Gold, Silver ETFs Crash: Up to 14% Decline, What's Next for Investors?

• Gold and Silver ETFs experienced a sharp decline of up to 14% on Friday, with Zerodha Silver ETF, SBI Silver ETF, and Nippon India Silver ETF falling by approximately 14%.
• The sell-off followed record highs for both metals, with international spot silver dropping 5.7% and spot gold slipping 3.9%.
• The primary reason for the decline is increased uncertainty regarding the US Fed, fueled by speculation of a new, potentially hawkish Fed Chair, which strengthened the dollar.
• A stronger dollar makes dollar-denominated gold and silver more expensive for international investors, contributing to price pressure.
• Experts view the decline as profit-booking and a normal correction after an overbought rally, advising investors to buy on dips rather than panic selling, as long-term fundamentals remain strong.

Why It Matters: Gold and silver ETFs saw a sharp correction due to profit-booking and Fed uncertainty, but experts advise long-term buying on dips.