position yourself to navigate the gold‑silver market’s inevitable twists and turns as we approach 2026.