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Some potential precious metals investors are, no doubt, thinking that perhaps they’re too late, that the bull market party is already over, or just about over anyway. After all, gold has already rocketed to its umpteenth all-time record high, over $3,000 an ounce. But the truth is that the bull market in gold and silver may just now be ramping up for a serious move to much higher price levels.
There are countless reasons to invest in precious metals, and very few, if any, to not do so.
Gold is the One Safe Haven in a Very Uncertain, Risk-filled World
Global uncertainty, both economic and geopolitical, is at an extreme high. In fact, like gold, it may be at an all-time high. Driven by the recent tariff wars, relations between the US and China are terrible and getting worse. China just recently moved to limit exports of rare earth minerals – precious assets that the US and other countries in the West desperately need for modern technologies. Trump’s tariff policies may work out in the long run but, at the moment, they’ve just got allies, as well as foes, pissed off.
It looked, for a minute there, like President Trump might pull off the diplomatic coup of the century by successfully negotiating an end to the Russia-Ukraine war. But now that quagmire looks like it’s remaining a quagmire, one with no “in the near future” end in sight.
Domestically in the US, there’s virtually a civil war going on, with protesters setting Teslas on fire, and President Trump locked in a battle with liberal judges who are trying to block his every move. Trump may be able to maintain a high approval rating but, overall, trust in the federal government is in the basement. Of course, that’s no wonder, with people daily seeing how the government has wasted billions of their tax dollars. The left is angry, the right is angry – everybody’s angry.
And while Elon Musk may have done the best job in history of cutting government spending, it may be a toss up as to whether he’s saved us more money than the federal government has already spent in just the first quarter of the year. Oh, and there is still that nasty, troubling $36 trillion debt to deal with.
The stock market’s wild swings this year have made investing in stocks look like a bet that has worse odds than you get at a craps table in Vegas. Passive “index investors” are not having a fun time in the market so far in 2025. (But gold investors are!)
Viewed from virtually every angle, gold is the best option on the table for investors.
“Something big is coming for gold and silver – bigger than ever before.”
The Price of Gold Isn’t Really High Yet
Here’s a tidbit of financial information that may shock you: Gold isn’t really all that expensive in real terms. While the nominal price of gold is scoring one record high after another, if you adjust the price of gold for inflation, it hasn’t yet even hit a level higher than its peak of 45 years ago in 1980. Just to surpass that record gold high in inflation-adjusted real terms, gold needs to hit the $3,300 an ounce level.
Central banks all across the world – including the US – are still buying gold hand over fist. Is it just possible that those central banks know something that the average investor doesn’t?
Another argument in favor of higher gold prices is the fact that retail investors, as a whole, still haven’t jumped aboard the gold and silver train. It’s still the case that only about 1-2% of all invested capital by retail investors in the US is invested in precious metals. (In contrast, much or the public in China, Russia, India, and elsewhere is following the lead of central banks, buying all the gold they can afford.) What would it do to the price of gold if retail gold investing in the US increased by just another percentage point or two? – Well, it certainly wouldn’t be likely to send gold prices down. When the general public finally gets a serious “fear of missing out” on the gold market, that could ignite a buying spree that could easily catapult gold from its current price level around $3,200 an ounce to up close to $5,000 an ounce in just a matter of weeks, if not days.
And, finally, simple supply and demand argues for higher gold prices. While central banks are buying up hundreds of tons of gold, the stark reality is that the world’s gold supply is not getting bigger. Total worldwide gold mining production in 2023 was around 3,000 metric tons. That annual gold mining production number has been relatively flat for more than a decade now, since 2014. The consensus of opinion among gold mining experts is that finds of huge gold deposits these days are few and far between, and not likely to significantly increase any time in the foreseeable future. In short, gold, which has always been a scarce resource, is becoming even scarcer.
Oh, and by the way, Goldman Sachs, which has consistently underestimated gold’s performance over the past decade, just raised its 2025 gold price target to $4,500 per ounce.
Why I’m Buying All the Silver I Can
I guess I’m following China’s lead on this. It’s even paying top dollar (or yuan) for unrefined silver – shipping it to China and doing the refining itself. And it’s not alone in trying to scoop up every available ounce of silver. Other major countries, such as Russia and the US, have also added big chunks of silver to their precious metals shopping list.
But the main reason that I’m a relentless silver buyer is the inescapable supply deficit. The Silver Institute reports that, for the past four years, the annual demand for silver has outstripped annual mining production by 10-30%. Stop and really think about that – demand for silver at a level that’s nearly one-third higher than total mining production. And there’s no sign of that situation improving. Ever higher demand for silver is being driven by –
Yes, the bullion banks are still doing all that they can to suppress the price of silver, but their efforts appear less and less successful – and are starting to smack of desperation. The most recent slap down of silver was reportedly accomplished, in part, only by JPMorgan shorting a million shares of the Sprott Physical Silver Trust ETF (PSLV) – a million shares!
But all they managed to do was put in a 2025 double bottom in silver right around the key $30 per ounce support level. Silver prices are already rapidly recovering – as I’m writing this, silver is already back above the next support/resistance line of $32 an ounce. In short, they can beat it down, but they can’t keep it down – for all the reasons cited above. The worldwide demand for silver is just too strong. I’ve read article after article lately where precious metals experts are forecasting the imminent demise of market manipulation of gold and silver prices.
So, that’s why I’m buying all the silver that I can afford. I’m even liquidating other assets in order to buy more silver. Just last week, I sold two of my 13 half-wit children. (Okay, just kidding – first of all, I don’t even have 13 children, and I haven’t sold any of the five that I do have. But I have dumped some profitable stock positions in order to take a bigger position in precious metals.)
The Bull Market in Gold May Just be Getting Started - Conclusion
Gold and silver remain the ultimate safe haven assets. And in an increasingly uncertain and volatile world, smart investors are flocking to them. Gold has outperformed the S&P 500 for the entirety of this century thus far, and it shows no signs of backing off of its bull run. Again, adjusted for inflation, gold hasn’t even yet taken out its 1980 high. And silver obviously has miles and miles to run to the upside.
Supply is increasingly scarce – while demand is continually growing. That’s simply an undeniable equation for increased value and higher gold and silver prices. So, is the bull market in gold and silver over? – On the contrary, it may just be ramping up for the real bull run yet to come.
I don’t have to tell you (but I guess I will anyway), that you don’t want to be standing on the sidelines watching gold and silver prices possibly double or more from their current levels while your investment capital is stuck in falling stock prices. Be ahead of the pack by investing in precious metals now, not later. (Don’t you wish you’d heeded that admonition five or ten years ago?)
Sources:
https://www.moneymetals.com/news/2025/04/08/why-it-isnt-too-late-to-buy-gold-003968
https://substack.com/home/post/p-161270418?source=queue
https://silverinstitute.org/silver-supply-demand/
https://aheadoftheherd.com/gold-and-system-collapse-charting-the-bank-run-of-the-mighty-us-dollar/
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