Gold and Silver in Times of Crisis with Historical Examples

In uncertain times, people turn to gold and silver as safe havens. In this knowledge base article, we look at the role of gold and silver during crises.

Why gold and silver as safe havens?

Let’s start with the question: why do investors and savers see physical gold and silver as safe havens in uncertain times? Gold and silver have several advantages. They have a long and rich history, making them globally recognized and tradable as rare and valuable precious metals.

In addition, gold and silver are scarce and tangible assets, which makes it difficult to influence their value through economic or political measures. This independence from banks or corporations ensures that gold and silver remain relatively stable in times of economic uncertainty. There are also several historical examples that illustrate this.

Great Depression (1930s)

Although gold initially declined during the Great Depression, its price rose sharply in 1931, partly due to investor demand for gold as a safe haven during the prolonged downturn. The abandonment of the gold standard by the U.S. in 1932 led to a further increase in gold’s value relative to the dollar.

Oil Crisis (1970s)

Gold prices also rose significantly in the 1970s. The trigger was the oil crisis, which even led to car-free Sundays in the Netherlands in 1973 and 1974 as a way to save fuel. During this period of economic uncertainty and high inflation, both gold and silver increased considerably in value as safe havens.

Banking Crisis of 2008

More recently, there was a major economic crisis in the form of the banking crisis, which began in 2007 and lasted for several years. Originally starting in the U.S. housing market, the crisis disrupted international markets as well and forced many banks to rely on government support. During this crisis too, investors turned to precious metals as safe havens.

Covid Pandemic

In recent years, uncertainty has again been widespread. First came the Covid-19 pandemic in 2019, which then shifted into broader economic uncertainty fueled by conflicts and geopolitical tensions. As a result, the gold price has remained high since the pandemic. Silver prices lagged somewhat behind but are making a comeback in 2025.

Current Situation

As mentioned above, gold prices have remained high, mainly due to ongoing geopolitical and economic conflicts. Inflation in the EU has also stayed relatively high in recent years. This has led to a decline in consumer confidence and a more cautious attitude among investors.

The result is that many invest in physical precious metals as safe havens. Whether precious metal prices will continue to rise cannot be said with certainty, but given geopolitical developments and the growing impact of climate change, it seems clear that economic uncertainty will continue to play a role.

Disclaimer: The Silver Mountain does not provide investment advice and this article should not be considered as such. Past performance is no guarantee of future results.