Gold and Silver prices have dropped over the last week by 7% and 32%, respectively.

Mark Watson-Mitchell - 06.02.2026

This morning, I was interested to note that Rick Kanda, Managing Director at The Gold Bullion Company, shared his thoughts on why this drop has happened, if investors should be worried about price drops, and whether you should invest when prices drop.

Why are gold and silver prices dropping?

"In recent weeks, gold and silver have hit successive highs due to a rise in demand among investors seeking safe haven assets amid rising geopolitical tensions, including fears around the independence of the US Federal Reserve.

However, President Donald Trump's nomination of former Fed governor Kevin Warsh as the next chair of the Federal Reserve triggered a sharp sell-off.

Warsh is seen as a credible, independent economist, and his appointment calmed fears about political interference at the Fed. This boosted the dollar and took some of the shine off gold and silver.”

Should investors be worried about price drops?

"Gold and silver have reached record highs over the past year, but the journey hasn't been smooth.

There have been dips along the way, and we'll certainly see more; as someone in the industry, I'd caution against panicking.

Yes, gold and silver can be volatile in the short term, and past performance is no guarantee of future results, but historically, they've been seen as stable long-term investments.”

Investors should be aware of market fluctuations and not assume guaranteed quick returns.

The market will continue to rise and fall, which may lead to individual concerns, but these fluctuations shouldn't worry you.

The truth is that that is just how precious metals work.

Kanda's advice is to ignore the background noise.

He considers that investing in gold and silver isn't about timing the market; it's about diversifying your assets when it suits you.

Should you invest when the prices drop?

"Gold and silver investments should not be dependent on whether the market is either surging or falling; you should be more focused on whether your financial situation enables you to do so at that particular time.

Gold and silver should always be seen as a long-term investment strategy.

The time is right if you have the funds, you are in a financially stable position, and you're looking for an investment that will store value long-term without thought towards any short-term price fluctuations."

Since the Hunt brothers tried to corner the silver market in 1979, I have been keen on the white metal.

And as for gold, well, what can I say - it continues to glister for me.