Gold And Other Precious Metals Can Be A Great Hedge For Uncertain Times

2025-04-11 06:00:00 ET

Summary

• Precious metals, especially gold and silver, serve as a hedge against equity risk, providing stability during market uncertainty, notably in 2025.
• The Sprott Physical Gold and Silver Trust (CEF) is attractive due to its current discount to NAV and its combined gold-silver holdings.
• Gold is a safe-haven asset, performing well during equity sell-offs, while silver, being more volatile, is economically sensitive and riskier.
• Central banks are significant buyers of gold, reinforcing its long-term stability and making it a reliable investment amid geopolitical uncertainties.

This article was originally published on the CEF/ETF Income Lab on 4/4/25.

Main Thesis & Background

The purpose of this article is to evaluate the broader market, with a specific focus on how precious metals—namely gold and silver—can be a ballast in one's portfolio during periods of uncertainty. This is a key sector that I use to hedge equity risk, and it has definitely come in handy in 2025 thus far! And, for those who are only recently following my work, I should note that this is a long-term hold for me and not just something I see for our current environment....

Read the full article on Seeking Alpha

For further details see: