Gold And Silver Comparative Performance In The Third Quarter 2022
October 5, 2022
Gold and silver ran with the pack in the third quarter. The past three months have been brutal to financial assets across the board. Gold and silver suffered with the best of them. They fared better than some asset classes but worse than others.
Since the start of this year CPM has been updating the attached charts, comparing annual and quarterly performance, price appreciation, of 11 financial asset classes from cash and real estate through a series of stock and bond indices, as well as gold and silver. This quarter we have added a column for the third quarter 2022 performance and another column for the year-to-date comparative performances of gold and silver.
In the third quarter of the year gold’s and silver’s price performance landed in the middle of the asset classes tracked in this brief report. Gold was down 7.49% for the third quarter while silver was down 6.13%. Cash equivalent, which is 90-day treasury bills, came in at the top, with 3.3% while emerging market equities were the worst performer, down 11.57%
It should be noted that on a seasonal basis, the middle of the year is typically a weak period for gold and silver prices, partly due to seasonally weak demand during the same time. This is reflected in the second and third quarter of this year.
This may suggest higher prices in the fourth quarter, but this remains to be seen. On a seasonal basis, the fourth quarter is usually a strong period for demand due to a surge in gift giving holidays and firmer investment demand.
Year-to-date through the third quarter gold prices were down 8.56%. This was actually the second best performance of the 11 asset classes noted in this report. The top performance was from cash equivalents. Silver meanwhile was down 18.47% year-to-date through the third quarter, the fifth best performance of the asset classes. The worst performance year-to-date was emerging market equities, down 27.16%.
Background
Relative Performance 2000 – 2021
Note: Weighted Performance is an index of the strength of the annual returns on a weighted average basis.
Source: CPM Group
Disclosures: This information discusses general market activity or other broad-based economic, market and/or political conditions. It also refers to specific prices which pertain to past performance and should not be construed as research of investment advice. Past performance is not indicative of future results, and it should not be assumed that future performance will be as profitable or will equal the performance of the prices described herein. Investing in precious metals involves risk, including the risk of the loss of all or a portion of your investment. Precious metals prices can be volatile and influenced by a variety of different factors, including economic, political, social and market-related events. Precious metals are not suitable for all investors, and for investors for whom investment in precious metals is appropriate, are only suitable for a limited portion of the risk segment of such investor’s portfolio. GBI makes no recommendation whatsoever as to whether any client should invest in precious metals. Although the information contained in this document has been obtained from sources believed to be reliable, GBI does not guarantee its accuracy or completeness, nor does GBI have any obligation to or intend to update any of the information contained herein. This document does not constitute an offer to sell or a solicitation of an offer to buy any precious metals, nor does it address any specific investment objectives, financial situation, tax consequences or particular needs of any potential investor, and does not constitute investment or any other advice.
This report was produced for GBI by CPM Group LLC. CPM Group LLC is responsible for the contents.