Is gold or silver a better investment when inflation cools?

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Both gold and silver have unique benefits for investors. But which one is better as inflation cools?

The pandemic launched the U.S. into a period of economic uncertainty and market volatility. Rock-bottom interest rates were followed by runaway inflation and a cycle of 11 consecutive Fed rate hikes. While an unnerving environment, it proved to be beneficial for precious metal investors. 'In 2020, gold rose 21% between the time COVID was announced on February 11 and the end of the year,' says Alex Ebkarian, the chief operating officer and co-founder of Los Angeles-based Allegiance Gold.

Gold hit a new high at a time when inflation has been falling,' says Sean Casterline, the president of Delta Private Wealth LLC.He explains that gold investors are more focused on the U.S. dollar than they are on inflation. 'Cooler inflation readings are not the 'kiss of death' for gold,' Casterline says. 'As we see today, it's quite the opposite.'If economic uncertainties persistOther economic uncertainties also play a role.

 

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