Gold and Silver Plunge: Why Five Market Experts Warn Against Buying the Dip

Gold and silver markets were rocked by a historic sell-off late last week, with prices plummeting as much as 30% for silver and over 10% for gold in a single day. The sharp decline, triggered by market turmoil following former President Donald Trump's nomination of a new Federal Reserve chair, has left investors questioning whether this is a moment to buy the dip. According to five seasoned market professionals, the answer is a resounding 'no.'

The volatility spilled into the new week, with metals markets remaining on edge. While such steep declines might typically signal a bargain, analysts warn that the corrective phase for precious metals is likely far from over. The recent rally, largely driven by the so-called 'debasement trade' and central bank buying since early 2025, had pushed prices to levels many see as detached from fundamentals.

"We are likely looking at eight to nine more weeks of corrective action for gold and silver," said Katie Stockton, Managing Partner at Fairlead Strategies, in an interview with CNBC. She added that the volatility could spill over into other speculative areas, like AI-related stocks.

The sentiment was echoed by José Torres, Senior Economist at Interactive Brokers, who noted the rally had become increasingly speculative. "Prices climbed at an unsustainable pace without clear justification, setting the stage for potential disappointment for late buyers," Torres told Business Insider.

Mark Malek, Chief Investment Officer at Siebert Financial, offered a stark metaphor: "Silver will exaggerate whatever gold does. It always runs hotter on the way up and bleeds faster on the way down. This isn't the start or the end—it's the dangerous middle."

Some advisors are steering clients toward equities. Nancy Tengler, CEO and CIO of Laffer Tengler Investments, advised stepping aside from gold for now. "It has turned into a momentum trade few can explain. I'd wait for the dust to settle. These large swings in supposed safe-havens are concerning," she noted.

While a longer-term bullish case exists, near-term uncertainty prevails. Marcus Sturdivant Sr., Managing Principal at The ABC Squared, acknowledged that fundamentals should eventually reassert themselves, but cautioned: "The sell-off was overdone, but we could see more slippage. The unpredictable nature of current economic policy makes the near-term path exceptionally hard to gauge."

Market Voices: Reactions from the Floor

David Chen, Portfolio Manager at Horizon Trust: "The technical damage is significant. This wasn't profit-taking; it was a momentum reversal. Jumping in now is trying to catch a falling knife. Patience is key."

Sarah Miller, Independent Commodities Trader: "This is brutal but necessary. The market got ahead of itself. I'm watching for a consolidation pattern around the 200-week moving average for gold before even thinking about a long position."

James 'Mac' Macalister, Retired Broker & Market Commentator: "It's absolute madness to buy here! The whole rally was built on hot air and fear. The 'debasement trade'? Please. This is a classic bubble pop, and it's going to hurt the little guy who bought the hype the most." (More emotional/pointed)

Priya Sharma, CFA, Economic Strategist at Sterling Analytics: "The structural drivers for gold—geopolitical risk, diversification—haven't vanished. However, the short-term speculative froth has. This decline creates a healthier base for the next leg up, but that next leg is likely quarters, not weeks, away."