In uncertain economic times, investors often look for safer havens to protect their wealth. Recent events surrounding President Donald Trump’s first 100 days in office have only reinforced that strategy. The stock market’s rough start under the Trump administration has been the worst for a newly inaugurated president since the 1970s—a reality that’s pushing more Americans to diversify into precious metals like gold and silver.

According to CFRA Research, the S&P 500 dropped 7.9% from Trump’s inauguration on January 20 through April 25. That makes it the second-worst first 100 days performance for a president, only surpassed by Richard Nixon’s 9.9% drop in 1973. Nixon’s era was plagued by inflation control measures that led to a severe recession between 1973 and 1975. Trump’s rocky start highlights the importance of hedging against market turbulence, and for many investors, precious metals are emerging as a vital piece of the puzzle.

Why Stocks Are Struggling—and Why It Matters

Historically, the S&P 500 rises an average of 2.1% in a president’s first 100 days, based on data from 1944 to 2020. But Trump’s early actions rattled investors instead. Despite a post-election rally—where the S&P 500 rose 3.7% on hopes of tax cuts and deregulation—the market quickly reversed course once Trump took office.

Instead of focusing on pro-growth policies, Trump’s administration zeroed in on aggressive trade measures that spooked markets. His “reciprocal” tariff announcements sent shockwaves through global trade relationships, causing inflation fears and raising the specter of recession. In April alone, the S&P 500 plummeted 10% in just two days, briefly dipping into bear market territory.

Although a partial walk-back of tariffs provided temporary relief, deep concerns remain about continued volatility, lack of clarity in Washington, and economic uncertainty. According to Jeffrey Hirsch, editor of the Stock Trader’s Almanac, the market rally seen after the April drop was likely just a “bear market rally” rather than a genuine recovery. As he put it: “I’m not convinced we’re out of the woods yet.”

When traditional assets like stocks grow increasingly unstable, it’s no surprise that investors turn their attention to historically reliable stores of value: precious metals.

Precious Metals: A Proven Hedge Against Uncertainty

Throughout history, gold, silver, platinum, and palladium have served as critical hedges during periods of inflation, economic instability, and political turmoil. Unlike stocks and bonds, precious metals are tangible assets with intrinsic value. They are not tied to the performance of any one company or government and have a track record of preserving wealth when fiat currencies falter.

In today’s environment—where inflation fears, recession worries, and geopolitical tensions are once again front-page news—precious metals offer security that traditional investments often cannot.

Key advantages of investing in precious metals today include:

• Inflation Protection: Precious metals, particularly gold, have traditionally risen in value as the purchasing power of fiat currencies declines.

• Portfolio Diversification: Adding metals to an investment portfolio reduces overall risk, as metals often move independently of stock and bond markets.

• Safe Haven Asset: During times of economic or political crisis, demand for gold and silver typically surges, driving prices higher.

• Tangible Ownership: Precious metals provide true ownership—you physically possess your investment, free from the risks associated with digital or paper assets.

Why Now May Be the Right Time to Consider Precious Metals

The market environment we are facing today is eerily similar to historical periods that preceded major bull markets in gold and silver. With the stock market struggling, inflation running higher than historical averages, and global uncertainty rising, the conditions are ideal for a potential sustained rally in precious metals.

In fact, data shows that gold often outperforms during major economic downturns. During the 2008 financial crisis, while the S&P 500 lost more than 38% of its value, gold prices rose by approximately 5% and continued to climb afterward. Investors who recognized the early signs of instability and rebalanced their portfolios with precious metals were able to protect—and in many cases grow—their wealth.

Today’s investors face similar risks, but also similar opportunities.

Protect Your Wealth Before It’s Too Late

No one can predict exactly how markets will perform over the next few months or years. But history teaches us that during periods of heightened volatility and uncertainty, those who diversify into hard assets like gold and silver are often best positioned to weather the storm.

If you’ve been considering adding precious metals to your portfolio, now may be the perfect time to act.

For more information on investing in precious metals in today’s market, contact the specialists at GoldenCrest Metals. Our team is ready to help you safeguard your wealth and secure your financial future with the stability and security of precious metals.

Source:

https://www.cnbc.com/2025/04/28/trumps-first-100-days-are-the-worst-for-the-stock-market-since-nixon.html