Gold And Silver Comparative Performance In The Second Quarter 2022
In the first quarter of this year, gold and silver were the top performing of the 11 asset classes for which CPM collects data on the attached table. They performed spectacularly while all the other asset classes, from various segments of the stock and bond markets to real estate, lost value over the quarter. Silver had a 7.63% increase in value over the first quarter and gold 6.60%. The next best return was cash, at 0.61%. Every other asset class lost value.
CPM cautioned that such strong performance in one period often led to a poorer performance in the next period. That was the case with silver, but not with gold. Silver suffered in the second quarter, while gold held up favorably compared to other investments.
The second quarter this year was extremely hostile for all investments. The only one of the 11 asset classes that had a positive return was Cash Equivalent, measured here as the 90-day Treasury Bill. Its value rose 1.75% in the quarter. The table here includes 9 asset classes plus gold and silver. Gold and silver are measured as separate asset classes here.
Gold had the third best return – or least loss – in value in the second quarter, at -7.28%. Silver had the worst performance at -19.30%.
The stronger performance of gold in the second quarter reflects the fact that gold and the U.S. dollar (i.e. “cash”) are the two ‘go-to’ assets that investors turn to when economic or political conditions are tough. In the second quarter of this year things were rough. Investors poured out of other investments into cash, and to a lesser extent gold.
Disclosures: This information discusses general market activity or other broad-based economic, market and/or political conditions. It also refers to specific prices which pertain to past performance and should not be construed as research of investment advice. Past performance is not indicative of future results, and it should not be assumed that future performance will be as profitable or will equal the performance of the prices described herein. Investing in precious metals involves risk, including the risk of the loss of all or a portion of your investment. Precious metals prices can be volatile and influenced by a variety of different factors, including economic, political, social and market-related events. Precious metals are not suitable for all investors, and for investors for whom investment in precious metals is appropriate, are only suitable for a limited portion of the risk segment of such investor’s portfolio. GBI makes no recommendation whatsoever as to whether any client should invest in precious metals. Although the information contained in this document has been obtained from sources believed to be reliable, GBI does not guarantee its accuracy or completeness, nor does GBI have any obligation to or intend to update any of the information contained herein. This document does not constitute an offer to sell or a solicitation of an offer to buy any precious metals, nor does it address any specific investment objectives, financial situation, tax consequences or particular needs of any potential investor, and does not constitute investment or any other advice.