Gold & Silver Kickoff 2025 Strong

McAlvany Weekly Commentary

Precious metals started the year strong, with prices rising higher across the board. Let’s take a look at where prices stand as of January 9: The price of gold is up 1.2% currently sitting at around $2,656. Looking back at 2024, gold ended last year strong — moving up about 27% throughout the year. The price of silver is up 4% to $30.11 so far in 2025. Silver rose up 22% in 2024, a good year though not quite as strong as gold. Platinum is up 8% so far in 2025, to $968. In 2024, platinum was actually down 10% — so now it’s about flat from a year earlier. Palladium is up about 2% so far in 2025 at $924, just slightly below platinum. Looking at the broader market… The S&P 500 is up about 1% this week, but it did push up about 24% last year. The US dollar is up about 0.5% to $109.20, also starting the year strong. The dollar index was up about 7% in 2024. Dollar, Gold in Lockstep It is very unusual to have a strong gold market coupled with a strong dollar market. They usually have an inverse relationship, so this is a strange time. In case you missed it, we did a deep dive into the fundamentals of gold investing on our last show. This explains more about how gold moves compared to other asset classes. Inflation Watch It appears as if the market is pricing in expected inflation. If you look at the deficit from the first fiscal quarter of 2024 to the first fiscal quarter of 2025, the US deficit is up over 60% from where it was a year ago. And it looks like it will continue along the same trajectory. The US has a strong economy. Commodity prices are rising according to CPI numbers and inflation is starting to rise. Trump will likely want the Fed to cut interest rates at their meeting in January. A rate cut would drive the credit markets, borrowing and potentially spending. But analysts have noted that there’s less than a 50% change of a rate cut in January because the economic numbers aren’t indicating a rate cut is needed. Gold to Silver Ratio at 90:1 It’s important to note that the gold to silver ratio has shifted again to 90:1 at the close of 2024. The last six times that the ratio has widened that much, there has been a massive rally in silver. The minimum rally in 2024 was a 26% move in the price of silver. In the largest rally, the price of silver gained 79%. So this is a massive opportunity to purchase silver now and see big gains in the near future. Buying Opportunities For silver, the most intriguing product right now is junk silver. Even though silver has been flat to down through the close of 2024, the premiums have come down in that particular product. Junk silver is less per ounce now than the big thousand ounce silver bullion bar. Looking at the collectible gold coin market, US Double Eagles are priced at the same price per coin as Gold Eagles. Fractional European 100-year-old coins are in some instances cheaper than one ounce Gold Eagles. There are some great values right now — if you know where to look. Get Started With Expert Advice Working with an expert in precious metals will help you find the best buying opportunities. If you haven’t had a complimentary meeting with an advisor at McAlvany Precious Metals to talk through your financial objectives, now is a great time to start. Our advisors have decades of experience investing in gold and other precious metals, and they can help you find the best strategy to meet your unique needs. They are happy to speak with you about your strategy for investing in gold and other precious metals. Reach us at 800-525-9556.