Clem Chambers sees gold and silver nearing price bottom

The recent market slide, which saw gold retreat from January peaks near $5,600 and silver drop by more than half from its $120 high, represents the inevitable bursting of a bubble. Chambers describes the current phase as a necessary cooling period, noting that investors often cling to bullish sentiment far too long during a correction. While he expects the metals to eventually climb higher due to anticipated long-term inflation driven by AI infrastructure and industrial reshoring, he warns that the market will likely trade sideways for an extended period.

Chambers attributes the initial decline to the easing of geopolitical tensions, particularly regarding China and Taiwan, which reduced gold’s utility as a wartime hedge. This shift coincided with a hawkish stance from the Federal Reserve and rising U.S. real yields, creating significant headwinds for non-yielding assets. Despite these pressures, he is preparing to return to the market. He plans to utilize dollar-cost averaging to rebuild positions in gold, silver, platinum, and palladium once prices hit his target range. He cautions retail holders of physical silver to ensure they have an exit strategy in place, noting that liquidity can vanish rapidly when dealer pipelines become congested during market volatility.