Gold and silver prices ran into a bit of a shocker last month, but things have since settled, and investors might be looking for an opportunity to buy amid the wave of volatility hitting the precious metal scene. Just as sudden as the plunge in gold and silver prices (and shares of their miners) was, the comeback rally has been fierce. Of course, a pick for the next Federal Reserve chair probably shouldn’t cause such a nasty single-day wipeout.
As it turned out, the selling was way overdone, and the fastest of dip-buyers were rewarded. But now that gold has recovered so much ground, while silver looks to follow suit, questions linger as to whether it’s a better idea to wait for another big pullback or if it’s worth getting in right here now that the dust has had a chance to settle.
Gold and silver can still shine in 2026
Of course, the same “debasement trade” is still in play. Nothing has changed about that. And with solid central bank buying activity, as well as high rate cut hopes, there seems to be little reason to throw in the towel on gold, especially if you’re in the asset as a hedge or diversifier for the long run. With so many bulls behind gold (and some for silver), I do think it’s worth giving the miners a second look, even though the opportunity to snag them at the year-to-date bottom has come and gone.
Though momentum could reverse again, punishing dip-buyers who’ve gotten in too soon on the latest surge, I think dollar cost averaging (DCA) remains the way to go, especially for assets that can move in such an unpredictable fashion. While gold may be a “safer” asset, it can still tank 10% in a day, as many folks found out just a few weeks ago. The key is playing the long-term game and buying the fear-driven dips, rather than selling them.
Also, reversions to the mean happen along the way, with just about any asset, and they’re to be prepared for, especially after a sudden parabolic run in an asset. If gold can surge 15% in a few days, you can bet that such a gain can be given back just as fast, if not faster. The stairs up, and the elevator down, so to speak!
In any case, here are two miners that I think are great buys here. I don’t think they’re appropriately priced, given the run in gold (and silver, which tends to be a byproduct of gold production), just yet. As such, multiple expansion and earnings could be in the driver’s seat going into year’s end.
Agnico Eagle Mines
Agnico Eagle Mines (TSX:AEM) may have regained the ground lost back in late-January, but I still think the red-hot stock has room to the upside. With a solid, growing dividend (0.77% yield) and less geopolitical risk than some of its rivals (a huge chunk of assets are in Canada and Australia), I find the miner to be a sleep-easy kind of pick.
Combined with a strong management team and exploration upside that could pave the way for decades worth of production, I find it hard to recommend just about any other miner for Canadian investors. Of course, the stock is not as cheap as its peers, currently going for 30.9 times trailing price-to-earnings (P/E). That’s the main drawback.
Still, if you don’t mind paying for quality and think gold is on its way higher, I’d not sleep on the name. As gold and silver (the byproduct for Agnico) move higher, I think the current multiple may be too low, given the growth ahead as well as the firm’s exploration potential.
