It’s a volatile morning for the precious metals. MCX Gold Futures have fallen over 6% and MCX Silver rates have plummeted over 15%. Internationally, the sell-off is sharper in silver. COMEX Gold Futures are down 4.47%, while COMEX Silver Futures are lower by 11.31%, indicating the heavier pressure on silver across global markets. Several market gurus, including Robert Kiyosaki, Mohamed A. El-Erian, and Peter Brand,t share their views on what’s the right approach for investors now.
Robert Kiyosaki says, ‘time to buy’
Robert Kiyosaki, author of Rich Dad Poor Dad, reacted to the fall in precious metals prices in a post on X (formerly Twitter), drawing a comparison between consumer behaviour during retail discounts and reactions to falling financial asset prices.
He wrote: “Difference between rich people and poor people: When Walmart has a SALE poor people rush in and buy, buy, buy. Yet when the Financial Asset Market has a sale….a.k.a…..crash the poor sell and run….while the rich rush in….and buy, buy, buy. The gold, silver, and Bitcoin market just crashed….a.k.a. went on sale…and I am waiting….with cash in hand….to begin to buying more gold, silver, and Bitcoin….on sale. What are you going to do?”
Peter Brandt says ‘silver worth owning’
Veteran trader Peter Brandt also weighed in through posts on X (formerly Twitter) during the sell-off.
He wrote, “Interesting to see that all the big-mouthed Silver bulls who projected an opening above $90 have crawled into their caves.”
However, he explained, silver is worth owning, not arguing about. As a Bayesian, he operates with binary paths considered. He trusts charts as his priors and trusts price, not narratives. He said the long-term chart of silver suggests $600, not as a straight shot, and added that maybe $60 comes first.
In another post, Brandt said, “Silver is worth owning, not arguing about. As a Bayesian I operate with binary paths considered. I trust charts as my Priors. I trust PRICE, not narratives. The long-term chart of Silver suggests $600, not as a straight shot. Maybe $60 first.”
Mohamed A. El-Erian says extent of ‘speculative shakeout’ crucial
Mohamed A. El-Erian, President of Queens’ College, Cambridge and Chief Economic Advisor at Allianz, also commented on volatility in precious metals in a post on X (formerly Twitter), while sharing a chart from the Financial Times.
He said gold is currently trading down 5%, while silver has slumped 10%. He added that the pressing question is how long this shakeout will last and how much damage should be expected. He noted that the extraordinary rise in prices, while driven by fundamental factors, attracted many speculators. He also said oil prices have fallen, with Brent down 5%, following a slight cooling in relations between Iran and the US.
He wrote, “This chart from the Financial Times illustrates the significant ongoing volatility in precious metals, as speculators have effectively sidelined institutional investors for the time being. Gold is currently trading down 5%, while silver has slumped 10%. The pressing question is how long this shakeout will last and how much damage we should expect. All we know for sure is that the extraordinary rise in the prices of both, while driven by fundamental factors, attracted lots of speculators.”
He added, “Meanwhile, oil prices have also fallen, with Brent down 5%, following a slight cooling in the fundamentally tense relations between Iran and the US.”
Conclusion
Most market experts highlighted that the price correction in silver at the moment is all about specualtive excesses going out of the market. Most still believe silver is a long-term Buy.