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Money Metals News Alert
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March 24th, 2025
– The U.S stock market has bounced off its 7-month low from ten days ago,
but the dollar remains weak.
Meanwhile, gold and silver continue to
trade near their recent highs and could still rally higher before their typical
seasonal high in late April.
Premiums on coins, bars, and rounds
are still at multi-year lows with several items discounted
even more at Money Metals.
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Gold : Silver Ratio (as of
Friday's closing prices) – 91.3 to
1
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Gold Continues to Soar. Here's Why...
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Gold has not only held the lofty
$3,000 line, it???s advanced well beyond. This raises the question... why?
After a dizzying run to $3,000 that
has stunned even the most ardent gold bulls, the yellow metal has continued to
climb.
Count me among the dumbfounded bulls.
I stood in awe at how easily gold had achieved the latest millennium number, even
as it was hesitating
at $3,000. But since then, the run has continued, punctuated by a
$34 jump yesterday even as other asset classes were diving.
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Gold gained once again in
the wake of the Fed???s policy statement last week and during Chairman
Powell???s press conference.
The reason, I believe, is
because there were no big surprises.
Thus, the rationale for
higher gold prices remaining the same, and the uptrend quickly reset.
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That rationale is multi-faceted,
ranging from recognition of the necessity to lower rates in the face of untenable
debt service costs at current levels, the inflationary implications of the new
tariff policies, and the increasing likelihood of a recession
as the economic uncertainty works its way through the economy.
More generally, I believe the
tremendous rally we???ve seen in gold over the past two months, and even over the
past year, is telling
us something about the future.
The markets are predictive mechanisms,
and none are more sensitive than gold. Just as gold rose post-Covid as it
discounted the eventual inflationary reaction to the Fed???s easy-money rescue
efforts, it???s predicting something ahead today.
That ???something??? is likely some
combination of easier money and higher inflation.
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Being gold bugs and
natural contrarians, a move like we???re seeing tends to set our Spidey senses
tingling, wondering if gold is getting ahead of itself... and whether the market
is about to slap us upside the head with a figurative 2 x 4.
I???m comforted, however, by
the fact that we???re starting to see Western investors coming into the metals and
miners in force... and those money flows could soon increase substantially.
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Consider that gold has far outpaced
every other asset class this quarter. Not only has the bloom come off the roses in
tech equities, AI stocks, and Bitcoin — all of which have robbed gold of
very significant speculative funds — but gold has risen relentlessly even as
those assets have fallen.
In the trend-following world of
managed money, that outperformance is going to attract ever greater fund
allocations like moths to a flame. The trend, already in place, will accelerate
after first quarter reporting.
The news will get even better for gold
and silver stock investors, as the hot money will look for ways to leverage gold???s
move...and they will discover that mining equities remain dramatically
undervalued.
It???s already happening to some extent,
as the chart below of the GDX/gold ratio shows how mining stocks have been
generally outperforming the metal since the beginning of the year. In short,
investors have been aggressively moving into gold equities.
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This outperformance is especially
remarkable when you consider how steeply gold has been rising. For mining stocks
to do even better is quite something.
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To get Brien Lundin???s ongoing
commentary on the markets at no charge, click here
to subscribe to his free Golden Opportunities newsletter.
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This week's Market Update was
authored by Money Metals Contributing Writer Brien Lundin.
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be republished without express permission. Offer only available through email
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