13
Mar 2025
Something Big Is Happening in Gold & Silver
What is happening in the gold and silver markets is the most significant financial news of the year.
We urge families – don’t interpret these comments as just another newsletter and periodic column – We are pounding the table on silver and gold. If you don’t have full positions in both metals we, exhort you to do so.
Silver has closed through a key technical level, suggesting that near-term price movement is likely to the upside and momentum is likely to accelerate. We believe silver is positioning to re-test the $50 level, silver’s all-time historical high. This may be the most important level silver crosses all year. This is a technical observation based on the cup and handle pattern of silver’s price chart going back to 1980. Silver’s price chart pattern is unmatched in its duration among any real asset today. Silver is the only real asset still trading below its prior inflationary peak levels of 1980 – an anomaly that we believe will correct itself with investors looking back and saying “How did I miss something so obvious?”.
We would say this is the most important price chart update we have made since we wrote Once In A Generation when bond yields were less than 1% and we made the case that a generational shift was at hand as markets transitioned from what had been 40 years of declining inflation to years, if not decades, of inflationary headwinds.
What is happening now, in our opinion, is that although the price action of gold and silver since 2020 have supported our view, western investors remain entrenched near 0% allocations at the behest of their conflicted financial advisors. As nations race to take delivery of physical gold this year ahead of the first financial paradigm shift since 1944, as referenced by US treasury Secretary Scott Bessent, we observe momentum is shifting real-time and soon westerners will begin chasing gold and silver higher.
Today as gold hits an all-time high, we are also witnessing longer term momentum trends shift from favoring stocks over gold to gold over stocks. The irony is of course that risky assets like stocks are created to outperform safe assets such as precious metals. This week we are witnessing for the first time in decades, long-term stock performance is piercing below that of gold’s – Said differently, safe haven gold is outperforming stocks on long term charts. Long term charts such as these do not historically oscillate frequently. This is indicative of a trend change at hand.
This reality, like virtually all market peaks, comes when US households have a record high 40% of wealth in richly valued stocks and 0% allocated to gold. Meanwhile the greatest market tacticians have been warning investors to reduce their equity exposure, but it has fallen on deaf ears of amateur investors. In contrast, central banks who control our currencies and portfolio managers who have been our generations best performers are aggressively reducing stock market exposure and becoming more defensive.
Don’t interpret this as simply a weekly update - we are pounding the table to get to a full precious metals allocation within your portfolio now if you don’t have one already expressed either in your taxable accounts, family trust accounts or retirement accounts. Call us to customize a plan for your family.
Past performance is not indicative of future results.
We urge families – don’t interpret these comments as just another newsletter and periodic column – We are pounding the table on silver and gold. If you don’t have full positions in both metals we, exhort you to do so.
Silver has closed through a key technical level, suggesting that near-term price movement is likely to the upside and momentum is likely to accelerate. We believe silver is positioning to re-test the $50 level, silver’s all-time historical high. This may be the most important level silver crosses all year. This is a technical observation based on the cup and handle pattern of silver’s price chart going back to 1980. Silver’s price chart pattern is unmatched in its duration among any real asset today. Silver is the only real asset still trading below its prior inflationary peak levels of 1980 – an anomaly that we believe will correct itself with investors looking back and saying “How did I miss something so obvious?”.
We would say this is the most important price chart update we have made since we wrote Once In A Generation when bond yields were less than 1% and we made the case that a generational shift was at hand as markets transitioned from what had been 40 years of declining inflation to years, if not decades, of inflationary headwinds.
What is happening now, in our opinion, is that although the price action of gold and silver since 2020 have supported our view, western investors remain entrenched near 0% allocations at the behest of their conflicted financial advisors. As nations race to take delivery of physical gold this year ahead of the first financial paradigm shift since 1944, as referenced by US treasury Secretary Scott Bessent, we observe momentum is shifting real-time and soon westerners will begin chasing gold and silver higher.
Today as gold hits an all-time high, we are also witnessing longer term momentum trends shift from favoring stocks over gold to gold over stocks. The irony is of course that risky assets like stocks are created to outperform safe assets such as precious metals. This week we are witnessing for the first time in decades, long-term stock performance is piercing below that of gold’s – Said differently, safe haven gold is outperforming stocks on long term charts. Long term charts such as these do not historically oscillate frequently. This is indicative of a trend change at hand.
This reality, like virtually all market peaks, comes when US households have a record high 40% of wealth in richly valued stocks and 0% allocated to gold. Meanwhile the greatest market tacticians have been warning investors to reduce their equity exposure, but it has fallen on deaf ears of amateur investors. In contrast, central banks who control our currencies and portfolio managers who have been our generations best performers are aggressively reducing stock market exposure and becoming more defensive.
Don’t interpret this as simply a weekly update - we are pounding the table to get to a full precious metals allocation within your portfolio now if you don’t have one already expressed either in your taxable accounts, family trust accounts or retirement accounts. Call us to customize a plan for your family.
Past performance is not indicative of future results.
