| |
| |
| |
| Money Metals News Alert | 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.
| | |
 | Gold : Silver Ratio (as of Friday's closing prices) – 91.3 to 1 | | |
| Gold Continues to Soar. Here's Why... | | | |
| |
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.
| | |
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.
| | | |
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.
| | |
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.
| | | |
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.
| | |
| |
| This outperformance is especially remarkable when you consider how steeply gold has been rising. For mining stocks to do even better is quite something. | | |
| To get Brien Lundin's ongoing commentary on the markets at no charge, click here to subscribe to his free Golden Opportunities newsletter. | | |
| |
| |
| This week's Market Update was authored by Money Metals Contributing Writer Brien Lundin. | | |
| |
| |
| |
| 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. | | |
No comments:
Post a Comment