As Silver Prices Plunge, This CIO Warns That Precious Metals Are Nothing More Than Meme Stocks
As Silver Prices Plunge, This CIO Warns That Precious Metals Are Nothing More Than Meme Stocks
Patrick Sanders Tue, February 10, 2026
Precious metals have long been seen as a safe haven during any market uncertainty. And as the stock market flashes the occasional warning sign of stress, these commodities have been big winners over the last year. Gold prices are up 77% over the last 12 months, and the price of silver has done even better, rising 153%.
But it’s also noteworthy that both gold and silver stumbled lately. Gold dropped nearly 13% from its late January high before making a mild recovery; silver tumbled 31% from its high of $114 and is now drifting at $80.
That’s why a warning from Hank Smith, the CIO of Haverford Trust, is getting attention these days. He warns that investors should be cautious about putting money into gold, silver, or any commodity. He says the run higher in 2025 and early this year is more fueled by momentum instead of substance, and investors should instead consider stocks that offer yield, such as dividend stocks.
"Those (commodities) are speculations. They're not investments," he told Business Insider. “Because physical commodities do not have earnings, they don't have an income statement, a balance sheet, they don't pay dividends or interest—you’re buying that with the expectation that someone's going to come along and buy at a higher price. That's the only way you're going to make money.”
Smith has a point—investors should never, ever consider putting all their investments into a single class such as commodities. And while I believe that gold, silver, and even cryptocurrency have a place in a well-diversified portfolio, I agree that investors should have the bulk of their investments in the stock market, looking for yield.
Here are two ways to capitalize on that strategy through exchange-traded funds. Each has a different strategy but is geared toward providing yield through proven strategies.
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