Our CEO Explains How Uncertainty Is Driving Gold and Silver Higher

There’s a lot happening in the world right now, and several developments over the last few days are directly influencing the gold and silver markets. I want to take a moment to explain what’s going on, in plain terms, and why precious metals have moved to new all-time highs.

This is about understanding risk, uncertainty, and how markets typically respond when multiple pressure points show up at the same time.

Why Gold and Silver Are Moving Higher

At their core, gold and silver tend to perform best when confidence is being tested, whether that’s confidence in currencies, markets, or global stability. Right now, several issues are converging at once.

1. Rising Global Uncertainty

Unrest and instability in parts of the world are increasing risk aversion in financial markets.

• Protests and violence in Iran have intensified, with significant economic disruption and loss of life. Markets are closely watching how the situation evolves because broader involvement by the United States could affect regional stability, energy markets, and geopolitical relationships beyond Iran itself.
• Developments involving Venezuela, including potential changes to U.S. sanctions and uncertainty around oil supply, are adding to broader market unease. When U.S. policy shifts intersect with energy production and global supply chains, investors tend to reassess inflation risks and the stability of commodity markets worldwide.
• Tensions in strategic regions, including Greenland, are reminding markets how sensitive global trade and resources can be. Increased attention from the United States and other global powers highlights how quickly competition over critical resources and strategic locations can influence long-term economic and security planning.

When uncertainty rises, investors often look for assets that have historically held value through disruption. That’s where gold and silver come in.

2. Federal Reserve Turmoil

Another major factor is uncertainty surrounding the Federal Reserve itself.

Over the weekend, Jerome Powell publicly confirmed that the Department of Justice served the Federal Reserve with grand jury subpoenas related to his prior congressional testimony.

Regardless of political views, markets care deeply about one thing: the independence of monetary policy.

When investors begin to question whether interest rates could be influenced by pressure rather than economic data, confidence in paper assets and currencies can weaken. Historically, that environment has supported precious metals.

Markets reacted quickly:

• Stock markets sold off
• The U.S. dollar weakened
• Gold and silver surged to new record highs

3. A Weaker Dollar and Lower Confidence in Paper Assets

Gold and silver are priced in U.S. dollars. When the dollar weakens, metals often rise.

Right now:

• The U.S. dollar index is under pressure
• Treasury yields are volatile
• Liquidity is thin due to year-end positioning

In simple terms, investors are reassessing risk, and reallocating toward assets that don’t depend on promises or future repayment.

Why Silver Has Been Especially Strong

Silver is unique because it plays two roles at once:

1. A monetary metal, like gold
2. A critical industrial metal used in electronics, solar panels, medical devices, and emerging technologies

That dual demand matters.

Silver markets are much smaller than gold, which means price moves can be sharper when demand increases. Add in:

• Ongoing supply deficits
• Declining global inventories
• Heavy paper trading compared to physical availability

…and silver tends to move faster than most people expect, in both directions.

Paper Prices vs. Physical Reality

One important distinction many investors overlook is the difference between paper pricing and the physical gold and silver market.

Most daily price movement comes from futures and derivatives trading. Physical metal, however, is influenced by:

• Actual supply
• Refining capacity
• Investor demand for real delivery

When uncertainty rises and even a small portion of investors want physical metal instead of paper exposure, the system can tighten quickly. We’ve seen this before, most notably during periods like 2008 and 2020.

Looking Ahead: What This Means for Precious Metals Investors

Periods like this are rarely about one headline or one event. They’re about stacking risks:

• Geopolitical instability
• Questions around monetary policy
• Currency pressure
• Structural supply constraints

From the perspective of a long-term precious metals investor, moments like this tend to mark transitions, not endings.

When gold and silver make new highs during periods of rising uncertainty, it’s rarely about a single event. More often, it reflects a broader shift in how markets are pricing risk, confidence, and supply. Historically, when multiple pressures align, including geopolitical stress, questions around monetary policy, and physical supply constraints, precious metals don’t simply revert overnight.

That doesn’t mean prices move in straight lines. Volatility and pullbacks are normal, and healthy markets often pause to digest gains. But when underlying fundamentals remain intact, strength has a tendency to persist longer than many expect.

Looking ahead, if current conditions continue (ongoing global instability, pressure on currencies, and tight physical supply) it wouldn’t be unreasonable to see gold and silver remain well supported, with the potential for further upside over time. How far and how fast is impossible to know, but the direction of demand has been clear.

For experienced investors, this environment is less about chasing headlines and more about staying disciplined, managing position size, and focusing on long-term trends rather than short-term noise.

As always, my goal isn’t to forecast prices, but to help you understand the forces at work, so you can make informed decisions that fit your own strategy and time horizon.