Gold is making headlines again, but not for the usual reasons. While prices keep soaring past $2,900 per ounce, something much bigger is brewing. Traders and banks are now rushing to pull their gold out of the Bank of England’s vaults and ship it across the Atlantic to the U.S. The backlog at the vaults has grown so severe that it’s now taking weeks to process these withdrawals. The shift? Higher prices in the U.S. and looming tariff concerns are causing a liquidity crunch in London. The gold market is showing signs of a serious shake-up—and it’s not just about high prices.
Gold’s incredible performance, which has seen eight consecutive weeks of gains, is further bolstered by heavy investments into gold-backed ETFs. In fact, those inflows have been the largest since 2022. And it’s not just the price of gold that’s driving attention—it’s the broader financial backdrop. With inflation numbers climbing, and the Fed expected to cut rates as soon as mid-2025, the golden rush is as much about hedging against uncertainty as it is about profit.
Goldman Sachs has responded to these trends by upping their year-end target to $3,100 per ounce. Why? Central banks are buying more gold, and ETF holdings are expanding. The U.S. dollar is weakening, and economic data points to a slowdown. This isn’t just a gold rush. This is the kind of environment that could drive gold even higher, despite the strong dollar and high interest rates that normally would send prices plummeting. For investors, this is a rare, perfect storm that could keep pushing gold higher.
Meanwhile, the silver market isn’t sitting still either. Silver prices are eyeing $35 per ounce after showing considerable upward momentum. While silver usually follows gold’s lead, silver has a particularly strong appeal. The gold-to-silver ratio has ballooned to 100:1, a stark contrast to the historical 15:1. With increasing demand for silver in cutting-edge technologies like renewable energy and AI, silver could be poised for a much-needed breakout.
But there’s more. Tavi Costa, a prominent market strategist, points out the current economic environment is showing all the signs of stagflation. Retail sales are contracting, inflation is climbing, and the Federal Reserve’s preferred inflation index keeps moving upward. This is textbook stagflation—an environment where gold typically thrives, and investors should be ready to act.
And let’s not forget about the most important factor driving gold’s rally: the global uncertainty. Gold has already tripled in value over the past decade, and it seems there’s no end in sight. Nations are turning to gold, reducing their dependency on the U.S. dollar, and stockpiling over 1,000 tonnes annually. As global tensions grow and tech innovation pushes demand for gold and silver, the future of both metals looks increasingly bright.
Peter Schiff, as always, is calling it: “Gold just hit another record high, trading above $2,950 for the first time.” And according to Schiff, it’s not stopping there. He sees the next stop being $3,000, and for good reason. The broader economic indicators are setting the stage for a gold rally like we’ve never seen before. This isn’t just speculation—it’s a reality based on the economic shifts happening right now.
In short, the gold market is on fire. Whether you’re looking at the Bank of England’s backlog, or the steady rise of ETF investments, one thing is clear: gold’s value is climbing, and it could go much higher. Keep your eyes on the ball, because the future of gold—and silver—is looking brighter than ever.
Sources:
https://x.com/TaviCosta/status/1893051776531874054
https://www.livewiremarkets.com/wires/what-is-the-performance-of-gold-telling-us
https://x.com/PeterSchiff/status/1894012294574547147