Many noticed that the rally of precious metals at the end 2025 – beginning 2026 changed into bearish mood and gold lost almost 20% of its highest value. There was a slight recovery in the meantime, but for many buyers who recently started with precious metals such drop could be unpleasant and disturbing at first sight.
Sentiments and emotions could push an unused investor to sell out of fear of dropping prices. Thoughts like “why did I start with it? It does not bring anything! I’m just losing my invested money here!” could dominate during such market phases. And it is psychologically understandable.
However, you should distinguish between speculative investors playing on the market and making money on a daily basis and those who invest into precious metals to preserve their purchase power for the future.
It’s winter sale
Think about why you started to invest in precious metals and to buy gold or silver at the beginning. If you belong to the second group (wishing to preserve the purchase power) then you do your investment not in order to sell your metals a couple of days or weeks later. You were planning to cumulate precious metals over months and years. As long as you do not sell your metals at the current price, you do not lose anything. You still keep the same quantity of gold or silver as you bought it. The price can go up again (and it surely will in the course of time with the certitude of 100%).
See the current price drops as an offer for further investments. When such price drops come, it is like a winter or summer sale in retail shops. You can buy at lower prices and get more for your money. If you are about building up your metal vault, it is the right time to purchase, not to sell! Don’t let fool you by momentary fears.
Swap strategy
Not to forget about the swap strategy we presented in one of our previous articles. It does not matter how the current prices currently develop. What really counts – if you apply this strategy – is only the ratio between gold and silver, the so-called gold-silver ratio or GSR. When you apply it correctly, it will help you to increase the volume of the metals in your vault even without further investments. (Still you can buy new metals in parallel).
Let’s have a look at the price development of gold during the last 20 years. As you can see on the chart below, if you invested a serious amount of your money in gold back in 2020, in the worst case you would need to wait until 2024 before the price would reach the same price level and you would be able to sell it with a profit.
Even worse was the situation towards the end of 2011. Until gold could recover its highest price from that time, you would need to wait around 9 years until 2020. Was this time a waste of your money?
In order to better understand it, let’s have a look at our article about investment in precious metals covering a similar time period (however, 18 years in total). In addition, please have a look at our article explaining the swap strategy.
Chart from BullionByPost, red marks by Singabiz®
Possible Output
In a nutshell, depending on whether you were just investing your money in gold and let it as is during 18 years from 2006 until 2024 or whether you applied the swap strategy during this time, your investment could bring you between 397% and 2758%. It would result in the outcome of 39.745 EUR up to 275.818 EUR by investing only 10.000 EUR 18 years before. Over 18 years, it means an annual average return on investment of around 22% to 153%. Depending on your tax residency, this revenue could be completely tax-free. It is not a typo! Just check our above-mentioned articles for more details.
Our recommendation to customers: don’t make mistakes in the current bearish situation. If you are about to build up your precious metals vault with the mid-term to long-term vision, use it for further purchases. Take the chance to buy cheaper now. Watch out for the GSR (gold-silver ratio) and do swaps when the ratio is accordingly favorable.
Attention! This article is not a consultation and cannot replace an individual consultation. Singabiz® does not provide investment consultations. You are your best investment consultant and advisor. We help you to get the right orientation regarding your asset protection and wealth management.
If you need more information or would like to discuss deeper your needs or plans, do not hesitate to contact us. One of Singabiz® Representatives will be glad to assist you further.
If you wish to benefit immediately from conditions which are among the best of the best in Europe, and probably worldwide, do not hesitate to open your vault via our referral link. Only this way can you secure the best conditions Singabiz® offers via our partner.
