Market analyst Michael Oliver predicts a precious metals boom, led by silver and gold miners, as the stock market falters.
Gold’s recent surge to near all-time highs has ignited excitement in the precious metals market, and according to market analyst Michael Oliver, this is just the beginning. In a recent interview with Liberty and Finance, Oliver, known for his momentum structural analysis, doubled down on his bullish outlook for gold and silver, predicting an explosive growth phase, particularly for silver and gold miners, as the stock market falters.
“The issue for us is not we gold and silver going up, okay,” Oliver stated in the interview, emphasizing his long-held positive view on gold, which dates back to 2016. “We’ve been bullish on gold since February 2016 based on annual momentum and frankly nothing on annual momentum has altered that bullish view since then.”
Oliver’s analysis centers around the interplay between precious metals and the broader financial markets. He believes that the current stock market, which he describes as a “bubble,” is ripe for a correction. He pointed to the S&P and NASDAQ’s relatively flat performance since their July highs as a sign of underlying weakness. “I think that once you punch a hole in the stock market… you’re going to have a lot of that money moving,” he predicted, suggesting that a 5-10% drop could trigger a significant shift in investor sentiment, driving capital towards safer havens like gold and silver.
This shift, Oliver argues, will not only benefit gold, which has already seen substantial gains, but will also create a powerful tailwind for silver, which he believes is significantly undervalued. He highlighted the surging industrial demand for silver, particularly in the solar panel industry, as a key factor in his bullish outlook. “Industrial demand especially for the solar… is growing at rates that are vastly outpacing the annual production of silver,” Oliver explained.
Beyond silver’s industrial applications, Oliver also emphasized its historical role as a monetary metal, noting its correlation with gold’s price movements. “Silver didn’t move with commodities in moved with gold,” he asserted, countering arguments that silver has lost its monetary significance.
Oliver’s analysis extends beyond just the metals themselves. He sees tremendous potential in gold mining stocks, which he believes are poised for a major rally. “We think over the next year or two… the gold miners will engage and they have the potential to triple the performance of gold during that time,” he stated. He pointed to the XAU index, which tracks gold and silver mining stocks, as evidence of the sector’s current undervaluation.
The interview also touched on the retail market for precious metals, where premiums have been crushed, suggesting a lack of public enthusiasm despite the rising prices. Oliver sees this as a positive sign, indicating that the market is not yet overheated. “As far as I’m concerned that’s great, keep it low,” he said, adding, “We want to compress it.”
Oliver’s predictions are bold, but they are rooted in a detailed analysis of market trends and historical patterns. He believes that 2025 will be a pivotal year for precious metals, with silver and gold miners leading the charge. His insights offer a compelling perspective for investors seeking to navigate the increasingly volatile financial landscape.
