How High Will Gold and Silver Go?

23 Jan

How High Will Gold and Silver Go?

Gold a shade under $4,000?  Silver at $51, a new all-time high?

We don’t publish a lot of predictions for future gold and silver prices.  We do know what happens to unbacked paper or fiat money: it eventually goes to nothing.  The US has gone a long way down that road already.  

That means the price of gold and silver eventually goes “to infinity and beyond,” since the paper money that they are quoted in becomes worthless.

Market veteran Chris Weber of the Weber Report was called to our attention this week.  He points out that our old friend and market legend Jim Rogers is selling all his stocks.  And what is Jim buying?

Silver.

At the same time, President Trump’s designated Treasury Secretary Scott Bessent (who came up in the market business under Rogers) names gold as his number one position going forward.

But here is some speculation from the first couple of weeks of the new year by Weber:

Silver started this short year with a bang. It was up over 6% from end-2024 until profit taking set in. This has cut the gain in half. But if it only continues to rise by 3% every two weeks, then 2025 will see silver soar by over 77%, and end the year at over $51, a new nominal record.

Silver has outpaced gold so far this year, as we thought it would. Gold is up ‘only’ 1.7%.  Still, if gold does this every two weeks for the rest of the year, it will end the year at $3,797.20, up by 44.6% to a shade under $4,000.


Weber notes the important silver supply/demand fundamentals.  “One big reason I’ve been so bullish on silver is that for many years now, the new supply has lagged demand. I’ve never seen a situation like that. There have been allegations of large short positions keeping silver down. But this cannot last forever. It is like a coiled spring that can only be pushed down so far and for so long. At some point, my view is that silver will explode. In real terms, silver is extremely cheap.”


We’ll close with Weber’s general predictions for 2025.  There are only a few:

  • 1.Silver will be higher a year from today. 
  • 2.Silver will outperform gold. 
  • 3.Interest rates will also be higher. (The 30-year yield is now 4.786%.) 
  • 4.Stock Indexes will be lower.

Those are safe and reasonable observations.  We will just note that if there is a crisis – something that is very likely – all bets are off and gold and silver prices will rocket to levels that are unexpected by most people.