|
|
|
|
|
|
|
Money Metals News Alert
|
November 3, 2025
– Gold and silver prices mostly recovered last week and stemmed the tide,
following a week of relentless selling.
|
|
|
These markets were due for
a pullback, given the runup in prices. Silver had surged from the low $30s in May
to a little over $50/oz by mid-October. Gold???s big run began in August, and
persisted for two months without a meaningful correction.
Still, the correction in
prices caught some by surprise and frustrated some diehard goldbugs who were
already skeptical about price discovery in the metals markets.
|
|
|
|
Both buying and selling activity in
the U.S. retail bullion markets was frenetic during the first couple of weeks in
October. That activity slowed a bit in the second half of the month, but remains
robust.
|
|
|
|
Gold : Silver Ratio (as of
Friday's closing prices) – 82.1 to
1
|
|
|
|
Don???t Let the Precious Metals Bull Shake You
Off
|
|
|
|
|
|
Investors have to manage their
emotions and deal with surprises in order to succeed. This is particularly true
for bullion investors, who can expect more than their share of volatility and
unexpected price action.
Gold and silver don???t enjoy genuine
support on Wall Street or in Washington DC. And the metals have few friends among
the central planners at the Federal Reserve or other central banks in the Western
World.
|
|
|
Gold and silver are not
favored assets, unlike real estate, Treasuries, or the U.S. equities.
Regulators have turned a
blind eye, or have given a slap on the wrist, to banks caught red handed rigging
prices. People betting on higher prices have been punished, including the Hunt
brothers, who were brutalized by a Comex move to limit investors to sell orders
only.
|
|
|
|
In fact, the system for price
discovery in U.S. futures markets may have been ???purpose built??? to discourage
broad ownership of physical gold and silver.
The following is a quote from a memo
sent from the U.S. Embassy in London to the Treasury Department in 1974. It
outlines what was expected to happen following the creation of a futures market
for gold.
EACH OF THE DEALERS
EXPRESSED THE BELIEF THAT THE FUTURES MARKET WOULD BE OF SIGNIFICANT PROPORTION
AND PHYSICAL TRADING WOULD BE MINISCULE BY COMPARISON. ALSO EXPRESSED WAS THE
EXPECTATION THAT LARGE VOLUME FUTURES DEALING WOULD CREATE A HIGHLY VOLATILE
MARKET.
IN TURN, THE VOLATILE
PRICE MOVEMENTS WOULD DIMINISH THE INITIAL DEMAND FOR PHYSICAL HOLDING AND MOST
LIKELY NEGATE LONG-TERM HOARDING BY U.S. CITIZENS.
|
Coming back to the present, it???s fair
to question whether or not precious metals have put in a top, at least for the
short term. But before deciding whether now is the right time to sell, investors
should consider a few things.
|
|
|
Avoiding volatility might
be hard to do. There was a time in America when putting cash in the bank or buying
Treasuries was a relatively safe option. Today, even those options carry more risk
than many people realize.
The Federal Reserve Note
"dollar" has fallen precipitously in terms of purchasing power over the past five
years. Official inflation data indicates the dollar buys about 20% less. The real
decline, according to www.shadowstats.com,
is closer to double that.
|
|
|
|
And recent years have been among the
most volatile ever in the Treasury markets. The U.S. government has been flooding
the market with trillions of dollars worth of new bonds each year.
Unless Congress does something
unprecedented, that is going to continue – and probably even accelerate.
The best reason to sell metal is
because you have identified another asset you expect will outperform gold and
silver. In other words, investors should ask themselves what has changed since
they made the decision to buy metal in the first place.
|
|
|
Are you more optimistic
about where the U.S. dollar is headed?
Does real estate look
cheap? Are the valuations on stocks more reasonable now?
Does it make sense to buy
fixed-rate, dollar-denominated Treasury bonds even though they are backed by the
most profligate government in the history of the world?
|
|
|
|
There has been a runup in metals
prices. Does that mean they are now expensive relative to the alternatives?
We don???t think so. In our view, the
real bubbles aren???t in gold and silver. Investors can find those somewhere else.
However, whether you are buying OR selling, Money Metals is here to help you
facilitate that.
|
|
|
|
|
|
|
|
This week's Market Update was
authored by Money Metals Director Clint Siegner.
|
|
|
|
|
|
|
|
|
|
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.
|
|
|
