The 2025 Gold and Silver Boom: Entering a New Super Cycle

For over a decade, gold and silver have trailed stocks, real estate, and tuition. The Nasdaq 100 and S&P 500 posted triple-digit gains, while housing and education costs surged. Precious metals—long seen as bedrocks of financial security—lagged.

Yet this divergence is not weakness, but preparation. We are in the middle of a boom in Gold and Silver, and the Bull Run on Silver and Gold may continue for 12-18 months until the prices catch up to the markets and crypto markets. ^[i]

According to Reuters this week, after a decade of weak performance, commodities may be on the cusp of a new super cycle driven by both supply and demand pressures. On the supply side, production and refining are highly concentrated in a handful of countries, exposing markets to geopolitical risks, while years of underinvestment, declining ore grades, and long lead times limit new capacity.

On the demand side, the global push toward electrification, renewable energy, and AI-driven infrastructure is set to fuel unprecedented consumption of key resources like copper, which could face a 30% shortfall by 2035.

Financially, commodities remain well below their inflation-adjusted peaks, making them relatively undervalued compared to equities, while sticky inflation and weaker bond hedges may push investors to view metals and energy as strategic portfolio stabilizers. With these structural factors aligning, conditions for the next commodities super cycle appear to be falling into place. ^[ii]

As inflation persists and systemic risks intensify, gold and silver are poised for a decisive move. With supply-demand constraints, sovereign recognition, and technical setups aligning, investors may soon see an explosive rotation back into metals. Unlike crypto—which lacks tangible backing—gold and silver remain scarce, industrially essential, and universally recognized.

Other nations like China, Russia, and the BRICS bloc are steadily increasing gold reserves, and if the U.S. were to revalue its Fort Knox and other gold holdings or launch a sovereign wealth fund, it could trigger a global race to accumulate gold, driving prices higher as sovereigns and institutions compete for limited supply.

Since the U.S. still carries its gold at just $42.22/oz—a figure frozen since the 1970s—resetting that value closer to today’s market levels of $2,500–$3,000/oz would establish a far higher official baseline. Such a move would also highlight silver’s relative undervaluation, likely sparking speculative flows into the smaller, more volatile silver market.

I. The Underperformance That Built Pressure

Between 2015 and 2025:

Gold rose 60–70%
Silver gained only 20–30%
S&P 500 advanced 220%+
Nasdaq 100 jumped 350%+
Housing doubled in many metros
Tuition rose 50–80%

This gap sets up mean reversion. When undervalued assets like metals lag so deeply, they often rebound with dramatic outperformance. ^[iii]

II. The Supply and Demand Tailwind

Mining Constraints: Fewer discoveries, rising costs, regulatory hurdles.
Industrial Demand: Silver essential for solar, EVs, semiconductors, and medical devices. Gold critical in electronics and aerospace.
Shrinking Inventories: COMEX and LBMA stockpiles falling.
Central Bank Accumulation: Nations diversifying away from the dollar.

These fundamentals ensure that once investor demand collides with constrained supply, price moves could be extreme.

III. The Silver Breakout: $80 to $100 in Sight

Silver’s all-time highs around $50 serve as a ceiling. If broken, this resistance could unleash a parabolic run:

Momentum buying by institutions and funds.
Algorithmic triggers adding to upside pressure.
Short squeezes as paper silver positions unwind.
Retail enthusiasm comparable to 1980 or 2011 surges.

In such a breakout, silver could quickly move toward $80–$100.

IV. The Gold-to-Silver Ratio: What Silver’s Move Means for Gold

Historically, the gold-to-silver ratio (gold price ÷ silver price) has ranged between 15:1 and 80:1. Recently it has hovered in the 70–85 range. If silver were to surge to $80–$100, even a conservative ratio implies much higher gold prices:

At 80:1 → Silver $100 would imply Gold at $8,000.
At 60:1 → Silver $100 would imply Gold at $6,000.
At 40:1 → Silver $100 would imply Gold at $4,000. ^[iv]

Even modest ratio compression alongside a silver breakout points to gold doubling or tripling from current levels. Thus, silver’s technical breakout would not stand alone—it could drag gold into a new secular bull market.

V. Gold and Silver vs. Crypto: Backed by Reality

Crypto: Innovative but unbacked, dependent on speculation and adoption.
Metals: Tangible commodities with sovereign recognition, industrial demand, and intrinsic scarcity.

Investors looking for real, commodity-backed protection will likely gravitate toward gold and silver in an environment of distrust in fiat and digital-only assets.

