(Money Metals News Service) The Money Metals Midweek Memo, hosted by Mike Maharrey, delivered a comprehensive analysis of gold’s historic rally, economic uncertainty, and the structural forces driving the surge.
For the first time, gold prices surpassed $3,000 per ounce, marking a significant milestone in the market. Over the past 18 months, gold has demonstrated unprecedented growth, increasing 45.3 percent since the end of 2023. In 2024 alone, gold hit new highs 40 times, and so far in 2025, the price has already broken records 14 times.
The metal surged from $2,500 to $3,000 in just 210 days, a rapid climb compared to the historical average of 1,700 days to reach each previous $500 milestone.
Despite the significance of $3,000 gold, Maharrey notes that this is merely a stepping stone in a long-term bull market.
Gold’s Performance vs. Other Assets
Gold’s rise has outpaced stock market gains over the long term. Since 2005, the price of gold has increased sixfold, averaging 9.97 percent annual growth, while the S&P 500 has averaged an 8.2 percent return during the same period.
Additionally, gold’s 200-day moving average shows its price deviating three standard deviations from the trend—a rarity last seen during the pandemic surge to $2,000 per ounce and the move to $2,500.
Key Drivers of the Gold Rally
Several factors are driving this rally. Inflation remains a primary concern despite the Federal Reserve’s attempts to control it. The long-term effects of decades of easy money policies are now surfacing. Corporate bankruptcies hit a 14-year high in 2024, surpassing COVID-era levels. At the same time, 91 percent of small business owners report struggling with current economic conditions.
The Atlanta Fed’s GDP Now forecast plunged from 2.3 percent growth to -2.8 percent within weeks, signaling increased recession fears.
Maharrey argues that years of artificially low interest rates, quantitative easing, and massive government spending have created distortions in the economy that must eventually unwind.
Trade tensions have also contributed to market uncertainty. Many analysts cite tariffs, particularly those associated with Trump-era policies, as a significant factor in gold’s rise. Investors often turn to gold in uncertain times, and fluctuating tariff policies have only added to the market’s volatility.
Another major driver of gold’s rally has been central bank gold buying. Global central banks have increased their gold reserves by more than 1,000 tons annually for three consecutive years. This figure is more than double the average yearly increase from 2010 to 2021.
Countries like China are believed to be stockpiling even more gold than officially reported. Central banks are shifting their reserves in response to concerns over the United States’ fiscal instability, with the national debt surpassing $37 trillion and budget deficits continuing to rise.
The de-dollarization trend has also pushed foreign governments toward gold as they seek alternatives to holding US dollars, which the United States has increasingly used as a foreign policy tool.
Silver’s Quiet Strength and Potential
While gold has dominated headlines, silver has quietly outperformed gold in percentage terms during this rally. The gold-to-silver ratio has dropped below 90, suggesting silver is still undervalued compared to gold.
Historically, silver lags behind gold in a bull market but eventually catches up and surpasses it. Many analysts see silver’s current price as a strong buying opportunity, especially since it has yet to break through its key resistance at $35 per ounce. When silver does cross that level, history suggests it could quickly move toward its all-time high of $50 per ounce.
Will Gold Pull Back Before Rising Higher?
Although gold’s rapid rise is impressive, investors should expect short-term pullbacks. Historically, when gold crosses major price thresholds like $1,000 or $2,000, it consolidates before resuming its climb.
Some analysts predict that gold could briefly dip to around $2,956 or even $2,930 in the near term as investors take profits. However, historical trends show that these corrections are often short-lived. In four out of the last five times gold has consolidated at a major level, it recovered to new highs within a few days.
Gold and Silver as Long-Term Investments
Maharrey emphasizes that pullbacks in gold and silver should be seen as buying opportunities, especially as global monetary policies favor continued currency devaluation.
Investors interested in precious metals can explore various options through Money Metals Exchange, which offers physical gold and silver, storage solutions, and monthly accumulation plans starting at $100 per month.
Gold reaching $3,000 is a historic moment, but the underlying economic conditions suggest the bull market is far from over.
As inflation concerns persist, central banks stockpile gold, and the global economy faces uncertainty, precious metals remain a proven hedge against economic instability. Investors should stay vigilant for pullbacks, but long-term trends point to further gains for both gold and silver.
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