Summary
- Gold briefly surpassed the $3,000 per ounce mark, signaling ongoing fiat currency devaluation rather than gold's appreciation in real terms.
- The rapid increase in gold prices reflects rampant global fiat currency creation and declining confidence in traditional financial systems.
- U.S. fiat M2 money supply is surging back toward COVID-era highs, reinforcing long-term bullish trends for gold.
- Historically, gold reached $1,000 in 2008, $2,000 in 2020, and now $3,000 in 2025, suggesting a possible $4,000 milestone by 2027 if trends continue.
- Central banks worldwide continue to shift reserves into gold, while major stock indices like the S&P 500 remain overvalued in gold terms.
- The U.S. faces worsening fiscal challenges, with rising deficits, increased government spending, and calls to cut interest rates despite mounting debt.
- Historical comparisons suggest that gold's long-term value preservation will outperform traditional assets, as seen in past economic crises.
- Silver also surged, briefly touching $34 per ounce, with the gold-silver ratio still historically high at 88.
- India’s increasing silver imports highlight a growing preference for silver as gold prices rise, reinforcing silver’s role as a store of value.
- The SD Bullion Market Update concludes with a reminder that gold and silver continue to play a critical role in wealth preservation amid economic uncertainty.
$3,000 an ounce spot price gold was briefly breached today.
We're gonna need to start with that.
It's after all the headline grabbing, nominal round number, fiat dollar devaluation, story of the week.
The truth of this ongoing story is simple, it's not gold going up in both nominal and real terms, it's the larger simultaneous story of all our collective fiat currency units losing value versus bullion over time.
How could they not, after all, just stare at the sheer lunacy of this system's rampant fiat currency creation on a global scale.
Gold still has to account for the collapsing confidence such irresponsible actions produce.
US state side the story is not new, fiat M2 is now re-ramping higher back towards Covid 2020 high levels.
Measured by gold internal fiat US dollar M2 is still well above the 1975 lows, the 2011 lows, and of course the 1980 lows which would require a five figure gold price at the moment to match.
Cut again to today's long term gold price. I am still struck by the speed of nominal price escalation. Drawing lines on the 2 to 3 thousand dollar move, the only section of this 21st Century Gold Bullion bull that was faster was the mid 2000s ramps with price volatility between. Those two more vertical price runs happened all before the ∞QE era by the way.
Here's a fun "free gold price" era factoid.
$1,000 oz gold was reached about 40 years after the London Gold Pool price rigging failure in March 1968, and about 36.5 yrs after Nixon defaulted on our sovereign gold withdrawing trading partners. (March 13, 2008)
$2,000 oz followed within another 12.5 years. (August 4, 2020)
$3,000 oz was surpassed today about 4.5 years later. (March 14, 2025)
I know what you're thinking... maybe $4,000 gold sometime in 2027 if the progression continues. We'll see, nothing comes smooth in a bull market climbing walls of worry on a short and even medium term basis.
Yet still, Goldman Sachs now estimates global central banks are still buying mass gold in the ongoing bullion reserves over bonds trade.
The world is realizing too, that the overpriced Mag 7 is no longer a store of value.
While the new Trump administration is starting a deadly combination of both higher social security expenses and interest on our exploding debt levels climbing, thus one of the reasons they would like to force the fiat Fed to recommence cutting interest rates.
This fiscal year in terms of interest expenses is worse than last to start.
The US budget deficit is worse too to start.
Outlays are up +38.5% vs last year this time 5 months into the fiscal year. The deficit is simultaneously almost $300 billion higher vs this time last year.
Here it is, sober up, we have a drunken sailor spending problem.
At the same time, the relative fiat US dollar strength is no more which is a stated goal of this administration so they are getting that part right so far too.
But this of course is why we brave few bullions. We saw the writing on the wall for years leading up to this. And gold to start the year is merely mirroring value gain rewards for our being right and holding tight prudence.
This gold revaluing higher phenomenon is also happening more and more in the US stonk market. This a long term chart of the S&P 500 / Gold price going well back behind the 1929 stock market crash.
We're still hovering above where the 1929 crash peaked at in terms of relative gold valuations then versus now. This key ratio closed at 1.89 oz of gold to afford 1 nominal share of the far still bubblish S&P 500.
Quick aside, something interesting I looked up today.
That iconic October 1929 picture of Walter Thornton selling his 1929 Chrysler 75 for $100 in cash. When new it sold for around $1500 or 72.5 oz of gold before The Great Taking 1930s-WW2 era. He was selling his in that photo for just < 5 oz of gold. Talk about a wealth transfer.
