Just after 4pm yesterday, gold futures hit $3,001, surpassing the $3,000 mark for the first time ever. Then, just after 6am this morning, the spot price did the same thing, going as high as $3,004. See snapshot below, courtesy of kitco.com.
Kitco Spot Gold Price - March 14, 2025
Yesterday, the U.S. Bureau of Labor Statistics released the PPI numbers (Producer Price Index) which came in at 3.2%, a slight drop from February, which came in at 3.7%. This is well above the FED's aim of 2%. Gold shot upward as soon as the news came out, resulting in a new record high.
Psychologically, the break above $3,000 will likely sway more investors into the precious metals sphere, driving prices even higher but as I've mentioned in previous posts, it's central and commercial bank gold purchases that are the most likely cause of gold's rise.
According to a Google's A.I. search query, 12.9 million troy ounces (401 metric tons) of gold have been delivered to COMEX approved warehouses, raising stocks by 73.5% to 30.4 million ounces, the highest since July, 2022.
I've read conflicting reports that some 1,200 to 2,000 metric tons have been delivered since December, 2024. Even Swiss refiners are reporting that gold exports to the U.S.A. are the highest in 13 to 14 years.
Moving over to silver, its price just hit $34 this morning. The rally in silver appears to finally be getting started as it has lagged gold's rally by 6 months or more. This is typical of silver.
Kitco Spot Silver March 14, 2025
The silver to gold ratio is at 87:1 while historically, the ratio has usually been 15 or 16 to 1 but in the last 100+ years, price surpression has driven the ratio to crazy, distorted numbers such as we saw when it shot above 120:1 at the start of the pandemic lockdowns. The silver to gold ratio alone suggests an impending rise in the price of silver.
Another catalyst is Russia's central bank which last fall announced they will be adding silver to their strategic reserves starting in 2025. If other central banks follow suit and don't be surprised if they do, it could add to the multi-year silver deficit. 2024 saw a deficit of 182 million ounces while estimates for a 2025 deficit stand at about 149 million ounces, all while silver production continues to fall, year over year.
The solar panel industry or photovotaics, saw its use of silver triple in the last 4 years to 143.1 million ounces and there's no sign of stopping in their crazy 'green' efforts.
Now that gold is at or near $3,000, the price makes it unattainable to most working people. Silver on the other hand, is still the cheapest asset / commodity on the planet. It's a precious metal and Americans can still buy an ounce for less than $40. In fact, adjusted to inflation, silver is much cheaper than its 1980 high.
Cocoa prices have gone through the roof in the last year. Coffee, up 100% year over year. Copper at historical highs too. Sugar is up. Salt is up. Gas is up. Rent is up. Utility costs are. Everything has shot up, except SILVER???
Hold on to your hats. 2025 will be the summer of silver. Everything is in place for an explosive rally but better get your hands on silver now because unaffordium and unobtainium is what will soon follow.
To top it all off, we are likely headed into a recession. Layoffs have already begun. DOGE's efforts to eliminate waste also means mass firings. This will impact the economy in a negative way.
The best thing to do is position yourself ahead of time. How you do it is up to you. The rich got rich because they positioned themselves appropriately and there's no reason you can't do the same!
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