Gold touches $ 5000, Silver Breaks the $100 Barrier: What It Means for Your Money

While gold flirted with a landmark price on Friday, silver stole the spotlight—crossing $100 per ounce for the first time ever.

The shiny metal your grandmother kept in her China cabinet just made history

Silver futures jumped 4.6% to hit $102.85. April gold futures climbed to within $8 dollars of $5000. —tantalizingly close to that illusive price point. 

Compare these gains to the broader stock market: the S&P 500 has managed just 1.2% so far this year. Precious metals aren't just outperforming—they're running laps around traditional investments.

When the world feels uncertain, investors tend to seek safety. Right now, they're finding it in precious metals.

Several factors are driving the rush. Tensions between the U.S. and Europe have rattled markets. Questions about the Federal Reserve's independence have added to the unease. And with governments running persistent budget deficits, some investors worry about the long-term value of paper currencies.

UBS commodities strategist Giovanni Staunovo pointed to additional tailwinds: falling interest rates, a weaker dollar earlier this year, and ongoing government spending that shows no signs of slowing.

Goldman Sachs is so confident in the trend that it raised its year-end gold forecast to $5,400 per ounce.

The bottom line: when uncertainty rises, so does demand for assets that have stood the test of time. Silver's historic milestone suggests that demand isn't going away anytime soon. Record levels accumulated by Central banks world-wide is an indication that fiat currencies are not the best way to hold a governments long term assets.

Editor's Note: Following the credits, we'll feature an interview with Ray Dalio in which he addresses one of the primary reasons gold and silver have appreciated so dramatically.

Wishing you as always good trading,