Precious metals experts predict a bullish year for gold and silver, citing geopolitical tensions and increasing demand as key drivers.
In a recent interview by VRIC Media, a leading voice in junior mining, precious metals experts JP Cortez and Florian Grummes discussed the potential catalysts for gold and silver price surges in 2025. Cortez, Executive Director of the Sound Money Defense League, emphasized the escalating geopolitical tensions as a key driver.
“Geopolitics is going to play a major Catalyst as to what happens here in 2025,” Cortez stated, highlighting the growing trend of central banks, particularly in countries like China and Russia, actively stockpiling gold and seeking alternatives to the US dollar. He further emphasized, “There are so many catalysts in play and so many dominoes ready to fall that retail turning the corner and coming back into this space in 2025 could be what lights this Powder Keg and sends prices going over 3,000 in my opinion.”
Grummes, Founder and Managing Director of Midas Touch Consulting, while acknowledging these geopolitical factors, also cautioned about the potential impact of a volatile stock market on precious metals. “I believe strongly that most of the markets are connected somehow and correlated today due to liquidity and money flow,” he stated.
Silver’s Undervalued Potential
The discussion also delved into the potential for significant silver price appreciation. Grummes, a self-proclaimed “super bull” on silver, highlighted the historically low gold-silver ratio, indicating a significant undervaluation of silver. “I think we are oversold again,” he said, emphasizing the growing global demand for silver driven by industrial applications, particularly in the burgeoning renewable energy sector.
“Silver is getting ripe for a catch-up rally,” Grummes predicted, “It’s getting ready to show up… I assume something similar to happen probably in 2025. So, Silver is trying to move out of this 4-year trading range that started with the Co crash, and, it’s been trading mainly between 20 and $30, and it’s trying to leave that $30 behind it.”
The Crypto Factor
The interview also addressed the influence of cryptocurrencies on the precious metals market. While acknowledging Bitcoin’s growing influence, both experts emphasized the unique and irreplaceable role of gold and silver as stores of value.
“I think Bitcoin is an excellent…something that everyone’s portfolio should hold,” said Cortez, “but I think that all of this inflow that we just saw into Bitcoin…are going to see say wait what have I gotten myself into…gold and silver are going to be natural alternatives.”
Grummes, while acknowledging the potential of cryptocurrencies, cautioned against excessive speculation and emphasized the importance of a diversified portfolio. “I’m now at a stage in my life where I’m pretty much agnostic about most of this kind of things,” he stated, highlighting the unpredictable nature of the current market.
