"Gold has fallen 14.3% for UK investors since Thursday's all-time high, its 3rd steepest plunge in history, while silver has made its second steepest ever drop, down 29.6%. Adrian Ash, director of research at BullionVault − which cares today for £7.0 billon of precious metal for 125,000 users worldwide, said, "People tend to buy gold as investment insurance, hoping that it will perform well when other things do badly. But there are times when 'safe haven' gold can feel very unsafe indeed."
"The killer inflation of the 1970s saw gold prices rise 20 times over and ended with gold spiking to $850 per ounce in January 1980. The price then crashed and kept falling until the year 2000. Gold didn't break its 1980 high until 2007. The Tech Stock Crash and financial crisis then saw gold rise 7-fold during the 2000s, surging to $1920 in autumn 2011 before falling hard and crashing in spring 2013. Gold didn't recover its peak until the Covid pandemic in 2020."
"Here in 2026, the breakdown in global trust and cooperation has driven gold and silver prices three times higher over the past five years. Given what's happening in geopolitics, it's hard to see that underlying bull market reversing course. The New Year's spike clearly put gold and silver way ahead of their uptrends, but this historic price drop has only taken them back to what were new record highs this time last month."
Gold has fallen 14.3% for UK investors since Thursday's all-time high, its third steepest plunge, while silver has dropped 29.6%, its second steepest ever fall. Investors often buy gold as insurance, but safe-haven gold can lose value during sharp corrections. Historical cycles include a twentyfold rise to $850/oz in January 1980 followed by decades of decline, a sevenfold rise to about $1,920 in 2011 and a 2013 crash, and recovery by 2020. Geopolitical breakdown since 2021 has driven metals roughly three times higher over five years; recent volatility has returned prices to last month's record highs and trading volumes have hit fresh records, prompting a review of allocations for concerned investors.
Read at London Business News | Londonlovesbusiness.com
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