Why Gold & Silver Are Falling Despite War: 7 Questions Every Investor Is Asking

Despite escalating tensions in the Middle East, rising energy prices, and growing concern about inflation and slowing growth, both metals have come under pressure. It is market behaviour that has resulted in more questions than answers for many investors. 

That is exactly what we address in our latest video.

Rather than reacting to headlines or making short-term predictions, the video steps back and works through the key question: why are gold and silver not doing what investors expect them to do right now?

We look at the role of liquidity in times of stress, how rising yields and a stronger dollar can weigh on prices, and why silver, in particular, tends to move more aggressively in both directions. Jan Skoyles takes the time to explain what is actually driving the current price action, and explains how to separate short-term mechanics from longer-term fundamentals.

Across global markets, investors have been raising cash as conditions tighten. Bond yields have pushed higher, the dollar has strengthened, and concerns about inflation and growth are being repriced simultaneously. In that environment, even assets that have performed strongly over the past year are being sold to generate liquidity.

Gold, as one of the most liquid assets available, has been part of that process.

Silver has come under additional pressure given its sensitivity to economic activity.

At the same time, the broader backdrop has not materially improved. Fiscal pressures continue to build, energy markets remain disrupted and the risk of a stagflationary environment (where growth weakens but inflation persists) is becoming harder to ignore.

So whilst today’s gold and silver prices may appear to contradict the traditional case for gold and silver, the underlying forces supporting that case remain very much in place.

If anything, they are becoming more complex.

This video is designed to help make sense of that.