Precious Metals

Gold And Silver Blew Past Other Assets In The First Quarter of 2022

Gold and silver were the outstanding performing assets in the first quarter of this year, far surpassing other investments and asset classes. Silver was the top performer of the 11 asset classes for which data are gathered. Silver had a 7.63% increase in value, measuring performance as the percent change from the previous quarter’s end to the end of the first quarter. Gold came in second, at 6.60%. The next closest was cash, at 0.61%, with the non-precious metal assets returning between that 0.61% on cash to a -7.53% loss in Small Capital Equity. While silver and gold won the roses for their first quarter performance, it must be remembered that the best performing assets in one period tend to lag in the subsequent period, because they have done so well and other assets often play catch up. Often, but not always. A look at gold and silver’s performance in the years 2006 – 2011 shows that high relative returns can be persistent. This is important since the current environment is similar to 2006 – 2011, a period of incredible economic and financial market upheaval, the after-effects of which are still reverberating in the global economy and financial markets.

CPM first produced the Quilt Chart of Investment Returns Including Gold and Silver in January 2022, covering the years 2000 through 2021. We plan to update this on a quarterly basis.



Source: CPM Group; Data from 2000-2021

Sources: Bloomberg, CPM Group. Large Cap Equity – S&P 500 Small Cap Equity – Russell 2000 Developed ex.U.S. Equity – MSCI World ex USA, Emerging Market Equity – MSCI Emerging Markets U.S. Fixed Income – Bloomberg Barclays US Aggregate Bond Index, High Yield – Bloomberg Barclays High Yield Bond Index Global ex-U.S. Fixed Income – Bloomberg Barclays Global Aggregate ex US Bond Index, Real Estate – FTSE EPRA Nareit Developed REIT Weighted Net Total Return Index T-Bill- 90 Day Gold and Silver, Comex Nearby Active Contracts Annual Returns are percent changes year-end to year-end. T-Bills are year-end.

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. NOT FOR CLIENT REDISTRIBUTION.

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