Gold & Silver Prices Hit Records: Central Banks Are Buying Gold—Here’s Why Silver Could Be Next
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Gold and silver are at historic highs — with gold recently surpassing $3,590/oz and silver under $41/oz, underscoring their growing role as alternative stores of value.
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Central banks are leading the trend — countries like India, China, and Russia continue record-setting bullion purchases, signaling a global rebalancing away from government bonds toward tangible reserves.
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Shift from debt to hard assets — analysts point to weakening confidence in sovereign debt markets as a key driver behind precious metals’ secular bull market.
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Silver’s supply squeeze is real — more than 350 million ounces have drained from London since 2021, leaving thin inventories relative to global demand.
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ETF holdings don’t tell the full story — much of the silver counted as available in London is tied up in unsecured financial products rather than physical bullion.
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The gold-to-silver ratio remains elevated — at 87, this historical imbalance suggests silver may have significant room to outperform.
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Price discovery is shifting eastward — with London’s traditional role fading, markets in Asia and emerging economies are playing a greater role in setting real gold and silver values.
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Market backwardation looms — signs of stress in silver supply chains could trigger backwardation, historically a precursor to sharp price moves.
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Energy linkage underscores gold’s strength — one ounce of gold now buys nearly 50 barrels of crude oil, reflecting both rising metal values and the unraveling of the petrodollar system.
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Long-term outlook remains robust — with structural deficits in silver, rising official gold demand, and waning trust in fiat currencies, precious metals are positioned as strategic assets for wealth preservation.
From record-breaking prices to shrinking supplies, here’s what new investors need to know about gold and silver’s growing role in today’s markets.
Symbols of Prosperity, Contentment, & perhaps also in the balance, your future Freedoms.
They are regularly even now, staring you in the face at the local bulk buying warehouse.
Dear Normie you'd better figure it out quick.
Because the wealthy increasingly already are.
But most sadly are still asleep at the push cart,
rolling onwards to Upton Sinclair's $1.50 hot dog section, 2025. What a deal?!
I saw akin in a dystopic-black comedy once. Overworked, under-educated by systemic design.
How'd it go again? (Video Clip)
That's right, Idiocracy.
Precious Metals continue to drive higher with another excellent week of trading.
What's more important is the expansion of the mainstream financial media's understanding as to why this is happening.
Next few months?!
We clipped $3,600 oz gold spot today, late this afternoon.
India's Finance Minister was out this week describing the ongoing Bullion over US bonds trade that mainly emerging market governments and India have been running for about 3 to 4 years now, collectively consistently buying Official Gold Bullion Reserves in record sizes never before matched
Goldman Sachs is no pounding the table with above $4,000 oz gold as their baseline target for the middle of next year 2026. They are also suggesting getting long various commodity plays.
The US stonk market hasn't in earnest begun to melt down in real value terms versus gold and or silver, yet.
This morning's US jobs report came in low and well under anticipated figures, it was fiat dollar weakness that helped spur levered derivative silver algorithmic buying surely.
The recent jobs report in Canada was even worse, while fiat Canadian dollar silver is not butting on the line of the seemingly ancient scapegoated Hunt Brothers nominal record price high of 1980. Not long from now, all time breakout up north.
Financial analyst Robin Brooks is pointing out this latest surge in gold is not so much about the ever ongoing devaluation of fiat currencies, more so a question of the underlying debt assets that are unraveling as questionable assets to hold.
It is the ongoing movement away from government debt assets aka bonds, that is currently driving this secular gold bullion bull market train, for now.
This chart again is going to become a yellow line U shape as the years proceed.
Financial normies on Bloomberg are beginning to figure that out as well.
Seeing India, China, and Russia doing deals and having meetings is now normal.
We systemically drove them together with wrong headed policies for decades compounding.
On the other side of this break we will get further into some details about that very commentary.
How it relates to both gold and silver looking backwards and to come with London's price discovery importance fading in the years and decade ahead.
The spot silver and gold markets were strong again this week.
The spot gold price led the charge with a convincing close at $3,590 oz bid.
The spot silver price closed just under $41 oz bid while the spot gold silver ratio is still at a historically high level at 87. Silver has lots of catchup fuel in the tank in other words.
Speaking of silver the team over at Metal's Focus had a quality report this week on Silver's busting into the $40 oz level.
Acknowledging the major silver bullion drain that has taken place out of London since 2021 onwards to now in precent day Sep 2025. Like 350 million oz of silver up'd and left London over the aforementioned four years.
They also confirm the vast majority of silver London fronts as if it is available inventory is actually unsecured ETF silver. They have the current London silver float at 170 million oz, so like a month and a half of the current silver demand worldwide. Yea, not much.
In terms of potential silver out in major exchange warehouses it is the COMEX that is now the silver gorilla hoard, but of course most of that silver is spoken for no available at these current price points.
Metals Focus left the report bullish gold with further spillovers into silver, so bullish both into 2026.
A bit of chart and data nerd news, looks like London gold silver price fixers and their cherished data records are going on an email campaign looking to have industry data suppliers either pay them a boat load or unpublish their data.
These are the same crowds of people who brought us these near every day global Gold price riggings at the London AM price fix, and London PM price fix for over six years running on this chart here.
Many in Russia, China, and India also knew this and judo stacked bullion increasingly mid 2000s onwards to now. You know like Candidate Donal Trump once said publicly, 'We don't have the gold, other places have the gold.'
But the western world has a lot of levered derivatives, and I hope all those traders who sold this Western World out with their short sighted gold and silver value suppression policies now realize what they have helped create. A silk road that is not putting up with our BS for much longer.
And while gold has barely gone up in price throughout COMEX trading hours since 1975, the eastern world and other mostly emerging markets have ensured that gold is now being rerated so sharply that one ounce almost now affords 50 barrels of crude oil as the once mighty fiat US petrodollar agreements come unraveled.
This recent news out of London had me concerned so I went back to one of my favorite silver price charts for some study this week. And almost as in every time I study this chart it leaves me more confident in my ongoing thesis.
You see the eastern silver price discovery hours have now ballooned to $387.31 oz silver but they also flat lined of late. There was a similar move in the late 1990s and 2000s where we saw not only flat lining but rolling over of the blue line back to the red spot price line.
It was during those red and blue line reconvergences that spot silver did multiples in price, and we are now threatening to rhyme in time.
Full silver market backwardation has not yet returned, but I am thinking it likely only a matter of time until it does given the precarious supply demand situation in the modern world's physical fine silver market.
This is the kind of phenomenon that could drive us to triple digit silver landia in little time. It is not a prerequisite that it has to happen for triple digit silver, only a condition that would make it happen sooner than most might think is possible.
The silver price cup is forming. Whether or not we break silver's old ancient nominal price high of $50 oz this year or in the years that come is not in much doubt now.
What is surprising, is just how under the radar silver is doing this at the moment. With so many reasons as to why it will likely perform multiples in real value terms in the years and decade ahead.
Take advantage of silver and gold bullion deals this weekend, visit SDBullion.com/deals.
That will be all for this week's SD Bullion Market Update.
And as always, take great care of yourselves and those you love.
REFERENCES:
Precious Metals Gain: Gold And Silver Reach Record High In India | CNBC TV18
https://youtu.be/gbDR9uZiWWA?si=jwiyL76HkZf45983
Bloomberg Radio clip
https://www.youtube.com/watch?v=VJOvADEAbMo
Citi's Max Layton on Bloomberg
https://www.youtube.com/watch?v=GPYU4O7i-qI