VI. Sovereign and Institutional Recognition

Legal Tender: U.S. Eagles, Canadian Maple Leafs, and others.
State Laws: Utah and Wyoming recognizing gold and silver in commerce.
Banking Standards: Basel III treats allocated gold as Tier 1 capital.
Global Reserves: Central banks steadily accumulating gold.
Trade Use: BRICS nations exploring gold-backed trade systems.

VII. Macro Catalysts

Persistent Inflation eroding fiat purchasing power.
Debt Saturation limiting central bank flexibility.
Geopolitical Risk increasing safe-haven demand.
Supply Constraints ensuring scarcity supports price.
Monetary Volatility creating fertile ground for metals.

VIII. Interest Rates

The Federal Reserve has signaled several additional interest rate reductions, and while these cuts come later than many had hoped, history shows that such moves often provide tailwinds for precious metals.

Silver and gold have historically gained value during periods of lower rates for multiple reasons, including reduced opportunity costs of holding non-yielding assets and the fact that lower borrowing costs ease financial pressures across industries, including mining.

With cheaper capital and lower operating costs, the supply side often becomes more efficient, while investor demand for hard assets as a store of value typically rises, creating a favorable environment for precious metals.

IX Artificial Intelligence Needs Silver

Silver is proving to be an unsung hero in the AI revolution, quietly powering breakthroughs that shape our digital future. As the most electrically conductive element, silver enables high-speed data transmission in advanced AI chips and processors, while also serving a vital role in thermal management through specialized pastes and interfaces that keep power-dense systems cool and efficient.

Its applications extend to next-generation semiconductor fabrication at cutting-edge nodes, to enhancing the performance of sensors and connectors that drive real-time data exchange, and even to solar cells in AI-powered energy systems. With demand for AI hardware surging across data centers, robotics, and autonomous vehicles, analysts expect silver consumption to keep rising, creating persistent supply deficits. While silicon and GPUs may take the spotlight, silver remains the essential, behind-the-scenes enabler of AI innovation. ^[v]

X. Other Key Factors – De-Dollarization, Mining Capacity, & Green Energy

Beyond the already powerful supply-demand dynamics, several overlooked forces may accelerate gold and silver toward new highs. The global shift away from the U.S. dollar in trade and reserves is spurring central banks to accumulate more gold as a neutral settlement asset, while talk of BRICS gold-backed systems could further intensify demand.

On the supply side, both metals may have reached “peak mining,” with ore grades declining and new discoveries scarce, making future production growth difficult. Even as nominal interest rates fluctuate, negative real yields continue to erode purchasing power, enhancing the appeal of non-yielding assets like gold.

Meanwhile, the worldwide push toward green energy—from solar panels to EVs—locks in long-term industrial demand for silver, while the heavily leveraged paper markets on COMEX and LBMA carry the risk of a short squeeze if physical demand overwhelms supply.

Conclusion: The Inflection Point for Metals

Gold and silver are not relics—they are strategic assets backed by scarcity, sovereignty, and industry. Their lagging decade has created conditions for a historic catch-up. Silver’s breakout above $50 could ignite a run to $80–$100, and with it, a gold price several multiples higher, as the gold-to-silver ratio realigns toward historical norms.

If it weren’t for the growing appeal of cryptocurrencies, NFTs, and digital tokens, gold might already be trading much higher—some say as high as $10,000 per ounce —because much of the speculative and hedging capital that traditionally flowed into gold has been diverted into these digital assets.

For instance, in 2025 so far, Bitcoin ETFs have attracted about US$13.5 billion in net inflows, which is nearly 70% of what gold ETFs have pulled in (≈ US$19.2 billion) year-to-date . ^[vi]

Additionally, gold-backed physically backed ETFs saw their largest quarterly inflows in three years in Q1 2025—US$21.1 billion, equal to 226.5 metric tons—suggesting that demand is strong but might be lower than it would have been without competing digital stores of value. ^[vii]Because Gold has not caught up with the Crypto inflation and appreciation, Gold may be seen as undervalued as it is a real, tangible asset and recognized form of wealth.

Investors have multiple ways to gain exposure to gold and silver, depending on their risk tolerance and goals. Traditional choices include tangible bullion such as coins and bars, valued for direct ownership and long-term wealth preservation.

More liquid options include exchange-traded funds (ETFs) like GLD or SLV, which track spot prices, and mutual funds or mining stocks, which offer leveraged exposure through companies that produce or stream precious metals. For more advanced strategies, investors can use options to hedge or speculate, or employ leveraged ETFs that amplify daily price movements—though these carry higher risk. Many like investing in the mining stocks or funds related to mining. ^[viii]Together, these vehicles provide both conservative and tactical ways to participate in potential gains from gold and silver.

