Gold and silver have been on a tear. In 2025, gold prices surged roughly 50% to 60%, hitting repeated record highs as investors looked for safety from geopolitical tensions, currency worries, and shifting central‑bank policy.
Silver, meanwhile, did even more—jumping about 145% to 150% over the year and continuing to rise sharply in early 2026.
For Zimbabweans, where memories of hyperinflation and currency devaluation are still fresh, such headlines naturally raise a question: Should I rush to buy gold or silver right now?
Before we dive in, an important reminder: this article is for educational purposes only, not investment advice. Every person’s situation is different. If you are considering any investment, seek professional guidance and do your own research.
For more educational content on global markets, risk management, and practical investing—especially from a Zimbabwean perspective—you can follow the Streetwise Economics YouTube channel and visit www.streetwiseeconomics.com for coaching and training.
Why are gold and silver rising?
To understand today’s price action, it helps to look at the big drivers behind this rally.
- Safe‑haven demand
For centuries, gold has been seen as a safe‑haven asset—a place investors run to when they fear political or economic trouble. In 2025, that fear came from many directions:
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-Geopolitical conflicts and trade tensions.
-Concerns about large government debts and fiscal deficit.
-Uncertainty around changes in US Federal Reserve leadership and policy.
When uncertainty rises, many global investors shift a portion of their wealth from paper assets (like some stocks or bonds) into physical stores of value such as gold.
- Lower interest rates and softer monetary policy
In 2025, the US Federal Reserve cut rates multiple times and signaled a willingness to keep policy easier to support a slowing economy. Lower interest rates reduce the “opportunity cost” of holding gold and silver, which do not pay interest.
When bank deposits and government bonds offer low or falling yields, non‑yielding assets like gold and silver become relatively more attractive.
- Currency and inflation concerns
Analysts describe the recent move into gold as part of a “debasement trade”—a shift away from fiat currencies that may be losing purchasing power, toward hard assets that cannot be printed.
Gold has historically helped protect purchasing power when real interest rates (interest minus inflation) are low or negative.
Silver also plays a role, with both monetary (investment) and industrial demand (especially from solar panels and electronics).
For Zimbabweans who have lived through multiple currency regimes, the idea of using gold or silver as a way of preserving value feels very intuitive.
- Supply constraints and industrial demand (especially for silver)
Silver’s move has been even more dramatic than gold’s. Global silver production has grown slowly, while demand from solar, electric vehicles, and electronics has jumped. The result: A squeeze in a relatively small market, amplifying price moves.
Silver often behaves like “gold with leverage”—it can rise faster in a bull market but also fall harder when sentiment turns.
How do gold and silver work as a hedge?
In finance, a “hedge” is something you hold to offset risk elsewhere in your portfolio. Gold and silver can play several hedging roles:
- Inflation hedge
Research shows that gold remains an effective hedge in high‑inflation environments, while silver can complement it, especially when inflation is moderate and industrial demand is strong.
When consumer prices rise and currencies lose value, gold and silver—priced in global markets—tend to move higher over the long run.
They provide a way to store value outside any one country’s banking system.
- Currency and political risk hedge
Gold and silver are traded globally and quoted in US dollars. For Zimbabweans, that offers:
-Protection against local currency risk—whether due to ZiG volatility or changes in domestic monetary policy.
-A portable store of value that can, in principle, be converted across borders.
That said, practical access, regulations, and transaction costs matter, especially for smaller investors.
- Portfolio diversification
Adding a small allocation to precious metals can help diversify a portfolio that otherwise holds mainly equities, bonds, or property.
When stocks sell off due to geopolitical fears, gold often rises, smoothing overall returns. Silver can contribute too, though with more volatility.
The risks of rushing in
With prices making headlines and social media full of charts and slogans like “gold only goes up,” it’s easy to feel FOMO—Fear of missing out. But there are real risks to fear‑driven buying, especially at or near record highs.
- High prices and the risk of a pullback
Gold has already surged about 50% to 60% in 2025, and silver roughly 145%. Those are enormous moves. History shows that after such rallies, periods of consolidation—or even sharp corrections—are common.
If you rush in purely because “the price is going up,” you may be the one buying from earlier investors who are taking profits. Short‑term timing is extremely difficult.
- Volatility, especially in silver
Silver’s “double personality” as both an industrial and precious metal makes its price swings larger than gold’s.
When sentiment is positive and industry is strong, silver can outperform gold dramatically.
When growth slows or risk appetite fades, silver can fall faster than gold.
This leverage means potential for higher returns but also deeper drawdowns. It is not ideal for someone who cannot tolerate big fluctuations.
- Liquidity and access issues
For Zimbabwean investors, practical questions matter:
Are you buying physical gold/silver, local jewelry, or financial products (like offshore ETFs)?
What are the premiums, storage costs, or security risks?
How easy will it be to sell if you need cash quickly?
Sometimes the friction—fees, spreads, and logistics—can erode the protection precious metals are supposed to provide.
- Over‑concentration
Putting all your savings into one asset—even gold—is risky. Gold and silver do not generate cash flow. They can protect wealth, but they don’t grow a business or pay dividends on their own.
For long‑term wealth building, many investors combine metals with other assets: productive companies, real estate, or interest‑bearing instruments where possible.
A sensible way for Zimbabweans to think about metals
Rather than asking, “Should I buy gold or silver now?” a better question might be:
“What role, if any, should precious metals play in my overall plan?”
Here are some simple guidelines for beginners:
Start with your goals and time horizon.
Are you trying to protect savings over a few years, or grow wealth over decades? Metals can help with protection, less so with growth.
Consider a modest allocation
Many global investors use something like 5–15% of their portfolio for gold and silver combined, though there is no magic number.
Avoid emotional, all‑in moves
If you decide to gain exposure, consider phasing in gradually rather than rushing to convert everything at once.
Think about structure
Diaspora investors might use regulated ETFs or vaulted bullion services. Local investors may rely more on physical gold, jewellery, or indirect exposure via miners listed on VFEX or foreign exchanges. Each path has pros and cons
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Understand what actually drives gold and silver: real rates, currency trends, geopolitics, and industrial demand—not just social‑media hype.
Where Streetwise Economics fits in
Navigating these questions can feel overwhelming, especially if you are balancing responsibilities at home, business pressures, or life in the diaspora. That is why I created Streetwise Economics—to offer clear, practical education from a Zimbabwean point of view.
On the Streetwise Economics YouTube channel, I break down topics like gold and silver, global stock markets, VFEX opportunities, and risk management in plain language.
At www.streetwiseeconomics.com, you can access coaching and bootcamps tailored to help you build a thoughtful strategy—whether you are just starting out or already investing and want to sharpen your framework.
Again, none of this replaces professional advice. The aim is to help you think clearly about markets, rather than react emotionally.
Final thoughts
Gold and silver’s massive moves in 2025 and early 2026 show how powerful precious metals can be when fear, inflation worries, and easier monetary policy all line up.
They remind Zimbabweans of the importance of protecting purchasing power and diversifying beyond any single currency.
But they also highlight the risks of rushing in just because prices are rising.
High volatility, potential pullbacks, and practical issues around access and liquidity mean that metals should be treated as one part of a broader plan—not a silver bullet.
If you choose to include gold or silver in your portfolio, do it thoughtfully, in line with your goals, risk tolerance, and time horizon.
And remember: in the long run, calm analysis and disciplined strategy usually beat fear‑driven decisions—no matter how exciting the latest price chart looks.
