Precious metals slow down their climb, but continue to show strength after the Thanksgiving break in the US.
Let’s take a look at where prices stand as of December 6:
The price of gold was slightly lower at $2634.95 on Friday. Week over week, the price of gold inched up about $12, still hovering around $2650.
See the current gold price.
The price of silver was at $30.97 on Friday. Week over week, the price of silver was up 4% or $1.20 to around $31.50.
See the current silver price.
Equities Keep The Party Going
Have markets finally reached a top? Any equities or crypto investor will tell you that the party’s still going strong.
The S&P 500 Index is up 27% from its year-to-date level. The NASDAQ 100 has risen up 24.3% for the year. Many cryptocurrencies have seen triple-digit gains — all within the past few weeks. The price of Bitcoin surpassed $101,000 on December 8. All still signaling a strong bull market and enthusiasm for even bigger gains in 2025.
However, gold and government bonds may be telling us a different story. Their movements are reflective of uncertainty and anxieties of the future — and a flight to safety.
Caution Signs from Treasurys
If you look at them from the perspective of the Buffett Indicator, it looks like we’ve reached the top. The stock market capitalization-to-GDP ratio is at 208% currently. It previously peaked at 193% in 2021 when markets were at their peak — before the correction in 2022. For further context, the Buffett Indicator was at 105% during the mortgage bubble in 2007 and at 138% during the dot-com bubble of 2000.
The Chicago Fed’s National National Financial Conditions indicator decreased to -0.63 in the week ending November 29. This points to loosening financial conditions which often correlates to market enthusiasm and more risk-taking in the investment landscape.
The bond market confirms this bearish perspective. Bond yields have contracted through November, even as the prices of Treasurys have moved higher. Lower rates driven by higher demand for government bonds points to save-haven buying, where investors see overvaluations and market frothiness as warning signals for what’s to come.
Gold Outshines Stocks in 2024
We are now in December and about to close out the year. The major indexes have reached new highs, and are poised to post double-digit gains. The S&P 500 Index has already posted a 27% jump from the beginning of the year, and the NASDAQ 100 is up 24.3%
Precious metals tell a different story. The price of gold has risen 29.6% for the year, and the price of silver is up 30.2% for the year. Note that these figures are after a pullback in the last couple of weeks.
Gold buying isn’t driven by investors thinking they will make huge profits. The move to gold is driven by a distrust in the system. In fact, the rise in the price of gold has been driven more by international investors rather than US investors. As a result, premiums for gold purchases in the US are extremely low at the moment — so now is a great time to start stockpiling ounces.
Set Up Your VaultPlan Today
As Warren Buffett famously said, “You don’t find out who’s been swimming naked until the tide goes out.” Investing in gold and silver provide the protection you need when the tide recedes.
With Vaulted, you can put your gold and silver acquisitions on autopilot through VaultPlan. You set the desired amount, date and frequency (up to twice a month), and Vaulted handles the rest. All you need to do is log into your account, set up your plan, and sit back while VaultPlan grows your savings.
