Here's What to Expect for Gold and Silver Mining Stocks as the Iran Conflict Continues

Sometimes the narrative and investor perceptions don’t fit the reality. Investors are forced to realign the way they think about an asset class or, in this case, the asset classes of gold and silver or buying gold miners like Newmont (NEM +2.76%) or a silver miner like Hecla Mining (HL +4.07%).

While the two precious metals have different dynamics, they have both surged in recent years, driven by speculative investment that somewhat unwound during the recent broad-based market sell-off. That wasn’t supposed to happen to so-called safe-haven investments, but that moniker needs some qualification.

Speculative investment has driven gold and silver higher

Whenever there’s a broad sell-off in assets, investors look to raise cash by selling, and it’s understandable if they take profits on assets that have soared in recent years, like gold and silver. That sell-off will be more pronounced if demand for gold and silver comes primarily from speculative investment rather than from underlying demand, such as from the jewelry, electronics, technology, or industrial sectors.

Image source: Getty Images.

There’s evidence of growing investment demand but declining underlying demand amid rising prices for both metals. Jewelry demand declined in 2025, and so did Central Bank demand. The latter is somewhat surprising, given that the bull case for gold often rests on the idea that Central Bank buying will drive gold prices higher.

Data source: World Gold Council Research. *Numbers may differ due to rounding.

Turning to silver, declining underlying demand is again offset by increased investment demand, but unlike gold, it’s not enough to fully offset it.

Data source: The Silver Institute.* Numbers may differ due to rounding.

What it means to gold and silver investors

The increases in speculative demand suggest that silver and particularly gold are prone to a broad-based sell-off, so the idea that they will be a near-term safe haven is questionable.

There is a long-term case for gold, given its potential to replace the U.S. dollar as a reserve currency at Central Banks, not least due to rising U.S. debt levels and the threat of the weaponization of finance in a world rife with geopolitical tensions.

Image source: Getty Images.

There’s also a strong case for silver, given its importance to the industrial sector (gold and silver demand from technological and industrial sources remained relatively stable) and use in data centers.

But now may not be the best time to buy in, as volatility around the Iran War will only end when the conflict does, which could mean more speculative money flows out of gold and silver in the near term.