Despite inflationary pressures, global tensions, and ongoing uncertainty in fiat currencies, gold and silver haven’t seen the booming demand many investors expected.
In this article, we’ll share the main reasons why the precious metals market is slower than anticipated and why this might be the time to make a move.
Let’s begin by taking a look at a brief history of gold and silver purchases in a recession.
History of Gold and Silver Purchases in Recessions
Throughout history, economic recessions and financial crises have consistently driven investors toward physical gold and silver.
These precious metals are seen as stores of value during times of uncertainty, when fiat currencies may depreciate, inflation may rise, or trust in financial institutions weakens.
The Great Depression (1929–1939)
- During the Great Depression, economic collapse led to a surge in gold hoarding in the United States
- In response, the U.S. government banned private gold ownership in 1933 through Executive Order 6102, forcing citizens to sell their gold to the Federal Reserve
- Despite this, silver remained legal to own and became a popular hedge for individuals who feared further financial instability
1970s Inflation and the Gold Bull Market
- The 1970s saw high inflation and economic stagnation (stagflation), largely due to oil shocks and loose monetary policies
- The U.S. officially abandoned the gold standard in 1971, allowing gold prices to float freely
- Investors rushed to purchase physical gold and silver, fearing the erosion of the dollar’s value
- Gold soared from $35/oz in 1971 to over $800/oz by 1980. Silver also surged, famously peaking at nearly $50/oz in 1980 due in part to the Hunt brothers’ attempted market corner
2008 Global Financial Crisis
- The collapse of Lehman Brothers and the ensuing financial panic led to massive demand for physical gold and silver
- Investors fled from stocks and fiat currencies into tangible assets
- Gold rose from under $800/oz in 2008 to over $1,900/oz by 2011. Silver also climbed dramatically, peaking at around $49/oz in 2011
- Physical bullion coins like the American Gold Eagle and Silver Eagle saw record demand, often selling at high premiums over spot prices
COVID-19 Recession (2019-2021)
- The pandemic triggered a sharp global recession, prompting central banks to inject unprecedented levels of stimulus
- Concerns about inflation, supply chain disruptions, and currency devaluation spurred renewed interest in physical gold and silver
- Bullion dealers reported shortages and delays, with premiums soaring due to the rush to buy physical metals
- Gold hit an all-time high of over $2,000/oz in August 2020, while silver surged past $29/oz
In every major recession or financial crisis over the last century, physical gold and silver have emerged as reliable hedges against economic uncertainty, currency devaluation, and inflation. Their role as trusted stores of value continues to make them appealing during times of market stress.
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Current Gold and Silver Prices
Here’s the current snapshot of physical gold and silver prices—a critical reference point during economic uncertainty:
🔹 Gold Price (Spot)
- – Spot gold is currently trading at approximately $3,392 – $3,406 per ounce.
- – According to Reuters, spot gold was at $3,392.29/oz as of June 17, 2025
- – Dealer platforms show a slightly higher live spot, around $3,406.60/oz
- – Price per gram stands near $109–110, or about $109,000 per kilo
Spot quotes vary by timing and venue, but the consensus places gold around $3.4k/oz. Geopolitical tensions—especially in the Middle East—continue pushing demand, maintaining prices near historic highs.
🔹 Silver Price (Spot)
- – Spot silver is hovering around $36.4–$37.3 per ounce
- – As of June 17, silver was about $37.01/oz
- – That converts to roughly $1.18–$1.20 per gram, or $1,175–$1,200 per kilo
Silver is trading near its highest levels since ~2012/2013, fuelled by its dual role as a safe haven and industrial metal. The gold‑to‑silver ratio is currently around 93:1, signaling silver remains relatively undervalued compared to gold.
Quick Takeaways
Metal | Price Range | Drivers |
Gold | ~$3,392–3,406/oz | Escalating geopolitical risk, safe-haven demand, Fed rate outlook |
Silver | ~$36.4–37.3/oz | Safe-haven flows, surging industrial demand, tight relative valuation |
With these incredible numbers in mind, let’s take a look at why people aren’t rushing to buy these precious metals just yet.
Why Aren't Gold and Silver Booming (YET)?
Here are 7 key reasons why not as many people as expected are rushing to buy gold and silver right now:
1. Interest Rates Are Still High
When interest rates are elevated (as they have been due to the Federal Reserve’s inflation-fighting stance), assets that don’t yield income — like gold and silver — become less attractive compared to interest-bearing ones like:
- – Treasury bonds
- – High-yield savings accounts
- – And CDs
This “opportunity cost” deters short-term investors.
2. Stock Market Optimism
Despite underlying economic issues, the stock market has been surging, especially in tech and AI-related sectors.
Many retail and institutional investors are chasing high returns in equities instead of seeking the perceived “safety” of metals.
3. Strength of the U.S. Dollar
Gold and silver prices typically move inversely to the dollar. While inflation has eroded purchasing power, the U.S. dollar has remained relatively strong in forex markets due to:
- – Global demand for USD
- – Higher U.S. interest rates
- – Weakness in other currencies (Euro, Yen, etc.)
A stronger dollar typically suppresses gold and silver prices.
4. Low Retail Investor Participation
Although central banks (especially in countries like China, India, and Russia) have been buying gold aggressively, retail demand in the West is weak. Reasons include:
- – Lack of education about gold/silver
- – Belief in digital assets or tech stocks
- – Preference for real estate or cash
5. Market Manipulation and Paper Contracts
The COMEX market (where gold/silver are traded in paper form) is heavily influenced by large institutional players who can short the market, suppressing physical prices.
This disconnects true supply-demand fundamentals from actual pricing, frustrating both miners and investors.
6. Cryptocurrency as the “New Gold”
Some younger investors see Bitcoin and other cryptocurrencies as modern alternatives to gold and silver.
Here are some reasons why:
- – Decentralized asset
- – Finite supply
- – Easily tradable
This has siphoned away some of the inflows that historically would have gone to metals. To learn how to best invest in cryptocurrencies and become your own bank, we recommend the highly reputable DeFi platform, Decentralized Masters.
7. Complacency and Media Distraction
Despite high inflation, many consumers and investors remain complacent due to:
- – Government data downplaying inflation
- – Lack of mainstream financial media focus on gold/silver
- – And distractions from political headlines or tech news cycles
Despite a volatile market, these factors have dampened the enthusiasm for gold and silver, leaving many investors on the sidelines—for NOW.
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So Why Should Gold and Silver Be Booming?
All the fundamentals are there for gold and silver purchases, and gold IRA investments to be booming. Here are some reasons why people should stock up on metals in this market:
- – Inflation remains elevated (real inflation is higher than CPI suggests)
- – Debt levels (personal, corporate, and government) are unsustainable
- – Global de-dollarization trends are accelerating
- – Geopolitical tensions are rising
Many experts (like Ron Paul or gold-focused analysts) believe this disconnect won’t last — and that gold/silver will eventually reprice sharply upward when confidence in fiat and financial systems falter.
Bottom Line
Gold and silver are undervalued hedges in a speculative world. The current slowdown is likely a temporary psychological lag, not a sign of weakness in the metals themselves.
Gold and silver have stood the test of time—not just as hedges against inflation and economic uncertainty, but as true stores of value that don’t rely on digital systems, government policies, or corporate earnings.
By adding physical gold and silver to your portfolio, you’re not just buying metals — you’re investing in financial security, portfolio diversification, and long-term peace of mind. As economic volatility continues to rise, those who act early will be best positioned to preserve their wealth and seize future opportunities.
Don’t wait for the headlines to tell you it’s time. Protect your future with real assets today.
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