In the latest Money Metals Midweek Memo, host Mike Maharrey analyzed the ongoing bull markets in gold and silver, highlighting record highs, historical ratios, supply deficits, and why silver may now be poised for an even stronger run than gold.
Gold’s Relentless Bull Run
Gold continues to push higher, marking fresh records in the past week. Just seven days ago, gold was priced at $3,562 per ounce.
By the end of the week, it closed at $3,639, a gain of 2.2 percent.
At its peak, the metal reached $3,680 an ounce.
While some worry that gold is overbought, technical analyst Jesse Columbo argues this is a classic sign of a strong bull market rather than a bubble. He dismisses the naysayers, pointing out that most failed to predict the rally over the last two years yet are quick to call for a correction today.
Mike Maharrey acknowledged that consolidations are inevitable, but he stressed that the fundamentals remain firmly in place. Gold’s bull market, he suggested, is far from over.
Silver’s Quiet but Explosive Momentum
While gold has been in the spotlight, silver is quietly staging its own remarkable performance. The metal is up nearly 40 percent this year, reaching levels not seen since 2011. It has already broken through the $40 per ounce resistance level and found support at around $41.
Analysts suggest that silver is now poised for a run toward its historic highs of $50 an ounce, first hit in the 1980s and revisited in 2011.
Silver’s move may be late compared to gold’s, but it is no less impressive. With gold setting record after record, silver is now following suit and looks ready to outperform in the next stage of the bull market.
The Gold-Silver Ratio
A key indicator that points to silver’s potential is the gold-silver ratio. The ratio currently sits above 88-to-1, far above the modern average of around 60-to-1.
Historically, whenever the spread grows this wide, silver rallies quickly to close the gap.
In 2020, for example, the ratio peaked at 123-to-1 before plunging to 60-to-1, propelling silver 80 percent higher in less than 20 weeks.
During the financial crisis of 2008–2011, the ratio dropped to 30-to-1 as silver surged to its 2011 record high.
By this measure, silver remains on sale compared to gold, with history suggesting a strong run is likely ahead.
Structural Supply Deficits
One of the biggest drivers of silver’s rise is an ongoing supply shortfall.
In 2024 alone, demand outstripped supply by 148.9 million ounces.
Over the past four years, the total deficit reached 678 million ounces, equivalent to ten months of global mining output.
Mining cannot quickly adjust to higher prices. Infrastructure and exploration timelines mean production responds slowly, leaving industrial users and jewelers no choice but to tap above-ground stocks. This pushes prices upward as available supply tightens further.
Industrial and Green Energy Demand
Silver demand has been fueled by its unique role in electronics and renewable energy. Its unmatched conductivity makes it essential for wiring, computing, and the growing artificial intelligence sector.
At the same time, solar energy production continues to drive record-setting demand, supported by government subsidies that ensure growth even in economic downturns.
Industrial demand has now set records for four consecutive years, and analysts expect the trend to continue.
Investor Behavior in the United States
Despite the rally, U.S. investors have been largely absent from the silver market. Retail demand for bars and coins has dropped by about 30 percent this year, even as Asian and European buyers remain active.
Futures positioning has also weakened, with net managed money longs falling a third below summer highs.
Maharrey criticized the tendency of Americans to sell silver for rapidly declining dollars, calling it short-sighted in the face of persistent inflation. He warned that once U.S. investors return to the market, silver could see another powerful surge.
Expert Perspectives
Money Metals CEO Stefan Gleason recently identified $40 per ounce as a key threshold for silver. He predicted that prices could challenge the $50 level by next year and, if broken, move significantly higher.
The long-term cup-and-handle formation in silver charts supports the case for a major breakout, with technical patterns pointing to explosive upside once the barrier falls.
Metals Focus echoed this outlook, projecting that liquidity constraints in London and strong investment demand will continue to support silver prices well into 2026.
Expected Federal Reserve rate cuts, concerns over U.S. debt, and global economic headwinds are all expected to provide additional momentum.
Junk Silver as an Entry Point
Maharrey concluded the episode by recommending junk silver as an attractive way to enter the market. Pre-1965 dimes, quarters, and half dollars contain 90 percent silver, making them far more valuable than their face value suggests.
A 1964 quarter, for example, carries a melt value of about $7.39.
Premiums on junk silver once soared as high as $15 over spot, but today they have fallen below $1. This makes junk silver one of the best low-cost options for investors seeking real money outside the fiat system.
Maharrey noted that Lyndon B. Johnson’s 1965 Coinage Act stripped silver from U.S. coins, a move he compared to the Roman practice of debasing currency.
He also reminded listeners of Richard Nixon’s broken promise when he closed the gold window in 1971, insisting the dollar would not be devalued—a claim history has proved false.
Final Takeaway
Silver remains historically undervalued compared to gold, supported by persistent deficits, industrial demand, tight liquidity, and untapped investor interest in the United States.
Maharrey closed by urging listeners to protect their wealth with tangible assets, warning that tomorrow’s dollars will always buy less than today’s.
A message from Advisor Perspectives and VettaFi: Prepare your bond portfolio for changing market conditions. Register today for the Fixed Income Symposium on Sept. 18, 2025, 11AM ET / 8AM PT.
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