Thornton founded a "Big 3" modeling agency after in NYC.
It seems Walter lived a colorful, successful life later in Mexico living all the way until 1990.
To paint a similar picture in today's world that would be like some YOLO over-levered bubble clown buying a McLaren Artura, a plug-in hybrid supercar, with a base price of around $225,000 the entry-level model and then selling it in another great taking for just under 6 oz gold equivalent in cash.
Of course, things akin probably won't happen as fast as 1929, after all it's a big debt and derivative laden world after all now vs back then, but my long run bet is that examples like this will rhyme in time.
you see gold has deep forensic re-accounting work ahead globally; we are hopefully now nearing our collective ways out of this post COVID 2020 'golden age of frauds' with gold likely eventually going into another bubble perhaps in the 2030s.
Now remember, they took Gold out of most Western World Business School Curriculums 1970s onwards. Which is cool cause we're self taught, I still learn something new nearly everyday in this lovely nutty bullion market.
The fact that gold knowledge was robbed from most western curricula also means that myopic financial advisors are almost all gold-illiterate now too. High 90% chance of them correctly thinking I'm dangerous to their books of business.
I've been pounding the table on bullion since before GFC 2008, and I got the scars still and downside market rigging memories that will not fade and hopefully help me keep me grounded.
Just over 5 years ago I came on this SD Bullion channel and began pounding the table for any and all to see. With my name, face, and reputation on the line. I don't regret it all. Here's a brief look back at how far we have climbed.
Stick around fellow silver bulls, on the other side of this break we'll get into a few more recent reasons why silver has only begun to warm up. And how even former commercial bank desk heads are publicly admitting that GLD is a slush fund proxy to bullion for unsecured retail investors.
The spot price of silver and gold ran higher this week.
The spot silver price briefly pierced $34 oz closing at $33.77 oz bid.
The spot gold price after piercing $3,000 settled back at $2987.95 oz bid to finish this week.
The spot gold silver ratio briefly fell to 87 only to close at a still historically high level of 88.
Of course the start of silver has been torrid to start the year versus all time averages.
Yet this chart is something you can stick in a myopic stock bull's pipe and tell them to smoke it.
This century, the black line illustrated the performance of the broad stock market even with all stock dividends reinvested as if you were Warren Buffett of course without sweetheart insider deals. Well your gains thus far would still be well below gold thus far. And after this recent bull run in silver, it too is now in the lead of even the compounding dividend stock investing crowd this century.
I'll leave a longterm trends website link for you to go see if you like. Don't show your trusted financial advisor, I'm here for entertainment purposes.
Including Dividends: Total Return Stock Index vs GOLD, SILVER 21st Century (middle of the website page below the fold) - https://www.longtermtrends.net/stocks-vs-gold-comparison/
Onwards to the GLD slush fund long term gold bullion bulls should steer clear of.
Here's alleged commodity expert Mike McGlone of Bloomberg today speaking to what is supposedly happening in gold.
He posted something similar to that unsecured gold ETF inflow comment this week on LinkedIn.
Only to be shot down with the following by a former commercial bank precious metals market maker and another World Gold Council member who admits that Palladium ETFs got raided in the late 2010s when push came to shove.
Turning to the EU and Germany which has an energy infrastructure mandate to the tune of a half trillion fiat euros now through 2037.
Ah oh Bloomberg NEF, looks like you will have to make the aqua colored silver solar panel demand estimates grow larger again.
Here we are again, at the full fiat currency era Swiss franc versus gold on the left hand side, and silver on the right hand side. If silver indeed follows gold, silver in the Swiss alps still needs to double and a half to still reach its seemingly ancient 1980 price high in then much more powerful fiat Swiss francs at the time.
Oh you don't think silver follows gold?
Take a look at India, they're just ahead of the curve I argue.
Let's hear a quick clip from our Indian bullion bull queen CNBC-TV18's Manisha Gupta as she pulls out where Indian silver imports were at last month February 2025.
Metals Focus has not yet corroborated that India Silver import Feb 2025 data point, but the bottom line here for India is that escalating gold prices and a still stubbornly high gold silver ratio is driving investors more and more into silver. You can see it in their net silver ETP inflows over the last few years.
An 1800 ton inflow or two 900 ton month sized bars on this long term Indian silver import chart is still good inflows into a market that is not only using silver as an industrial precious metal but also as a longer term store of value relative to value increasing gold.
Well, it was a good week my friends... Here's to next.
That will be all for our weekly SD Bullion Market Update.
And, as always, to you out there.
Take great care of yourselves and those you love.
