Kenmore, N.Y (WBEN) - The gold and silver markets continue to see prices surge, with some people looking to cash in on an opportunity to make some cash.
According to JM Bullion on Tuesday, gold finished the day worth $4,159.18 per-ounce, which is up $159.33 from just last week and $500.87 from only a month ago. As for silver, it finished Tuesday worth $51.82 per-ounce, which is up $3.77 from a week ago and $9.40 from last month.
Scott Hunt from Jack Hunt Gold & Silver says what's happening in the gold market, and especially with a recent surge in the silver market, is unprecedented.
"I think what's happening with silver is it's catching up to gold, in some respects," said Hunt in an interview with WBEN. "There was always a ratio between the two metals, that seemed to fall out of favor decades ago, and there seems to be a correction maybe back to that now. It's an extraordinary time"
Hunt says the silver market has become glutted.
"Dealers all over the country are buying so much silver from the public that the refineries they sell to are getting backed up, and there's no longer anywhere to move the product so people are going to have to sit on it for a while. It's absolutely crazy. I've never seen anything like it," he said.
Hunt notes there were instances in 1980 and 2011 where there were similar rises in silver. In both of those times, there was a dramatic rise in the price with a very sudden drop.
"I think gold's gradual rise in price has made it more sustainable, not to mention the fact that gold price is largely influenced by Central Bank demand, and Central Banks are really loading up on the metal. There are numerous geopolitical reasons for that, but that is driving the price. And now you see retail investors are just following the wave, so to speak," Hunt explained.
"I personally would be a little concerned about silver sustainability at this price level, just because we have seen this happen twice before, historically in the last four decades - A dramatic rise and, boom, right back down. But there's a lot of things going on now that we've never seen before, so who's to say for certain?"
Whenever there is generally a spike in gold, it's often a red flag or indicator of turbulent times ahead. Hunt says silver, unlike gold, does have a large industrial demand, which is, in part, what is driving the price now.
"The thing I can't reconcile in my own head is that demand for silver existed two years ago as well, and it was at $30. Now it's at $50. I do think the retail investor, it's much easier to get into precious metals, buying silver than gold, so it's a good entry point for a lot of people who do choose to do that," Hunt noted. "But again, I think we've just seen such a dramatic rise in the price of gold that eventually silver is going to follow."
Hunt notes, though, that Central Banks don't buy silver and store silver, because it's not considered a sovereign asset for a store of wealth like gold is.
"You're never going to see silver be in the same category as gold, and I believe it affects the stability of the price of that commodity, of silver versus gold," he said.
Hunt admits it is not easy to forecast how the gold and silver markets are going to play themselves out over the next several days and weeks.
"I can say that I saw that Bank of America put out an estimate that they believe gold will be at $5,000 by Q2 2026. Goldman Sachs has gold at $4,900 by the end of 2026. Those are all speculations, and gold is, I like to say, an emotional investment," Hunt said. "Maybe we're going to see some more stability in the world. The peace agreement in Gaza, certainly, I expected much more of a dramatic pullback right there, because geopolitical tensions are a big part of what drives precious metals prices, especially gold. But we haven't seen it."
Another factor Hunt believes is driving the prices of these metals is Artificial Intelligence.
"I'm reading more-and-more now that there are people who have heavily been in the market, who have benefited from investing in AI, who are now getting concerned about a bubble, similar to what happened with Y2K and the run up to that. So they're putting their money elsewhere," Hunt said.
Hunt is firm in his belief that no one is for certain of everything that's going on in the world, and he has always felt that when this kind of activity with precious metals is taking place, it's usually a harbinger of bad news.
"We may not see it yet, but I could certainly say when we're $35, $36 trillion dollars in debt, meaning the United States government, that's a real burden on our financial system and our country, and it doesn't seem like anyone wants to fix it. And I think that will drive precious metals prices, because people get spooked, and they're getting more-and-more spooked by this," Hunt said.
If anyone may be questioning whether or not to take advantage of the surge in the gold and silver markets, Hunt says we may never have an opportunity to sell at this price again.
"I can't guarantee that, though. If I could, I'd be living in the Caribbean, because I would be the font of all knowledge, and that's certainly not the case. And you could be coming back to me six months from now and we're talking about silver being at $100," he acknowledged. "But I would sit here and say - I always preface this - if you need money for a project, you have something going on with your family, you have outstanding bills, now is an outstanding time to capitalize on whatever may be in your home that contains silver in it.
"But if you're not investing for the long-term, I highly suggest you be careful, because you live by the sword or you die by the sword."
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