Our CEO Explains Gold & Silver’s Short-Term Moves

In precious metals, significant market moves don’t happen in isolation. The recent strength we’ve seen in silver reflects pressures that have been building quietly over time. Even with the current pullback in both gold and silver, those underlying forces remain in place.

I’ve worked in this industry long enough to know that moves like this are rarely random. They tend to surface when multiple factors align beneath the surface, often long before they become obvious in headlines.

Let me walk you through what’s going on without predictions or hype.

What’s Driving Gold and Silver Right Now

This move isn’t being driven by just one headline.

Several powerful trends are lining up at the same time:

• Ongoing global uncertainty is pushing investors toward hard assets
• The U.S. dollar has weakened, which often supports precious metals
• Investment demand has picked up sharply
• Physical supply remains tight across precious metals
• Investment demand has increased for both gold and silver
• Silver continues to see added pressure from industrial demand
• Gold remains a core store-of-value asset during uncertainty

When these factors stack together, prices don’t drift higher. They move quickly.

Why Silver Is Acting Differently Than Gold

While both metals are pulling back today, they often move for different reasons.

Gold is mainly held as a store of value. Silver is different.

Silver is both:

• A monetary metal, and
• A critical industrial metal

Silver is essential for:

• Solar panels
• Electric vehicles
• Electronics
• Medical equipment
• Advanced batteries

Today, roughly half of all silver demand comes from industry, not investors. That means even when prices rise, manufacturers still need silver to keep operating.

A Supply Problem That’s Been Building for Years

Here’s an important piece most people don’t see.

For several years in a row, the world has used more silver than it produces.

This isn’t a short-term issue:

• Most silver is mined as a byproduct of other metals
• New mines take many years to develop
• Recycling alone can’t close the gap

At the same time, inventories at major exchanges have dropped significantly.

In simple terms, there isn’t much extra silver available.

Paper Prices vs. Physical Reality

Another factor is the difference between paper pricing and the physical gold and silver markets.

A large amount of trading happens in paper contracts. Those markets can move prices quickly. But physical silver is limited by real supply.

When paper demand rises and physical supply is tight, prices adjust rapidly. That applies to both metals.

Why Pullbacks Are Normal, Even in Strong Markets

Markets don’t move in straight lines.

After strong runs, it’s normal to see prices pause or pull back as traders take profits and markets reset.

In my experience, these moments often create opportunities, especially when the long-term fundamentals remain intact, as they do today for silver and gold.

“Should I Be Concerned About Buying at High Prices?”

That question applies just as much to gold as it does to silver.

Most people hesitate when markets feel uncertain. But in my experience, strong markets don’t lose their long-term direction because of short-term pullbacks.

Pullbacks often reflect short-term trading, not a change in fundamentals.

In fact, pauses and pullbacks are often how strong markets reset before continuing higher over time.

Strong markets in gold and silver tend to correct through time, not collapse overnight.

How Experienced Buyers Approach Markets Like This

Long-term precious metals buyers don’t try to time perfect entry points.

Instead, they focus on:

• Buying gradually over time
• Managing premiums carefully
• Focusing on fundamentals, not headlines
• Staying disciplined, even during volatility
• Using pullbacks as entry points rather than waiting for perfect timing

Dollar-cost averaging remains a practical approach in almost any environment, especially one like this.

Why This Matters Over the Long Term

Periods like this, when prices pull back after a strong move, can offer opportunities to add metals while fundamentals remain intact.

Supply growth, however, remains limited.

While price moves can be volatile in the short term, the structural forces behind silver haven’t changed. They’ve simply become harder to ignore.

If You’re Looking to Add Gold or Silver Right Now

Periods like this, when prices pull back after a strong move, can offer opportunities to add metals while fundamentals remain strong.

If you’re considering adding silver, we currently have a range of options available, including lower-premium products and secondary market offerings.

As always, my goal is to help you navigate these markets with clarity and confidence, whether you’re buying, selling, or simply staying informed.

Thank you for being part of the Monument Metals community.