It was another historic week for gold and silver, with both setting new price records.
The yellow metal broke through $4,200 an ounce and then went above $4,300. It rose to US$4,374.43 on Thursday (October 16), taking year-to-date gains to around 67 percent.
Meanwhile, silver passed $54 an ounce and is now up about 84 percent since the start of 2025.
The underlying price drivers for gold are no secret: factors such as central bank buying and declining confidence in fiat currencies have been major themes in recent years, and they continue to provide support.
But it’s worth taking a look at number of other elements currently in play.
These include a resurgence of the US-China trade war, which has increased geopolitical tensions, and the ongoing US government shutdown. The shutdown has halted the release of key economic data ahead of the Federal Reserve’s next meeting later this month.
There have been those too problems at two regional banks in the US they say they have been victims of fraud involving loans to funds that invest in distressed commercial mortgages. Apart from that, Rich Checkan of Asset Strategies International sees Western investors entering the market.
“We are not dealing with a tidal wave or a tsunami by any means, but the Western investor is coming back to this,” he said, noting that in recent years his company has sold mainly to high-net-worth individuals and those looking for deals. “Now we have a huge turnover.”
Checkan also questioned where gold is in the current cycle, saying the indicators he tracks — including the gold-silver ratio, interest rates and the U.S. dollar — are not pointing to a top.
“They can catch their breath, there’s no doubt about that. You would almost want that. But the reality is that there is no top in sight,” he said. “I have about, I don’t know, seven, eight, nine different indicators that I look at for the top in a bull market for gold. None of them are coming along.”
When it comes to silver, the situation is a little more complicated.
Vince Lanci of Echobay Partners explained that the London silver market is facing a liquidity crisis – while there is no shortage of the metal, it is not in the right place, and that is creating pressure.
This is what he said:
“London, when it needs metal, is having trouble getting it from Asia because China isn’t working with the West – and for good reason, they say. And for some reason the US isn’t making its metal available as robustly as it used to, to help fill London’s coffers, and so that’s creating a short squeeze.
“There’s enough metal in the world for today’s needs, let’s say for today’s needs. But it’s not where it should be. So it’s a disruption.”
Lanci, who is also a professor at the University of Connecticut and publisher of the GoldFix newsletter on Substack, also made the point that while these conditions are taking center stage now, they are just part of the larger ongoing bull market for silver. According to him, its growing status as a crucial mineral will have major consequences, and a three-figure price is realistic.
Interview with Arcadia Economics
On a final note, I was recently interviewed by Chris Marcus of Arcadia Economics.
It was nice to be on the other side of the camera for a change, and I have a new appreciation for everyone who sits down to answer my questions. Watch the interview below.
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Securities Disclosure: I, Charlotte McLeod, have no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the views of the Investing News Network and do not constitute investment advice. All readers are encouraged to conduct their own due diligence.
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