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Money Metals News Alert
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October 6, 2025
– Gold is pushing higher for the 8th consecutive week. The yellow metal is
up $50 this morning, trading at all-time high and nearing the $4,000 level.
Silver has surged 60 cents so far
today, after adding $2 last week.
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The silver move is being
fueled by what may be a physical shortage, as indicated by a condition called
"backwardation." Normally, the price of the metal in the future is a bit more
expensive to account for the cost of funds. This is known as "contango."
But right now, the price
of silver on the December contract, for instance, is currently sitting
below the spot market price.
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Backwardation is unusual and it
implies very strong demand in the spot market for physical metal.
Premiums for physical coins, bars, and
rounds at MoneyMetals.com
remain low, although we've seen excess inventory dissipate at the wholesale level.
Premiums may begin to creep up soon.
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Gold : Silver Ratio (as of
Friday's closing prices) – 80.9 to
1
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Is Silver About to Crash Like in 1980 &
2011?
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With silver rallying strongly and
rising more than 50% since the start of the year, a growing number of investors
are starting to worry that a crash may be coming, similar to what happened after
the major spikes in 1980 and 2011, instead of focusing on the incredible long-term
opportunity that remains in front of us.
But as one of the few analysts who
correctly identified the bull market in both
silver and gold from the very beginning, I have consistently urged investors
to stop dwelling on negative scenarios and instead recognize the tremendous upside
that still lies ahead.
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This is silver???s moment to
shine, and it is also a moment of vindication for those of us who believed in it
all along, even when it was ignored by the mainstream financial world and left for
dead as recently as just a few months ago.
I believe silver
will not repeat the sharp collapses that followed its short-lived surges in
1980 and 2011. This time is different.
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This is a legitimate, sustainable
bull market with real staying power and the potential for lasting gains.
To start, I want to show you the
long-term chart of silver going back six decades to the 1960s. You???ll notice that
there have been three major price surges.
The first was the Hunt
Brothers–driven spike in 1980, followed by the quantitative
easing–fueled rally in 2011, and now the current precious metals bull
market. I believe this current move is a legitimate and sustainable bull market
that is here to stay, as I will explain throughout this piece.
Now I want you to notice that in both
1980 and 2011, silver surged toward the $50 an ounce level, but that is where
those rallies failed and quickly reversed. As a result, the $50 level became a
critical price ceiling and resistance level, and it still is to this very day.
For the past two years, as I have been
calling for a silver bull market, even when silver was still in the $20 range, I
consistently pointed to the $50 level as the key one to watch. I believed it would
act like a magnet and draw the price of silver toward it, since major
psychological levels often have that effect.
And sure enough, silver has steadily
climbed toward that level, just as I expected.
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Now, with silver trading around $48 at
the time of writing, it is extremely close to breaking through the key $50 level,
which is a major make-or-break point.
I also want to point out that many
investors bought significant amounts of both silver bullion and ETFs during the
frenzy of 2011. Unfortunately, when the price plunged afterward, they were left
holding the bag, and many have been sitting on losses for the past 14 years.
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But once silver finally
surpasses $50, which will mark a new all-time high, no silver investor will be
sitting on a loss, at least in nominal terms. That fact alone makes the $50
level a critical psychological barrier that will trigger a surge in investor
sentiment once silver breaks above it.
Until recently, many
silver investors remained deeply discouraged by years of losses and
underperformance.
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But a decisive break above $50 will
mark the beginning of an entirely new era for silver and will set off a powerful
virtuous cycle.
Many more investors will pile in,
including new and younger participants who never considered silver before and who
are not burdened by the baggage carried by older, battle-scarred veterans. This
explosion of interest will help drive silver to incredible new heights...
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This week's Market Update was
authored by Money Metals Contributing Writer Jesse Colombo.
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This copyrighted material may not
be republished without express permission. Offer only available through email
promotion. Offer does not apply to previous orders and may not be combined with
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to international orders. The information presented here is for general educational
purposes only. Money Metals Exchange and its staff do not act as personal
investment advisors. Nor do we advocate the purchase or sale of any regulated
security listed on any exchange for any specific individual. While our track
record is excellent, investment markets have inherent risks and there can be no
assurance of future profits. You are responsible for your investment decisions,
and they should be made in consultation with your own advisors. By purchasing from
Money Metals, you understand our company is not responsible for any losses caused
by your investment decisions, nor do we have any claim to any market gains you may
enjoy. Money Metals Exchange is not a regulated trading ???exchange??? as defined by
the CFTC and the SEC.
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