Some gold ETFs allow investors holding large enough positions to redeem their shares for physical bullion, though minimums, fees, and procedures make this option practical mostly for institutions or high-net-worth individuals.

Several top investing experts and billionaires see gold as a vital hedge against what they believe is a looming bubble in markets, debt, and monetary policy. Ray Dalio of Bridgewater recommends holding 10–15% in gold as protection against mounting debt crises and currency risks, noting it can shield investors from a potential financial “heart attack”. ^[ix] Jeffrey Gundlach, the “Bond King,” says that allocating up to 25% in gold is not excessive given rising inflation and a weakening U.S. dollar. ^[x]

Hedge fund manager David Einhorn has made gold one of his biggest winners, using it as insurance against deficits and an erosion of confidence in fiat money. ^[xi] John Paulson remains long-term bullish on gold and mining assets, warning of de-dollarization and persistent monetary over-expansion. ^[xii]

Meanwhile, Mike Wilson, Morgan Stanley’s CIO, suggests a 60/20/20 portfolio that allocates a full 20% to gold, arguing it is more “anti-fragile” than Treasurys in today’s environment of inflated asset prices and geopolitical risks. ^[xiii]

Together, these investors highlight gold’s role as a stabilizer when traditional assets appear vulnerable. For investors seeking security, metals remain the ultimate hedge—and perhaps the next great growth trade of the decade. This New Year’s Season may be a very good one for those holding Gold, Silver and other precious metals.

Banking system fragility, political uncertainty, and rising geopolitical tensions also add safe-haven appeal to Gold and Silver. Finally, with trillions in generational wealth transfer underway, many investors view gold and silver as the ultimate store of value across lifetimes, ensuring their role as strategic anchors in both private and sovereign portfolios.

For investors seeking security, metals remain the ultimate hedge—and perhaps the next great growth trade of the decade. This New Year’s Season may be a very good one for those holding Gold, Silver and other precious metals.

Disclaimer – Consult a licensed professional before making any important decision. The author has invested in Gold and Silver over the last 25 years and may continue to do so.

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Commissioner George Mentz JD MBA CILS CWM® holds a Doctor of Jurisprudence (JD), and an MBA from ABA and AACSB Accredited programs. Mentz is the first in the USA to rank as a Top 50 Influencer & Thought Leader in: Management, PM, HR, FinTech, EdTech, Wealth Management, and B2B according to Onalytica.com and Thinkers360.com. George Mentz JD MBA CILS is a CWM Chartered Wealth Manager ®, global speaker - educator, tax-economist, international lawyer and CEO of the GAFM Global Academy of Finance & Management ®. The GAFM is a EU accredited graduate body that trains and certifies professionals in 150+ nations under standards of the: US Dept of Education, ACBSP, ISO 21001, ISO 991, ISO 29993, QAHE, ECLBS, and ISO 29990 standards. Mentz is also an award-winning author and award winning graduate law professor of wealth management of one of the top 25 ranked law schools in the USA and is founder of the ChE Chartered Economist ® certification & education programs. George Mentz has served as a White House Commissioner, and has served the Civil Service Commission for Police and Fire and the Airport Commission (Home of Space Force). Comm'r Mentz is one of the few lawyers who has ever earned Wall Street Firm licenses of Series 7,63, and 65 , served as a Judge for the ABA, has led civil litigation cases in fraud and defamation, as well as testified as an expert in FINRA/NASD financial arbitration.

^[i] Gold Is Hot, Silver Is Hotter - Barron's

^[ii] Commodities could be on the verge of a new super cycle | Reuters

^[iii] Don't let gold's record run distract you from silver's 'explosive potential' right now | Morningstar

^[iv] Could the Silver Price Really Hit $100 per Ounce? | INN

^[v] Silver and AI: The Surprising Link Fueling Next-Gen Chips - Edge-Forex

^[vi] Bitcoin ETFs Near $50B, Absorb 70% of Gold’s Inflows as Institutional Demand Surges in 2025

^[vii] Gold ETFs drew largest inflow in three years in Q1, says WGC | Reuters

^[viii] Gold Mining Stocks Remain Massively Undervalued Despite Record Profits | Investing.com

^[ix] Ray Dalio suggests gold as shield for US markets at risk of heart attack | Reuters

^[x] Investment Ideas: 3 Areas 'Bond King' Jeff Gundlach Likes Amid Inflation Risk - Business Insider

^[xi] Billionaire investor David Einhorn explains why gold will keep rising — and it's got nothing to do with inflation

^[xii] This Billionaire Bought an $800 Million Stake in an Alaskan Gold Mine as Prices Surged - WSJ