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Money Metals News Alert
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October 20, 2025
– As gold and silver made new highs in recent days, U.S. retail demand for
gold and silver coins, bars, and rounds has suddenly skyrocketed.
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News
from London and India regarding shortages of physical silver have roiled
markets, with banks and investment funds scrambling to line up shipments of silver
from the U.S. to meet the shortfall.
Thanks to its excellent
balance sheet and logistics team, Money Metals remains in a strong inventory
situation while other dealers sell out of many items -- or quote multi-week wait
times for replenishment.
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That said, high order volume around
the clock at MoneyMetals.com
– both on the buy and the sell side – has led to modest processing
delays in our shipping and receiving department. (We are hiring!)
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Gold : Silver Ratio (as of
Friday's closing prices) – 81.7 to
1
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A 20% Portfolio Allocation to Gold and Silver
Is Going Mainstream
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In a seismic shift, Morgan Stanley CIO
Michael Wilson recently came out with an investment strategy that includes a 20
percent allocation to gold.
Now a Sprott executive has followed
suit, telling a mainstream financial network's audience that investors should
consider shifting from the traditional 60/40 portfolio to a 60/20/20 allocation.
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This isn't typical
messaging on mainstream financial networks.
Historically, the
conventional wisdom on Wall Street was a 60/40 portfolio, with 60 percent of the
holdings in equities and 40 percent in fixed-income investments, primarily bonds.
The theory is that these
asset classes balance each other, with stocks strengthening in a strong economy
and bonds creating a hedge during downturns.
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However, bonds have lost their
safe-haven status in recent months. Last spring, at the height of tariff
uncertainty, gold and silver rallied as bonds sold off. Gold and silver seem to be
the last safe havens standing.
Given the changing market dynamics,
Wilson said investors should consider a 60/20/20 strategy, swapping half of the
bond portfolio for gold to serve as a ???more resilient??? inflation hedge.
In an interview on CNBC Tuesday (Oct.
14), Sprott director of ETF management Steven Schoffstall echoed Wilson, saying a
20 percent allocation to gold and silver will likely yield a better return than
the traditional portfolio.
He noted that the pivot toward a lower
interest rate environment with the Federal Reserve now in a cutting mood will
likely benefit the metals.
???Gold's always
traditionally been viewed as a safe haven for economic turmoil, geopolitical
instability, things that we're seeing right now, because it doesn't have a yield.
Generally, falling interest rates are beneficial for gold.
That's when we see a
lot of investors start to move into gold.???
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This has been evident in the surge
of money into gold ETFs in North America.
Schoffstall said this reflects growing
investor acceptance of gold in the West.
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???Typically, it's
been viewed as a fringe or outside metal and allocation tool.???
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He noted that ???more prominent
economists are starting to suggest shifting from a 60/40 model to something closer
to a 60/20/20 where it's 60 percent equities, 20 percent fixed income, 20 percent
gold.???
Schoffstall pointed out that gold and
silver are the ultimate hedge.
???What you get out of
gold is that hedging to the broader investor universe.
When you start
thinking about things like correlations – how well does gold move versus
other aspects of the economy – we tend to see low to moderate correlations
across most major asset classes, and an inverse correlation to the U.S. dollar
– all aspects of the economy that investors are starting to feel uneasy
about at the moment.???
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This interview isn???t as
surprising as the announcement from the Morgan Stanley CIO, given Sprott???s focus
on metals and critical minerals.
However, it reinforces a
visible shift in mainstream investment strategy in the U.S., and, notably, he had
this discussion on CNBC, a mainstream financial network that tends
to ignore gold at best and generally dismisses it outright.
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Schoffstall said that even with gold
at over $4,000, he still sees plenty of upside given persistent geopolitical
tensions, trade uncertainty, and high levels of global debt.
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This week's Market Update was
authored by Money Metals Analyst Mike Maharrey.
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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
any other offer or program. Special shipping rates or other restrictions may apply
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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