Gold and silver are trading near record highs. Wall Street thinks there's more to come.

Core Insights - Precious metals, particularly gold and silver, have regained their status as safe-haven assets amid economic tensions, with gold prices surpassing $4,000 per troy ounce for the first time in early October and reaching over $4,200, while silver crossed the $50 mark [1][2] - Analysts from JPMorgan suggest that a mere 0.5% shift of US assets held by foreign investors into gold could drive prices to $6,000 per ounce, indicating significant growth potential in the precious metals market [2] - The overall precious metals market has seen substantial gains, with silver and platinum futures rising over 70% and 85% respectively this year, while palladium futures have also increased by more than 70% [2] Market Dynamics - The ongoing uncertainty regarding long-term tariff policies under the Trump administration is expected to lead to a pullback in platinum group metal prices, but analysts predict that this dip will be temporary, with ongoing dollar weakness likely to drive prices to new highs in Q1 [3] - Historical data shows that following the 2008 stock market crash, gold and platinum experienced gains of approximately 160% and 130% respectively from 2008 to 2011, while silver saw an increase of over 400% [3] - The announcement of tariffs in April by President Trump led to a significant market downturn, prompting investors to seek refuge in store-of-value assets, further supported by expectations of interest rate cuts that make holding non-yielding assets more attractive [4] Investor Behavior - The so-called debasement trade has gained traction as investor confidence in fiat currencies declines, leading to increased investment in hard assets like precious metals that are perceived to retain or increase in value [5] - The correlation between dollar depreciation and rising gold prices remains strong, as indicated by Bloomberg commodities strategist Jim Wiederhold [5]