Another Week, Another Record for Gold and Silver
Hey everyone, just wanted to drop a quick update on what's happening with precious metals. If you've been watching the markets lately, you already know things have been absolutely wild. Plus….Its been a minute since I’ve written a blog for you and I don’t want you to get lonely.
Gold Breaking Records Like It's Nothing
So gold hit another new high today – we're talking $3,649 per ounce as I'm writing this. That's up about 40% since January, which is just insane when you think about it. I remember when breaking $2,000 was a big deal, and here we are pushing toward $3,700 like it's no big thing.
The crazy part? Goldman Sachs and JP Morgan are both calling for $3,700 by year-end, with some even throwing around $4,000 targets for mid-2026. Now, I've been around long enough to know that analyst predictions can be hit or miss, but when the big banks start agreeing on something, it usually means there's real momentum building.
What's driving all this? Well, the jobs data from last week was pretty rough – we actually lost jobs in June for the first time since 2020. The Fed's stuck between a rock and a hard place with inflation still hanging around 2.7% while the job market looks shaky. Powell's basically telegraphing rate cuts at this point, and you know what that means for gold.
Silver's Having Its Moment Too
Now let's talk about silver, because honestly, it's been the real star of the show. We're sitting at $42 per ounce right now, up from around $29 at the start of the year. That's a 45% gain, folks. Silver's actually outperforming gold, which doesn't happen every day.
What I find really interesting is that this isn't just speculation driving things. The industrial demand from solar panels and EVs is absolutely relentless. We're talking about a structural supply deficit here – mines literally can't keep up with demand. That's a fundamentally different situation than what we saw back in 2011 when silver briefly touched $50 on pure speculation before crashing back down.
Some analysts are throwing around targets of $45-50 by year-end, and honestly, looking at the supply/demand dynamics, I wouldn't be shocked if we hit those levels. The solar industry alone is consuming silver at record rates, and that's not slowing down anytime soon.
My Take on Where We Go From Here
Look, buying at all-time highs always feels wrong. Trust me, I get it. But here's the thing – the fundamentals actually support these prices. We've got:
Central banks buying gold like it's going out of style (900 tonnes expected this year)
A weakening dollar that's making precious metals more attractive
Real industrial demand for silver that's only growing
Geopolitical uncertainty that's not going away anytime soon
The Fed likely cutting rates while inflation is still above target
That said, nothing goes straight up forever. I wouldn't be surprised to see some pullbacks, especially in silver which tends to be more volatile. If you're thinking about getting in, maybe don't throw everything at it all at once. Dollar-cost averaging might be your friend here.
The thing that really stands out to me is how different this rally feels from previous ones. Back in 2011, it was all hot money and speculation. This time around, you've got genuine structural drivers – from solar panel manufacturers needing silver to central banks diversifying away from dollars. That's the kind of demand that tends to stick around.
Quick Numbers Recap
Just so you have the latest:
Gold: $3,649/oz (up 40% YTD)
Silver: $42/oz (up 45% YTD)
Gold/Silver ratio: Around 87:1 (historically high, suggesting silver might have more room to run)
Bottom Line
I'm not saying mortgage the house and buy precious metals, but if you've been sitting on the sidelines waiting for a pullback that never came, you might want to reconsider. Sometimes the train leaves the station and you either get on or watch it go.
The smart money seems to think we've got more room to run, especially with the Fed likely to start cutting rates soon. Even if we get some short-term volatility (and we probably will), the longer-term setup looks pretty compelling.
Just remember – precious metals are insurance first, speculation second. Don't invest more than you can afford to have tied up for a while, and definitely don't expect them to perform like tech stocks. But as part of a balanced portfolio? Yeah, I think there's still a case to be made, even at these prices.
What do you all think? Anyone else been watching these markets? Would love to hear if you're buying, selling, or just holding tight.
Stay safe out there, Jordan
P.S. - Not financial advice, obviously. Do your own research and all that. Just sharing what I'm seeing in the markets.