Gold and Silver Enter the Spotlight as Wall Street Joins the Bull Market
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The Fed just kicked off a new rate cutting cycle, a move that often boosts gold and silver prices.
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Wall Street is finally catching on, with Morgan Stanley suggesting 20 percent gold in portfolios and Jeffrey Gundlach saying 25 percent is reasonable.
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If you’ve been stacking since gold fought to break $2,000 an ounce, you were an early adopter ahead of the herd.
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Gold’s momentum is strong, consolidating at highs and climbing again, echoing past bull runs where prices soared.
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Silver remains undervalued, with room to more than double just to catch up with old highs, making it attractive for younger growth minded stackers.
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Central banks continue to buy record amounts of gold, reinforcing its role as a new reserve currency.
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Rising lease rates, especially in platinum, highlight the challenges and costs bullion mints face in keeping products flowing to market.
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Precious metals serve as insurance against a weakening dollar and inflation steadily eroding savings.
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A smart allocation is around 20 to 25 percent of liquid net worth in gold and silver, with older investors leaning toward gold and younger stackers favoring silver and even platinum.
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The bottom line is that gold and silver are not just collectibles, they are practical tools to preserve wealth, grow purchasing power, and provide peace of mind.
From silver’s surge past $43 per oz, to bold 20–25% allocation calls, to record central bank gold buying, this week’s update shows why the metals market is heating up.
This week the fiat Federal Reserve began its latest rate cutting cycle.
Lowering the fiat Fed Funds rate by 25 basis points.
I am about to show you two striking mainstream financial media headlines illustrating just how aggressive the bullion allocation suggestion headlines are now becoming.
Look, when it comes to human beings and our predictable herd behavior. An adoption tipping point is the critical threshold at which either a new technology and or in this case an old idea moves from slow, early adoption, to rapid, mainstream acceptance.
We are now nearing the increased precious metals allocation adoption phase in this modern Western world bullion bull market.
Remember all those years of battling back and forth around the key $2,000 oz gold resistance zone?
Congratulations, you are likely part of the early adopters.
Thus real increases in purchasing power and your wealth position have been and are transferring further to you to come.
Come on in broader financial institutions and high net worth crowd.
The average mainstream US investor is still asleep at the wheel on bullion, at least for now.
The first of the aforementioned bullion allocation headlines came this week from the CIO at Morgan Stanley declaring the new investment portfolio allocation should 60% stonks, 20% bonds, and 20% gold bullion.
Better late than never I suppose. And by the end of this worldwide bullion bull market, heavy allocations to bullion will be much more commonplace than they are now.
Ah by the way, humble brag, we posted in our SD Bullion resources section a bullion allocation study in the year 2018 that suggested getting long bullion to the tune of around 25% at the time of one's liquid net worth.
That was back at gold spot prices around 1/3rd what they currently are now.
You're welcome anyone out there who actually took that backtested data suggestion we published on our website.
Now to the second of this week's major calls to allocate near 25% into bullion.
Jeffrey Gundlach made headlines this week on CNBC. But rather than simply show you the article, let's actually allow him to speak to his 25% bullion allocation positioning himself.
To his point about heavy bullion allocations over overvalued US stocks in the S&P 500 for instance.
We are still in terms of relative gold and silver values vs US stocks hovering above the 1929 high levels. When I look at these long term charts, I simply key into the old 2011 low levels confident that we are not only heading there but likely beyond come the 2030s.
Onwards, let's hear Jeff dance on the crypto crowd.
We are going to touch on gold, silver, and platinum further in the second half of this week's Bullion Market Update. Make no mistake, the shift to more aggressive precious metals allocations is underway.
And it doesn't matter if I use the US government's rigged CPI price inflation data looking backwards from here to the old 1980 high, or if we use Shadow Government Statistic's price inflation data.
Either ways, silver has to perform multiples in spot price to near back to levels seen in 1980. Even the old 2011 price high in rigged CPI data calls for the current silver spot price to basically double in spot price from here to get past that old pip squeak price level.
The eventual gold mania price is likely a five figure number per troy ounce as well, somewhere well north of the rigged CPI data high that still gets brought out and laughed at by anyone who understands the price chart crimes.
The 200 day moving average on gold is rapidly climbing now over $3,130 oz.
The current spot gold price ascent in fiat USD, its closest analogue angle is the old 1976 to 1980 bull run's beginning, spot basically eight folded from $100 oz to over $800 per oz.
We began this latest bull climb from the $2,000 oz level so you get an idea of what gold is currently threatening to redo.
Silver is still relatively dirt cheap in fiat Swiss francs, needing to more than double in its local spot price just to near its ancient nominal 1980 price high.
Meanwhile the fiat USD dollar quarterly silver price chart is beginning to signal breakout to any and all CTAs and technicians who often use these charts to try and find momentum long bets to plow into for profitable scalps.
We are now nearing the moment when new levered long hot currency inflows into the silver space.
Just look at that chart.
The spot silver and gold markets rose again on the week.
The spot silver price closed at an important psychological level above $43 oz bid price.
The spot gold price ended this week at $3,684 oz bid price.
The spot gold silver ratio fell a bit to end the week at 85. Technically let's see if 85 can get broken downward next week.
In further evidence that gold bullion allocation suggestions are going mainstream. I back-linked a clip to this Bloomberg Podcast that basically admits this current gold bull market's structure is wider and deeper than any seen prior.
The title asks the question "Is Gold the New Reserve Currency?".
And the answer is now yes based on ongoing central bank reserve holdings data. And the record tonnage of gold bullion reserve buying that government central banks have been doing since 2022.
We just dropped a new podcast with executives from the world's oldest sovereign bullion mint, the Royal Mint, and I want to highlight there discussion regarding this years blowout in London gold and silver lease rates. The full podcast link is in this week's show notes, and this clip will give you a better insight into how difficult a business model high volume bullion product minting can be.
And finally, I was fortunate to be a guest on the Silver Seeker YouTube channel https://www.youtube.com/@SilverSeeker this week. Mr. Silver Seeker does a great job informing his viewers about the physical bullion markets here in the USA.
And he has a very important question he asked of me. Specifically why am I so aggressively allocated into precious metals bullion products currently in 2025. Watch the video: Bullion Dealer Admits the TRUTH About Silver and Gold! by Silver Seeker.
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:
DoubleLine’s Jeffrey Gundlach believes holding a 25% gold position isn’t excessive
CNBC - https://archive.is/8buXf
Jeffrey Gundlach on Fed Divisions, Overeasing and Global Opportunities
Morgan Stanley CIO favors 60/20/20 portfolio strategy with gold as inflation hedge
Reuters -
Is Gold the New Reserve Currency?
SD Podcast: Inside the Royal Mint: A Thousand Years of Coincraft and Innovation
