CEDAR RAPIDS, Iowa (KCRG) – The dollar has lost almost 10% of its value since the beginning of the year, while commodities like gold and silver have dramatically increased.
Gold and silver often rise when the economy struggles, but this year both metals have had historic increases even as the stock market performs well. Those increases mean many investors are making big profits.
“Just about every single person that’s purchased gold or silver in history can make money right now,” said Alex Ralston, general manager of All American Bullion and Coins.
While his statement seems bold, it’s true. In the past few months, gold and silver both saw all-time highs coupled with massive increases from the start of the year.
“It’s kind of a once in a 10 or 20 year cycle where you get this kind of crazy run up,” Ralston said.
The run up has coincided with a historic down year for the value of the dollar. Gold and silver are typically treated as a way for investors to hedge or diversify.
Ralston and other gold dealers said inflation hurts people’s ability to just hold their money in a checking or savings account.
“You definitely can’t leave it in the bank to just lose to inflation every single year,” Ralston said.
Ralston said he believes gold and silver’s increase reflects uncertainty in the economy and rising inflation over the last few years.
“You can’t print money like we did during COVID. Eventually that money has to go somewhere, and where it ends up is in the stock market, in gold and silver,” Ralston said.
While gold and silver have both had historic years, Ralston said he’s still seeing plenty of new buyers. He warns investors shouldn’t take this year’s results and expect short term investing in precious metals to be a profitable strategy.
“A 50 percent rate of return is not gonna happen every year. This is definitely the exception, not the rule,” Ralston said.
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