Welcome back to our weekly update. I'm Charlotte Mloud with investingnews.com and we're going to run through a few of this week's biggest stories in the mining industry. If you enjoy this video, don't forget to hit the like button, subscribe to our channel, and of course, leave us a comment below. Let's get into it. [Music] We're closing out yet another historic week for gold as well as silver. Gold broke through 4,000 per ounce midway through the period, entering neverbeforeseen territory as the US
government shutdown continued into a second week. Silver's milestone was perhaps even more impressive. The white metal pushed through the elusive $50 per ounce mark and continued on past 51, marking a new record. What's behind its takeoff? Silver is known for its duality as both a precious and industrial metal. And the experts I've been speaking to have emphasized that it's a mix of factors moving silver right now. It's catching up to gold, which itself is supported by global geopolitical
uncertainty and concerns about fiat currencies. And it's also got its own specific elements at play. Backwardation, which happens when a commodity spot price is higher than its futures price, has been a frequent topic of discussion. And prior to silver's move past 50, precious metals analyst Ted Butler gave a rundown of the implications for silver. Here's what he said. And >> and one of the technical reasons why I actually believe that it's going to break through at the $50 level is that
the silver market has now entered what we call backquidation, which is a phenomenon where the futures price trades below the spot physical price. Uh normally this results in an overwhelming demand for physical. Um that could take the form of SLV investors standing for delivery. uh whether that be the the industrial players who are notoriously re resolute or even you know billionaire whales from India uh and we'll get to India later but in that event which is already playing out by the way uh silver
prices and premiums will continue to increase maybe even dramatically uh as the news of insufficient physical silver transmits itself through the market. As those who follow the precious metals will know, silver has only been at the $50 level twice before. The first time was in 1980 when the Hunt brothers tried to corner the market, and the second instance was over a decade ago in 2011. Both of those moves were brief, and investors are understandably wondering if this time is different for silver.
It's impossible for anyone to say for sure, but I've been hearing market watchers highlight the gold silver ratio as a way to gauge the outlook for silver. I spoke to David Morgan of the Morgan Report ahead of silver's $50 landmark and he explained that the ratio shows silver still has room to rise. Here's what he said. >> We're still in the 80s for the gold silver ratio which is historically high. And until we get to 70, I'm not going to be particularly happy. And often today's
gold prices 71 ratio uh would be like $55 gold, excuse me, $55 silver. and that would be um over that 50 mark which we're all hesitant about and I'm writing about that in this month's newsletter. David also talked about the psychological impact of $50 silver saying that it could prompt algorithmic traders and institutions to enter the sector. >> But once we get to that new level, what's the middle between it can't get above 50 and it's going to the moon? Well, it's going halfway. So, there'll
be a lot less resistance. You'll see algorithms come in and start trading silver. And you'll probably see institutions come in because they know that there's um it's a small market and they can move the market with a buy order if it's significant enough and just think that someone else will come in with a as large or larger buy order and they can like trade out of it. In other words, buy it at 55 and sell at 62 and watch it go to 70 or whatever. So, it's going to be tough. Uh, I hope it
doesn't get into that kind of a market, but I think it's more likely that it will than not because so much of the trading in the general equity market is done by algorithms, computer trading, computers against each other, getting, you know, millisecond advance, being able to see a small spread that we can't see with a microscope, play that spread, you know, millions of times and come out with a big profit. So, >> taking a step back to look at the precious metals rally as a whole, I want
to reiterate that the experts I've been hearing from don't think this is the end of the bull market. While many have emphasized that a correction would be healthy for gold and silver, they think the current cycle is still in progress and is likely to end with much higher prices. Here's Lynette Sang of Sang Enterprises on what could be coming. Interesting thing though, right now, if you go back to the beginning of the year, what you actually see is that while everything is going up, the spot
contracts on gold and silver and particularly silver are much stronger and more powerful than those prices that we're seeing in the stock market or even in the Bitcoin market, in the crypto markets. gold and silver are handily outperforming. And that's telling us that what the central banks that have been accumulating more gold than they ever have since they began tracking because they know what they're doing to destroy the currencies. It's also worth noting that it's not just people in the gold and silver space
that are optimistic. Precious metals are increasingly making news headlines and more and more mainstream authorities are touting their protective benefits. Just this week, American billionaire Ray Dallio of Bridgewater Associates suggested that investors allocate as much as 15% of their portfolios to gold. He compared the current environment to the 1970s, a time of high inflation and debt. Dalio's opinion is similar to that of Doubleline Capitalist Jeffrey Gundle, who recently said a 25% waiting toward
gold wouldn't be excessive. As a final note, I want to touch briefly on platinum and palladium, which are also on the move. Platinum, which spent years trading at rangebound levels, has broken out in 2025 and is currently above 1,600 per ounce, a price not seen since 2013. Palladium, whose price has been subdued since seeing several spikes between about 2020 and 2022, was also on the move this week, approaching 1,500 per ounce. While these precious metals are similar, I'm mostly hearing platinum
being talked about as a potential opportunity for investors. Historically, it's often been priced higher than gold, and some see the two finding parody again in the future. Thank you for watching. If you like this video, make sure you hit the like button and subscribe to our channel. We'd also love to hear your thoughts, so leave us a comment below. [Music]
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