Two weeks ago, the mood among precious metals investors couldn’t have been brighter. Silver prices were testing new highs, the gold price was brushing up against $4,000 an ounce, and the headlines were full of optimism. Fast forward just 14 days, and sentiment has flipped completely. Now, fear and uncertainty dominate the conversation — despite little changing in the underlying fundamentals.
As SD Bullion market analyst James Anderson points out, this shift in emotion is both expected and healthy. In this week’s Market Makers Podcast, James and host Cole walk through the charts, global demand data, and historical trends that show why this short-term pullback is just a breather — not the end of the bull market.
Short-Term Volatility, Long-Term Strength
Markets don’t move in straight lines, and bull runs are no exception. After reaching recent highs around $54.50 for silver and near $4,000 for gold, both metals have seen 8–10% pullbacks. For some investors, that looks alarming. For seasoned stackers, it’s par for the course.
Anderson explains that these dips — often called “digestion periods” — are where markets pause, consolidate, and build energy for the next move higher. “In a bull market,” he notes, “prices go up over time, but not every week. These consolidations are healthy. They set up the next leg of the rally.”
Gold’s Moving Averages Point to Stability
One of the key charts highlighted in the discussion shows gold’s 50-day, 100-day, and 200-day moving averages — technical indicators that help measure the trend. Right now, gold’s 200-day sits around $3,320, with the shorter averages trending higher.
That upward slope signals continued strength. Anderson reminds viewers that in the 1970s bull market, gold frequently traded well above its 200-day average — sometimes by 60% or more. Today’s market hasn’t even approached that kind of overheating, suggesting plenty of room to run.
“$5,000 to $6,000 gold next year is what conservative analysts are calling for,” Anderson notes, referencing forecasts from the LBMA and Focus Economics. “These aren’t fringe predictions — they’re coming from establishment institutions.”
Silver’s Pullback Is a Setup, Not a Breakdown
Silver, as always, amplifies the moves of gold — both up and down. After briefly breaking above $50 and peaking at $54.50, silver has retreated into the mid-$40s. Anderson sees this as an opportunity, not a warning.
“There’s a small gap on the chart between $39 and $40,” he says. “It might fill, or it might not. Either way, any silver below $50 an ounce is long-term value.”
He emphasizes that successful investors don’t chase rallies — they buy dips. “When the price dips, that’s when you buy. When it rips, you sit back and wait. That’s how disciplined silver bullion investors build their stacks.”
Physical Demand Is Telling a Different Story
While some traders are nervous, the physical market is saying something very different. Anderson cites massive silver shipments to India, which imported over 20 million ounces in October alone — one of the largest monthly totals on record.
That demand surge helped tighten supplies in London and New York, sending lease rates higher and draining metal from ETFs like SLV. Meanwhile, more trusted vehicles such as PSLV continue to see inflows, indicating that long-term investors are accumulating, not selling.
“Western capital hasn’t even entered the trade yet,” Anderson adds. “When it does, that’s when silver will really scream to $60, $70, even $80.”
Big Picture: Inflation and Currency Devaluation
Beyond charts and technicals, Anderson reminds viewers of the broader macro environment. The U.S. M2 money supply is climbing again, government debt continues to expand past $38 trillion, and the only politically viable way forward is through currency devaluation.
“There’s no real way to pay off this debt in hard terms,” he says. “The way out is to divide the dollar — to inflate it away. That means negative real interest rates for years, and a bond market that underperforms precious metals.”
In other words, the long-term thesis for gold and silver remains as strong as ever.
