As Silver Prices Plunge, This CIO Warns That Precious Metals Are Nothing More Than Meme Stocks

Core Viewpoint - Precious metals, particularly gold and silver, have been viewed as safe havens during market uncertainty, with gold prices increasing by 77% and silver by 153% over the last year [1]. Price Movements - Recently, both gold and silver have experienced significant declines, with gold dropping nearly 13% from its late January high and silver tumbling 31% from its peak of $114, now trading at $80 [2]. Investment Caution - Hank Smith, CIO of Haverford Trust, advises caution regarding investments in gold, silver, or any commodities, suggesting that recent price increases are driven more by momentum than by fundamental value [3]. Investment Philosophy - Smith emphasizes that commodities are speculative rather than true investments, lacking earnings, income statements, or dividends, and investors should primarily focus on stocks that provide yield [4]. Investment Strategy - The Schwab U.S. Dividend Equity ETF (SCHD) is highlighted as a popular option for investors seeking yield, with $78.5 billion in net assets and a trading volume of nearly 20 million shares per day, focusing on large-cap value stocks that offer stable returns and dividend growth [6].